So, what’s it all about, eh? That’s what I want to know.
In 2010 CD sales are down 12.8%, digital sales up 1%.
Profits? On digital, should be up around 30% -since Apple bumped their prices. Something that still feels like a mistake.
Lessee if I can figure this out:
1. Bands can’t turn a buck from recorded music.
2. Can’t turn a buck from touring.
So what happens?
I feel and I believe MUSIC as such is as healthy as you will ever, ever see it. In the 1500s it existed in small pockets of troubadours and in the 1800s was the play thing of the indigent rich. But by the advent of a) mass sales of written music and b) the birth of recorded music, music expanded in the 1920.
However, until the electric guitar in the 50s it was stil a heavy investment big bucks deal to make music.
Rock ended that but even with rock, distribution and promotion were hugely expensive.
That is no longer true.
Distribution of music is no longer an issue and the majors are becoming less relevant and less profit worthy.
The answer for recorded music is mp3 clubs like Spotify while allows access to the consumer for a monthly rental fee.
The answer for live music is more complicated. If the business has gotten wider it has also gotten shallower. The superstars able to play to a wide audience, to play 70,000 seat stadiums, are few. So what to do? Target your audience and play where they are when they want you there.
How?
Some friends of mine are working on that precise technology… more to come!!