Streaming music now outsells CDs

[john]

Streaming music drowns out CD sales in US for the first time
US revenue from streaming services like Pandora, Spotify and Apple's Beats eclipsed sales of CDs last year, according to data from the music industry's trade group.

...According to data on music sales from the Recording Industry Association of America, sales in the US from streaming music were $1.87 billion in 2014, the RIAA said, while CD sales were $1.85 billion. Streaming revenue -- which includes subscription services like Spotify and Apple's Beats Music, radio like Pandora and Sirius XM, and ad-supported operations like Vevo, YouTube and free versions of Spotify -- jumped 29 percent last year, while CD revenue dropped 12.7 percent.

Meanwhile, digital downloads, the music purchases that typify Apple's iTunes store, still represented the biggest slice of the recording industry's revenue. Their sales fell 8.7 percent to $2.58 billion

The data illustrates an increasing shift from purchasing music to own in the form of a downloaded track, CD, record or cassette tape to a world in which music is increasingly paid for with subscriptions for all-you-can-eat access or with advertising. This underlying change in the music industry has led to outcries from some camps and praise from others....

http://www.cnet.com/news/streaming-music...irst-time/

Links to 2014 article

Attention, artists: Streaming music is the inescapable future. Embrace it
Music's bedrock business will be selling access to streams, not ownership of tunes. So what does that mean for the artists you love? It should be music to their ears....

..."It started off you would tour to support an album," Pollock said of legacy bands like his client Depeche Mode. "That's now shifted to putting out an album to create a reason to justify a tour."

Live performance revenue is the biggest moneymaker in the business, and it's getting bigger. Live music sales are expected to grow to 64 percent of the US music industry by 2018, from 59 percent share last year, according to PwC's entertainment and media outlook.

Another perk of streaming: it can tell artists where they'll probably pack venues. After Pandora showed Hutchinson the top 10 cities that listen to him most, he was surprised to see the list include places like Seattle, where he gets less radio play. He made sure to put it on his tour. High-priced VIP tickets sold out weeks in advance.

Streaming music platforms are also allowing artists to widen their "merch table" to include intangible experiences such as selling a one-on-one Skype chat with a fan. Smule, the music-app maker behind Sing Karaoke, has begun a program of promotional partnerships with artists. Emerging artist Todd Carey, for example, offered a contest to Smule-app users: upload a cover of his single for the chance to win an iPad. Because people ended up buying his music to practice, the business effect was immediate and obvious, said manager Jason Spiewak. Carey went from selling 100 or so singles a week to a thousand-plus, and his views on YouTube and social following jumped. ...

http://www.cnet.com/news/attention-artis...mbrace-it/

[midnightblues]

The dying era of CDs has bin upon us for a while ,.The chip now rules the future . Or does it

[john]

The dying era of CDs has bin upon us for a while ,.The chip now rules the future . Or does it

Yes, CDs no longer dominate sales. These articles suggest that we are in the dying era of itunes and other type of download purchases. Access to streaming music is the new wave. Guys like Scott Bradlee are ready to exploit these trends.

[midnightblues]

Yeah man ITunes still has a heart beat,but who know where it will be in a few years but hey Pandora has great classic rock channel's.

[john]

Alex Wilhelm ‏@alexswilhelm 13s14 seconds ago
Streaming will result in short term pain but long term gain.

[john]

Jimmy Iovine is trending on Twitter....

Apple Music Exec Jimmy Iovine Says Finding Music Is Too Hard For Women
“Girls are sitting around, talking about boys, right? … And they need music for that, right?”

posted on Nov. 19, 2015, at 2:55 p.m.

In an interview today on CBS This Morning, head of Apple Music Jimmy Iovine said, “I always knew that women, some women, at times find it very difficult to find music. And this helps make it easier with playlists, curated by real people, not by algorithms alone.”

He explained further: “I just thought of a problem: Girls are sitting around, talking about boys, right? Or complaining about boys, when they have their heart broken or whatever, and they need music for that, right? And they need music for that. So it’s hard to find the right music. Not everyone has the right list or knows a DJ.”...
http://www.buzzfeed.com/katienotopoulos/....kproEN6oe

http://observer.com/2015/11/dear-jimmy-i...c-to-them/

Thank you for dumbing down women everywhere, Mr. Iovine.

[john]

As media go throught everything Bowie, it is being noted that in this NYT article from 2002 he predicted some of the impact of the internet on music. Why his prediction that copyright would not longer exist in ten years time (2012) may not be technically true, to a large extent it is the case (at least by the consumer). Interestingly in 1997 Bowie sold off shares of the rights to his music catalogue for 55 million, which turned out to be a good business move.

David Bowie, 21st-Century Entrepreneur

...His deal with Sony is a short-term one while he gets his label started and watches the Internet's effect on careers. ''I don't even know why I would want to be on a label in a few years, because I don't think it's going to work by labels and by distribution systems in the same way,'' he said. ''The absolute transformation of everything that we ever thought about music will take place within 10 years, and nothing is going to be able to stop it. I see absolutely no point in pretending that it's not going to happen. I'm fully confident that copyright, for instance, will no longer exist in 10 years, and authorship and intellectual property is in for such a bashing.''

