May 24

Streaming revenues 2017 are about to double in just one year!

According to a study by Music Business Worldwide and this article, the major labels are going to earn more than 5 billion US-$ in 2017 with music streaming. Adding approximately 28 % of independent record labels (their streaming shares in 2016), streaming could make more than 7,1 billion US-$ in 2017. Remembering that in 2016, streaming revenues “only” made 2,9 billion US-$, this would equal significantly more than doubling in just one year.

Just a few months ago, in January 2017, some media like a large Financial Times article reported that they expect streaming revenues to double until 2020 with the starting point 2016… well, mission accomplished, maybe even in 2017.

In February, I published an article in this blog with the topic:

Does music streaming have the potential for a new “Golden Age” for the recorded music industry?

My updated answer now is a sure “Yes”, and not only a “maybe”.

However, one big issue is still, how the little men and women in this system, the artists, songwriters, small independent labels, can benefit from this exciting development on the same level like the major labels… a difficult problem as major labels hold corporate shares of Spotify (streaming market share more than 60 %), which do not have any impact on the artist royalties, respectively even lower the royalty pay out shares in the licence negotiations.

 

 

Posted in Digital Music, Labels, Music Industries | Leave a comment
Mar 22

CeBIT 2017 snapshot: Livyu.com – Like being on Stage with Robbie Williams

During my visit of the CeBIT 2017, I met some people, who are doing or planning something really awesome. So, I have decided to spread some slices and snapshots here on my blog.

Let’s start with the service Livyu.com, which offers streaming live concerts through their platform for a reasonable price. (CeBIT page: http://www.cebit.de/exhibitor/livyu/P592373)

Use case: your favorite artist’s concert is sold out, too expensive or not at your place, but you would like to join it. So, Livyu offers live and on demand streams of this concert.

Actually, the idea, which they are already offering right now (streaming live concerts), is not new. But at CeBIT, I experienced  a fantastic showcase or prototype of what you can expect somewhen soon, and which looks to me like the next big step of combining live concerts and virtual reality:

Read More »

Posted in Artists, Digital Music, Media | Leave a comment
Mar 02

CeBIT 2017 – why and what for the Music Industries?

Every year, the CeBIT in Hannover (Germany) takes place as the  largest trade fair for the computer industry and digital world. This year, it takes place from the 20th March until the 23rd March, and I will be there on the 21st March – actually for the first time.

Despite the computer industry and digital industry has much in common and many parallels with the music industry, it is not very popular for the music industry insiders as a meeting or training event. Probably, that’s one reason why I haven’t been there before.

However, the opportunity arouses to visit the CeBIT this year. So, let’s go!
To make the most out of this 1-day visit, I have already checked the keynotes, panels, exhibitors and new products in the trade fair and conference programm. In general, the main topics of the trade fair are Internet of Things, Big Data, the comprehensive digitalisation of our life and work (called d!conomy), Virtual Reality, Artificial Intelligence etc. All these topics (will) touch the music industries at some point.

From the large program, I have picked a few topics, dedicated to the music industry without any diversions:

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Posted in Brand Management, Digital Music, Media | Leave a comment
Feb 23

Does music streaming have the potential for a new ‘Golden Age’ for the recorded music industry?

The opinions about streaming as “saviour” or as “killer” of the recorded music industry couldn’t be more diverse. Some participants of the industry see a huge long-term potential in streaming. Other participants compare the instant license opportunities of selling music on CD or as digital download with the payout rates of streaming. Fair enough, the (low) payment rates of streaming services require ongoing negotiation from the music industry in order to ensure a reasonable income for all participants of the music industry. Additionally, making a living from current music releases has become a difficult task, as music streaming must be a long-term calculation, instead of the instant income of sales. But this shall not be discussed in this article. This article only takes a look on the big global market figures.

Let’s see if there could be a bright future – a new “Golden Age” for the music industry with streaming…

Read More »

Posted in Digital Music, General, Music Industries | 1 Comment
Feb 15

Blog Recommendation: hypebot.com

Today’s article is a website recommendation for everyone, who wants to stay up-to-date on a daily basis about the latest news from the music industry, about comprehensive information about new trends in the business and technology around music, and wants to expand the knowledge about the music industries.

Hypebot, founded in 2005, is the best resource for insiders of the music industries in my opinion.

Here are some recent interesting articles, published on the blog:

A Complete Guide to SEO for Musicians

How the Music Industry can change for the better

101 Ways to break into the Music Industry

Two more older articles, but with a high value to read it:

How to survive the Music Industry in 2017

Well being in the Music Industry

Check out Hypebot regularly! [next to this blog 😉 well.. the frequency of articles is obviously much higher at hypebot]

Leave a comment, what you think of hypebot, and which other blogs and resources are a must-read in your opinion!

