PIXIES PODCAST promo perfection?

see below for more

INDUSTRY 2018-19 points

IN THIS POST:
See below for a list of themes/points/case studies covered.
The idea of this is to gather a range of resources, as I encounter them, which help to inform you on the music industry. it will be a rather big post! Use this with an earlier summary with examples mostly not referenced here, but also the various tags!!!

https://www.billboard.com/articles/business/8520844/money-makers-major-labels-individual-revenues

Do they pay enough? This audio atrocity made a lot of money for a charisma-free star... Read on to find out who

“At the beginning of the digital revolution it was common to say that digital was killing music,” said Edgar Berger, chief executive of the international arm of Sony Music Entertainment. Now, he added, it could be said “that digital is saving music.” [NYTimes]

......

Did you know that primitive, bleepy (polyphonic) ringtones were the 1st major market for the music biz on the then new smartphones? This headline comes from 2005, when people paid up to $/£4 for a single ringtone, changing these as the charts changed. Online distribution, popularised by piracy site Napster from 1999, began to be monetised by labels from 2000, and by 2003 this was a booming market. In a sign of how fast things change, digital downloads, the 2nd big market, are tipped to disappear soon ... and the ringtone market (and charts!) already has. Of course, there's now a retro market for this defunct technology, and Crazy Frog lives on...
....

TO EDIT......
http://ultimateclassicrock.com/metallica-napster-lawsuit/
https://www.rollingstone.com/music/music-features/tim-ingham-music-industry-status-2018-771105/

HMV is a bedrock of the British music industry – its loss would affect us all

https://www.theguardian.com/music/2018/dec/30/hmv-is-a-bedrock-of-the-british-music-industry-its-loss-would-affect-us-all?CMP=Share_AndroidApp_Copy_to_clipboard

IN THIS POST: 
I began this just as a summary on a report on UMG's increasing profits, but I've widened it out to provide key facts/figures on the music industry. As well as multiple tags (monetising, merchandise, music industry, Spotify, distribution etc) you can find key posts like this industry summary, ppt on Bicep example with more egs of monetising, and this post with graphs and stream revenue calculators, + this 2018 summary which drew on multiple articles:

• when did it peak (were revenues highest)? 1999
• why did revenues fall after this? Online distribution made piracy easy (eg Napster) and undermined the appeal of expensive CDs 
• by today a whole generation has grown up with the attitude that music is/should be free; not prepared to pay for albums (there's even a political party campaigning for this: The Pirate Party)
• ...indeed, the album is being undermined, with streams from albums on Spotify typically focused on just 3-4 songs
• monetizing recorded music is therefore not as easy as it once was;
• the existing business practice, distributing recorded music as physical media, was disrupted by convergence/digitisation
• the smartphone (+phablets/tablets) is the key converged device for the music industry, overtaking the PC where previously people would access the likes of Napster
• by 2012, streaming/digital sales revenues overtook physical sales in the US
• it wasn't until 2017 that this happened in the overall, global market (broadband, 3G/4G rollout and take-up being slower in many markets)
• the digital sales market was initially key, especially iTunes sales, but will soon be overtaken by vinyl revenues!!! 
• other early digital markets have quickly disappeared as technology accelerated: ringtones were a huge market just a decade ago
• the video in this post uses the 'polymorphic', 8-bit music style that people used to pay a few euros to get for their phones, before continued convergence made it easy to load your own (probably ripped from YouTube) MP3
• starting in 2000, this was the 1st way the music biz had of making money from phones - the US ringtone market alone was worth $300m by 2004 (Japan $900m, globally about $3.5bn [see Wiki]). It declined from 2008 on; by 2014, the ringtone chart was abandoned (see this article)

