In recent years, American music
industry insiders have grumbled about the slump in album sales that
has hit the industry in a huge way. Since the rise (and fall) of
Napster and the proliferation of illegal downloading, the industry
has had to completely restructure its business model so that it can
continue to stay afloat. According to CNN, from 1999 to 2009, total
music sales and licensing revenue decreased from 16 billion to 6
billion, falling by an average of 8 percent each year.
With this
being said, however, there have been gains to be seen that would
suggest the music industry might be in better shape than one would
imagine. While physical album sales have been decreasing almost ever
year in the last decade, digital sales have made tremendous leaps and
bounds. In 2011, consumers purchased 3.6 billion dollars worth of
digital music, a 17 percent crease from the previous year. Currently
there are many artists debunking the myth that the music industry is
dead, and others can learn from their recent success.
Beyoncé has returned after a two-year
hiatus from her previous album ‘4’ to create a train of hype that
has lead to interesting results. Her Superbowl performance was the
second most watched in television history, and her recent HBO
documentary was the most watched program in the premium cable
channel’s history. Earlier this week, Beyoncé previewed two new
tracks from her upcoming LP, Bow Down and I Been On. The mash-up of
the two songs, posted to her official soundcloud account, has been
streamed over 3 million times to date, breaking the streaming record
for the music sharing service.
Another artist disproving this trend
would be Justin Timberlake. He has been out of the limelight
(Musically at least) a lot longer than Beyoncé, having last released
a single in 2007. In this current musical climate, that is basically
a death sentence, as artists like Christina Aguilera could attest,
but Justin has navigated this problem very well. Suit and Tie, his
debut single from his new album, The 20/20 Experience, broke digital
records within days of release. The second single, Mirrors, went
straight to number 1 in the UK, and top 30 here in the US.
Justin’s album has broken preorder
records on iTunes, and is projected by Billboard to sell upwards of
500,000 copies in one week, a monumental feat in these times.
With these examples, as well as others
including Adele, it can be seen that the music industry has the power
to keep itself from tumbling if it begins to change the way certain
procedures are done. The music industry surprisingly reported in
increase in total sales (Both digitally and physically) in 2011, and
sales have been better in recent months. I feel hopeful that this
industry has what it takes to not only survive, but to thrive.
Great insight! I must admit that I was one of those people that thought the music industry was taking a turn for the worst from a business aspect. However, these stats are very eye opening and I now see how the industry is constantly taking steps to maintain growth.
ReplyDeleteIn today's society, fans want to be closer to the artists and thats why more and more artists are finding new ways to market themselves and, by doing so, gain the revenue that was lost in album sales. Some of these methods include: documentaries, free online LPs and EPs, and appearances at national events and shows. I'd be interested in seeing how artists who don't have the colossal fan base like Beyounce and Justin Timberlake are taking steps to increase revenue.
Great post! In today society most business, employments, etc... moving to the cloud, which basically reduces the number of CD's production in the music industry. However, most artist still making money because most of their music is being sold digitally. Which somewhat can also be in their own benefits because they can have some control of their sales records.
ReplyDeleteThis is a great post especially since it coincides with what we always discuss in this class which is societies progression to a more information based era. Physical albums are almost irrelevant nowadays. Unless you are a collector or just really enjoy having a physical copy, its not only more convenient but sometimes cheaper to simply purchase the artists music through various digital media. With that in mind, I'm sure we will see a vast transition and within our lifetime we will witness CDs go out like vinyls.
ReplyDeleteGreat observation. One step that the music companies have taken is signing artist under a 360 deal. With the rise of these type of deals the culture between artist and industry could change dramatically. In addition, typically the artist would only receive cents to dollar for albums. Therefore, the once well-fed industry must find new "wells" to tap into for revenues, i.e. show money, appearances, and anything else that is liable for taxation.
ReplyDeleteIt was a pretty good article Like another poster I thought the music industry was in shambles. I still think that it still more than just getting on stage and singing. Now it takes endorsements, shows, good music, and internet based songs. In addition, I believe that there should be more focus on getting the song on internet based programs such as iTunes, amazon, Google play, etc. Instead of album sales. People don't go to the store and just by albums anymore unless you are a die hard fan. There should be a shift to stores to cloud base in order for the music industry to be really successful
ReplyDeleteThis was a very good post and eye-opening because I definitely thought the music industry was struggling and needed to change its business model. I was not aware that the music sales had increased recently and I do think that this is a great example of the transition to the information age. CD's will probably become very rare in the future as we see digital sales continue to increase. It's interesting how musical artists have found other ways to increase their income through shows, paid appearances, and endorsements. The music industry is starting to gain some of its momentum back, but it must continue to look for new ways to innovate.
ReplyDeleteGreat article Garrick! You bring up an important issue of "Is buying music becoming out of style?", since obtaining music illegally is becoming the norm. In response to the aforementioned question, your article reinforces my beliefs that people will still buy good music, even in 2013. All over my instagram/twitter/facebook news feeds, people were actually going to music outlets and buying the Justin Timberlake album. However, for average/mediocre music, people find their way to listen/buy the album, legally or illegally.
ReplyDeleteThis was a great post!! I really thought the music industry was in trouble but after reading your post and doing a little research I see that music sales have increased due to some big names and major comebacks. However, I believe our generation wants free everything... and with the use of the internet we will find a way to get it.
ReplyDeleteI can say that I was starting to believe that buying music was becoming extinct, but after reviewing this post, it still and will always exist. People are now buying music digitally more than heading to the stores, which is more convenient and people like to do what is more convenient for society. Great post!
ReplyDeleteThe music industry is an interesting monster. I think the biggest issue is with how many hands are in the pot. These days, there are so many people who need to get their cut that the artist is seeing very little of money. From producers to agents to musical engineers to song writers, everyone is getting a cut of the hard work. Artists sometimes can get cents on each album that is sold. I'm not sure whether this is a testament to greed or the work it takes to produce a hit song or album.
ReplyDeleteToday, the money is no longer in creating and distributing the actual music for a hit artist. Today, the money lies in touring and concerts. So, remember, if you want to truly benefit your favorite artist, be sure to go see them live!
This was a great blog post!!!! I'm looking forward into joining the music industry in my near future and I have noticed a change in the music industry from record sales to eliminating positions in record companies to save money. One thing I think that lacks in the music industry is passion. It has been proven that artists with greater passion lasts in the music industry longer and made more money also. I agree with this blog post and the values it provided.
ReplyDeleteAmazing post! As a big fan of music it was great to read an article about the industry behind it. I think that because it is so easy to download music for free, music sales really tell a lot about the support behind each artist. If someone is paying for music they could own for free, then it is clear that they support the artist.
ReplyDeleteMusic is where the money was. Unfortunately in the social climate of immediate gratification, music does not maintain the sanctity that it once did. This industry has not been saved from society's efforts to get what they want, when and how they want it. Online piracy has accounted for tremendous decreases in sales but the underlying issue I see here is that the product is no longer extremely valuable and the consumer is no longer reverent of the work that it took to create these would be masterpieces. There is indeed trouble in paradise. Money and motivation are leaving. It's for the glitz and glamor now.
ReplyDeleteFor more on the topic follow this link:
http://www.guardian.co.uk/business/2010/jan/21/music-industry-piracy-hits-sales
This is definitely interesting. It is definitely not surprising that album sales are decreasing because it is extremely easy to get music for free, be it mixtapes or albums. I was shocked to see the number of digital copies some artists are still being able to sell. I think that this has become a good thing though. With music being so able to download for free it forces the artists to step up and put their all into their lyrics, beats, and production. People will still pay for good albums.
ReplyDelete