MusicDish e-Journal - October 21, 2018
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Trickle Down Economics & Music
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-06-12
Comment | Email | Print | RSS

I know that analogies I've made in prior editorials on how digital technology and the Internet has a 'giveth and taketh' effect has left some uncomfortable as it deviates from the more black-&-white arguments advanced in the industry. And while my comments applied to within the music industry, such as file sharing posing challenges to CD retailers while providing opportunities for musical instrument retailers, PricewaterhouseCoopers also found that "digital adoption both giveth and taketh away" in its Entertainment And Media Outlook: 2003-2007 report on the global entertainment and media industry. "In the near term, digitization will cannibalize existing revenues and piracy threatens new digital content business models."

While the fact that the report does not even mention music is very telling, the forecast for the broader entertainment and media industry is positive with media spending rising 3.7% in 2002 and at a 4.8% compound annual growth rate over the next five years. The problem is that much of the growth will be attributed to video games, Internet access and satellite radio, with video games emerging as the fastest growing industry segment. In the US specifically, the DVD format will "not only continue to boost the home video section of the filmed entertainment category, but will lead to more and more films being released widely at the box office than ever before." And while Ipsos forecast the slow growth of broadband in the US, PricewaterhouseCoopers predicts a 30% compound annual growth rate for broadband globally.

The music industry is left as the black sheep of the entertainment and media industry, facing increasing competition from DVD and video games as well as the uncertain implications of greater broadband penetration of unlicensed file sharing, in addition to licensed services. Columbia House's announcement that it will be offering video games in addition to its mainstay music and video products to its 11 million members provides a good example of the growing marginalization of music.

The picture is not totally dire, though. As the PricewaterhouseCoopers report noted: "New products and services generated by digital technology and broadband will drive market growth." For example, the growth of broadband is key to building a growing digital music market. The growth of satellite radio & webcasting will provide an important alternative promotional platform to commercial radio while the DVD format will enrich the music experience beyond the commodity CD product. Then there are licensing /synchronization opportunities from growth sectors such as cable/satellite video, increased film releases and a recovering ad sector to name a few.

The lesson for the music industry is to be proactive in riding the coattails of the broader entertainment industry - call it trickle-down economics.


Home » News Beat » Trickle Down Economics & Music
Permalink:http://www.musicdish.com/mag/?id=8305
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

News Beat

» indieOn Connects Music to the Blockchain

» 13 Music Label Sold to MTN

» Darcus Beese Named President Of Island Records

» ASCAP Revenues Top $1.144 Billion In 2017

» BMG Appoints New Creative Directors In Nashville

News Beat Directory



» [2018-09-16] Live Nation Electronic Asia Inks Deal With Budweiser For Creamfields Festivals; Together, Creamfields And Budweiser Will Focus On Building Entirely New Content For Dedicated Electronic Music Fans Throughout Asia

» [2018-08-23] Andy Ma Appointed Warner Music China CEO; Andy Ma Has Also Been Appointed EVP, Commercial And Business Development For Greater China

» [2018-08-23] IndieOn Connects Music To The Blockchain; IndieOn Is Confident Of Creating A "music Miner" Who Listens More And Grow Their Token Value

» [2018-06-23] The 2018 MIDEM Silk Road International Music Alliance Signing; International Music Industries Signing Of A Mutual Resource Sharing Agreement With Shanghai Conservatory Of Music & The China Records Group

» [2018-06-06] Screen Music Connect To Explore The Music Of Film, Television And Interactive Media; Created By James Hannigan, Award-winning Composer And Game Music Connect Co-founder, Screen Music Connect Builds On The Success Of The Sold-out Game Music Conferences

» [2018-06-05] Fred Casimir To Develop BMG's Global Recordings Business; As Well As Building BMG's European Infrastructure, Casimir Was Instrumental In Developing BMG's Recordings Business

» [2018-06-03] 13 Music Label Sold To MTN; DSN Music Spins Off Record Label To Albuquerque Music Entrepreneur's New Group

» [2018-06-02] CISAC 2018 Annual Report; A Comprehensive Overview Of The Confederation's Work To Serve 4 Million Creators And 239 Authors Societies Across The World

» [2018-06-02] MusicDish Announces A Love Electric 2018 China Tour; The Tour Will Crisscross Through China With 12 Shows In 8 Cities, Including Guangzhou, Dongguan, Zhuhai, Shenzhen, Kunming, Jiaxin, Wuhan And Beijing

» [2018-06-02] Darcus Beese Named President Of Island Records; Renowned U.K. Music Executive To Join Universal Music Group's U.S. Label Leadership

» [2018-05-17] Avant-Garde Label Maybe Noise Launches In Beijing; The Official Launch Will Be On May 26 At Magnet Theater With A Performance Supporting Its First Vinyl Release: Png Z

» [2018-05-04] Award-Winning Lithuanian Rock Band Colours Of Bubbles "She Is The Darkness" 2018 China Tour; The Tour Will Kickoff In Shanghai Where The Band Will Represent Lithuania During The Country's Signing To The Silk Road Music Alliance
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Tony Carlucci & Dynamic Destony Releases New LP "A New Day"

Laura Angelini Makes Birthday World Event

Killer Tracks Delivers The Music For A NASA Moon Video

John Keenan Taking It To The Next Level

Royale - Playground (Single)

Make A Wish With Catherine Duc's 'Stargazing' Remix Of Ben Hobbs' 'Blind To You'

Asian Pop Queen Celest Releases Debut English Single/Video "I Got Him"



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2018 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships