After years of declining sales, the
music industry has seen revenue increases the past two years thanks to growth
in streaming. Do you think the industry has finally found a way to adapt to the
changes in ways people consume music? Do you think that revenue will continue
to increase, flatten, or decline in the coming years? Limit: 7 responses
While the music industry has had increasing profits in the last few years, it seems that this growth is stagnating and even slowing down. The coronavirus pandemic that has impacted the globe is further harming the industry right now. Because people are not going out to concerts right now, people that do lighting, operate merchandise tables, and other people that work during concerts and festivals will not be making money. Additionally, major festivals, such as Coachella, are being pushed back which will require some artists to adjust their tour schedules accordingly (Brooks). Additionally, “for mid-sized and smaller acts who depend on the visibility boost from playing Coachella, a six-month postponement could be particularly challenging” (Hissong). The whole music industry is affected by coronavirus as “everyone involved has an interest in minimizing cancellations — even if they would primarily affect rival companies” (Brooks).
ReplyDeleteAs of March 15th, the CDC has recommended that “for the next 8 weeks, organizers (whether groups or individuals) cancel or postpone in-person events that consist of 50 people or more throughout the United States” (CDC). This means that the earliest we could see tours again is in mid-May. In the meantime, what will musicians do? Even musicians that have residencies at clubs and casinos in Las Vegas are not safe from the CDC’s warning to protect the public. The bulk of the music industry’s revenue comes from summer concerts and festivals, so hopefully the virus will mostly be eradicated before the start of the summer season (Brooks).
As the situation with the novel coronavirus has shown, the music industry as it stands is very unstable and volatile. The music industry needs to increase its revenue streams so that the bulk of the profits are not just in tours and festivals. The music industry gains most of its profits in concerts, as OVG president Ray Waddell has said, “But the core of an exhilarating live experience remains the same: if it's a show people want to see in a venue they like to go to at a price they reasonable, they’re going” (Diehl). This strategy usually works except when people are barred from leaving their homes due to a public health emergency. The coronavirus pandemic should be a wake-up call to the music industry that they need to drastically change their business model if they want to stay afloat. In the age of streaming, the music industry has realized “that many listeners who won’t necessarily pay very much for music will often spring for access and memorabilia” (Jenkins). The music industry has relied on the model that everyone will want to be in a venue to see an artist live because “memories are big business” (Jenkins). But now, without the guarantee that people will be in venues because of the CDC’s warnings and the fact that some states have forced venues to close, the music industry is at a standstill.
Some artists have tried having their fans fund their musical projects. Other artists have raised the prices on their albums with regard to the true cost in making albums (Jenkins). Maybe the rest of the music industry will move in this direction. Another way that artists can bolster their revenue is by offering other exclusive content on a Patreon account. This is a strategy that I have seen many YouTubers employ to work around the issues posed by YouTube’s demonization policies and continue to make money on the platform. Musicians will, of course, need the initial resources to create exclusive content, but then they can keep funding these projects through the crowdfunding. There is a new crowdfunding service that has been patented called FanVestor, which allows musicians, filmmakers, and sports stars to receive investments from their fans to fund projects, gives perks for fans and increases fan engagement, which seems to be perfect for musicians (PR Newswire). Offering exclusive and limited-edition merchandise could be another way to increase revenue streams.
DeleteUnless the industry can find ways to increase revenue outside of concerts and festivals, the industry as a whole could see diminishing profits.
Works Cited:
CDC. “Get Your Mass Gatherings or Large Community Events Ready.” U.S. Department of Health & Human Services, 15 March 2020, https://www.cdc.gov/coronavirus/2019-ncov/community/large-events/mass-gatherings-ready-for-covid-19.html. Accessed 16 March 2020.
