Record Sales Down - Music Licensing Sales Up!
Published: Thu, 05/15/08
I read about the music industry a lot. I work in the music industry and I like to stay on top of where the music industry is headed. I think it's very important for musicians to really understand what's happening with respect to the music business in order to be succesful working in the business. Makes sense, right? I think there are some pretty big misconceptions about the music business currently. It seems some people mistakenly assume that the music business is "in trouble".
The music business is changing and it is true that record sales are declining, but the music business overall is actually seeing an increase in sales. I just read an article a couple days ago that stated music sales are actually up this year over last. Not CD sales, but the overall purchase of all music, including of course digital music and music licenses.
So the music industry, rest assured, is doing fine. But it is changing, and musicians and music industry executives are starting to focus on alternate sources of revenue in order to maintain profit and growth. One of the most important revenue streams for musicians is revenue created by the licensing of their music for use in media broadcasts. This is more and more becoming the case. I have read many different studies and articles that suggest this. Here is a summary of a report on the future of the music industry from the blog hear2.0, which focuses on where the music industry is headed. Note the emphasis on music licensing:
"The bottom line:
- Between now and 2011, the music industry will grow worldwide at an average annual rate of just over 2 percent.
- Sales of CDs, which currently account for 55% of the industry's total revenues, will continue to decline sharply, falling to 29% of the overall business by 2011.
- Will the exponentially booming digital segment compensate for the losses in physical sales? The answer is a qualified "no." But growth in other sectors will make up for the shortfall, resulting in modest net growth overall. That growth will come predominantly from online and mobile music, the live concert industry and the LICENSING OF MUSIC for public performances, commercials, TV shows, films and video games.
Note that reference to the licensing of music. That's at the heart of the streaming rate hike controversy currently on every Internet radio station's front burner. And that also explains why, I believe, the music industry will soon be knocking on traditional radio's door looking for a much bigger slice of the pie.
When it's content you own, distribution is key. And distribution is acquired via licensing (unless, of course, you own the distribution, too).
The future of the music industry is, in part, to sell its wares to licensees who value that content more than the folks who steal it via P2P."
For an in depth education on how to navigate your way through the music licensing business and start generating money with your music, check out my program "The A-Z Of Music Licensing". It's the most comprehensive program I offer and explains very clearly EVERYTHING you need to know to start licensing your music and generating a revenue stream. I also offer the program with one on one coaching where I work with you to help you develop a specific game plan based on your own unique situation.
And just a reminder that there are only a few more days left to pre-register for the "Intro To Writing Songs For Film and Television" course I'm offering. If you pre-register by 5/19
you'll save 20% off of the regular course tuition. This class is filling up fast - three slots still remain! If you want a great education on how to write songs specifically for the idiom of TV and Film this course is for you. As a bonus, everyone who takes the class will also get a free copy of the "A - Z Of Music Licensing" online edition. With the combination of both the course and the program you'll have a comprehensive understanding of both how to write songs for film and television as well as how to make money with the songs you write.
Happy Songwriting,
Aaron Davison