Projections: Music Industry Down 20 Percent by 2011 - SendMeRSS
Posted by elveston priory at 4:29 pm
eMarketer has published some new predictions regarding both worldwide and US music spending, and neither look particularly good for the industry. Overall, eMarketer expects worldwide spending to decrease from $31.8 billion in 2006 to $26.2 billion in 2011.
Analyst Paul Verna says:
"The situation in the industry has gotten so bad that many top recording artists are steering clear of music companies and signing up with brand marketers whose expertise lies outside of the recording industry. Witness the alliances between Paul McCartney and Starbucks, the Spice Girls and Victoria's Secret, and Madonna and Live Nation."
eMarketer notes that digital formats are gaining traction, but that they will not be enough to make up for rapidly declining CD sales. For example, although Radiohead disputes the numbers comScore provided regarding their “pay what you want” model for their new album, the average price is likely to fall well below the $15-20 average that the record industry has typically charged for CDs. Thus, while new business models may eventually allow artists to keep more money, the overall dollars flowing into the industry are likely to shrink.
[...] Original post by Adam Ostrow [...]
User comment: By: Jon SmirlLet's just admit the CD is dead and music for private consumption by consumers is really advertising for the band. Now everyone can focus on making money again via live performances and commercial use. Given the ability of consumers to make limitless free copies there is no other possible outcome for music.
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