The music time bomb has exploded

The music industry is going through a shakeup.  Revenue from music sales has declined from more than $14.6 billion in 1999 to $6.3 billion a decade later.  Conventional wisdom holds that the rise of the Internet’s popularity is at the heart of this phenomenon, and the evidence mostly indicates that this view is correct.

Online stores like iTunes, along with an abundance of file-sharing and user-driven sites like YouTube, have changed the rules for marketing, selling, and distributing music.  To be sure, there are factors that complicate this narrative.  The 1990s likely saw a significant one-time boost in music sales as customers replaced vinyl records and cassette tapes with CDs.  Moreover, two recessions during the 2000s certainly did not help the industry.  Still, it is likely that technology, above all else, transformed the music business.  Record companies must adapt quickly or further risk becoming dinosaurs in an ever-changing commercial landscape. 

As illegal file sharing began to draw the ire of musicians and record companies, legal downloads became a growing business, as well.  Apple Inc. introduced its iPod music player in 2001, the dominant offering to this day; it added its iTunes online music store in 2003.  According to the NPD Group, a market research firm, the number of Internet users paying for downloads totaled 36 million in 2009, with online downloads accounting for 33 percent of music tracks purchased in the United States that year.  Digital sales rose between 2007 and 2009 despite the recession. 

Now that the bomb has exploded, and we have surveyed the damage, what do we do to help the wounded?  Who are the wounded?  Is there hope for them?  Is the internet the bomb, or the savior of the music business?  These are questions we must ask ourselves.  If we don't assess the damage and begin to take intentional action for the Arts, I believe we will see a watered down version, and lose the once thriving freedom of creativity.  The Arts community will lose its freedom from lack of funding due to unpaid royalties, and from its personal properties being given away through the internet.

We must take responsibility for our part in this ongoing dilemma.  Support the Arts, you just may be one of them!

The next american idol

OK, you asked.
For the past four years, American Idol has had a white streak of winners.  
Four white males in a row.  Its hard to believe.  As a white male myself,
I suppose I’m happy for these guys, but I am ready for something new
and I think America is too.  In 2008, record sales for David Cook were
an impressive 280,000 in his first week, placing at No. 3 on the Billboard Charts.

The next year the humble Kris Allen came out of the box selling 80,000 records in
performed Jennifer Hudson’s “You Pulled Me Through,” receiving a standing
ovation from the judges.  He’s got a gift that really sets him apart and I hope he
makes it to the finals.  Another early stand out this year is the
sweet and humble Hollie Cavanagh who took on the challenge
of singing “Reflection” by Christina Aguillera.  
Her early elimination before the viewer-voting rounds last season left
the then-17 year old in tears.  Jennifer Lopez predicted a year ago that
if young Cavanagh returned, she could come out on top.  This past week
Lopez reiterated her prediction and said that she stands by it, telling
Cavanagh that she is “going to be one of our front runners.”  
Its an exciting and new year.  I love American Idol and I love
watching live performances.  That being said, I’m ready for
some variety, for some different looks and some different talent
to really sweep it away this year.  Here’s to hoping America
votes that way too :)
         
                                                    Jacob Burton

Digital shift effects /AMP ON D.L.

Digital Shift Effects

RIAA'S and AMP'S POSITION  ON DIGITAL DOWNLOADS

This is commonly known as “piracy,” but that’s too benign of a term to adequately describe the toll that music theft takes on the enormous cast of industry players working behind the scenes to bring music to your ears.  That cast includes songwriters, recording artists, audio engineers, computer technicians, talent scouts and marketing specialists, producers, publishers and countless others. 

While downloading one song may not feel like that serious of a crime, the accumulative impact of millions of songs downloaded illegally – and without any compensation to all the people who helped to create that song and bring it to fans – is devastating.

The law is quite clear here, and fortunately legal downloading is easy and doesn’t cost much. Music companies have licensed hundreds of digital partners offering download and subscription services, music video streaming, cable and satellite radio services, Internet radio webcasting, social networking music services, video-on-demand, podcasts, CD kiosks and digital jukeboxes, mobile products such as ringbacks, ringtones, wallpapers, audio and video downloads and more.  In fact, according to the global music trade body IFPI, there are now more than 13 million licensed tracks available on more than 400 different services worldwide.  That’s great news for music fans and the industry alike.


Once again there's no need to beat this topic up.  We tend to want to blame all of the download sites for this dilemma.  The fact of the matter is, if the public was not to use these sites, we would not be having this discussion.  The future of  the quality of music is very gloomy if our attitudes don't change.  If the writers, artists etc. can't make a living at their craft, they will find something else to do.  It's nice to get free stuff.  However there's a difference between stealing and free!!!!!

The face of the digital marketplace

 I'm going to be doing a series of blogs on the face of the digital market place. if you have any interest in being a part of the music industry, this is a must! We are so fortunate to be living in this age. There are opportunities that did not exist  10 years ago, even  5 years ago.

It is not only important for your career. to understand the marketplace. but it is a must! Our goal at AMP (ASSOCIATION OF MUSIC PROFESSIONALS) , is to help you realize your goal, and knowing your business is your business. Don't be the guy with the dear in the headlight look. You want to be successful? It's yours for the taking! So take it! Get to work! Learn your business! Help someone else!

This series will begin with an overview of  the vehicles available to distribute your products. This is a blog not an exhaustive list.

