The Rethink Music initiative recently published a report on “Fair Music: Transparency and Money Flows in the Music Industry”. The report identifies barriers in the money flows to artist and states:”[O]nly a small proportion of the money beyond the initial recording advances ultimately makes its way to artists as ongoing revenue.” (Rethink Music, 2015: 3). Especially in the digitized recorded music business the revenue streams are often obscure and non-transparent. And if it comes to music streaming, artists are sceptical about the underlying business model. Based on the report’s finding, the revenue streams from music streaming and the structures behind the business are analysed.
Tags: artist income, ASCAP, Believe Digital, BMI, collecting society, composer, content aggregator, copyright, Deezer, Harry Fox Agency, iHeartRadio, income distribution, income of musicians, master right, mechanical right, MRO, music publisher, music streaming, musical copyright, Pandora, performance right, performer, PRO, rdio, Rebeat, record labels, revenue distribution, SESAC, Sirus XM, songwriter, sound recording right, SoundExchange, Spotify, streaming income, streaming revenue, The Orchard
Tags: artist income, artists revenue streams, Billboard Money Makers List 2015, digital music sales, earnings from music, Eminem, income, income of musicians, live music revenue, music streaming, publishing revenue, recorded music sales, Taylor Swift, touring revenue, Zoë Keating
Some artists have unveiled their royalties’ statements highlighting that just a small proportion of their income comes from music streaming services (e.g. cellist Zoe Keating in February 2013). However, the question remains open if and how the superstars benefit from shift to the music streaming business? In the following analysis the top superstars’ income from recorded music sales, music streaming, publishing and touring is highlighted. The statistics are based on the Billboard Money Makers List 2015 for the 40 top earners of the US music business. See here for the methodology.
Tags: broadcasting, Creative Mornings Vienna, creativity and innovation in the music industry, digital revolution, EDM revolution, indie labels, Jazz revolution, major labels, music business, music industry, paradigm shift, record labels, Revolution, Rock 'n' Roll revolution
On June 26, 2015, the Creative Mornings Vienna were devoted to the topic “revolution”. I had the honor to talk about the “Revolutions in der Music Industry” at University of Music and Performing Arts Vienna. For those who did not read my book “Creativity and Innovation in the Music Industry” yet, can enjoy a short YouTube video version on the Jazz revolution, Rock ‘n’ Roll revolution and the current digital revolution in der music industry: “Revolution in the Music Industry – Creative Mornings Vienna, June 26, 2015”.
You can find more on the concept of the international breakfast lecturing series here: http://creativemornings.com/
Tags: ad-supported music services, Deezer, freemium, IFPI, iHeartRadio, iTunes, music download sales, music streaming, music subscription, Pandora, physical music market, QQ Music, recorded music market, Recording Industry in Numbers 2014, RIN 2014, SoundExchange, Spotify, Vevo, YouTube
Music streaming is on the rise. In the recent IFPI report “Recording Industry in Numbers 2014” IFPI CEO Frances Moore is cited with “Streaming is now a mainstream part of the modern music industry.” (IFPI 2015: 5) Indeed, global subscription streaming revenue increased by 39.0 per cent and ad-supported streaming revenue by 38.6 per cent in 2014. In 2014, the global music streaming market (ad-supported as well as subscription) has a volume of US $2.2bn, which is even bigger than the single track download market (US $1.9bn) (IFPI 2015: 9). Music streaming, therefore, accounts for nearly a third of the global recorded music market. However, the market share of music streaming differs between countries. Whereas in Sweden the music streaming market share is 70 per cent of the overall recorded music market, in Germany just 6.3 per cent of the recorded music revenue comes from music streaming sources. And Japan, the second largest recorded music market in world, lags behind with meagre 3.1 per cent.
In the following I would like to highlight the economic relevance of the music streaming market segment in an international comparison.
On June 26, 2015, the Internet platform “Debating Europe” of the Friends of Europe and the NGO Europe’s World, which is supported by the European Council and other European institutions the question “What would save the music industry from digital piracy?” was posed. I had the honor of starting the discussion on Skype. Find more here: http://www.debatingeurope.eu/2015/06/26/illegal-downloading/#.VY0gH0ZyfAF
Tags: Anita Jóri, artistic education, artistic logic, Bettina Schasse des Araujo, Carsten Winter, co‐creation, crowdfunding, David-Emil Wickström, digital network‐media, economic logic, Frank Schumacher, Germany, Helmut Scherer, higher education, IJMBR, International Journal of Music Business Research, Martin Lücke, music business, music economy, music financing, music industry, music management, music production, pop music design, popular music, prosumer, Ronny Gey, SME, Stephan Klingner, technology, value creation
The April issue of the International Journal of Music Business Business Research is now available online. This special issue – edited by Martin Lücke (professor at Macromedia University of Applied Sciences Berlin) and Carsten Winter (professor at the Hanover University of Music, Drama and Media – focuses on the German music economy. In the first article, Helmut Scherer & Carsten Winter (both full professors at the Hanover University of Music, Drama and Media) discuss success factors for music-based crowdfunding in Germany. Ronny Gey (University Jena), Frank Schumacher, Stephan Klingner (both University Leipzig) and Bettina Schasse de Araujo (Institute for Applied Informatics) highlight the conflict between artistic and economic rationales in a shrinking recorded music market that negatively affects creative and innovative processes in the music industry. In the third article David-Emil Wickström (Pop Academy Baden-Württemberg), Martin Lücke and Anita Jóri (both Macromedia University of Applied Sciences Berlin) discuss the higher education of musicians and music industry workers within the field of Popular Music in Germany.
Ronny Gey, Frank Schumacher, Stephan Klingner & Bettina Schasse de Araujo: Buried by administration: How the music industry loses its creativity. An empirical study of German music labels and publishers, pp. 26-54
Tags: Bundesverband Musikindustrie Deutschland, BVMI, CD market, charts, consumption behaviour, German music industry, German recorded music market, Germany, GfK Streaming study, IFPI Germany, music download market, music streaming market, phonographic market, record market
The recently published figures of the recorded music market in Germany show a picture of stability. Compared to 2013, the recorded music sales increased by 1.8 percent to EUR 1.48bn as reported by IFPI Germany (Bundesverband Musikindustrie – BVMI) in the latest Yearbook on the Recorded Music Industry in Germany (Jahrbuch zur Musikindustrie in Deutschland). The still fast growing revenues from the music streaming business are the main reason for the modest overall sales growth of 1.8 percent. The revenues from music subscription rose by 77.0 percent to EUR 108.0m compared to 2013. In the same period, however, long-play download sales (mainly digital album sales) declined for the first time – by1.4 percent to EUR 145.0m. The single track download sales again decreased – after a sales decline of 4.6 percent in 2013 – by 7.4 percent to EUR 100.0m. The physical music sales are still declining by 1.7 percent in 2014. Nevertheless physical sales are still dominant on the German recorded music market with share of 74.9 percent (without revenues from neighbouring rights collecting society GVL and from synchronisation). The CD is still the most important audio format of the recorded music market in Germany with sales of EUR 985.0m and a market share of 66.7 percent.
The details of the development of the recorded music market in Germany from 2003-2014 are highlighted in the following analysis.