Is Streaming the Next Big Thing? – The Labels’ Perspective

The Beggars Group chairman, Martin Mills, recently told the Guardian that “(…) 22% of the label group’s digital revenues came from streaming – and that the majority of its artists earn more now from track streams than track downloads” in 2012. Though the article does not report absolute figures, the revenue can be considered rather high with a roster including Adele, Jack White and The xx.

A member survey of the global rights agency Merlin representing more than 20,000 indie labels including Beggars Group/XL Recordings, Rough Trade, Naïve, Tommy Boy, Cooking Vinyl and Naxos unveils that “92% of respondents saw streaming and subscription revenues grow between 2011 and 2012, with a third enjoying increases of more than 100%” as recently reported by Musicweek. The same study shows that 24% of indies across the world and 30% of European indies generated more income from streaming than downloads in 2012.

These figures suggest that music streaming seems to be a promising revenue source for record labels. In the following the economic potential of music streaming and the underlying business model are analysed from the record labels’ perspective.

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Book Review: “Download!” by Phil Hardy

“Download! How the Internet Transformed the Record Business” by music industry journalist Phil Hardy is a detailed analysis how the majors record companies lost control of the value added chain in the music industry in the digital revolution. He tells the story about self-confident and maybe arrogant music business executives, who had profited from the CD revolution in the 1990s, but were outmanoeuvred by industry outsiders who set up a totally new added value network for recorded music. The once highly profitable record business that attracted investors from other industries in the 1980s and 1990s turned into a laboratory of digitalization with declining record sales, job losses and divestments of pressing plants and distribution networks in the 2000s. “Download!” is, therefore, an important contribution to understand the impact of Internet and new media on the transformation of the recorded music industry.

The Early Recording Industry in the Czech Lands – Part 4

Guest post by Daniel Matoušek

Until now, there has not been much literature on the recording industry in the former Czechoslovakia.  Particularly the history after the 1950s is not mapped at all yet. However, there are two books about the early music industry in the Czech lands that stand out in scope and in depth of detail: “Fonogram I” and “Fonogram II” by Czech record collector and sound industry historian Gabriel Gössel. The following short series of four articles is thus a look into the history of early gramophone industry in the Czech lands as described in these two volumes.

This last part examines the wartime period and the complicated situation in the post-war years. From 1939 to 1945, the Republic of Czechoslovakia was occupied by the national socialist German Reich and was officially renamed to Protectorate of Bohemia and Moravia, whose economy was directly controlled by the nazi regime. With the rise of the Communist party and the pressure towards nationalization after the war all recording companies were merged into a single state-owned enterprise called “The Gramophone Works”. The way of the Czechoslovakian music industry through the years of occupation and to post-war nationalization is examined in the following.

The Early Recording Industry in the Czech Lands – Part 3

Guest post by Daniel Matoušek

Until now, there has not been much literature on the recording industry in the former Czechoslovakia.  Particularly the history after the 1950s is not mapped at all yet. However, there are two books about the early music industry in the Czech lands that stand out in scope and in depth of detail: “Fonogram I” and “Fonogram II” by Czech record collector and sound industry historian Gabriel Gössel. The following short series of four articles is thus a look into the history of early gramophone industry in the Czech lands as described in these two volumes.

This third part covers the 1930s, when Czechoslovakia was suffered from world economic crisis which led to the oligopolization of the music industry.

The US Recorded Music Market in the Light of the Billboard Hot 100 – the 1960s

In February 2011, Billboard Magazine celebrated the 1,000^th number one hit of the Hot 100 single chart since its introduction in September 1958 by listing all number one hits with links to YouTube videos and additional information. I used this list as a starting point to analyse the preferences of US music consumers for artists and music genres and how major and indie labels economically profited from it. Part 1 of the analysis highlights the top chart positions of the Billboard Hot 100 in the 1960s.

The Early Record Industry in Australia – Part 4

The main competitors on the world record market, The Gramophone Company and the Columbia Graphophone Company, originally hesitated to enter the Australian market and it took several years before they etablished record pressing plants in Australia. Whereas the Columbia Graphophone also ran a recording studio from the beginning, the Gramophone Company could not bring itself to operate recording facilities in Australia in order to produce local acts. The Great Depression forced the rivals to amalgamate to EMI also in Australia in 1931.