Ingham, Tim, Ethan Millman, and Amy Wang. “Where the Music Business Is Going in 2020” Rolling Stone, 13 Jan. 2020, https://www.rollingstone.com/music/music-features/music-business-stories-to-watch-2020-928849/
Brooks, Dave. “Concert Industry Faces Cruel, Cruel Summer as Coronavirus Spreads.” Billboard, 12 March 2020, https://www.billboard.com/articles/business/touring/9333396/concert-industry-summer-coronavirus-impact
Diehl, Bob. “Pink, Metallica, Garth Brooks Among Top Grossing Tours of 2019.” Radio.com, 16 Dec. 2019, https://www.radio.com/music/pop/pink-metallica-garth-among-top-grossing-tours-of-2019
Jenkins, Cray. “Coronavirus Should Be a Turning Point for the Music Industry.” Vulture, 14 March 2020, https://www.vulture.com/2020/03/coronavirus-music-industry-essay.html
PR Newswire. “FanVestor™ - the First Patented Fan-Sourced Fundraising Platform that is SEC Compliant - Wins "Crowdfunding Innovation Award" in 2020 FinTech Breakthrough Awards Program.” PR Newswire, 11 March 2020, https://www.prnewswire.com/news-releases/fanvestor---the-first-patented-fan-sourced-fundraising-platform-that-is-sec-compliant---wins-crowdfunding-innovation-award-in-2020-fintech-breakthrough-awards-program-301021273.html
Hissong, Samantha and Ethan Millman. “‘Everything Is in Chaos’: The Concert Business Stands to Lose Billions From Coronavirus.” Rolling Stone, 11 March 2020, https://www.rollingstone.com/music/music-features/live-music-concerts-coronavirus-risks-losses-965482/
Cooper Brown
ReplyDeleteIt has been well known that music sales have been declining over the years. However, streaming has been an aspect that has very much saved music and has been the most preferred way for listeners to consume their favorite music. Since streaming has become popular we have seen records such as Old Town Road which became the “first song to exceed more than 2 billion on-demand streams in a calendar year” (Caulfield). Records like this have been set recently as the public realized that streaming was the easiest way to consume music. Personally, I felt the concept of buying individual songs and albums to be expensive and not worth it. Instead, being able to subscribe for a monthly fee and stream as much as you can is a very easy process and has worked out well for millions. To sum it up, the reason why streaming is so appealing to people is because “The sheer number of songs available, and the ease of finding and listening to them is the real appeal” (MN2S). This has become the best way for the music industry to make up for lack of sales as people no longer care about “buying” albums since most prefer a song or two off a specific record. Before streaming really took off I hardly bought full albums and just purchased one song that I was fond of. I did not want to spend the money and end up not liking the songs and realizing I wasted money. Streaming has allowed people to listen to albums in full without the pressure of committing to buying the album before listening. When thinking about if streaming is capable of reaching new heights I think it is difficult. While I do think there are exceptions to that statement I feel as though it will hit a small decline and then hit a plateau.In fact, “In the first nine months of 2019, Universal saw a significant deceleration in revenue growth from streams” (Blake). I still think streaming will be the most popular method for music for many years to come. Given how easy streaming is and how much music is truly available on different services there is no reason to think it will not be the easiest way to get music. Streaming music has become my favorite way of getting music and I feel as though that is the same thought process for millions of other people as well. The music industry is definitely happy it has had a way to make up the lost revenue even though it has complicated its relationship with artists. It is hard to think what the music industry would look like if streaming was not embraced by consumers.
Caulfield, Keith. “Post Malone’s ‘Hollywood’s Bleeding’ Is Nielsen Music/MRC Data’s Top Album Of 2019.” Billboard, 9 Jan. 2020, www.billboard.com/articles/business/chart-beat/8547651/post-malone-hollywoods-bleeding-nielsen-music-mrc-data-top-album-2019.
Delete“What Is Streaming Music and How Has It Changed the Industry?: MN2S |.” MN2S, 19 Nov. 2018, mn2s.com/news/label-services/what-is-streaming-music-changed-industry/.
Blake, Emily. “Music Hit 1 Trillion Streams in 2019, But Growth Is Slowing.” Rolling Stone, 9 Jan. 2020, www.rollingstone.com/music/music-news/streams-music-2019-trillion-vinyl-935246/.
John McMahon
ReplyDeleteBlog 6
Looking at today’s music industry, an artist doesn’t necessarily need a label to be successful. Sure, having the backing of a record label definitely helps with exposure, advertising and promotions, but at the end of the day doesn’t deal with what it’s really all about: the actual talent and whether or not people actually enjoy it.
In an article on Medium titled “Why We Need to Leave Record Labels Behind in 2019” by contributor HipHopUnwrapped, record labels still follow a business model that “is centered around selling physical copies”, although the vast majority of album sales comes via streaming services (HipHopUnwrapped, 1). The days of selling CDs and vinyl are all but gone, but the industry as a whole seems to reject this notion. To essentially stay afloat amongst the change in how people consume music, record labels will often make a “360 Deal” with artists, which means they get a cut of all an artists’ revenue including “tours, performances, merch sales and more” (HipHopUnwrapped, 1). Knowing this, independent artists are having much more success. Independent artists such as Macklemore and Kendrick Lamar have found success in signing with Indie Labels or not signing with any label at all initially, only to build up their fame and following and negotiate a contract with a label down the road that’s fair to them.
Another way that artists have found success in the music industry is to just consistently and frequently churn out music. In an article by Billboard titled “'The New Normal': Why Indie Artists Are Releasing Music at a Much Faster Rate in 2020” by Eli Enis, Enis highlighted how the change in how consumers listen to music (ie. streaming) is the reason why they release new music so frequently. In his article, Enis mentions a comment by PolyVinyl label Director Seth Hubbard saying “now with Spotify being what it is, and social media being what it is, the reality for a lot of artists is that they need to tour more often to make a living. I feel like a lot of bands keep grinding and putting out new music [because it’s] one way to just keep the cycle going.” (Enis, 1). In addition to releasing albums more frequently, artists are releasing singles as a way to “establish a commercial foothold” (Leight, 1). In an article by Rolling Stone Magazine, author Elias Leight explains that artists like Taylor Swift and Justin Timberlake put out numerous singles before their respective albums to garner attention and as a way to stay engaged with their fans.
