Morgan Sandstrom
B1 Econ
Mrs. Straub
March 13, 2015
Music Sales
Music. We all enjoy it and we all have our favorite songs available at ease thanks to companies like iHeartRadio, Pandora, Spotify, and many more with their online streaming, but did you know this is actually hurting the music economy? Every economy depends on the consumers buying and when the consumers don’t buy it falls. That is precisely what is happening here; the consumers aren’t buying. Niall McCarthy points out that “music streaming revenues have surpassed CD sales for the first time” and these music “streaming revenues, including revenues from subscription-based and ad-supported on-demand services as well as non-interactive online radio services [have] increased 28%”(McCarthy). That’s one heck of a jump here, and that’s just on average between similarly related revenues. Streaming alone has gone up almost 55% alone (Streaming, Vinyl Rises Amid Declining Album Sales in Nielsen's 2014 Report). Specifically, “services such as Spotify and Pandora Media Inc. were up 46%” (Apple ITunes Sees Big Drop in Music Sales).
You might be confused why this is hurting the music business with the streaming revenues going up, so let me explain a little more before you go and do something else. Yes, you are helping these streaming companies but you’re not helping the artists. They need to sell their albums to keep them in the business, and they haven’t been selling well in the last two years. “Only 257 million albums – be it CD, vinyl or digital – were sold in 2014, an 11 percent drop from 2013's 289 million” (Streaming, Vinyl Rises Amid Declining Album Sales in Nielsen's 2014 Report). CDs are the ones to take the biggest hit here though “165 million units in 2013, another 14 percent eroded off that record low total, with only 140.8 million CDs being sold in 2014” (Streaming, Vinyl Rises Amid Declining Album Sales in Nielsen's 2014 Report). How do you expect artists to keep writing songs and producing music if they get nothing from it? It’s almost exactly like asking you to work but not paying you , or paying you insufficiently. Still think it’s not a big deal?
Eleven and fourteen percent may seem small, but they’re double, almost triple the okay and expected change of revenue. Five percent is the desired shift, expected in most markets, but the almost fifteen percent decrease could cause a greater influx before the music industry finds an equilibrium again. For now, I implore you, buy more CDs, or at least purchase them to download.
Works Cited
"Apple ITunes Sees Big Drop in Music Sales." WSJ. Web. 25 Mar. 2015.
McCarthy, Naill. "Music Streaming Revenues Overtake CD Sales In The U.S." Forbes. Forbes Magazine, 29 Sept. 2014. Web. 25 Mar. 2015.
"Streaming, Vinyl Rises Amid Declining Album Sales in Nielsen's 2014 Report." Rolling Stone. 8 Jan. 2015. Web. 25 Mar. 2015.
Thompson, Derek. "The Death of Music Sales." The Atlantic. Atlantic Media Company, 25 Jan. 2015. Web. 25 Mar. 2015.
Sales of physical music copies has definitely been going down ever since digital downloads became prominent, but either way, doesn't the record company get the majority of the profits from music sales? Many artists get most of their money from touring and merchandise sales, and less from royalties. I still think having physical media is superior, but the best way to support artists is to go to their shows or buying merch.
ReplyDeleteDon't artist usually sign a contract with a record label and get a guaranteed amount of money. Then the artist will only get a % of the money from the record sales. I could see streaming being a bigger probably for the record labels rather than the artist. Besides artist make a majority of their money from touring not from record sales. Thats why U2 put that album for free up on itunes it didn't lose them that much money in potential sales and it gave them an insane amount of exposure in advertising.
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ReplyDeleteWhile it is true that sales of have gone down due to the fact that streaming sites have taken over the market in terms of accessibility and overall costs, the worry that all physical media will cease to exist is very unlikely. Over the past decade there has been and continue to be an uprising in physical releases in the ways of cassettes and vinyl records through events like Record Store Day, an international celebration of physical media. Along with that artists, out of their own copyrights, can withhold data from specific streaming sites like Bjork and Taylor Swift. Either way you look at it physical media will still be honored as time goes on and artists will still have a say where they put their music.
Not sure if this is fully correct as most of the income for artist comes from touring. Also there are still many people that still buy music from artist because of the lack of quality when streaming or downloading else where. I would also imagine an artist would give the music to the radio station in order get promotions for an upcoming tour.
ReplyDeleteI agree that music sales are dropping due to streaming apps and sites, but at the same time there are still ways artists get their sales. For example, iTunes charges the buyer for the music, and on apps such as spotify artists can withhold their music, such as Sam mentioned in his comment. Along with some sites charging for music, vinyl records are making somewhat of a comeback, and modern artists are selling them. This will make them some profit due to the fact that vinyls are expensive. Overall though I agree if we did start buying music again instead of streaming it for free, the music industry would make more money.
ReplyDeleteI agree, music stations like Pandora and Spotify are all hurting a part of the music industry. I’m not going to lie, I haven’t payed for a song since about 8th grade. I’ve only bought one CD since then, and that’s because it was released by my favourite person of all time. It must irk the artists, knowing they put all of this work and effort into their songs that are just going to get downloaded anyway. I do however agree with Dylan, that even though they aren’t making as much as they used to in CD sales, they make a ton from merch and concert tickets. It’s hurting them in one area, not an industry as a whole. I also believe their attitude hurts them as well.. artists with a slimey attitude aren’t likely to have a lot of song buyers or attendees at their concert.
ReplyDeleteAs Sam stated, it is the artist's say whether or not their music can be streamed. Personally, I think streaming is a great way for upcoming artists to get their music heard. I have found so many great artists through spotify and pandora, which have led to me purchasing albums and buying concert tickets. Yes, cd sales may have decreased, but of course they have. CD's are way overpriced for what they're actually worth, and artists are not being affected so much as is the record company.
ReplyDeleteIf you want to move playlist from spotify to deezer or vice versa then use MusConv tool which i personally tried. It’s a great tool.
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