  

  a whole market that's now gone: polyphonic ringtones

• see this interactive website to sample a range of ringtones over time! 
• streaming now accounts for over half of all music industry revenues and is growing, while physical media sales continue to fall 
• UMG 2017-2018: digital (streaming/sales) up 1/3, physical down 20%
• the payment per stream remains controversial: the music industry strongly argue that YouTube especially must pay much more - see the calculator below
• the EU may pass laws to force YouTube to pay more...
• ...which may lead to millions of fan videos being taken down!!!
• touring (tickets) and merchandising, + sponsorship, tie-ins, etc are another key means of monetising for artists and labels
• but labels increasingly force artists to sign '360 deals' including image rights + a % of tour revenues

........................................
DOES YOUTUBE PAY ENOUGH PER STREAM??
I've blogged on this (and Spotify and others before); here's a revenue calculator for 1 of the most streamed videos ever ... you can try it for others ...

UNIVERSAL'S PROFITS SOAR EVEN AS PHYSICAL MEDIA CONTINUES TO FALL

Lot of great details in this musicbusinessworldwide feature on the corporate fortunes of UMG (Universal Music Group), one of the big 3 that accounts for a combined 80% of the global music industry's revenues...

• UMG's streaming revenues are greater than Spotify's total revenues, a reminder of the diversity within a market dominated by bug names like Spotify, YouTube and Apple, but with plenty more such as Amazon and Deezer.
• Overall revenues are rising despite continuing steep falls in physical media revenues.
• Rock music is very much secondary to rap/rnb/urban for sales (this goes back about a decade)

There's lots of business terms/abbreviations here:

• YoY = year-on-year (eg 2018 profits up on 2017's)
• Q4 = Quarter 4 (businesses publish reports on revenues, profits, losses every 3 months ... every quarter

If you were to ask Sir Lucian Grainge what his favorite genre of music is right now, you’d have to guess he’d say hip-hop.
According to Vivendi, Universal Music Group’s five biggest revenue-generating artists in the first nine months of this year were: (i) Drake; (ii) Post Malone; (iii) Kendrick Lamar; (iv) XXXTentacion; and (v) Migos.
These acts drove UMG’s recorded music sales in the first nine months of 2018 to an all-time high of €3.28bn ($3.93bn), up 10.2% YoY at constant currency.

Remember that the music industry constantly moans about piracy and the streaming platforms paying too little per stream ... yet profits are increasing overall.

HOW PROFITS BEGAN RISING AGAIN AFTER FALLING EVERY YEAR FROM 1999-2011

After years of falling from their 1999 peak, the industry (not just UMG) starting growing again in 2012, as this 2013 report highlights:

The music industry, the first media business to be consumed by the digital revolution, said on Tuesday that its global sales rose last year for the first time since 1999, raising hopes that a long-sought recovery might have begun.
The increase, of 0.3 percent, was tiny, and the total revenue, $16.5 billion, was a far cry from the $38 billion that the industry took in at its peak more than a decade ago. Still, even if it is not time for the record companies to party like it’s 1999, the figures, reported Tuesday by the International Federation of the Phonographic Industry, provide significant encouragement.
“It’s clear that 2012 saw the global recording industry moving onto the road to recovery,” said Frances Moore, chief executive of the federation, which is based in London. “There’s a palpable buzz in the air that I haven’t felt for a long time.”For years, the music industry’s decline looked terminal, with the record companies seemingly unable to come up with digital business models that could compete with the lure of online piracy. Last year, however, digital sales and other new sources of revenue grew significantly enough to offset the continuing decline in CD sales.

UNIVERSAL'S GRIP TIGHTENS AS THEY SIGN UP TAYLOR SWIFT
Universal just tightened its grip on the industry with the signing of Taylor Swift, though they agreed to give her ownership of the masters of all recorded music, a big change from usual industry practice, and to pass money from sale of its shares in Spotify to its artists.

