The CD's reign as the music industry's biggest U.S. revenue source will end this year, eclipsed by downloads and newer streaming services such as Spotify and Pandora Media, according to a researcher. U.S. digital music sales will rise to $3.4 billion this year, exceeding the $3.38 billion in revenue from CDs and vinyl, Boston-based Strategy Analytics Inc. said on its website. Globally, digital music will surpass physical purchases in 2015, the company said. Record companies are licensing artists' catalogs to streaming services as CD purchases shrink. Sales of digital tracks and albums will rise 6.7 percent this year, while streaming revenue will climb 28 percent, Strategy Analytics said. Together they account for 41 percent of U.S. music sales, compared with 22 percent worldwide. "Streaming music services such as Spotify and Pandora will be the key growth drivers over the next five years as usage and spending grow rapidly," Ed Barton, director of digital media at Strategy Analytics, said in the statement. "The industry will be hoping that digital can rebuild the U.S. music market to something approaching its former stature." Pandora, based in Oakland, California, gained 0.1 percent to $9.30 at the close in New York yesterday. The stock has declined 7.1 percent this year. Spotify, the closely held London-based service, began streaming in the U.S. in July 2011. U.S. sales of CDs and vinyl will decline 9 percent in 2012, a slower rate of decline than the rest of the world, Strategy Analytics said. Total U.S. recorded music spending this year will rise $134 million, or 2.1 percent, to about $6.38 billion, according to the researcher. Vivendi SA (VIV)'s Universal Music Group, the world's biggest record company, is seeking European regulatory approval for its proposed $1.9 billion acquisition of EMI Group's recorded music business from Citigroup Inc. (C) A Sony Corp.-led investor group purchased EMI's music publishing in April for $2.2 billion. Sony Music is the second-biggest record company, followed by billionaire Len Blavatnik's Warner Music Group.
It's the dream of virtually every aspiring musician. Being able to generate enough steady income from your music to quit your day job -- and live a fullfilling life centered around music and creativity, on your own terms.
I've been writing about indie music success stragegies for nearly two decades. And through the years, when it comes to reaching full-time status, I've discovered there are basically three types of musicians:
1) Those who buy my books and talk about all the goals they want to accomplish ... but do little to make their dreams a reality.
2) Those who get enthused and take sporadic action here and there ... but end up falling short because they aren't consistent with their efforts.
And 3) That small, rare percentage of musicians who not only "get it," but they apply the ideas and breathe life into the principles that naturally lead to full-time success.
Facebook Commerce - I thought that 2011 was going to be the year of Facebook commerce. It didn't completely take off, but 2011 set up Facebook commerce for 2012. Artists need to think of commerce differently on Facebook than they are used to on their own website. Commerce on Facebook has the potential to be so much more powerful than traditional commerce. With all the social aspects of Facebook, your fans will become your best sales team, and they will do it at your request. But, you have to lead them. You have to think of your products as news, as information worth sharing. You need to ask them to share your products. Lead your fans to help sell your products.
Being Overwhelmed - This is an unfortunate trend I have seen growing over the last year and it is not going to get any better in 2012. Artists need to get their career and life organized and in order if they plan to take on the DIY challenge. There are so many social networks, tools and services out there that becoming overwhelmed is very easy if you aren't in control. You don't need to use every website, every social network. Prioritize where to spend your time: Your website, Facebook, Twitter and YouTube. Those four are the most important. If you can get them in control, then look at expanding into other services. Don't fall into the trap of signing up for everything and then not using anything.
The more things change, the more they stay the same. By this I mean that the core fundamentals of music are still the same. Playing live and building a fan base. Everything that is coming in 2012, all the new technologies, new tools, new applications, new sites … none of it will replace a fan base. And one of the best and most consistent ways to build a fan base (along with improving your music, I might add) is playing live. Get out there and do shows. Treat them all like a major gig to a sold-out audience. Work each show with a plan and a purpose. Use everything available to you online to help you build, manage and engage with your fan base.
The Music Industry Adele, who is signed to Sony Music, sells "Rolling in the Deep" for $1.29. Apple, as the retailer, keeps 30 percent, or roughly 40 cents. The rest, 90 cents, goes to Sony. From that, the major record label must deduct 9.1 cents as a "mechanical royalty," paid to Adele and her co-writer, Paul Epworth (although they might split it with their respective publishing companies). That leaves about 81 cents.
Typical record contracts give artists 12 to 20 percent of sales, depending on the hugeness of the star, so let's split the difference and say Adele's percent is 16. That comes out of the original $1.29 price – so the artist's cut for sale of the master recording is about 20 cents. (This is assuming Adele has made enough to "recoup" the expenses for her album – otherwise, it just contributes to paying off her debt to her record company.) And the remainder, a grand total of 60 cents, goes to Sony to pay for marketing, publicity, videos, executive salaries and obviously, profit.
Why do I keep hearing the same thing on the radio?
The Big Payoff (radio payola) Ever wonder why you hear the same songs on the radio all the time? It's because major record companies are paying radio stations thousands of dollars to play their records! That's why you rarely, if ever, hear independent music on commercial radio. Most people don't know that virtually all the pop and rock songs they hear on the radio have been paid for by the major record companies. The record labels pay millions of dollars a year to middlemen (independent radio promoters), referred to as "indies," who in turn pass on some of that money to radio stations (they get a portion too), which accordingly play what the promoters ask/tell them to. In exchange for paying the stations an annual promotion budget ($100,000 for a medium-size market), the indie becomes the station's exclusive indie and gets paid by the record companies every time that station adds a new song.
"The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There's also a negative side." - Hunter S. Thompson
I am currently finishing a movie and will be sending the songs out to all the artist that I will be working with thanks for your time and I will be working on the next project in two weeks.
I am working around the clock trying to finish this project but I not going to rush it all the music on my page is old I have a whole new sound but still the same flow. I want to thank all the people that listen to my music I am thankful to have fans and support. I will be releasing my project soon and I have songs that I will be posting that are download. Thanks Again -Mizzal
I am 30 songs deep in the industry the mixtape is being mix and mastered the album is almost complete just 5 more songs then I have two more video shoots this week