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music historian says the music industry is dying


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7 minutes ago, Illuminati said:

Someone here said streaming pays way more than digital sales did, so what is the truth

maybe it pays the artists more and the company they are signed to less.

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skankle

It's true. That's why the real moguls are going into vinegar and shoe sales.

 

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bluebirdsforever
11 minutes ago, Pop Art said:

This is an interesting perspective. It's odd because it's my understanding that streaming has actually increased the music industry's revenue since around 2016, but there's probably some points in what they're saying. (I know the content of the tweet isn't specifically about streaming, but it's relevant to the conversation.)

 

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This used to be my understanding too, but I don’t think it’s the whole story:

 

“This is the most lucrative time for the record industry ever, thanks to streaming.

 

Nope. According to global trade body IFPI, the global recorded music business generated $20.2 billion over the course of 2019. (2020’s numbers will come out later this year.) That was the largest official annual global revenue tally for artists and record labels since 2004, when the global record industry generated $20.3 billion. But prior to 2004, this figure was even higher: in 2003 it hit $20.4 billion; in 2002 it hit $21.9 billion; in the CD-era heyday of 2001 it hit $23.4 billion.

 

Where the “most lucrative” myth really crumbles is when inflation is invited to the party. For example, in 2005, the global recorded music business generated $19.8 billion in trade revenues, according to IFPI data. This may seem a lesser sum than 2019’s $20.2 billion — but when you apply retrospective inflation and convert the 2005 figure to 2019 dollars, the total rises to $25.92 billion.

 

In fact, with inflation factored in, the $20.2 billion generated in 2019 was only the global record industry’s largest revenue haul since 2007, when it generated $18.0 billion in real terms, but $22.19 billion adjusted for inflation. 2007 was the year before Spotify launched in Europe. Ergo, over the past decade, the record industry has so far failed to outgrow the size it was before Spotify arrived on the scene.

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Mercurio
4 minutes ago, Illuminati said:

Someone here said streaming pays way more than digital sales did, so what is the truth

That's not true, one stream on average of all the big streaming services combined pays out $0.0035 to the label. Like others already said the music business is dying not the industry itself, Independent artists generated over $2B in revenue in 2020. 

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Mike91
20 minutes ago, Katy V.! said:

The music industry is not dying (and never will), record companies and labels are. 

!

 

Music revenues are up because of streaming.

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KillingYourCareer
22 minutes ago, Katy V.! said:

The music industry is not dying (and never will), record companies and labels are. 

You summed it up better than anyone could 

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Aguilegend
Posted (edited)

It's probably the age of musicians making less money from music and more from endorsement deals and their own side businesses.

 

A little more than a decade ago, it was extremely tacky looking if a musician was endorsing a product, food or clothing line, other than maybe Pepsi. Now, it's the norm. Streaming may make big revenues, but it's going to a lot of different artists' pockets, rather than just a chosen few like in the 90s and 00s.

Edited by Aguilegend
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Pop Art
6 minutes ago, bluebirdsforever said:

This used to be my understanding too, but I don’t think it’s the whole story:

 

“This is the most lucrative time for the record industry ever, thanks to streaming.

 

Nope. According to global trade body IFPI, the global recorded music business generated $20.2 billion over the course of 2019. (2020’s numbers will come out later this year.) That was the largest official annual global revenue tally for artists and record labels since 2004, when the global record industry generated $20.3 billion. But prior to 2004, this figure was even higher: in 2003 it hit $20.4 billion; in 2002 it hit $21.9 billion; in the CD-era heyday of 2001 it hit $23.4 billion.

 

Where the “most lucrative” myth really crumbles is when inflation is invited to the party. For example, in 2005, the global recorded music business generated $19.8 billion in trade revenues, according to IFPI data. This may seem a lesser sum than 2019’s $20.2 billion — but when you apply retrospective inflation and convert the 2005 figure to 2019 dollars, the total rises to $25.92 billion.

 

In fact, with inflation factored in, the $20.2 billion generated in 2019 was only the global record industry’s largest revenue haul since 2007, when it generated $18.0 billion in real terms, but $22.19 billion adjusted for inflation. 2007 was the year before Spotify launched in Europe. Ergo, over the past decade, the record industry has so far failed to outgrow the size it was before Spotify arrived on the scene.

