Author Archive for Peter Tschmuck

27
Nov
14

How Bad Is Music Streaming?

In the past few days two studies on the impact of music streaming on recorded music sales surfaced. The Country Music Association (CMA) presented study results that streaming services are more successful in fostering music sales than radio. It was reported that more than a quarter of the respondents purchased music after streaming it compared to eight percent of radio listeners. Since the CMA study is not available, the results cannot be seriously assessed. Therefore, we rely on a study of Stephen McBride, a researcher of the Science Team at Pandora Media. He testified before the U.S. Copyright Royalty Judges and presented evidence that show a positive impact on music sales. In a nutshell, he highlights that listening to a song on Pandora increases music sales be more than 2 percent – a moderate “Pandora effect”, as he called it. In following, I will analyse McBride’s findings in the so-called Music Sales Experiments that were conducted by Pandora’s science team.

 

Pandora’s “Music Sales Experiments”

Pandora conducts controlled experiments to test what effect the use of the music streaming service has on recorded music sales. The research team, therefore, manipulate the availability of certain songs on Pandora in different regions in the U.S. This allows to compare the effects on music sales in each region and answers the question if there is a difference or not. The research group conducted several experiments from June to September 2014. Within 8 weeks new titles as well as catalog titles in the Pandora repertoire were tested. It was disabled to stream these titles for 8 weeks in a randomly selected U.S. region. 814 experiments were made with tracks that were new to Pandora and 401 experiments involved catalog titles. The New Music Sales Experiments (NMSEs) included only album tracks that were new to Pandora during the selection week as well as older versions of the same track with at least one sale in the observation period. Tracks from Greatest Hits albums and other compilations were excluded from the experiments. In the Catalog Music Sales Experiments (CMSEs) 200 songs were randomly selected from the Rolling Stone Top 500 list that were played more than 1,000 times in June 2014 and had more than 25 sales in the previous week. In a second round again 200 titles from the Pitchfork 500 Songs were selected with more than 700 plays in the week prior to the experiment and with more than 25 sales in the previous week. Then SoundScan data, which are available for 230 U.S. sales regions, were used to assess the impact of the experiments on the tracks’ unit sales (physical and digital).

 

Results

The 841 New Music Sales Experiments show that plays of an album track on Pandora increase its sales by an average of 2.31 percent. The positive sales’ effect in the Catalog Music Sales Experiments is even higher with plus 2.66 percent. Both results are statistically significant. The research team also compared tracks from albums/songs released from major music companies with those from indies. A positive promotional effect of 2.82 percent was measured for new music from major record companies. For catalog music from the majors the effect is still positive with an increase of 2.36 percent. However, the New Music Sales Experiments for tracks released by indie labels showed no significant effect, whereas Pandora increases the sales of catalog songs by indie labels by 3.85 percent. Therefore, McBride concludes: “The results show that, even for music that is broadly familiar, playing on Pandora increases sales of music” (McBride 2014: 19).

 

Table 1: Overview of the Music Sales Experimentations results

Table 1Source: After tables 4 and 5 in McBride (2014)

 

In addition, the research team also tried to assess a revenue effect for labels and artists of a song’s stream (spin) on Pandora. The experiments show that a stream of a major label’s song on Pandora generates additional 0.167 cents of sales revenue for the label. Plays of a catalog recording by a major company results in an increase of 0.006 cents per stream and an increase of 0.008 cents for an indie company respectively.

McBride eventually concluded: “The Music Sales Experiments confirm that the Pandora radio is promotional of music sales – that is, music sales are higher when music plays on Pandora. (…) We also present evidence that the promotional effect is greater for music with greater exposure on Pandora.” (McBride 2014: 20).

 

Critical Assessment

It is obvious that the study is instrumental before the US Copyright Royalty Court to lobby for lowering the licensing fees Pandora has to pay to the copyright holders. Nevertheless, the experimental setup is useful to measure the impact of music streaming on recorded music sales. Since Pandora is a mainly free service, the study supports the results of file sharing studies that did not find any negative impact of file sharing on music sales. The study shows a weak promotional effect of free music streaming on music sales and should be taken into consideration when the freemium models are taken into question. It would interesting if studies on Spotify, Deezer and other streaming service would come to same results.

 

Sources:

Billboard.biz, “Streaming Drives Sales, According to New Study”, November 20, 2014, http://www.billboard.com/articles/business/6327135/streaming-drives-sales-according-to-new-study (accessed November 27, 2014).

McBride, Stephan, 2014, Written direct testimony in the matter of determination of rates and terms for digital performance in sound recordings and ephemeral recordings before the United States Copyright Royalty Judges, October 7, 2014.

 

14
Oct
14

5th Vienna Music Business Research Days in Retrospective

Logo VMBRD 2014The 5th Vienna Music Business Research Days were devoted to the question “How to Monetize Music in the Digital Age”? Academics and business professionals  answered this questions from different perspectives. The VMBR-Days 2014 were held in cooperation with the Waves Vienna Music Festival & Conference and attracted an even larger international audience than in the years before. On Oct 3rd, a conference track day complemented the invited conference day on Oct 2nd for the first time. Academics from Austria, Australia, Brasil, Croatia, Germany, Hungary, the Netherlands, Norway, Spain, Sweden and United Kingdom presented recent findings of a wide range of music business research topics.

The Young Scholars’ Workshop gathered for the fourth time students and mentors/discussants from more than 10 countries to discuss the findings a papers derived from master and PhD theses (see also the webpage of the Young Scholars’ Workshop 2014).

For a detailed coverage of the whole conference– including most of the papers and presentation slides as well as the audio streams of all talks and discussions of Oct 2nd – please click here. Continue reading ‘5th Vienna Music Business Research Days in Retrospective’

01
Oct
14

5th Vienna Music Business Research Days

Logo VMBRD 2014The 5th Vienna Musis Business Research Days discuss the question of “How to Monetize Music in the Digital Age” in Joseph Haydn Hall at the University of Music Performing Arts Vienna (Anton-von-Webern-Platz 1, 1030 Vienna) from October 1-3, 2014. This international conference gathers scholars from different disciplines and music business professionals for all around the world.

Oct 1, 10:00-18:00: Young Scholars’ Workshop (CLOSED EVENT!)

Oct 1, 18:30-19:30: Joint conference reception with Waves Vienna Music Festival & Conference in Schönberg-Hall in Wiener Konzerthaus (Lothringer Straße 20, 1030 Vienna).

Oct 2, 09:00-18:00: First Conference Day in Joseph Haydn-Hall with invited speakers and panelist, see conference program: http://musicbusinessresearch.wordpress.com/vienna-music-business-research-days-2/

Oct 3, 09:00-18:00: Second Conference Day in Joseph Haydn-Hall and the Large Seminar Room at IKM (see campus map) with submitted paper presentations by academics from all around the world (see program).

Follow the 5th Vienna Music Business Research on Oct. 2, 2014 from 09:00-18:00 (CEST) on live audio stream:

 

http://www.mdw.ac.at/mdwMediathek/livestream/

 

and on Twitter: https://twitter.com/VMBRD

 

Ticketing on Ticketgarden is closed. If you want to participate, please come to the registration desk in the entrance hall of the main building of the University of Music and Performing Arts Vienna (Anton-von-Webern-Platz 1, 1030 Vienna) on October 2. Registration starts at 8:45. Tickets  for passive participation are available for EUR 49 for those who are not members of University of Music and Performing Arts Vienna.

 

Wer noch teilnehmen möchte, kommt bitte a 2.10. ab 8:45 zum Registration Desk in der Eingangshalle des Hauptgebäudes der Universität für Musik und darstellende Kunst Wien (Anton-von-Webern-Platz 1, 1030 Wien). Die passive Teilnahme für Personen, die nicht Bedienstete der Universität für Musik und darstellende Kunst Wien sind, beträgt EUR 49.-

See also the joint-program with Waves Vienna Music Conference at the University of Music Performing Arts campus’ on Oct 2, 2014: http://www.wavesvienna.com/conference/schedule-14/ You get free access there too with tickets for the VMBR-Days.

