Trickle Down Economics & Music
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.
» Nordic & British Musicians' Unions' Joint Statement on Sexism in the Music Industry
» Women Make An Impact On The 2018 MPG Awards Shortlist
» Two-Sides of Copyright Finance: Sound Royalties & Kobalt
» Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes
» Europe's Digital Music Leaders Form Alliance
News Beat Directory
» [2017-11-21] Joint Statement By The Nordic Musicians' Unions And British Musicians' Union; Discussions On The Issue Of Gender Inequality, Sexism And Sexual Harassment, The Scale Of Which Had Been Highlighted By The Recent #metoo Campaign
» [2017-11-13] Women Make An Impact On The 2018 MPG Awards Shortlist; Nearly A Quarter Of Those Named This Year Are Female, Proving That Music Production Is No Longer A Bastion For The Boys
» [2017-11-13] The Nashville Musicians Sound Healthcare Plan Rolls Out; Sound Healthcare & Financial Announced The Formation Of A True Group Health Insurance Policy Plan For Musicians And Industry Professionals
» [2017-11-09] Streaming & Listening Diversity - Spotify Case Study; Will Artists Have An Easier Time Finding An Audience, Or Will Streaming Focus Global Attention On A Small Number Of Stars?
» [2017-11-09] Two-Sides Of Copyright Finance: Sound Royalties & Kobalt; Sound Royalties Unearths Millions In Undistributed Royalties While Kobalt Launches Fund To Invest In Music Copyright
» [2017-11-08] Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes; ROLI Chief Creative Officer, Live Nation Sweden Managing Directors, Music Glue Global Head Of Business Development, BBR Music Group VP Of International, Warner/Chappell Music Spain Managing Director And Blue Night Director Of Music Clearance
» [2017-11-08] Europe's Digital Music Leaders Form Alliance; European Digital Music Companies Launch Of Digital Music Europe
» [2017-11-05] Pandora Subscriber Base Grows To Over 5 Million; Pandora Premium Paid Subscribers Cross The 1 Million Milestone In October 2017
» [2017-11-05] Hybrid Studios Announces Online Mastering Services; Engineers Billy Klein And Brian Frederick Spearhead New Online Mastering Effort Through OC Studio
» [2017-11-05] Music Industry Betting On VR & AR For New Revenue; The Music Industry Is Making An Early Bet On VR & AR To Create New Revenue Streams Across All Their Lines Of Business
» [2017-11-04] Sound Royalties Unearths Millions In Undistributed Royalties; Nearly $14 Million In Undistributed Royalties Has Been Found By Music-focused Finance Firm Sound Royalties
» [2017-11-02] MusicDish*China October China Label Music Releases And Charts; Several Tracks From October Releases Have Charted On Chinese Music Portal Kanjian ING Top 10 Weekly Chart
follow MusicDish on