“Consumers ages 13 to 17 spent 13 percent less on music downloads last year, while compact disc purchases tumbled 26 percent, according to a survey by the Port Washington, New York- based researcher.”
“Downloads from peer-to-peer networks fell 6 percent in 2008, NPD said. Meanwhile, 52 percent of teens said they listened to online radio in 2008, up from 34 percent from 2007. Almost half of teens, 46 percent, used social-networking sites to download or stream music, an increase from 26 percent in 2007, NPD said.”
Streaming music startups don’t want more people using their service, because they lose money from every one of them, and the perceived success from having more users makes it harder for them to plead with the labels to give them better deals.
Former full-time musician and CDBaby founder, Derek Sivers, speaks out about the future of the music industry and musicians. Says some fascinating stuff, like the following about spreading the word about a band/artist:
“I’d make sure that I was always in a real three-way conversation with my fans. Encourage them to talk with me and with eachother. Make my success their success, like Obama.”
“The music business might be like the poetry business some day. Which means: almost no profit, and people do it because they want to, never for the money. I’m sure there are some companies making money off of poetry, but not many. Not making millions.”
Interesting person, interesting interview. He’s one to listen to. Check it out.
“Reports had claimed that Eminem wanted over £800,000 from Universal and that he argued money from iTunes and other download services should fall under “licensing” agreements in his contract not “distribution”.
If the court case did, in fact, go ahead, it would set a precedent for other artists as it is exploring the definition of digital royalties.
At present, when a song or ringtone is bought online, the artist receives a royalty. The amount of this royalty is initially decided following a contract between labels and artists. For many artists, however, that digital royalty is not clearly defined, and, added to that, many of the contracts predate the upturn of digital music sales.”
A 2007 study comissioned by the Canadian federal government points out ‘piracy’ increases music CD sales.
“It found “a strong positive relationship between P2P file-sharing and CD purchasing” among the subgroup of P2P file-sharers. Specifically, “among Canadians actually engaged in it, P2P file-sharing increases CD purchasing.””
“Extraordinarily, it is in the US, the world’s largest music market, that has traditionally championed intellectual property rights, that performers and producers have no rights to be paid when their music is broadcast over the radio.”