For the past decade the advancements in technology and online interaction have increased tremendously, simultaneously managing to empower music lovers and constrain them all at the same time. Not to say that the music deliverers aren’t facing similar constraints. According to a recent studies the music industry on average loses over $12.5 billion to piracy per year, and due to advancement in technology, less and less viewers tune in to radio or television for their music needs. The survey goes on to include, independent artists who now opt for affordable home recording studios rather than larger commercially available services. Does this mark disaster… or opportunity? Experts reveal below.
“ The state of music is at a crossroads. We adapt or expect much backlash. Since the nature of the consumer has changed, our methods of sale and promotion will follow suit. A focus on what methods and streams of profit works VS what needs to change or be scrapped is in order”
Lisa Davis, Sony Records Director of Communications, Author, Chairman for DEEZER
“Music is about innovation. It always has been. There are many doors opening and i think we’ll be surprised at the rise in network adversity. The presence of newly found promotional platforms serve economical benefits that can be utilized for the better during these times of unregulated content distribution law. So, while indeed we are facing all time lows in traditional revenue outlets, this in no way means there hasn’t been alternatives for profit growth… We’ve just got to get creative and continue to keep the consumers at the forefront of our minds. ”
-Devin Gibson, Universal Music Director, Chairman for The Film Concierge, Author
“Old model: get signed or get lost. New model: fan relationships create a value pipeline…(The new artist) revenue pie chart: gigs 35 %, merch 17 %, digital sales 11 %, cds 6 %, royalties 9 %.”
– Jed Carlson, ReverbNation
“What listeners need now is cloud based mobile ready music outlets, subscription based platforms that will unite music and entertainment. What that means for business men and independent artists is what they make of it. Develop a strategy that fits such a market.”
–Peter Laughner, Chairman for DEEZER
The question for innovation is How do we make sense of 20 million songs? How do we make sense of what you want to hear when you wake up in the morning, when you go out on a Friday night? These are distinct moments in your life, and what we’re trying to do is make sense of all that, to make sense of that ocean of data. There’s nothing like good research and in crucial times as this, research will ultimately determine who wins and who loses.”
-Daniel Ek, CEO Spotify
“Innovation will happen if we all choose to be entrepreneurs at heart, the state of music will change and we will change with it. It is a matter of adaptation that myself and many others are using to make a difference. Therefore the sooner we move, the better.
– Guy Oseary, Manager at Maverick Records, Cofounder of A-Grade
“Low power radio (LPFM) has the potential to bring new voices to the airwaves. The local community radio act has been passed and from now till November, they are accepting radio station applications. That means access to sitting in between major stations and access to the 160 billion listeners who tune into them. The legal issues of digitization and it’s affect to music is as broad as it’s benefits and limitless marketing tools. There are no easy answers for all however, during this transitional phase there are windows of opportunity to grasp while we wait.”
-Jessica Rosenworcel, Federal Communications Commissioner