Tag Archives: Sales

ROYALTIES SUCK, MUSIC SALES ARE DOWN, PIRACY IS RAMPANT AND OTHER LINK-BAIT TERMS FOR MUSIC PUNDITS

The royalties artists get on streaming services are pitiful! Mere slivers of pennies and a million plays barely buys you a pizza. These need to go up because music sales are in the toilet. Did you see that iTunes sales are down 1% this year? Panic in the streets! The real scourge is piracy which, a decade on, is still left unchecked and easily found with a Google search! So, your music is being stolen, not being purchased, and then devalued heavily on streaming services.

Sound like a familiar refrain? Sure, many artists and music business pundits have been spouting off about this stuff for awhile now. As well they should to keep the debate healthy…and grow their own business. Wait, say what?

A new MIDEM white label report called Content Marketing In The Music Industry, put together by UK agency Venture Harbour, found that those are the Top 3 topics to generate social sharing and backlinks to the author’s site.
Screen Shot 2013-12-09 at 10.57.35 AM
This is not a surprising finding to me. I’ve tried to write on some issues that I felt were intelligent and important and even downright helpful to the artists and the industry. Yet these posts seldom get close to the traffic I receive when I talk about Spotify royalties.

In a lot of ways, this is a variation of the “Culture Of Fear” that permeates news broadcasting. If you watch the evening news, you’d think we’re living in some of the most violent and dangerous times. Instead, Chicago has the fewest murders since 1965, New York’s murder rate is the lowest since the 50s, and that we are likely living in the least violent time in mankind’s history.

This is not to say we should be complacent about artist rights and royalty rates. This is the music business, after all. It’s just that in the aggregate whole, things are much better than what pundits are saying. It just seems that it’s in their best business interest to continually tell you otherwise.

THE FUTUREHIT 2011 MIDYEAR REPORT

It’s halfway thru 2011 and time to make my 2nd annual midyear report. This report defines a hit as a song that has sold the most downloads. I look at the Top 50 biggest selling downloads in the US as a group. This year, these Top 50 downloads accounted for nearly 89 million downloads (and nearly $115 million in gross revenue). Once again, about 1 out of every 3 paid downloads of a new song came from this list of 50 titles. The exact figure is 32.9%, which is an increase over the 32.3% from last year. In fact, having a hit is becoming increasingly important. While the overall download market has increased 11% so far over 2010, the Top 50 downloads have increased in sales at a faster rate (by 15%). The #1 selling single for the year so far is Katy Perry’s “E.T.” with 4.1 million downloads sold. That’s a 22% increase over last year’s #1 song at this time. Also, for the first time, every single title in the Top 50 downloads has sold platinum in the last 6 months.

Read More…

DIGITAL OLIGOPOLY & SUGGESTIONS ON BREAKING IT

This week, the UK-based AIM (Association of Independent Music) announced that their members receive over 94% of their digital revenue from 3 outlets: iTunes, Amazon and Spotify. The story, first reported in Music Week and then in Digital Music News and MusicAlly, highlights that 51 other companies are splitting the remaining 5.6%. AIM CEO Alison Wenham is not looking at this positively as she tells Music Week, “There are now a series of monopolies and it is jolly hard for anyone else to get a slice of the market.”

Read More…

DIGITAL DOWNLOAD’S DEATH IS EXAGGERATED

Have you ever moved 12.5 million units of anything? Music? Dollars? Grains of rice? Almost certainly not. Would you agree that this is a lot? If you were to move this many units in music, it would be a good success, right?

Read More…