''Music itself is going to become like running water or electricity,'' he added. ''So it's like, just take advantage of these last few years because none of this is ever going to happen again. You'd better be prepared for doing a lot of touring because that's really the only unique situation that's going to be left. It's terribly exciting. But on the other hand it doesn't matter if you think it's exciting or not; it's what's going to happen.''...

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From a Fast Company article about the NYT article...

...In place of the industry structures then beginning to crumble, Bowie foresaw a system by which people would pay for access to music. But he was also realistic about the economics: This new model wasn't going to be anywhere near as profitable as during the heyday of recorded music sales.

''So it's like, just take advantage of these last few years because none of this is ever going to happen again," Bowie said to the Times. "You'd better be prepared for doing a lot of touring because that's really the only unique situation that's going to be left. It's terribly exciting. But on the other hand it doesn't matter if you think it's exciting or not; it's what's going to happen.''

Record industry executives couldn't entirely be blamed if they smugly shrugged off Bowie's prediction in 2002. At the time, although file-sharing had started to nibble away at record sales, the industry's free-fall had just barely begun. In 2002, recorded music generated over $24 billion in revenue, according to IFPI. But 10 years later, that number had dipped down closer to $15 billion. It hasn't stopped dropping since, even as revenue from music subscriptions grows.

In, 2002, the music industry was still riding high with successes like NSync's massive hit, "No Strings Attached" (whose two-week record sales were only just surpassed last year, by Adele). Back then, it was easy to imagine that physical album sales might bounce bank and reign supreme. And yet here we are, paying monthly fees for music like it's just another utility bill. Indeed, just like water or electricity...

http://www.fastcompany.com/3055340/david...ic-in-2002

[john]

http://www.riaa.com/riaa-debuts-album-award-streams/

February 1, 2016 | Gold & Platinum

RIAA DEBUTS ALBUM AWARD WITH STREAMS

58-Year-Old Gold & Platinum Program Modernizes Album Certification

Alt-J, Big Sean, Brett Eldredge, Coldplay, Elle King, Fifth Harmony, Halsey, Hozier, Kendrick Lamar, Michael Jackson, Miranda Lambert, Romeo Santos, Sam Hunt, Shawn Mendes, The Weeknd, Vance Joy and Wale Garner New Album Achievements Today

WASHINGTON–The Recording Industry Association of America (RIAA) today announced a new Album Award methodology for its Gold & Platinum Program, the industry’s premier award for recognizing artistic achievement in the music marketplace.

Effective Feb. 1, RIAA will include on-demand audio and video streams and a track sale equivalent in Gold & Platinum (G&P’s) Album Award. The modernization of the program’s album rule follows a similar update made to digital single certifications in 2013, when the RIAA first added on-demand streams to its Digital Single Award. Collectively, this now means that the program’s iconic benchmarks – 500,000 (Gold), 1,000,000 (Platinum) and 2,000,000 plus (multi-Platinum) – will count both sales and streams for single and album certifications.

“For nearly six decades, whether it’s vinyl, CDs, downloads or now streams, the Gold & Platinum Program has adapted to recognize the benchmarks of success in an evolving music marketplace,” said Cary Sherman, Chairman and CEO, RIAA. “We know that music listening – for both for albums and songs – is skyrocketing, yet that trend has not been reflected in our album certifications. Modernizing our Album Award to include music streaming is the next logical step in the continued evolution of Gold & Platinum Awards, and doing so enables RIAA to fully reward the success of artists’ albums today.”

Seventeen titles, encompassing albums from dozens of music labels and spanning many genres, are included in the inaugural certifications for the newly expanded Album Award. RIAA is today awarding the following artists with new certifications: Alt-J “An Awesome Wave” (Atlantic Records) Gold, Big Sean “Dark Sky Paradise” (Def Jam Recordings) Platinum, Brett Eldredge “Bring You Back” (Atlantic Nashville) Gold, Coldplay “Ghost Stories” (Atlantic/Parlophone) Platinum, Elle King “Love Stuff” (RCA) Gold, Fifth Harmony “Reflection” (Epic) Gold, Halsey “Badlands” (Astralwerks) Gold, Hozier “Hozier” (Columbia) Platinum, Kendrick Lamar “To Pimp a Butterfly” (Top Dawg Entertainment/Interscope) Platinum, Michael Jackson “Thriller” (Epic/Legacy) 32X Multi-Platinum, Miranda Lambert “Platinum” (RCA Nashville) Platinum, Romeo Santos “Fórmula Vol. 2” (Sony Latin) 11X Diamante/RIAA Latin G&P Program, Sam Hunt “Montevallo” (MCA Nashville) 2X Multi-Platinum, Shawn Mendes “Handwritten” (Island Records) Platinum, The Weeknd “Beauty Behind the Madness” (XO/Republic Records) 2X Multi-Platinum, Vance Joy “Dream Your life Away” (Atlantic Records) Gold and Wale “Ambition” (Atlantic Urban) Gold.