Overall, the music industry as a whole is flawed - one that is still modeled around the past and doesn’t reflect that of the current age. Record labels haven’t accepted that streaming has taken over as the main source of consumption for music and unfortunately the industry’s model hasn’t changed, resulting in a vast amount of money that isn’t going to the artists. Artists have to take drastic measures in order to stay relevant, including pumping out music and releasing music independently.
Works Cited
Enis, Eli. “Why Indie Artists Are Releasing Music at a Much Faster Rate in 2020.” Billboard, 18 Feb. 2020, www.billboard.com/articles/business/streaming/8551261/indie-artists-faster-releases-2020?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%2BTemplate%2BBB%3A%2BMulti%2BStory%2B-%2B2.0&utm_term=daily_digest.
HipHopUnrapped. “Why We Need To Leave Record Labels Behind In 2019.” Medium, Music For Inspiration, 8 Sept. 2019, medium.com/music-for-inspiration/why-we-need-to-leave-record-labels-behind-in-2019-bfa1db45036a.
Leight, Elias. “Why Your Favorite Artist Is Releasing More Singles Than Ever.” Rolling Stone, 25 June 2018, www.rollingstone.com/music/music-features/why-your-favorite-artist-is-releasing-more-singles-than-ever-629130/.
The Music industry in today's society is a market that touches the world over. The endless amounts of culture and lifestyles has contributed to the development of the vast majority of genres and artists that we have today. However, the delivery of music in general is starting to settle at a point where in 2020, we are beginning to see a majority usage of modern technology to access this type of content. We are continuously updating our smartphones, tablets, and computers to develop new ways of receiving content using the internet, and streaming happens to be our new best friend. Going back 5-10 years ago, music was acquired through buying individual songs, albums (hard copies or digital), and flushing our bank accounts to keep up with this new way. It seems that today's society is in love with streaming, and the markets have shown progress with streaming companies like Spotify, Apple Music, YouTube Music, and Amazon that have connected billions of people worldwide with the power of music, at an affordable price. It has been reported that last year, "2019 was a year of growth and consolidation, with the global picture dominated by the big four players and Spotify retaining market share despite all three of its main competitors making up ground" (High Resolution Audio). Purchase prices for these "big 4" competitors can range from $4.99 to $11.99 a month. Many more apps like Shazam, Soundcloud, and iHeart Radio keep expanding horizons for music in unique ways. On-demand streaming is something that benefits the public because it is fit at their convenience to access this material. Netflix, Hulu, and Disney+ are prime examples of this principle in a different market that has attracted millions of subscribers because of its content and library. With these music streaming platforms, the libraries and archives of each application is suited to fit as many populations as possible to garner interest from as many markets as possible, and the numbers of individual streams show how popular this new medium has become. In a 2019 research, posted on Rolling Stone, " For the first time ever, on-demand streams in the U.S. reached over 1 trillion, according to a year-end report from Alpha Data" (Emily Blake). The article also stated that " that growth is starting to slow. Growth in on-demand streams was down nearly 30 percent from 2018, when streams saw 42 percent spike" (Emily Blake). Although 1 trillion hits is a new milestone in the business, the deceleration of streaming may poise a bit of concern in this community. This does not look to be a drastic market shift because this is what the people are turning to when listening to music. The future seems to be shifting towards the streaming service, so I believe that with today's technology and perhaps with updates to these music streamers, it should be able to remain as the top outlet for listening to music. A Forbes article points out the attitude of streaming saying that "Listeners are now able to sample music of all genres widely and quickly, creating an environment in which young people can invest much less energy into a single artist than Boomers did" (Neil Howe). The Millennial generation seems to control a lot of the numbers when it comes to streaming hits and subscribers because they are more adapted to this generation of technology. Only time will tell if this theory will bring music streaming to bigger numbers or not.
ReplyDelete“Big 4 Streamers Gain Market Share.” High Resolution Audio, 9 Dec. 2019, www.hiresaudio.online/big-4-streamers-gain-market-share/.
Blake, Emily. “Music Hit 1 Trillion Streams in 2019, But Growth Is Slowing.” Rolling Stone, 9 Jan. 2020, www.rollingstone.com/music/music-news/streams-music-2019-trillion-vinyl-935246/.
Howe, Neil. “How Music Streaming Won Over Millennials.” Forbes, Forbes Magazine, 16 Jan. 2019, www.forbes.com/sites/neilhowe/2019/01/16/how-music-streaming-won-over-millennials/#7bbecde825c7.