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Wednesday, 09 November 2016 02:33

Streaming Is Your Friend And Enemy

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Today music generates money when it's played rather than when it is purchased. This is the new business for the music industry. The first week sales don't tell the story of the future success of the release. The earning span of the project is where the opportunity to win big comes in. I never understood the conversations of discussing what an album sales it's initial week anyway. It's an issue to find a complete project you will tolerate from beginning to end today so the game has been altered.

The standard still sits at 500,000 sales equate to gold and 1,000,000 sales for platinum. To account for the increase in streaming, 150 streams will now equal one download sale, the figure previously having been 100. The bigger picture is 1500 on-demand streams is the same as ten download track sales, which is clearly the same as one album sale. Amongst the streaming services the RIAA take stats from are MOG, Muve Music, Rdio, Rhapsody, Slacker, Spotify and Xbox Music. Video streams from MTV.com, Vevo, Yahoo! Music and YouTube will also be counted. 

As the streaming world continues to pick up the pace, sales of downloads(-22.1%) and CDS(-12.7%) are falling by the waist side according to Nielsen Music within the first nine months of 2016. It's a hard buy for people to put up a subscription when music is available for free on Youtube and Spotify's ad-supported tier. The majors labels are excited but the songwriters, publishers and even some labels and artist are not reaping the rewards as much. Currently none of the companies in the streaming business are making money.

Since 1958 the RIAA's certifications have only been awarded based on record sales. Since the beginning only five changes took place. Three of those happening in the last nine years! The introduction of the Digital Single Award first appeared in 2004. The growth is insanely scary and the labels are just now starting to understand how it werks. Today's model forces the labels to focus on consumption instead of transaction. The music business, along with its incredible array of digital service partners, is offering fans more access to music than ever before. We know the music is available but now where the opportunity lies is in creating the experience for the consumer.

What are your thoughts?

Source: Billboard.biz

Read 3504 times Last modified on Wednesday, 09 November 2016 09:34
Oz Banga

Decided a long time ago to live life banging. Everything has been on autopilot since!

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