 

Media Coverage of the 5th Vienna Music Business Research Days 2014:

Salzburger Nachrichten, September 29, 2014: “Ein Hit allein füllt nicht die Taschen

Futurezone, September 30, 2014: Die Zukunft des Musikgeschäfts

Heise Online, October 1, 2014: “Wiener Tage der Musikwirtschaftsforschung: Moneten, Musik und as Internet”

Futurezone, October 3, 2014: Musikwirtschaft: “Musik-Streaming funktioniert finanziell nicht”

 

30
Sep
14

Introducing our guests: Paul Resnikoff, digitalmusicnews, Los Angeles

The 5th Vienna Music Business Research Days will be held at the University of Music and Performing Arts Vienna from Oct 1-3, 2014.  A mixed group of music business professionals and music business researcher will highlight the question on “How to Monetize Music in the Digital Age” from different perspectives. All conference guest that will present/discuss on Oct 2, 2014 in Joseph Haydn-Hall will be introduced in a short blog series.

Paul Resnikoff, publisher of digitalmusicnews.com, will talk about the future of music streaming services in Joseph Haydn-Hall on Oct. 2 from 10:00-10:45. He will also moderate the afternoon panel (16:00-17:30) with Keith Harris (PPL and manager of Stevie Wonder), Marc Marot (CEO Crown Talent & Media Group), Andy Chen (CEO of ASPIRO, parent company of Norwegian music streaming service WiMP) and Florian Drücke (CEO of IFPI Germany).

Paul_Resnikoff_fotoPaul Resnikoff is the founder and publisher of Digital Music News (digitalmusicnews.com), a premier industry source for news, information, and analysis.  Digital Music News has quickly grown from its humble roots as a small, executive news service to the most widely read information source in the field.

Prior to starting Digital Music News, Paul Resnikoff headed the digital music initiative at internet portal Lycos (until its painful implosion).  He started out at the not-quite-imploded Epic Records (Sony Music Entertainment) in New York, specifically within international and eventually worldwide marketing.

Resnikoff’s interest in digital music comes from his passion for playing and listening to music.  He grew up playing French horn under the tutelage of Howard University professor Bill Penn.  Paul’s father, a consumer protection and anti-trust attorney, is a huge aficionado of the lower brass and actively plays tuba, baritone, trombone, and stand-up bass.

In terms of listening, Resnikoff prefers Progressive House, Classical, 90s Death Metal, New York Rap, Dancehall Reggae and a sprinkling of Reggaeton and Champeta.  Rachmaninoff, araabMUZIK, Obituary, 80s Motley Crüe and Schoolboy Q are just a few getting put into heavy rotation these days, alongside staples like Mozart and Nas.

Outside of Digital Music News, Resnikoff has a boutique music industry consultancy and is expanding the DMN concept into TV (look out for ‘Channel Daily’…) Beyond that, Paul also enjoys traveling (most recently Colombia, South Korea, Argentina, Norway, and Austria), real estate, and is an avid tennis player and urban cyclist. He’s failed miserably at living a car-free lifestyle (in Los Angeles), and remains a long-suffering Washington Redskins fan (on a number of levels).

Paul Resnikoff earned his degree in Economics and Music from Stanford University.

Click for the detailed conference programme here: https://musicbusinessresearch.wordpress.com/vienna-music-business-research-days-2/

30
Sep
14

International Journal of Music Business Research – October 2013, vol. 3, no. 2

The latest issue of the International Journal of Music Business Research (IJMBR) is online now. In the first article Francisco Bernardo & Luís Gustavo Martins of the Catholic University of Portugal in Porto pose the crucial question of whether, in the digital age, disintermediation is reshaping the music industry and fostering independent approaches to the market. They argue that digital network media enable ordinary people to adopt a do-it-yourself or “DIY” approach to producing and disseminating music by eliminating intermediaries such as record labels. In the following, Ben O’Hare, Head of Higher Education (Music Business) at Box Hill Institute in Melbourne/Australia, argues in an article entitled  “Creativity, Innovation and Entrepreneurship in Music Business Education” that in these days a music business education is essential to achieve success in the music business and provides valuable theoretical as well as empirical insights. Beatrice Jetto of the University of Technology and Notre Dame University in Sydney, Australia focuses in the last contribution on the relationship between music blogs and the music industry by analysing 18 semi-structured interviews with bloggers specialising in music.