Taylor Swift leaves lifelong label to sign with Universal Music Group

More details: Taylor Swift strikes a blow for fellow artists as digital revenues soar

https://www.theguardian.com/business/2018/nov/24/taylor-swift-blow-fellow-artists-streaming-revenues-soar-universal-spotify?CMP=Share_AndroidApp_Copy_to_clipboard

https://www.cbcmusic.ca/posts/20648/danny-michel-opens-up-about-reality-being-musician

$44.99 sales, including $0.003 per Spotify stream, for a Canadian artist's top 10 hit (Canada charts and figures)

New campaign to get Spotify etc to tag Indie artists and boost the 19.55% global share not taken by the big 3.

https://www.hypebot.com/hypebot/2018/11/spotify-apple-music-urged-to-label-indie-music.html

https://www.hypebot.com/hypebot/2018/11/the-music-business-is-about-more-than-just-the-big-three.html

Music biz revenues grew in 2017+2018 as streaming booms.

Universal expanding in China/Asia.

Metallica launch Enter Night Pilsner, building on whiskey (Rolling Stone).
They even released a 'making of' video! (Blabbermouth)

https://www.musicbusinessworldwide.com/jobs/spotify-manager-artist-label-marketing-us/

Physical sales so reduced, a Jan 2019 #1 only had 823 album sales!!!

Average Spotify user only paying 5.5o, and falling, as global rollout in poorer countries builds and family plans too.

https://www.hypebot.com/hypebot/2019/01/record-labels-evolve-to-stay-relevant-in-the-streaming-era-musonomics-report.html

https://www.billboard.com/articles/news/features/8492870/spotify-direct-to-artist-tools-label-territory

https://www.newstatesman.com/2019/01/is-the-music-industry-dead

VIRAL How big 3 grab copyright of UGC in promo campaigns

Interesting blogger in music industry worth following. Her major contention here is that the labels are quietly subverting notions of the fan/audience empowering potential of converged social media, angrily noting a Sony example of claiming a hashtag use as a binding legal contract handing over all rights in perpetuity with zero compensation (other than glory!).

The former audience as audience 3.0, working for The Man?

https://www.getrevue.co/profile/cheriehu42/issues/the-music-industry-s-inconvenient-truths-149151

DISRUPTION How Spotify may beat big 3

https://www.hypebot.com/hypebot/2018/10/is-spotify-already-too-big-for-record-labels-to-stop-it-from-competing-with-them.html

MUSIC INDUSTRY 2018 some pointers

This is a quick post inspired by encountering the site musicbusinessworldwide.com

UPDATE: Useful review of music video trends in 2918, including the return of mega-budgets for a handful of elite artists:

Drake’s mates and Taylor Swift’s cosplay: exploring the 2018 music video

https://www.theguardian.com/music/2018/may/19/drakes-mates-and-taylor-swifts-cosplay-exploring-the-2018-music-video?CMP=Share_AndroidApp_Copy_to_clipboard

I was looking for some info on the 1D GCSE exam case study but spotted a number of great articles on here. So here's a few pointers based on the site.

You can find a bullet list I previously did summing up some key music industry points (with many links to posts) here.

AS CDS DISAPPEAR TOURS ARE JUST THE TICKET: 1D EXAMPLE
A point I make many, many times: the traditional music industry model has been through disruption from digitisation (though it hasn't rebalanced the competition in favour of Indies; see Anita Elberse's fascinating analysis of how big 3 acts utterly dominate Amazon sales, making the 'long tail theory' seem absurd), so labels are looking for new revenue sources. Merchandise is a key factor - when I went to see The Wedding Present (UK Indie band) in Luxembourg last year, I got to chat to the singer after the gig, who was at the merch stall signing his own comic book range alongside the usual tee-shirts etc.

The likes of 1D aren't going to do that. They did sell VIP packages for gigs - something else I saw at a Depeche Mode gig, with multiple tiers including a basic that simply allowed you into the venue earlier to hear the soundcheck. I've blogged on Taylor Swift and Katy b Perry doing this, with fans paying a lot for a selfie opportunity. [meet-and-greets post]

The basic breakdown is clear though - most major artists (Indies too) will gain more from tours than album sales. Even combined with streaming (which is now bigger than physical sales and download sales combined) that remains the case. Getting onto TV ads, film/game OSTs are also potentially lucrative.