Posted in Digital Music, Media, Music Industries | Leave a comment
Feb 08

Predicting the Future of the Music Industry

On a regular basis, music industry experts, associations and research institutions predict the future of the music industry – how it may evolve, how big the “next big thing” will be, how spectacular the digital innovations are going to have an impact on the music industry.

Just now, MIDia Research published their latest forecast for the development of streaming subscribers for the next three years, which shows the positive but slowly saturating development of people becoming premium users of streaming services. The music industry blog by MIDia founder Mark Mulligan published an analysis for this forecast: https://musicindustryblog.wordpress.com/2017/02/07/streaming-music-pricing-inelastic-stretching/

Without any doubt, such outlook always provide a trend view, based on what happened in the past years and analysing the potential of the market. The combination of the numbers of the last years and expected numbers for the upcoming years makes such analyses interesting for the people and companies of the industry.

However, a view on the analyses of the German music market by the German music industry association “Bundesverband Musikindustrie” in collaboration with GfK panel services shows how the yearly analyses may vary and, therefore, why you shouldn’t put the full trust in these predictions:

Read More »

Posted in Digital Music, Music Industries | 3 Comments
Jan 31

Succeeding in today’s “Attention Economy”

Dorothy Hui, Sony Music Entertainment UK’s vice president of Digital, has been cited in an interview on today’s attention economy, which definitely affects the music industries as well:

“The focus is on building audiences and engaging them. When you look at the potential of the [streaming] market, there’s the factor of how many people are subscribing, but each person still only has 24 hours in the day,”

“It’s an attention economy now. How are we competing for those hours in the day? I read a stat that in the UK there are eight hours and 44 minutes of multi-task attention [per person per day] between audio, visual and social media.” (Resource: hypebot.com )

As a lecturer for music industry topics, especially on artist development, I regularly put the focus on the changed situation for artist development. The variety of media channels, and therefore for of attention-grabbing channels, has become way larger than in the days before the digitalisation. Back in the days, there have been a limited number of (terrestric) radio stations, TV channels, CDs in your collections, games on your computer or console, and no smart phone. The opportunities for entertainment were limited in their absolute numbers and in their programm. Nowadays, you have the free choice of what and when you want to listen, to watch and to play on your devices. Due to the democratisation of production, distribution and promotion, the number of media products and channel of consumption (music, tv/video, games, etc.) is larger. And last but not least, you have the possibility to get access to the contents (free or with subscription fees) without buying single products.

So, how can you succeed in such competitive media environment?

Actually, it is not only a competition for the attention of the consumers, which is without any doubt the first step towards music exploitation. However, the most valuable consumers are those with a high identification for an artist. And this does not only require the consumer’s single attention, but additionally continuous attention and preference.

I remember, back in my studies for my Ph.D. and for my book “Organisches Artist Development” (engl. “Organic Artist Development”, Amazon: http://amzn.to/2iDSb4f) , I intensively worked with the German book “Popstars als Marke” (engl. “popstars as a brand”; Amazon: http://amzn.to/2kmjC3f), by Marcel Engh. The author developed a “consumer-fan-pyramid”, which displayed the steps from awareness/attention to being a fan.

Why is it important to have more than only the attention/awareness?

Having passionate fans, who do not only stream your songs on Spotify once or a few times (which is the result of getting attention/awareness), but discover and start loving your full discography, buy your records on CD or vinyl, come to your concerts, purchase your merchandise articles and tell their friends about how amazing your music and you as an artist is… that’s why the artists love what they are doing and how they can make a living from their art!  So, make sure that you do not only attract attention, but also take care for those who are involved more than that!

Many artists are unhappy about the small licence income from music streaming – for good reason. However, the major income for the music industries and artists always came from the highly involved artists, the so-called heavy users, who were highly emotional about their favorite artists that they did way more than only listening to the songs on occasion. So, artists should not lose their focus on such proper fans with high identification and loyalty.

Again: make sure that you do not only attract attention, but also take care for those who are involved more than that!

 

 

 

Posted in Artist Development, Artist Management, Brand Management | Leave a comment
Jan 20

Streaming payout rates (Spotify, YouTube, Apple)

Some thoughts on the latest news around streaming payout rates:

The well known resource for music industry article Hypebot just published a new article discussing the latest insights about streaming payout rates and market shares, highlighting the big players Spotify, YouTube, Apple and Pandora:

Many people in the business are annoyed about the decreasing payout rates of Spotify, for good reason. Spotify had a average amount of 0,00521 $ per stream in 2014, which is currently set at 0,00437 $ according to an analysis of The Trichordist. However, it is hard to get angry and react with a take down of your own label or artist catalogue from Spotify, when you realise that Spotify has a market share of 70 % within the streaming royalties displayed above. Therefore, there aren’t many alternatives to Spotify.

Another service to highlight in this article is YouTube. It is widely known that the majority of record labels put much effort in their YouTube channel, promoting videos and previews at YouTube in other social media channels. In terms of the payout rates, this focus on YouTube feels a bit like casting pearls before swine, as you have such a low payout rate. Spotify pays over 6 times more than YouTube for each stream, and we are already annoyed by Spotify’s rates.

Obviously, YouTube offers an essential advantage of playing the full video without any registration. Previewing a Spotify tune without account is only possible for 30 seconds. Nevertheless, comparing these two services, it is obvious that artists and labels should focus on directing their fan bases to Spotify, due to the higher payout rates.

Another argument for Spotify is the growing relevance of the artist in the Spotify algorithms, when it comes to curated playlists, verifying the artist account, developing a community on Spotify and set sails for the streaming-dominated future in the music industries.

A player to watch will be Apple iTunes (once more). The payout rates of Apple iTunes are nearly two time high in comparison to Spotify. If the market share of Apple iTunes grows in 2017, it will be a relevant player in the world of music streaming for the music industries. And probably, it will grow significantly.

Posted in Artist Development, Digital Music, Labels, Music Industries | 1 Comment
Jan 20

Blog reactivated!

It actually has been a very long time, when I closed this blog.

Back in 2013, I stopped writing new articles for this blog due to a lack of time.
More than three years later, my experience in the business and other businesses has highly increased. So, I will now again regularly add new posts to this blog.

You can now look forward to new articles, comments and reviews about topics on the music industries, especially artist development/management, digitalisation and the electronic music scene.

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Jun 19

[German] Kommentar zu “Kann man Popmusik lernen, Herr Wandjo?”

Vor wenigen Tagen erschien auf der Website WeCab ein Interview mit Professor Hubert Wandjo, dem Business Director der Popakademie, wo ich meinen Bachelor in Musikbusiness studiert habe.

Insgesamt trifft es das Interview absolut auf den Punkt, inwieweit Popmusik und deren Vermarktung lernbar ist. Daher zunächst die Lese-Empfehlung zum Interview: “Kann man Popmusik lernen, Herr Wandjo?”

Ich kann aus eigener Erfahrung sagen, dass die Popakademie in Mannheim sowohl die Musikbusiness als auch die Popmusikdesign Studenten sehr gut auf die Herausforderungen der Branche ausbildet, so dass man als Absolvent gut gerüstet in die Branche gehen kann, wenn man nicht eh schon während des Studiums reinkommt. Neben dem Gelernten und Angewandten konnte ich mir ein breites Netzwerk aufbauen und die Absolventen der Popakademie arbeiten weit gestreut in der Musik- und Medienbranche.

Trotz allem ist die Situation in der Branche nicht einfach. Nach mehr als einem Jahrzehnt Krise der Musikbranche (genauer gesagt dem Kerngebiet: die Tonträgerbranche) steht sie im Tal (der Umsatzzahlen) und vor den Herausforderungen mit dem neuen digitalen Umfeld umzugehen. Aber nicht nur das digitale Umfeld und dessen Monetarisierung ist eine Herausforderung, sondern es gibt weitere wirtschaftliche Einflussfaktoren wie verändertes Konsumentenverhalten, veränderte Formatpräferenzen, das Ende der CD-Ersatzkäufe alter Vinyl-Sammlungen, zusätzliche Entertainment-Inhalte und -Geräte, eine veränderte Handelsstruktur und ökonomische Veränderungen (Details dazu hier)

Hinzu kommen noch strukturelle Entwicklungen bei den Labels in der Musikbranche: Major Labels investieren nicht mehr langfristig in Künstler, weil die Aktionäre der Mutterkonzerne gute Quartalszahlen sehen wollen. Somit liegt der Fokus stärker auf dem schnellen Umsatz. Ein Punkt, der gegen langfristigen und nachhaltigen Künstleraufbau spricht. Zudem ist die Investment-Budgets der Tonträgerbranche eh signifikant geringer als vor der Krise, weil die Umsätze insgesamt einfach sehr stark eingebrochen sind. Zu diesem Thema habe ich auch vor längerer Zeit einen Artikel geschrieben: Readjusting Artist Development.

Die Musikbranche steht also nach wie vor vor großen Herausforderungen, die aber mit einem breiten Sachverstand besser zu bewältigen sind. Somit kann man die Notwendigkeit einer fundierten Ausbildung bzw. eines Fachstudiums, wie sie an der Popakademie angeboten wird, nur unterstreichen!

Ich hoffe, dass dieser Artikel nicht als “Werbeartikel” für die Popakademie wahrgenommen wird. Man kann die Inhalte mit Sicherheit auch hervorragend an anderen Einrichtungen oder Ausbildungsmöglichkeiten vermittelt bekommen. Ich kann selbst allerdings nur das Studium an der Popakademie beurteilen. Mein Ph.D. in England war ja kein klassisches Studium, sondern sogesehen ein Selbststudium.

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