Find all articles as well as the entire journal issue here: http://musicbusinessresearch.wordpress.com/international-journal-of-music-business-research-ijmbr/

 

 

29
Sep
14

Introducing our guests: Peter Jenner (Sincere Management) & Dennis Collopy (University of Hertfordshire)

The 5th Vienna Music Business Research Days will be held at the University of Music and Performing Arts Vienna from Oct 1-3, 2014.  A mixed group of music business professionals and music business researcher will highlight the question on “How to Monetize Music in the Digital Age” from different perspectives. All conference guest that will present/discuss on Oct 2, 2014 in Joseph Haydn-Hall will be introduced in a short blog series.

Peter Jenner (Sincere Management) & Dennis Collopy will present “The Future of Monetizing Music – the Kristiansand Roundtable Initiative 2025 for the music business” in Joseph Haydn-Hall on Oct 2, from 11:15-12:00.

Peter JENNER (Musikproduzent und Pop-Manager), © Walter Wobrazek 10.06.2010Peter Jenner is legendary in the music business. One time manager to Pink Floyd, The Clash, Ian Dury & Billy Bragg amongst many others, he is now at the forefront of the debates surrounding the digital use of music. He is President Emeritus (IMMF), Director (UK MMF) and on the advisory board of FAC. He is also a visiting professor for the University of Hertfordshire and the University of Adger in Norway. For more details, see http://en.wikipedia.org/wiki/Peter_Jenner (not all of it accurate).

Dennis Collopy_photo 2014Dennis Collopy’s lengthy music industry career included roles at Chrysalis, RCA, Riva, BMG and Big Life before setting up Menace Music. 

 Menace has worked with a range of successful recording artists, record producers and songwriters. Since 2003 he has taught at various UK Universities. At the University Of Hertfordshire he leads the Music and Entertainment Industry Management programme. He co-authored the 3-year ‘Music Experience and Behaviour in Young People” study and co-edits the International Journal of Music Business Research. In 2013 he led a project for the UK’s IPO investigating methods for measuring IP Right infringement.

http://musicbusinessresearch.wordpress.com/vienna-music-business-research-days-2/

28
Sep
14

Introducing our guests: Florian Drücke, CEO of IFPI Germany

The 5th Vienna Music Business Research Days will be held at the University of Music and Performing Arts Vienna from Oct 1-3, 2014.  A mixed group of music business professionals and music business researcher will highlight the question on “How to Monetize Music in the Digital Age” from different perspectives. All conference guest that will present/discuss on Oct 2, 2014 in Joseph Haydn-Hall will be introduced in a short blog series.

BVMI_Florian_Druecke_2014_hoch_2_c_Markus_NassFlorian Drücke (Foto credit: Markus Nass), CEO of IFPI Germany, will discuss “How to Monetize Music in the Digital Age” with Keith Harris (PPL and manager of Stevie Wonder), Marc Marot (CEO of Crown Talent & Media Group) and Andy Chen (CEO of ASPIRO that owns WiMP music streaming service) in Joseph Haydn-Hall on Oct 2, 2014 from 16:00-17:30.

Florian Drücke studied law in Berlin and Toulon and finished his law studies in France with the Maîtrise degree. In 2004, he earned his doctorate with a dissertation on competition law, comparing French and German law. After his legal training which he spent, inter alia, at the Berlin Senate Chancellery, at a law firm in Aix-en-Provence and at an international law firm that specializes in media law the lawyer became Legal Counsel at Bundesverband Musikindustrie e.V. (ifpi Germany) in January 2006. In 2008, he took charge of the legal department and the political lobbying as Head of Legal & Policy. Since November 2010 Florian Drücke is Managing Director of Bundesverband Musikindustrie. Florian Drücke is a member of the Board of Directors of the German National Library and of the Advisory Boards of the Popakademie Baden-Württemberg and the Reeperbahn Festival. He testified as an expert in different Committees of the German Bundestag as well as before the Federal Constitutional Court.

http://musicbusinessresearch.wordpress.com/vienna-music-business-research-days-2/

 

 

 




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