So How Badly is the Music Industry Doing?
by, 02-08-2012 at 02:24 PM (1483 Views)
I derailed this thread by asking whether sharing music helped or hurt the music industry. I decided to do a little research to see what I could come up with.
First off, CD sales are way, way down, and they haven't been offset by on-line purchases.
Revenue is at the lowest point in 40 years, and it doesn't look like any turnaround is at hand.
But revenue going to artists may be much better off.
This chart is taken from a blog at Times (London, not New York), but the link is broken.
From the Times:
[i]The most immediate revelation, of course, is that at some point next year revenues from gigs payable to artists will for the first time overtake revenues accrued by labels from sales of recorded music.
[i]Why live revenues have grown so stridently is beyond the scope of this article, but our data - compiled from a PRS for Music report [PRS = performance royalties] and the BPI [BPI = RIAA]-- make two things clear: one, that the growth in live revenue shows no signs of slowing and two, that live is by far and away the most lucrative section of industry revenue for artists themselves, because they retain such a big percentage of the money from ticket sales.
(It’s often claimed that live revenues are only/mostly benefitting so-called ‘heritage acts’. Unfortunately, the data doesn’t shed any light on this because live revenues are not broken down by type of act, gig size or ticket price.
While hardly definitive, the chart suggests that musicians may not be taking it on the chin in the way we thought. I doubt anyone is sad to see record companies lose revenue, but those who actually create the music we enjoy may be doing OK. Hopefully.