Follow us on...
Follow us on Twitter Follow us on Facebook Watch us on YouTube
Register
Page 1 of 2 12 LastLast
Results 1 to 15 of 16
  1. #1
    Atomic Punk bklynboy68's Avatar
    Join Date
    01.10.12
    Posts
    18,781
    Favorite VH Album

    The Magnificent 7
    Last Online

    12.13.17 @ 02:21 PM
    Likes
    12,886
    Liked 11,750 Times in 6,508 Posts


    Premium Member

    Default 5 Reasons the Music Business Is in the Toilet

    28 Jul 2015

    It doesn’t take a big-shot music executive or a statistician to see that the music industry is in a major period of upheaval.

    Sales of recorded music are at or near all-time lows, digital downloads and concert revenues aren’t doing enough to stop the bleeding, and technology has made recording and sharing music easier than ever, driving up competition in an already traditionally competitive industry.

    Liam Boluk is a venture capitalist and strategist with a lot to say about the music industry. In a new report for REDEF, Boluk examines how innovation, technology, and industry practices have collided to throw the entire music business into a state of flux and explores how the industry can relaunch itself into the robust, money-making machine it had been just a few decades ago.

    Here is a list of 5 ways the music industry is in serious trouble and some insight into how it can get itself turned around.

    1. Music Sales are in the Toilet

    Sales of recorded music have declined by 70 percent since 1999, even while adjusting for inflation, according to Boluk. After years of sustained growth, digital music downloads from online outlets like iTunes have also begun to decline.

    What’s disheartening is that music is seemingly consumed more today than at any time in history, with people popping in earbuds almost everywhere, from the gym to the subway.

    Physical retail sales have perhaps taken the biggest hit; last year, Walmart, which sells the most physical albums in the country by a long shot (one out of every four CDs sold in the U.S.), cut its stock of CDs and its associated retail space in stores by 40 percent. That means only the hottest titles get carried in Walmart stores, which, after iTunes, is the second-largest music retailer in the country.

    2. Concert Revenues Don’t Do Enough to Help

    According to Boluk, the U.S. concert industry has tripled since 1999, largely due to performers earning an average of 35 percent more on per-ticket prices (adjusted for inflation). But the overwhelming majority of that live music revenue growth, 83 percent, has gone to artists not in the top 100 tour earners.

    In 2000, the top 100 touring artists took home 90 percent of all concert revenue in the U.S. Now, that number is down to just 44 percent.

    Taken together with rapidly declining recorded music sales, the “disappointing” concert revenue numbers are a serious blow to the wallets of most popular mainstream artists.

    The upside is that indie musicians are making more money than ever on rigorous touring schedules, and, according to Boluk, are slowly cannibalizing what little is left of recorded music sales.

    3. Music is Less ‘Rare’ Than It’s Ever Been

    The shift in music distribution from physical to digital has made music more readily available than at any time in history.

    Hop over to YouTube or SoundCloud and there are literally millions of hours of unheard music stashed online, albeit with greatly varying degrees of quality.

    The point is, when major labels controlled every aspect of making a record, including recording, distribution, marketing and so on, they also controlled the level of output in the music industry.

    With the proliferation of user-uploaded content sites like YouTube (not to mention streaming services like Spotify), the artificial “scarcity” of good music has been exposed. Spotify boasts a collection of 30 million songs in its library, available for anytime-anywhere consumption. And, according to Boluk, the average Spotify user streams 1,300 tracks per month. With a library and a listening habit that large, the “value” of each track necessarily goes down. While musicians like to think their albums are “valuable” (and they are, in the sentimental sense of the term), the saturation of the market has proven the exact opposite to be true.

    4. Streaming Services Can’t Save the Industry (Yet)

    The music world held its collective breath in November when Taylor Swift, arguably the biggest superstar on the planet, pulled all of her music from Spotify.

    The move was a sharp rebuke to Spotify over the seemingly skimpy royalty payments the company makes to artists for streams of their music; according to Boluk, Spotify pays artists anywhere between $0.006 and $0.0084, just fractions of a penny, per stream.

    And it’s not just Spotify; personalized radio service Pandora has also come under fire for the royalties it pays out to artists per stream.

    Of course, this results in songs streamed tens of millions of times generating just a few thousand dollars for their artists. Once royalties to songwriters and publishers are factored in, that number drops even lower.

