WILL STREAMING KILL THE MUSIC BUSINESS?
Posted by
Sid Smith
on Mar 9, 2013
- This post is archived and may no longer be relevant
My thanks to Ornate Coalman for bringing the following to our attention. Ornate writes "A blog entry by Moses Avalon on streaming and major labels notes the following:
"Why Major Labels Love Getting Pennies for Dollars*--a look at streaming from the major labels perspective
*major labels make about the same revenue from albums while selling 30% less units then they did in the pre-Internet era. (1989-2000: $48.6B, 2001-2011: $53.3B)
*Now they are turning to streaming. "The industry jargon for this is called going from an “ownership model to an access model.”
*Net Profit per unit in terms of album sales: 1--1989-2000---$4.50; 2--2001-2011---$7.90
And now, the onset of streaming: quoting the author:
"It will bring back the label’s days of shrugging at the artist’s manager when he shows up with a $26 royalty statement for 501,324 streams. It will bring back the power they had over distribution, promotion and the edge they had over their free-wheelin’ indie competitors. In other words…"
"WHILE STREAMING/ACCESS MAY KILL PHYSICAL MUSIC SALES IT WILL PARADOXICALLY RESURRECT THE MODEL THAT MADE THE MAJOR LABELS POWERFUL."
Much more at Part 1 of this expose."
"Why Major Labels Love Getting Pennies for Dollars*--a look at streaming from the major labels perspective
*major labels make about the same revenue from albums while selling 30% less units then they did in the pre-Internet era. (1989-2000: $48.6B, 2001-2011: $53.3B)
*Now they are turning to streaming. "The industry jargon for this is called going from an “ownership model to an access model.”
*Net Profit per unit in terms of album sales: 1--1989-2000---$4.50; 2--2001-2011---$7.90
And now, the onset of streaming: quoting the author:
"It will bring back the label’s days of shrugging at the artist’s manager when he shows up with a $26 royalty statement for 501,324 streams. It will bring back the power they had over distribution, promotion and the edge they had over their free-wheelin’ indie competitors. In other words…"
"WHILE STREAMING/ACCESS MAY KILL PHYSICAL MUSIC SALES IT WILL PARADOXICALLY RESURRECT THE MODEL THAT MADE THE MAJOR LABELS POWERFUL."
Much more at Part 1 of this expose."