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Advertisement-based service

Advertisement-based services offer music free of charge to the consumer, while funding is derived from advertisement. The model is widespread as seen by the success of AOL Music, Yahoo! Musicand YouTube (multimedia provider). Many of these services are internet radio stations, as they offer continuous streaming music, while others are not continuously streaming. Many of these services offer multimedia or additional services. For example, MySpace(owned by Fox Interactive Media) offers social-networking as its flagship service. comScore reports the top 10 in internet radio viewership in the United States:

	Unique Visitors (000)
	July '07	July '08	% Change
Total Internet: Total Audience	180,078	189,134	5
AOL Music	15,284	23,884	56
Yahoo! Music	23,075	18,725	-19
Clear Channel Online	10,697	9,394	-12
Pandora Radio	2,551	4,834	89
Interactive One	512	3,515	587
CBS Radio	3,469	3,240	-7
NPR.ORG	1,717	2,538	48
Citadel Broadcasting Corporation	1,373	1,885	37
Batanga.com	1,239	1,810	46
Disney Music	1,721	1,598	-7

Other sector players:

• YouTube
• MySpace

See also List of Internet stations

YouTube (owned by Google Inc.) is the premier site for finding music videos for both independent bands and mainstream bands that have released their music on CD or digitally, while also being useful for finding rare songs.^[29] YouTube is a multimedia provider, so it is difficult to say how much entertainment it has provided to music consumers, however it did provide about one-third of all 11 billion online video views in the US in the month of April 2008.^[30]

The site is also testing three new landing pages dedicated to the popular categories of news, movies, and music. Each page will be populated with the most popular content on the site related to that category.^[31] Some have even hailed YouTube as being the "digital successor to MTV"^[32] as they seem to be positioning themselves in that manner. Currently, they have mixed relations with labels as evidenced by their icy relationship with Warner Music Group^[33] but more optimistic relationship with Universal Music.^[34]

MySpace (owned by Fox Interactive Media) is also a key player and Rolling Stone reports that it hosts more than 70 million users monthly and that “visitors to the site can hear both Bob Dylan’s or The White Stripes' entire catalogue”. Unlike many services, MySpace has been successful in making copyright deals with the RIAA's "Big Four", which is Sony BMG, Warner Music Group, Universal Musicand EMI,^[35] in September 2008. In January 2009, MySpace made partnerships with the following independent labels: Nettwerk, INgrooves, Iris Distribution, RoyaltyShare, and Wind-up Entertainment.^[36] In March 2009, CNET News reported that there are more than 5 million bands with music on the streaming-and-discovery music service, and more than 100 million playlists have been created.^[37]

Pandora Internet Radio is distinctive from both YouTube and MySpace in that it offers consumers continuously streaming media rather than non-continuous music, which makes it highly similar toterrestrial radio or television. However, it can be contrasted with radio in that it offers music recommendation. YouTube is similar to Pandora in that it also offers recommendation, but is distinct in that content is user-generated.

A new type of service that has also become popular is sites that allow consumers to pay what they wish or pay by advertising on social networking sites. Sites like Noisetrade.com and comeandlive.com are examples of sites that sponsor artists and allow users to download music in exchange for advertising for the artist. Music is essentially free to users essentially costing only the time it takes to post information about the artist downloaded on facebook, Twitter, or email. Another example was the release of the most recent Radiohead album In Rainbows in which users could download the album and name their own price. The idea of pay-what-you-want music consumption is new, but catching on with users and growing.

We look forward to part 2 of this series! Please leave a comment. Tell us what you would like to hear. We will do our best to accommodate you. Thanks J.Grady

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RECORD LABELS WHERE'S THE BEEF?

  I often speak to professional groups as well as local craft associations. I'm frequently asked, are the labels really hurting? The answer is a definite, yes! Going back to 2004 sales where approximately 36 to 40 billion globally, from 2009 to 2012 they have plummeted from 14.5 billion to 6.3 billion , and it's not going to get any better.
  Here's the good news! The money is still being spent, and your share is waiting, if your willing to do the work. The Digital age is here!  The biggest reason the record labels have lost so much, simply put, is their arrogance. They got complacent, and thought the gravy train would never end. Well it did, and they're  paying dearly.
  I thought it would be interesting to look at the big four. Just image based on their percentages of the market how it is affecting them. Their lying in their neatly made beds, and you no longer have to get into bed with them!
  It's your turn now! Join the digital age! Get to work! Learn your craft! Kindle your passion! See you at the top!!!!!

US music market shares, according to Nielsen SoundScan (2005)

Nielsen SoundScan reported that the big four accounted for 81.87% of the US music market in 2005:^[21]

• Universal Music Group (USA based) — 31.71%
• Sony Music Entertainment (USA based) — 25.61%
• Independent labels — 18.13%
• Warner Music Group (USA based) — 15%
• EMI Group (UK based) — 9.55%

and in 2004, 82.64%:

• Universal Music Group—29.59%
• Sony Music Entertainment—28.46% (13.26% Sony, 15.20% BMG)
• Independent labels—17.36%
• Warner Music Group—14.68%
• EMI Group—9.91%

World music market sales shares, according to IFPI (2005)

The global market was estimated at $30–40 billion in 2004.^[22] Total annual unit sales (CDs, music videos, MP3s) in 2004 were 3 billion.

According to an IFPI report published in August 2005,^[23] the big four accounted for 71.7% of retail music sales:

• Independent labels—28.3%
• Universal Music Group—25.5%
• Sony Music Entertainment—21.5%
• EMI Group—13.4%
• Warner Music Group—11.3%

Prior to December 1998, the industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", commanding 77.4% of the market, as follows, according to MEI World Report 2000:

• Universal Music Group — 28.8%
• Independent record label|Independent labels — 22.6%
• Sony Music Entertainment — 21.1%
• EMI — 14.1%
• Warner Music Group — 13.4%

Note: the IFPI and Nielsen Soundscan use different methodologies, which makes their figures difficult to compare casually, and impossible to compare