Death of the Music Industry

Sure doesn't look good..... we better start looking a new business model....cause it sure ain't happening from sale of product.

On the other hand, at least costs for digital distribution are much lower.

Maybe some day most our music will come from talented amateur entrepreneurs.

Yeah, along that line, my son was telling me Radiohead's release this weekend is on the honors system.  He said they have some special vinyl disks for sale as well.
[Edit: correction, looks like the download is $9]

Looking at that chart?,  I bet sales of blank CD/RW are up and up LOL!!

Sales of albums are way down compared to the 1970-79, why?, FM.radio, and later the final nail in the coffin = the Internet.  Nowadays a lot of people prefer to scout for free music streaming, downloads and convert old recordings to CD and to h/drive. 

Recently a major label launched their own version of iTunes to take a bite out of the apple, a site that is modeled purely on 'Streaming' or as the new term is coined these days 'Cloud', where users signup for $12 per month and have access to millions of songs.

Whoa horse, whoa...  there are many sites that have 'free' music streaming and all legit. (Streaming is suppose to be for 'playback only' not for copying/storing on ones h/drive), so anyway urrm yeah duh as if everyone is going to abide by the terms of use.  This is akin to a lot of people recording music from the fm.radio, it happened then and it will continue to happen with this model (streaming)!

In Europe there's a 'Cloud' model (streaming-only) but what gives them the edge; compatible with most formats (PC, phones and other devices, and soon.. Internet-TV) and guess who owns stakes in that site?, most of the major labels.

That said; major labels are still trying to grab the monopoly by turning 'Cloud' into a major music distribution model, an outlet for their own signed artists of course, hoping this new 'cloud' model will take off big-time, hoping that people will buy (from $10 monthly) into that but IMO it's going to fail 'somewhat' (for reasons I've already explained) and soon enough independent 'Cloud' sites will pop up everywhere, breeding like wrabbits!!

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Now let's look at this from a music artists perspective....

Nowadays music artists have various options, the best sites to start are for example; TuneCore and CDBaby.   However, the biggest mistake most indie bands make is that they forget to weigh-in the 'extra' costs for 'marketing'/'promotions. Let me put it this way; it takes probably more money for marketing/promo compared to the costs of studio gear (instruments, software, hardware, pc) to record, master, get the album done.

Part of marketing and promotions also involves taking up opportunities to perform live and have merchandise available for sale. Thereby not all promotions cost.

And IMO a music video is still part of the marketing/promo package, but importantly a 'very well produced video clip', it can be a great promotional tool, and something fans can share around....

.... Street-Team; this is something that's become more and more popular, turning fans into promoters, although there are important things to consider such as; (1) not all fans make good promoters and (2) it's got to be well managed and organized.

Heck I've only just touched on the surface (sorry, there's way much more I have not covered)!

Anyway, to fellow music artists, composers, I wish you all good luck and great success! Don't ever give up, keep writing, keep recording and most importantly enjoy making that music. Oh and, don't raise expectations too high for if it fails that failure won't land so hard.

I'm quite surprised by that..it seems to show CD sales still on a par with, or higher than LP sales in the late '70's. I expected to see CD sales lower than that.

I would think £2.39 in 1970 would be worth what, $15 now?

what strikes me about this chart is the downward spiral of CD sales

A few years ago I would have assumed that DVD audiophile would have caught on, and this would have been the death of CDs. (a new better quality medium replacing the old)

It seems young people (who in the past have dictated the direction of the music industry) listen to mp3 downloads over a pair of earbuds. 
I don't think this is a good sign.

A few weeks ago I was browsing my cable tv and I saw Rod Stewart
(a music icon in the 70s and 80s)  selling his new CD on
the home shopping network.

What's next:

Bit Flipper selling Reflex Filters  :)

Mike McCue selling Sonar X1  :)

(just kidding you dudes)

tom1

It seems young people (who in the past have dictated the direction of the music industry) listen to mp3 downloads over a pair of earbuds. 
I don't think this is a good sign.

You're lucky if they're even using earbuds. Half of the time they're walking round with the sound coming out in mono over the speaker of their mobile phone.


Anyway. There are several problems with the graph, most of which are addressed here: http://www.businessinsider.com/these-charts-explain-the-real-death-of-the-music-industry-2011-2 . There are lots of interesting points there, so it's well worth a read.