After a comprehensive analysis of a variety of factors – including streaming and download consumption patterns and historical impact on the program – and also consultation with a myriad of industry colleagues, the RIAA set the new Album Award formula of 1,500 on-demand audio and/or video song streams = 10 track sales = 1 album sale. Also effective today, RIAA’s Digital Single Award ratio will be updated from 100 on-demand streams = 1 download to 150 on-demand streams = 1 download to reflect the enormous growth of streaming consumption in the two plus years since that ratio was set. Just as RIAA announced when setting the initial formula in 2013, our analysis and the determination of a formula is based on comparative consumption patterns, not marketplace value.

The RIAA created its Gold & Platinum Awards Program in 1958 to honor artists and create a standard to measure the commercial success of a sound recording. The program trademarked the Gold record and formalized the industry practice of presenting awards to artists for music sales achievements. Almost 60 years since its inception, the iconic Gold & Platinum brand is the preeminent form of recognition for success in the music marketplace.

Music dominates the conversation on popular social media platforms, with artists being the most followed people across these channels, and Gold & Platinum recognition is often among the most celebrated news in an artist’s social media feed. The RIAA utilizes a myriad of social media platforms – Twitter, Facebook, Instagram, Flipagram, and a YouTube page – to market and publicize artist award achievements. The RIAA also recently unveiled a new RIAA.com and Gold & Platinum database where fans can more easily search and share the award recognition.

First awarded to LP recordings but expanded to a number of formats over time to include cassette tapes, CDs, digital tracks, digital albums, ringtones, and streams, nearly 30,000 certifications have been awarded by the RIAA during the last 58 years.

All certifications are calculated by the firm Gelfand, Rennert & Feldman, which has audited title sales for the RIAA for more than 30 years. Complete lists of all album, single, and other awards can be accessed at http://www.riaa.com/gold-platinum/.

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2015 Mid-Year RIAA Shipment and Revenue Statistics | RIAA

For the first half of 2015, strong growth in revenues from streaming services offset declines in digital downloads and overall wholesale revenues increased 0.8% to $2.3 billion on a year-over-year basis. At retail, the overall value decreased 0.5% to $3.2 billion.

http://www.riaa.com/wp-content/uploads/2...ntData.pdf

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It looks like 3% of industry revenues come from sync deals

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http://www.digitalmusicnews.com/2015/05/...-possible/

A Simple Guide to Signing the Best Sync Deal Possible

...Three Sync Licenses: The Bad, the Good, and the Not Too Ugly

Re-printed below are three different sync licenses. The first is very pro-company. The second license is very pro-talent. The third is in between.

Each license covers a different situation. The first license, MTV’s Music Submission Form, is for use of music in any website, show or TV distributed by MTV or its parent company Viacom. The second is for use of new music in a single TV commercial. The third license is for the use of a relatively old song in a docudrama. In each case, the agreement was drafted by the network, agency and production company respectively....

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The Art Of The Sync Deal

....Before I get to the mechanics, let me briefly address the question that is on most artists’ minds: how do I get my music synchronized? The answer is not: write some great songs, and hope some music supervisor/ad agency hears them. Rather, the answer is that success in sync, like success in every other element of the music business, is contingent upon MOTION. By this I mean, you have to create energy around your music. First, create energy in terms of people responding favorably to your songs. For more on this see my recent video interview with John Strohm, attorney for, among others, Civil Wars and Bon Iver. Until people begin getting energized about your songs at live shows in your area, nothing is likely to happen. Once they do, the forward motion begins. From a great live show comes opportunity and connections. Examples are things like: more exposure from gigs outside of town/opening slots for more established artists; local radio play/on air performances; traditional media exposure; social media growth, and so on. From this type of motion comes interest from people who can drive more forward motion.....
http://www.tunecore.com/blog/2012/09/the...-deal.html

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Are you ready for a pop quiz?

....A US-based band records an album of material they wrote, with one track being a cover of The Rolling Stones’ song “Brown Sugar”, written by Mick Jagger and Keith Richards. The band sells all 500 vinyl copies of the album plus 500 downloads on iTunes to US customers. According to the current statutory rates, how much does this 4 minute, 30 second-long cover of “Brown Sugar” generate in mechanical royalties, based on these sales?

A. 9.1% of net sales

B. $91

C. 10% of net sales, since it was one of ten songs on the record

D. Nothing....

https://futureofmusic.org/blog/2014/03/0...-responses
(correct answer is b)

[john]

Interesting graph of the sales of AABT in relation to Shazam tags, Spotify streams and radio plays. Shazam led, radio lagged.


http://www.billboard.com/articles/641379...-that-bass