Oh wow, thank you for this! A very interesting read. So in reality, even though profits are rising year-on-year, they actually aren't higher than pre-streaming years that appear to be lower when inflation is factored in. Makes sense actually!

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KillingYourCareer
Posted (edited)
17 minutes ago, Illuminati said:

Someone here said streaming pays way more than digital sales did, so what is the truth

That isn't true. It's just that streaming created massive markets in areas like Latin America and South East Asia where downloads were always extremely weak despite huge populations. I mean, even here in Italy with streams song certification thresholds were raised from 10k for Gold in 2012 to 35k now, and every other year they keep raising it. 

Edited by KillingYourCareer
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Trent W

Yeah the only thing dying are those trash monster label companies that just spam their 3-4 artists all over the place.

 

I’m ok with music corporations dying, we’ll get better art, and less trashy content if big labels lose control.

 

A lot more music diversity too.

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Katamari
26 minutes ago, Beyoncé Knowles said:

I mean it's expected because artists are just making music to get hits now. We barely have good music nowadays. Songs are getting short, radio friendly, safe and we have bunch of talentless people slaying the charts...

Yeah :michael:talent pool Is poor right now thankfully the mainstream does have a some talented acts still

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Illuminati
1 minute ago, KillingYourCareer said:

That isn't true. It's just that streaming created massive markets in areas like Latin America and South East Asia where downloads were always extremely weak despite huge populations. I mean, even here in Italy with streams song certification thresholds were raised from 10k for Gold in 2012 to 35k now, and every other year they keep rising it. 

While that's great it still doesn't explain why the artists themselves are giving up their publishing rights, which I think is the basis of this entire article. It's not the labels who are scrambling to sell catalogues, at least to my understanding

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Enoch
11 minutes ago, Aguilegend said:

it was extremely tacky looking if a musician was endorsing a product, food or clothing line

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unison stan

lowkey agree :noparty: but music is not dying for sure 

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Enoch

Strange because Piracy hit the Music, Gaming and Movie Industries hard yet the first one barely recovered

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worldstarmayo
24 minutes ago, LCTV said:

maybe it pays the artists more and the company they are signed to less.

Streaming? No way. Album sales generate more money than a $0.00004 payout for a single stream split however many ways. 

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Billionaire
43 minutes ago, Katy V.! said:

The music industry is not dying (and never will), record companies and labels are. 

:cm:

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LoveInStereo

Academics have been saying this since digital file sharing started & the music industry’s stayed solid. The fear mongering bs from the old heads is too much. Every generation wants to feel part of a unique movement. Young ppl aren’t gonna just start listening to only Fleetwood Mac, they want relatable stars that their parents have never heard of. It’ll always be profitable to invest in new talent bc ppl need new storytellers to adapt with the times. I feel like this take only ever comes from ancient ppl who’re tapped out of contemporary music.

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Goofy

I don't understand. A certain tiny fanbase told me Dua Lipa was saving both Pop and the music industry. So what is the truth?

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Enoch
Posted (edited)
15 minutes ago, LoveInStereo said:

It’ll always be profitable to invest in new talent bc ppl need new storytellers to adapt with the times

Storytelling means nothing, they just want young bodies. Song Topics became smaller in scope on the other side, i'm glad that there are more songs written about LGBT

Edited by Enoch
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ProPopGirlStan
52 minutes ago, Devin said:

The streaming era definitely has a both positive and negative impact on the industry. 

Mariah predicted this tbh

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Ari29
23 minutes ago, Illuminati said:

While that's great it still doesn't explain why the artists themselves are giving up their publishing rights, which I think is the basis of this entire article. It's not the labels who are scrambling to sell catalogues, at least to my understanding

Probably because they’ve figured that they’d make more money, which is also guaranteed, selling their publishing for hundreds of millions versus holding onto it and getting royalties and licensing fees which aren’t guarantees. Also, with how fast things are changing it makes sense for older artists to sell now just in case 10 years from now something new comes on the market that replaces streaming and further minimizes royalty pay outs.

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