    The economic performance of Spotify is also far from rock-solid. While the company boasts of having 75 million active users, 76 percent of those users accessed the service for free in 2014, contributing only nine percent of the company’s total revenue. According to Billboard, Spotify’s operating losses have doubled since 2013, even while revenue grew 45 percent to $1.22 billion.

    Another potentially frustrating aspect of streaming services lies in the way the companies set the value, and the subsequent payout, for each track. Boluk demonstrated the complex system with an example using rapper Drake:

    •If Spotify users stream more music in August than July, but the same amount of Drake, Drake would see a smaller cheque for the same play count. This could even happen despite an increase in Spotify’s Monthly Revenue

    •If Spotify’s Monthly Revenue is flat, but Drake’s stream count grows faster than total track volume, he could be paid less per stream but generate more revenue

    •If revenues increase, Drake could see greater royalties even if stream counts drop

    This confusing payout structure is made more frustrating by the changing way in which artists get paid. While artists with big, mainstream physical releases usually collect a majority of their revenue just a few months after the album goes on sale, streaming revenues come every month and, in many cases, in significantly smaller amounts. Additionally, artists and their management teams may not know if an album is a hit for a significantly longer period of time.


    5. Record Labels Continue to Stiff Artists

    Music distribution channels can only take so much of the blame for the industry’s current dysfunction. According to Boluk, contracts between record labels and their artists have changed little in the last decade despite the major overhaul the industry has gone through as a whole.

    To illustrate the point, Boluk pointed to an eye-opening statistic from a recent Ernst & Young report: record labels took home 73 cents out of every dollar paid out by Spotify and competitor Deezer, while songwriters got 16 cents and artists got 11.

    With the importance of record labels diminishing as barriers of entry into the industry are lowered, this hardly seems fair.

    As Boluk himself put it, at the conclusion of the report: “Most importantly, however, artists must recognize that without new label agreements, their tide will never turn.”

    For more on the state of the music business and what the industry can do to survive, check out the rest of Boluk’s REDEF report here. http://redef.com/original/less-money...-the-music-biz







    http://www.breitbart.com/big-hollywo...in-the-toilet/
     "He has a swaggering retro machismo that will give hives to the Steinem cabal" -Camille Paglia on Donald Trump

    "Make way for the bad guy"- Tony Montana

    'This hamburger don't need no helper"- David Lee Roth

    "I wish Bon Jovi would've given me a call before he recorded all of his hits, because the lyrics would've been smarter, the melodies would've been much more smashing, and they would've sold a lot fewer records." -David Lee Roth

    "My beef is people thinking Bon Jovi is good cuz they sold lots of records to housewives." -tango

    "But being number one doesn’t really mean jack fuck all. We sold twice as many records as other records that year (1984) that landed in the Number One position." ~Eddie Van Halen

  2. #2
    Forum Frontman fudd's Avatar
    Join Date
    02.22.08
    Age
    38
    Location
    Earth
    Posts
    14,267
    Favorite VH Album

    Fair warning, 5150
    Favorite VH Song

    HAIL, love walks in, 5150
    Last Online

    @
    Likes
    1,317
    Liked 6,320 Times in 3,176 Posts


    Premium Member

    Donor

    Default

    Reason 6: artists suck now.


    Sent from my iPhone using Tapatalk

  3. The Following 3 Members Like This Post:


  4. #3
    Atomic Punk edwardv's Avatar
    Join Date
    12.13.01
    Age
    59
    Location
    hanover pennsylvania
    Posts
    10,034
    Favorite VH Album

    diver down
    Favorite VH Song

    drop dead legs
    Last Online

    12.13.17 @ 02:43 PM
    Likes
    4,482
    Liked 2,386 Times in 1,488 Posts


    Premium Member

    Default

    I really don't feel bad for the greedy sobs who have run the music business since recording and selling records began. I do feel bad for young artists with talent who will make a lot less mulla than they should be. You all remember talent??
    EVH 1979: Well, actually it's not much of a vacation, because we run everything ourselves. We design our own album cover, we have to be in the office every day to sign checks - the whole corporation revolves around us. Nothing can be done without our approval. We even have photo approval.

  5. #4
    ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ Number 47's Avatar
    Join Date
    10.08.06
    Posts
    29,821
    Last Online

    12.13.17 @ 02:23 PM
    Likes
    1,880
    Liked 6,828 Times in 3,570 Posts


    Premium Member

    Default

    Yeah! That new Van Halen album is totally gonna happen.