The worst thing however is that it's labelled "Global music industry turnover" as if there is no music industry outside of selling audio media directly to listeners. What about concert tickets? Festival fees? Merchandise sales? VHS and DVDs? Ringtones? Internet radio fees? Performance royalties or fees? Licensing royalties and fees? Remix royalties? Sponsorship deals? I'm not for one minute claiming that these things counterbalance the decline we see here, but they might well do, and that's well worth knowing.

mike_mccue


Remember that the scale is in dollars.

My first L.P. copy of Led Zepplin II cost me $2.39... now the CD is priced at $19.99 at Borders Books and Music.

Good point.  It's not units sold.

http://www.businessinsider.com/these-charts-explain-the-real-death-of-the-music-industry-2011-2

That said, the golden age of music merchandising is winding down. This is similar to the decline experienced by the publication industry (literature). For over two centuries people have been unable to make a living as poets, for sixty years or so, the short story has been nearly unsalable, and the novel is degenerating into a treatment for the film industry that is seeing its own problems. Dramatic television is rapidly being supplanted by cheap to produce "reality" shows and talent contests.

People tend to blame piracy for the death of big music, but that was clearly not the case with literature. It also seems unlikely that increased competition from amateurs posting their songs to YouTube is the full story. Literature was not cheapened by too many outlets, and there were always far too many writers for the space available. It may be that there is a cultural shift in progress that devalues the product that used to be published by both the word and music mongers. In a world of guitar heroes, maybe music is not worth as much because the market has moved on.

 
It would be interesting to see the graph adjusted for inflation.
 
It would also be interesting to see such a version take into account the 'bang for your buck' figures - this would create a level playing field that would take into account a 4 minute digital download, a 40 minute LP/Cassette and a 60 - 80 minute CD.
 

It would be interesting to see the graph adjusted for inflation.

http://forum.cakewalk.com/fb.ashx?m=2233427


If you will read the article referenced in the above post, you will see that the chart posted by the OP has several errors and that another corrected chart included in the article is adjusted for inflation.

So now people aren't fooled into believing any mystique about the artist outside of their music, therefore it becomes ultimately about the music again. That, in a sea of uncertainty and change, is, my friends, a wonderful thing.

+1 to that attitude.

I've honestly never ever thought about music as 'the industry', not when I started playing or for 35 years of making a decent living out of it.  I still don't.

I've always been 'task' oriented in that I always wanted to do the best job I could doing what I loved the most.  It just so happens that mostly I managed to get paid adequately just to do that.  I can currently see and no doubt find more ways of getting my bread buttered today doing that than I could say 15 years ago.

I've been around many people that have hit the mythical 'big-time' for a period of perhaps even 10 years or more but ultimately we all end up back in the same place and playing the same venues for the same money or worse they ended up dying some tragic death which has happened to a few buddies just recently. 

In fact my shelf life has been even longer than most of those guys that made the big breaks and are now working as shift managers in fast food joints, or I can take a half hour drive to get a pint pulled for me by somebody who was part of a headline act at Woodstock for example, I was even being taught by a player who was on one of the biggest selling albums of the 70's just 2 years after he'd performed on that record because he couldn't get a playing gig after that.

Who cares about the industry?  I mean I have use of a car which I enjoy but I'm not worried about how well Toyota are making out financially, it's of no concern to me.

I've made a good living and managed the financial part of raising some beautiful kids just by playing my part. Meantime I'm just going to keep enjoying what I'm doing, it comes down at the end of the day to what fulfilment I get from doing just that and when the time comes I'm fit enough to work again and that doesn't pay then it's time to do something else.

I mean I could run a chapeau shop or something. You know, like, "Would you... what size do you wear, sir?"

And then you answer me: "Uh... seven and a quarter."

"I think we have that." See, something like that I could do.

bapu

Jonbouy

I mean I could run a chapeau shop or something. You know, like, "Would you... what size do you wear, sir?" 

And then you answer me: "Uh... seven and a quarter."

"I think we have that." See, something like that I could do.

You sir, are my hero.

I'm just trying to protect you from these bi-monthly scare stories we get I know you have nightmares when they appear.  I wonder how many times over the years I've heard that pop will eat itself.

Don't worry Am will never go out of fashion somebody will always be needed to play it in that special way that you do.

Jonbouy

I mean I could run a chapeau shop or something. You know, like, "Would you... what size do you wear, sir?"

And then you answer me: "Uh... seven and a quarter."

"I think we have that." See, something like that I could do.

Yeah, do you think you'd be happy doing that?