The State Of "the Biz"
Todd Simpson
Mar 18 2014, 10:08 PM
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Posts: 25.297
Joined: 23-December 09
From: Atlanta, Georgia, USA
Read a very interesting article about the state of the music "biz". In short, streaming will (as we knew) take over for downloads and cd's will continue their slow decline to oblivion. Japan still buys 3/4 of it's music on CD believe it or not, but that's changing. Internet penetration is not as pervasive in japan, neither is the ownership of home computers. Helping making japan the last bastion of cd sales. That party is ending as internet penetration increases and tablets/phones leapfrog computers and serve as streaming devices. Here is a breakdown.


Total sales were down 3.9%.

Based on 2012 numbers the trend suggested that 2013 revenues should have registered a 2% growth, so that is a -6% swing in momentum.

Digital grew by 4.3%
which was not enough to offset the impact of declining CD sales, which has been the story every year since 2000 except last.

Download sales declined by 1%. Continued competition from apps and other entertainment, coupled with subscriptions poaching the most valuable download buyers is finally taking its toll.

Subscriptions up by 51%: An impressively strong year for subscriptions but not enough to make the digital increase bigger than the physical decline on a global basis nor in key markets, including the US. This is the big news. The subscription model is moving to replace all other commerce models for music sales bit by bit.

Also interesting, APPLE controls the bulk of ALL DIGITAL MUSIC PURCHASES ON EARTH. So getting your music on iTunes really is key smile.gif

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Posts in this topic
- Todd Simpson   The State Of "the Biz"   Mar 18 2014, 10:08 PM
- - Todd Simpson   is this kind of article a bit too abstract or outs...   Mar 19 2014, 12:30 AM
|- - Ben Higgins   QUOTE (Todd Simpson @ Mar 18 2014, 11:30 ...   Mar 19 2014, 06:09 PM
|- - Mertay   QUOTE (Ben Higgins @ Mar 19 2014, 05:09 P...   Mar 19 2014, 08:52 PM
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- - Mertay   Hey Todd, I'm actually curious how streaming ...   Mar 19 2014, 12:43 AM
|- - Todd Simpson   Sadly it works in favor of everyone BUT the musici...   Mar 19 2014, 01:22 AM
|- - Mertay   QUOTE (Todd Simpson @ Mar 19 2014, 12:22 ...   Mar 19 2014, 01:49 AM
|- - Palacios   QUOTE (Mertay @ Mar 18 2014, 05:49 PM) Em...   Mar 20 2014, 12:57 AM
|- - Mertay   QUOTE (Palacios @ Mar 19 2014, 11:57 PM) ...   Mar 20 2014, 01:55 AM
|- - Todd Simpson   Keep in mind guys that what MERTAY is saying is re...   Mar 20 2014, 06:30 AM
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- - tonymiro   QUOTE (Todd Simpson @ Mar 19 2014, 12:30 ...   Mar 19 2014, 10:52 AM
- - tonymiro   Here's a more indepth analysis: http://musicb...   Mar 19 2014, 02:50 PM
|- - Todd Simpson   Thanks for the link Japan was one of the last bas...   Mar 19 2014, 11:32 PM
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- - klasaine   I think most folks just don't know what to say...   Mar 19 2014, 04:15 PM
- - WeePee   He had some good points. Robb Flynn: “Music Isn...   Mar 19 2014, 06:31 PM
- - Josh Adams   That's mind blowing considering that we always...   Mar 19 2014, 10:52 PM
- - wrk   Who is actually adding all the music on these stre...   Mar 20 2014, 10:05 AM
|- - tonymiro   QUOTE (wrk @ Mar 20 2014, 10:05 AM) Who i...   Mar 20 2014, 10:59 AM
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- - wrk   Thanks Tony, that was an interesting answer ! ...   Mar 20 2014, 12:14 PM
|- - klasaine   QUOTE (wrk @ Mar 20 2014, 04:14 AM) i don...   Mar 20 2014, 03:47 PM
|- - Todd Simpson   BINGO!! In general, the record label (eve...   Mar 20 2014, 05:44 PM
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- - tonymiro   As Ken says streaming is seen as marketing your ba...   Mar 20 2014, 04:40 PM
- - wrk   Yes, the marketing value is undeniable, especially...   Mar 21 2014, 10:24 AM
|- - Todd Simpson   After getting CRUSHED by mp3/the internet, you...   Mar 21 2014, 10:19 PM
|- - wrk   QUOTE (Todd Simpson @ Mar 21 2014, 10:19 ...   Mar 22 2014, 03:07 PM
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- - Darius Wave   To be honest I'm just a step before uploading ...   Mar 22 2014, 02:14 PM
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