  6. #5
    Baluchitherium
    Join Date
    10.28.12
    Location
    Mean Street
    Posts
    4,202
    Favorite VH Album

    Fair Warning
    Favorite VH Song

    Bottoms Up!
    Last Online

    08.21.17 @ 09:32 PM
    Likes
    1,841
    Liked 2,028 Times in 1,265 Posts

    Default

    There's really only one reason. The internet killed it.

    At least with the uptick in vinyl sales some kids understand the importance of jamming that new album on a actual stereo system.

  7. The Following Member Likes This Post:


  8. #6
    Eruption
    Join Date
    01.06.04
    Posts
    806
    Last Online

    10.26.17 @ 05:29 PM
    Likes
    90
    Liked 172 Times in 106 Posts

    Default

    Most of what is on the radio is crap because of companies like Clear Channel. I think there is good music out there, but with a sea of music available today, it is hard to weed out the good from the bad.

  9. The Following Member Likes This Post:


  10. #7
    Atomic Punk
    Join Date
    11.05.06
    Location
    there's a sleepy town
    Posts
    8,193
    Favorite VH Album

    fair warning/ 5150
    Favorite VH Song

    happy trails/ dreams
    Last Online

    07.09.17 @ 07:00 PM
    Likes
    3
    Liked 1,832 Times in 988 Posts


    Donor

    Default

    Quote Originally Posted by PrideofPasadena View Post
    There's really only one reason. The internet killed it.
    Internet killed the music star( business)...



    Sent from my iPhone
    Utilize. Improvise. Adapt. Overcome.

    I love coffee and sarcasm.

    RJD \m/


    Sig Pic courtesy of Greenpaw

  11. #8
    Hang 'Em High
    Join Date
    06.17.03
    Age
    30
    Location
    New Brunswick Canada
    Posts
    6,980
    Favorite VH Album

    You name it
    Favorite VH Song

    See above
    Last Online

    12.10.17 @ 08:06 AM
    Likes
    310
    Liked 226 Times in 162 Posts

    Default

    I know it was before my time but remember when bands released albums every year or even two in a year?? Imagine getting Alice Cooper's Love it to Death and Killer months apart? Now any band who releases an album every 3 years is considering hard working, but really who can blame them given how little albums sell anymore.

  12. #9
    Good Enough
    Join Date
    02.23.07
    Posts
    2,352
    Last Online

    11.14.17 @ 06:38 PM
    Likes
    4,723
    Liked 753 Times in 498 Posts

    Default

    Quote Originally Posted by Ain't Talkin' Bout' Love View Post
    I know it was before my time but remember when bands released albums every year or even two in a year?? Imagine getting Alice Cooper's Love it to Death and Killer months apart? Now any band who releases an album every 3 years is considering hard working, but really who can blame them given how little albums sell anymore.
    I don't have to imagine it, I REMEMBER it, lol.

  13. #10
    Baluchitherium
    Join Date
    10.28.12
    Location
    Mean Street
    Posts
    4,202
    Favorite VH Album

    Fair Warning
    Favorite VH Song

    Bottoms Up!
    Last Online

    08.21.17 @ 09:32 PM
    Likes
    1,841
    Liked 2,028 Times in 1,265 Posts

    Default

    Quote Originally Posted by hagarfn View Post
    Internet killed the music star( business)...



    Sent from my iPhone
    There's plenty of pop stars... just not rock stars. It's been a dying breed for sometime. Even if there was no internet they'd be having trouble finding them.

  14. #11
    Baluchitherium thismusicsux's Avatar
    Join Date
    05.31.12
    Location
    SoCal
    Posts
    4,427
    Favorite VH Album

    FAIR WARNING
    Favorite VH Song

    Dirty Movies & Girl Gone Bad
    Last Online

    12.13.17 @ 10:54 AM
    Likes
    13,453
    Liked 5,127 Times in 2,425 Posts

    Default

    RIAA July 2015 platinum records.
    so a whopping 3 records in July were certified multi/platinum. that's all, and they were older records released 2-8yrs ago. Tons of lame singles certified though..

