Is the Music Industry Over?!
With the Decline of Physical Sales and Streaming Royalties lowering to less than a Penny.. Does the Music Industry Have What it Takes to Survive?
After training 1,000,000 music producers around the world, I have seen patterns that other music industry experts cannot see, in this video I’ll reveal the TRUE Condition of the Music Industry.
Piracy in the music industry
Napster was invented(1999) and music piracy set the stage for the major shift within the music industry.
Pirate Bay started September 2003 by the Swedish anti-copyright group Piratbyrån (The Piracy Bureau). It was originally intended to be a platform for sharing files related to the Swedish electronic music scene, but it quickly grew to become a global index of digital content of entertainment media and software.
In an attempt to combat piracy and regain market share, the launch of iTunes Music Store started the expectation of $0.99 per song. (Source: RIAA)
2000 - 2008 (The Major Shift)
Producers were well respected in the early 2000's with top music producers Timbaland and Pharrell Williams commanding $250,000 to $500,000 per beat. (Hip Hop DX).
After the chaos of 9/11 and the financial markets crashing in 2008, America turned for a more grim reality. This includes the music industry.
DAWs (Digital Audio Workstations) became popular around 2008 as well as music production tutorials. The increased competition within the music industry added new life to the music industry.
In 2009 to 2010 - Album sales declined 12.7%[CD’s, LP’s, digital albums] (Source: The Nielsen Company)(Berklee) — 2009-2010 - Vinyl Sales up 14%.
Physical units keep showing a decline as the music industry shifts into a new medium, digital.
Physical Sales Decline towards 2014 (Source: Internation Federation of the Phonographic Industry).
- Problem - Infinite Supply lowers value regardless of demand
- Solution - Streaming Platforms Spotify started in 2008 (disrupter of disrupted falling music market), incentivizes users to upload to platform to distract/protect copying files, network effect makes users consider streaming as a default way to access music because it’s all released there. Harder to download.
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- Apple Music (launched in 2015)
- Amazon Music (launched in 2007)
- YouTube Music (launched in 2015)
- Deezer (launched in 2006)
- Tidal (launched in 2014) - Founded to pay music artists more
- IPO Price: $165.90 per share, peak value ($315 per share after pandemic 2021)
- Solution - Streaming is the dominating profit center of the current music industry (2021)
(Source: RIAA Reports)
(Source: RIAA Reports 2023 first half)
- Problem - Artists are paid pennies and music is in infinite supply still
- Solution - Independent Creator Economy or Blockchain
Tory Lanez celebrating NFT sales
Creator Economy
Artists and Music Producers like Curtiss King DIY, Dorian Group82, Chad Focus, Brandman Sean and myself are teaching how to be independent in the music business.
There is more potential income in the creator economy, more autonomy, more control of destiny, ownership of relationship between creator and consumer.
You can move your email/text around whereas your social media and music industry assets, you cannot.
My Book on how to navigate in the new Online music business - https://busyworksbeats.com/book
(It’s free for a limited time)
I guarantee that if you read, apply and re-read this book, you will transform your online business.
