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Content Insider #174 - Music's DemiseArtists, Music, Audiences Change Labels Find it Tough
Music is dying if you believe the RIAA (Recording Industry Association of America). Music is a growing business if you believe Apple, Google, Spotify, Yahoo Music, Artist Direct, My Space Music, Pandora and hundreds of other options. They're right - all of them. The 'good ol days' are gone. Everything lives in phases - music is no different: - 8-tracks had their peak in '78 of $3.1 B according to the RIAA - LPs had their peak in '78 of $8.1B - Cassettes had their peak in '88 of $6.1B - CDs peaked in 99 with $16.4B - Albums began their rise with downloads of $1B in 2010 - Singles jumped out with downloads of $1.6B in 2010 - Mobile 'sales' is going to be huge but-. Sure, Warner Music is up for grabs but the buzzards see a feast in the carcass- a library that's worth gazillions. Buddy Holly, The Big Bopper, Ritchie Valens were killed in a plane crash in '59 and everyone called it the day the music died. For Elvis fans there was a similar feeling. Same when John Lennon was killed-or El Shaka-or Selena Eras ended, but music survived. It turns out the royalties to their estates and older artists may have been reborn with the Eminem's decision against Universal that digital sales are licensed royalties not out-in-out sales. The New Beginning While the industry (RIAA) is trying to revive its collective income, the ruling made them step back a little. Buddy commented, 'I have never, ever-it feels funny to me.' Worldwide revenues remain strong.
Yes But - The music industry reluctantly admits that music sales " of all types " continues to rise but the old way of stamping a disc, shrink-wrapping it and sending it to the store is dwindling. The RIAA members just can't figure out how they're going to make the same amount on the digital sales and streaming music. Source - eMarketer It's true, the guys aren't stamping out, shrink wrapping, shipping as many albums, but the music plays on.
Tracking the Mix - While physical media sales continue to drop, single and album sales have begun to level off to a more modest/realistic growth. The newest opportunity, mobile music, is still trying to gain its foothold. Source - eMarketer
By 2016, they say streaming will have more than 161 million subscribers.
But keep in mind that the planet has more than 7 billion people, so that's a pretty small explosion.
Today, kids just have more to do -- play games, watch music videos, listen to music, move in/out of Facebook, text.
Bands and artists have found that the new online sites/tools are great for forming direct relationships with their fans. They're monetizing the relationships with things like tickets to live shows, merchandise and fan clubs.
While the RIAA sues their fans, the artists talk to them - seems to work better.The industry knows their future is in the cloud. They just can't figure out how they make the same amount of money. The new purveyors say the label's problem is greed, stupidity (or more kindly, shortsightedness), bad will. Wrong! The problem is everyone has a silo mentality. Everyone wants his/her 'unfair share' in his/her silo. Someone has to tell 'em, 'Folks it ain't workin!'
Music piracy and digital music put an end to the RIAA members' silver disc cash cow.
People are finding new ways to listen to their content and they like it. They don't want eight songs wrapped around the two they really want-they want the specific songs.
It's not just a bunch of the content; it's the listeners' experience.
Studios have to understand musicians like reaching out, delivering the experience, making a living.
Maria Elena emphasized, 'Just take my word for it.'
It means labels and the rest have to figure out licensing agreements that are best for everyone - including the listener.
The consumer simply doesn't care about 'them.' They want to listen to music that is relevant right now on the device they have at the time.
They need to agree on something that works for the artist and the consumer - regardless of the platform or device.
We don't care how the services compensate each other whether we buy it, rent it or stream it.
Don't like it? Remember what Buddy said at the end of his last concert, 'Thank you, Clearlake! C'mon... we love you, we'll see you next year.'Legend Power - While some music fades in only a few months or years, there are musicians whose songs live on years after their death. In some instances, their music becomes increasingly popular over the years.
The music will live on.
Undercover author Miles Weston has spent more than 30 years in the storage, software and video industry, indulging in, among other things, marketing activities in promoting PC, CE, communications, content technology and their applications . Contact Miles through his editor by clicking here.
Related Keywords:Music, RIAA