    THE ULTIMATE HITS BROOKS, GARTH 8x - released 11/6/2007
    PRISM PERRY, KATY 2x - released 10/22/2013
    TEENAGE DREAM PERRY, KATY 3x - released 8/24/2010

  15. #12
    Emperor of VHLinks.com Brett's Avatar
    Join Date
    09.02.99
    Age
    46
    Location
    Somewhere Near LA
    Posts
    68,700
    Favorite VH Album

    Fair Warning
    Favorite VH Song

    Unchained
    Last Online

    12.13.17 @ 01:21 PM
    Likes
    1,263
    Liked 11,559 Times in 4,925 Posts

    Default

    Such a sad time for music.
    Webmaster
    VHLinks.com - Your Van Halen Internet Resource Guide
    http://www.vhlinks.com

    JamToThis.com
    Audio/Video Trading Community
    Tons of Van Halen!

  16. #13
    Baluchitherium
    Join Date
    10.28.12
    Location
    Mean Street
    Posts
    4,202
    Favorite VH Album

    Fair Warning
    Favorite VH Song

    Bottoms Up!
    Last Online

    08.21.17 @ 09:32 PM
    Likes
    1,841
    Liked 2,028 Times in 1,265 Posts

    Default

    Quote Originally Posted by thismusicsux View Post
    RIAA July 2015 platinum records.
    so a whopping 3 records in July were certified multi/platinum. that's all, and they were older records released 2-8yrs ago. Tons of lame singles certified though..

    THE ULTIMATE HITS BROOKS, GARTH 8x - released 11/6/2007
    PRISM PERRY, KATY 2x - released 10/22/2013
    TEENAGE DREAM PERRY, KATY 3x - released 8/24/2010

    I'm guessing there would be few if the internet wasn't around. Still, not very many. Pretty sad state indeed!

  17. The Following Member Likes This Post:


  18. #14
    Baluchitherium thismusicsux's Avatar
    Join Date
    05.31.12
    Location
    SoCal
    Posts
    4,427
    Favorite VH Album

    FAIR WARNING
    Favorite VH Song

    Dirty Movies & Girl Gone Bad
    Last Online

    12.13.17 @ 10:54 AM
    Likes
    13,453
    Liked 5,127 Times in 2,425 Posts

    Default

    more of the same. new article today. But people are streaming tons of music via Spotify and Youtube which still give the artist revenue. Different times for sure...
    ____

    Only One Album Released This Year Has Gone Platinum

    An album that sells one million copies is certified Platinum.

    Just this week, Drake’s If You’re Reading This It’s Too Late reached cumulative sales of 1.007 million copies, making it the only album released this year to cross the million mark. The album, released on Young Money/Cash Money/Republic Records, part of Universal Music Group, was first released on February 12th, 2015.

    The only other album to sell more than one million copies this year was actually released last year: Taylor Swift’s 1989. According to Nielsen, that album has sold 1.46 million copies this year, for a cumulative 5.12 million.

    Last year, just two albums reached Platinum: Swift’s 1989, and Frozen Original Motion Picture Soundtrack, first released in 2013.

  19. #15
    carpe damn diem billy007's Avatar
    Join Date
    04.19.00
    Age
    54
    Location
    On the wild card line...
    Posts
    28,675
    Favorite VH Song

    "Dance The Night Away"
    Last Online

    12.13.17 @ 01:02 PM
    Likes
    1,046
    Liked 1,347 Times in 924 Posts

    Default

    with all the rereleases - do those count towards the original album, or does the counter start at "0". For instance, U2 remastered most of their albums several years ago - the albums then came in different configurations - regular album, regular album with bonus disc, deluxe edition in a box with video (for some). Do all of those count as one, or by RIAA standards, are they three different releases?

 

 

Similar Threads

  1. Roadies: Unlikely Survivors in the Music Business
    By voivod in forum VH Fans Meeting Place (Non-Music)
    Replies: 4
    Last Post: 03.21.15, 04:41 AM
  2. 'Blurred Lines' verdict likely to alter music business
    By bklynboy68 in forum VH Fans Meeting Place (Non-Music)
    Replies: 55
    Last Post: 03.13.15, 09:54 AM
  3. 5 Reasons Jeb Bush Is A 2016 Front-Runner — And 5 Reasons He Isn't
    By Hot Sauce in forum Political Underground
    Replies: 66
    Last Post: 02.14.15, 05:03 PM
  4. Music Business 101
    By Trojan Rubber Company in forum Main VH Discussion
    Replies: 16
    Last Post: 01.20.12, 11:12 AM
  5. The Music Business Must Evolve
    By Yesterdays in forum VH Fans Meeting Place (Music Only)
    Replies: 10
    Last Post: 02.05.09, 10:59 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •