Thanks For Asking
March 30th, 2011
A music student contacted me today and asked if I would help with a project…
I am currently studying Music Performance at [College]. I am creating a leaflet to inform the college students of the current state of the music industry, and why it is in this state. The current decline in record sales, due to illegal downloading is a massive issue and I feel people need to know more about this and what it is doing to the industry.
Below I have several questions for you, that I would greatly appreciate you answering to help with my project.
Thank you.
It was great to have the opportunity to think about the questions that were being asked, and just for the hell of it I thought it would be worth sharing my responses here.
The Decline in the Music Industry Questionnaire
1. Has the number of Artists signed to your label decreased due to illegal downloading? If so, how are you coping with this?
No; we’re a new start up so can’t measure decrease in artist sign up – but very aware that possibility to create a business model that returns profit is much harder in this environment
2. How much is illegal downloading affecting the businesses profit margins?
We launched a single in January this year which got lots of positive response but few sales – we suspect this is because the track was shared rather than purchased.
3. Is the performance of live shows boosting record sales or increasing to amount of illegal downloads?
Live shows are replacing record sales as the most efficient route for artists to make money and retain control of supply. I can see that the increase in downloads in leading to an increase in live shows, but not convinced it is occurring the other way around.
4. Do the artists on your roster show any doubt in the music industries current situation?
Yes; they know it is harder than ever to break through and make money.
5. How has the label adapted to deal with problem of illegal downloading?
The cat is out of the bag; unfortunately a new generation is growing up thinking that illegal downloading is ‘ok’. The X-Factor culture is presenting the music industry as a fast track to cash through sales and endorsements – the reality is that most artists will have to struggle for years to make a decent living – if ever! Our challenge is to put value back in to the experience, so that artists can start to earn again – that probably means something we haven’t thought of yet. People do still massively value the music experience, but we have lost control over supply. What people seem to still aspire to is a connection with a band, a cause, a movement – something to ‘belong’ to. We are aiming to create a new kind of co-operation between artists and fans where creativity is valued and rewarded.
6. Is there a decline in interest from unsigned acts?
Do you mean interest in getting signed? Reports in the press say that’s not the case. Even if it was true I would say this is not because of illegal downloads; more that there is a lot of scope to ‘do it yourself’. In fact, the system that makes illegal downloads a problem, also makes it much easier for new bands to gain exposure.
7. Are they any thoughts on how to deal with the dwindling physical sales? Like new, innovative Promotion ideals?
We see Radiohead have arranged the release of ‘The King of Limbs’ as an amazing example of how reimagine the market; create a ‘buzz’ and a desire for music buyers to be involved with the product they are releasing. This is far more than just making a CD available to buy in the shops – the old model. Of course they have had a long time to build up their reputation and give them the option of taking this route; it is a bigger challenge for us to translate this in to something similar which will create a desire to engage and pay money for music from new / unsigned bands.
8. In a hope to bring back the “physical disk” would you consider dropping the price of albums for sale in stores?
A new generation of music buyers equates music with internet / download. It is more likely that CD will go the way of vinyl and find its own niche market. Dropping the price won’t make people go back to buying disks – exclusive / limited availability might – e.g only available at gigs.
I am currently studying Music Performance at Amersham & Wycombe College in Amersham. I am creating a leaflet to inform the college students of the current state of the music industry, and why it is in this state. The current decline in record sales, due to illegal downloading is a massive issue and I feel people need to know more about this and what it is doing to the industry.
Below I have several questions for you, that I would greatly appreciate you answering to help with my project. Please try to answer as many as possible, the more information i get, the more I can forward to the college and hopefully do my bit to help the industry get back on its feet (so by all means feel free to expand).
Thank you,
Many regards,
Tom
The Decline in the Music Industry Questionnaire
1. Has the number of Artists signed to your label decreased due to illegal downloading? If so, how are you coping with this?
No; we’re a new start up so can’t measure decrease in artist sign up – but very aware that possibility to create a business model that returns profit is much harder in this environment
2. How much is illegal downloading affecting the businesses profit margins?
We launched a single in January this year which got lots of positive response but few sales – we suspect this is because the track was shared rather than purchased.
3. Is the performance of live shows boosting record sales or increasing to amount of illegal downloads?
Live shows are replacing record sales as the most efficient route for artists to make money and retain control of supply. I can see that the increase in downloads in leading to an increase in live shows, but not convinced it is occurring the other way around.
4. Do the artists on your roster show any doubt in the music industries current situation?
Yes; they know it is harder than ever to break through and make money.
5. How has the label adapted to deal with problem of illegal downloading?
The cat is out of the bag; unfortunately a new generation is growing up thinking that illegal downloading is ‘ok’. The X-Factor culture is presenting the music industry as a fast track to cash through sales and endorsements – the reality is that most artists will have to struggle for years to make a decent living – if ever! Our challenge is to put value back in to the experience, so that artists can start to earn again – that probably means something we haven’t thought of yet. People do still massively value the music experience, but we have lost control over supply. What people seem to still aspire to is a connection with a band, a cause, a movement – something to ‘belong’ to. We are aiming to create a new kind of co-operation between artists and fans where creativity is valued and rewarded.
6. Is there a decline in interest from unsigned acts?
Do you mean interest in getting signed? Reports in the press say that’s not the case. Even if it was true I would say this is not because of illegal downloads; more that there is a lot of scope to ‘do it yourself’. In fact, the system that makes illegal downloads a problem, also makes it much easier for new bands to gain exposure.
7. Are they any thoughts on how to deal with the dwindling physical sales? Like new, innovative Promotion ideals?
We see Radiohead have arranged the release of ‘The King of Limbs’ as an amazing example of how reimagine the market; create a ‘buzz’ and a desire for music buyers to be involved with the product they are releasing. This is far more than just making a CD available to buy in the shops – the old model. Of course they have had a long time to build up their reputation and give them the option of taking this route; it is a bigger challenge for us to translate this in to something similar which will create a desire to engage and pay money for music from new / unsigned bands.
8. In a hope to bring back the “physical disk” would you consider dropping the price of albums for sale in stores?
A new generation of music buyers equates music with internet / download. It is more likely that CD will go the way of vinyl and find its own niche market. Dropping the price won’t make people go back to buying disks – exclusive / limited availability might – e.g only available at gigs.
Tags: Digital, Download, Music
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