STREAMING Warner soars past $1bn digital revenues

The conglomerate giant doing fine, artists less so...

Ed Sheeran’s Divide puts Warner Music’s streaming income on track to cross £1bn https://www.theguardian.com/business/2017/aug/08/ed-sheerans-divide-lifts-warner-musics-streaming-income-to-1bn?CMP=Share_AndroidApp_Blogger

Big Three Sony Universal Warners

In film its the big six (7 if you count Lionsgate); in the music industry, following a controversial 2012 $2bn takeover of EMI by Universal, its just the big three: Sony Music Entertainment, Warner Music Group, and Universal Music Group. Sony and Universal also combine on the VEVO platform.

See: thebalance.com feature on the big 3; musicbusinessworldwide.com (the spin on this one is a bit odd - that the ENTIRE Indie industry beats any one of the big three individually); digitalmusicnews.com; this pdf.

Table from digitalmusicnews.

You can see how the industry has gone through dramatic 'disruption' from digitisation - but with little impact on the market share of the dominant conglomerates:

Source: p.11 of this report (pdf).

Spotify chief most powerful figure in music industry

The big three are all represented alongside major management agencies and touring agents, but it's Spotify, seen as responsible for an unexpected rise in music industry revenues, with its 51% share of the US streaming market (a challenge here for Apple, who also feature in the top 10), that tops the pile according to industry magazine Billboard.

Spotify's Daniel Ek named most powerful person in the music business. 

INDUSTRY Big 3 revenues streaming surge

Music streaming hailed as industry's saviour as labels enjoy profit surge https://www.theguardian.com/technology/2016/dec/29/music-streaming-industry-saviour-labels-spotify-apple-music?CMP=Share_AndroidApp_Blogger

Will Spotify kill the music download?

https://www.theguardian.com/business/2016/dec/26/spotify-music-download-apple-itunes-streaming-vinyl?CMP=Share_AndroidApp_Copy_to_clipboard

Record sales: vinyl hits 25-year high

https://www.theguardian.com/music/2017/jan/03/record-sales-vinyl-hits-25-year-high-and-outstrips-streaming?CMP=Share_AndroidApp_Copy_to_clipboard

Customised ads within vids: Universal tech deal

More on this shortly: http://www.theguardian.com/music/2014/sep/30/universal-deal-adverts-mirriad-existing-music-videos.

...Quick summary of key points:

VEVO vertically integrates with TV channels

VEVO, as a coalition of 2 of the 3 remaining global giants, Universal and Sony, already had a production arm; YouTube acted as the main distributor/exhibitor for its wares (music videos) until now, arguably being of greater importance than MTV and suchlike. Now they've launched their own channels, so are able to boast in-house production, distribution and exhibition.
There's more in the article below, including the assertions that "Part of what we're trying to achieve is that element of nostalgia but 70% of our audience is under 34."
YouTube has now bought a 10% stake in VEVO.

Article source.

Vevo launches 24-hour digital music channel in US and Canada

Video website hopes to recreate MTV's 1980s heyday with service for internet-connected TVs, tablets and mobiles

• Josh Halliday
• guardian.co.uk, Tuesday 12 March 2013

Rihanna: likely to feature on Vevo TV. Photograph: Stuart Wilson/Getty Images

Thirty-one years after MTV flickered into life to the sound of the Buggles hit Video Killed the Radio Star, the video website Vevo has launched a 24-hour digital music channel in the US and Canada.
Vevo, the site created by record giants Universal Music and Sony, hopes to recreate MTV's 1980s heyday with the channel, showing a selection of music videos, live concerts and original programming.

INDUSTRY/NEW MEDIA Indies challenge majors?

Indies hit an impressive 25% of market share in 2011:

independent labels – small companies not tied to the "big four" of Universal, Sony, Warner and EMI – had an unprecedented 25% share of the 113m albums sold in Britain in 2011. But industry observers say that what will perturb the majors more is the worldwide extent of Adele's breakthrough.

