I get really frustrated when I read media beat ups about the pending death of the music industry. What they are really talking about is the death (or at least rapid decline) of the music recording industry. This NY Times article uses a graphical representation of sales data, which to be fair, is compelling and shocking if you sell recorded music.
Music has never been healthier depending on your measure of health. The music industry outside of recording is booming. Tickets, merch, festivals, licensing, sponsorship, publishing and media are all in relatively good shape from what I can tell. Most importantly it would appear that music as a passion and interest has never been healthier. I have no data to base this on but anecdotally the desire amongst the public to consume and enjoy music is alive and kicking from what I can see.
Taking our own business as an example. We are a music business but we do not sell recorded music in any way. We make money from advertising, sponsorship, events, ticket sales and consulting about music. We have grown from a staff of 3 to 48 in 9 years.
So enough already about the music industry dying. Record companies may well be doomed but the music will go on.
5 Comments
ben 3 September 2009, 12:20pm
> Tickets, merch, festivals, licensing, sponsorship, publishing and
> media are all in realtively good shape from what I can tell.
so all the parasites are in good shape then?
I’m glad to see everyone else has worked out a way to get paid that doesn’t involve selling music.
Neil Ackland 3 September 2009, 12:41pm
Surprised you see tickets, merch, festivals (especially!), licensing, sponsorship, publishing and media as parasites Ben. After all they are services provided to artists so they can generate income from their art, much like a record company no?
My point is that I don’t believe that music sales are reflective of the health of the music industry as a whole in the same way they were ten years ago.
Paul Zagoridis 9 September 2009, 6:37pm
ben’s either a troll or a shill for the record companies.
Neil thanks for this article, it put the music business in perspective. We should all be talking about the death of the recording industry.
The most powerful profitable aspects of the music business has always changed with technology. Anybody remember printed music (the origin of “publishing”), pianola rolls, or 78’s?
I don’t understand the economics of radio play, but suspect that was a faustian deal between record companies and broadcasters. How else did radio play fail to be a huge earner for more acts?
Artists will make money from performing and ancillary services. Which for the longest time in music business history is where they have and should make money. Sales of “studio albums” will eventually be seen as a passing fad of the later half of the twentieth century.
david 20 September 2009, 8:36pm
Thanks I love the graphic representation. Agree entirely with the point about albums being a passing fad. Please take a look at our short video take on the state of music… http://www.youtube.com/watch?v=o9g7Msgvdiw
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