Download - Welcome to the Music Industry
Welcome to the Music IndustryHow to thrive & survive as a public relations
practitioner
The Digital Age
At the beginning of the digital revolution it was common to ay
that digital was killing music. Now, it could be said that digital is
saving music.
– Edgar Berger
Nielsen Soundscan2011
Overall: +3%
Digital album: +19%
Digital tracks: +8.5%
Digital album sales accounted for 31% of all album purchases
2012
Overall: -1.8%
Digital album: +14%
Digital tracks: +5%
Digital album sales accounted for 37% of all album purchases
More albums sold in digital music stores than any other strata
Global revenues: +0.3%
Nielsen Soundscan
Piracy & Licensing 1 in 5 American Internet
users downloaded music through a P2P service in 2005
1 in 10 American Internet users downloaded music through a P2P service in 2012
40% of people decreased P2P use because of streaming services
95% of music downloaded online is illegal
Pirates purchase about 30% more music
In the race to adopt new technologies, the music industry
historically has finished just ahead
of the Amish. – Stan Cornyn
Online Stores – The End of An Era
Single downloads streaming
Festival FashionistaMore than in the past, I’ve noticed high-end
designers are looking to the streets and music festivals to find elements to include
in their lines.
–Tana Ward
Listen Up
Tape. 8tracks. Spotify. Sirius. Last.fm. Piki. Rdio. Rhapsody. Napster. MOG. CD. Vinyl. MySpace Music. Satellite.
Streaming. Radio. Pandora. Analog. Ex.fm. Songza. Grooveshark.
Streaming Services
Currently about 20 million paying subscribers to music streaming services worldwide
Average American spends $17/year on music $17/month
Profitability
Royalty rates
Streaming Services
Artists didn’t make big money from CDs when they were introduced, either. They were a specialty thing, and had a lower
royalty rate. Then, as it became mainstream, the royalties went up. And
that’s what will happen here.
– Donald Passman
Words from the WiseThere has been a lot of money lost in artist investment…in the future I see ourselves as advertising agencies.
The industry won’t look the same as it used to (nor should it), and it won’t be structured in the same manner, but the industry is retooling in a way that bodes well for music (if not for the salaries of music industry executives).
Words from the Wise
Right now, we’re just in a little chaos. Things are resettling and re-shifting and people are trying stuff, people are getting laid off.
Fewer records are being sold every day. The people left in the business are, I think , the best, the people who were there because they cared and have new ideas. Everyone else is
gone.
– Ben FoldsMusicians do need labels…You
may not call it a label, but whatever your team is, who’s going to do marketing, who’s going to do billing, who’d going to monetize the assets and the brand?
– Tom Silverman
Strive to ThriveDO…Know the industry
moves fastManage expectationsBe honest Remember it’s a game
of “musical chairs”Have a “side hustle”Pump the breaks
“Work” the companyRemember that it’s a
business of who you know
Network with cautionLook for opportunities
for growthUnderstand business as
a wholeLearn niche publications
Strive to ThriveDON’T…Get too comfortable
Pigeon hole yourself
Hype a project
Count on one form or revenue or marketing driver
Rush to claim an idea
Be afraid to voice your opinions
Get involved with artist’s personal affairs
Forget lower personnel
Start pop and then try to go back to other worlds
PR is Here to Stay“Artist-independent”
world
Publicity and public relations functions more necessary than previously
Cost-benefit
Hired internally by company