With EMI now effectively swallowed up, the big 4 is now 3; just THREE companies accounting for 75% of all music sold in one of the biggest music markets in the world.
The Guardian article notes the influence of digitisation here:

But Martin Mills of XL's parent company, Beggars Group, which also runs its sister label 4AD (whose Bon Iver is nominated for a Brit too), attributes the rise of indie to several factors. The most important is the internet having levelled the playing field. "You can be a little guy playing by little guys' rules, but that doesn't stop you from accessing the world market," said Mills. "Bigger players are in trouble, because online challenges [illegal downloading] have harmed their businesses more than they've harmed us."

Read the full article at http://www.guardian.co.uk/music/2012/feb/20/adele-brit-awards-indie-success

INDUSTRY: EMI sale creates Big 3

With the announcement that EMI is being bought up as two packages by Sony and Universal, the already absurd concentration of ownership that was the big 4 now becomes the big 3, as I blogged on recently:

The last British giant, EMI, has been in the hands of private equity companies for some time, and has been effectively for sale for a while now, the private investors having bought it at what now seems an obviously inflated price just as the music industry began to feel the financial impact of digitisation.

This article contains a useful update on all this.
So, will the Big Four become the Big Three?

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A little bit of theory: Chomsky's propaganda model includes as one of the five filters 'concentration of ownership, while Ben Badikian has written about the negative impact of monopoly (a topic we'll explore for the exam Media Regulation topic) in his classic book The Media Monopoly (now renamed The New Media Monopoly)

Leading corporations own the leading news media and their advertisers subsidize most of the rest. They decide what news and entertainment will be made available to the country; they have direct influence on the country's laws by making the majority of the massive campaign contributions that go to favored politicians; their lobbyists are permanent fixtures in legislatures.
This inevitably raises suspicions of overt conspiracy. But there is none. Instead, there is something more insidious: a system of shared values within contemporary American corporate culture and corporations' power to extend that culture to the American people, inappropriate as it may be. (excerpt from http://www.thirdworldtraveler.com/Media/Afterword_Bagdikian.html)

You can find an archive of articles at http://www.guardian.co.uk/business/emi
Some recent, useful additions include:
'EMI: the sad demise of a very British company: For three decades, EMI took on the world in record sales. Now its sale to Sony and Universal marks the end for the music major'
'Universal and Sony reach deal to buy EMI for £2.5bn: Famous British music business could be split into two in agreement that hands control to biggest rivals'
'Farewell then EMI, your tunes were the background to our lives: The company that brought us Cliff and the Beatles, the Sex Pistols and Susan Boyle is disappearing. We should salute its contribution to our culture'

INDUSTRY: Big4 almost Big3 - EMI sale

The last British giant, EMI, has been in the hands of private equity companies for some time, and has been effectively for sale for a while now, the private investors having bought it at what now seems an obviously inflated price just as the music industry began to feel the financial impact of digitisation.

This article contains a useful update on all this.
So, will the Big Four become the Big Three?

-------------------------------------------------------

A little bit of theory: Chomsky's propaganda model includes as one of the five filters 'concentration of ownership, while Ben Badikian has written about the negative impact of monopoly (a topic we'll explore for the exam Media Regulation topic) in his classic book The Media Monopoly (now renamed The New Media Monopoly)

Leading corporations own the leading news media and their advertisers subsidize most of the rest. They decide what news and entertainment will be made available to the country; they have direct influence on the country's laws by making the majority of the massive campaign contributions that go to favored politicians; their lobbyists are permanent fixtures in legislatures.
This inevitably raises suspicions of overt conspiracy. But there is none. Instead, there is something more insidious: a system of shared values within contemporary American corporate culture and corporations' power to extend that culture to the American people, inappropriate as it may be. (excerpt from http://www.thirdworldtraveler.com/Media/Afterword_Bagdikian.html)