Print 21 comment(s) - last by Spivonious.. on Jul 8 at 11:22 AM

Music labels still expect to see sales drop by $5 billion

With traditional music sales of CDs plummeting, music labels are looking for alternate revenue streams. While record labels see higher profit margins from physical media sales like CDs, the huge volume of sales that digital downloads can deliver may offset the lower profit margins.

According to a new study from research firm eMarketer, traditional music sales will continue to decline, but online and mobile music sales will grow rapidly. As faster mobile networks are introduced around the country, digital music downloads will become faster and easier for users to purchase.

The report predicts that by 2011, mobile music sales will be a $7.3 billion business. In 2007, mobile music sales amounted to $1.7 billion and by the end of the year sales are predicted to total about $3 billion. In 2009 the number is expected to hit $4.8 billion and by 2010 the mobile music industry will be worth $6.2 billion.

Despite the huge growth to be seen in the mobile music market, Information Week reports that the music industry expects to see a decline in music sales of about $5 billion. The report includes master recording ring tones, full-track audio downloads, ringback tones, music video downloads and streaming services in the predicted market worth.

There are many mobile services looking to cash in on the massive growth expected for mobile music downloads. Apple’s iTunes music download service is currently the top digital music retailer and Apple has said it plans to enter the mobile music market with ring tones and more.

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I don't care...
By MrBlastman on 7/7/2008 12:03:54 PM , Rating: 5
As I don't buy music at all. Until the RIAA is dead, I refuse to buy any music on any platform... that is unless it is directly from the artists themselves where I can put cash right in their hands skipping the RIAA.

RE: I don't care...
By zBernie on 7/7/08, Rating: -1
RE: I don't care...
By Eri Hyva on 7/7/2008 12:33:15 PM , Rating: 2

Would that stop the Earth turning?
It is hard in steam engine and dog sled industries, too. In 21st century.

RE: I don't care...
By sgw2n5 on 7/7/2008 12:42:03 PM , Rating: 2
You say that like it would be a bad thing.

I'd rather have a lose consortium of brazillions of independent bands, all producing creative and unstifled work than all of this Britney Spears crap that is out nowadays.

RE: I don't care...
By sxr7171 on 7/7/2008 1:03:27 PM , Rating: 2
Wow good riddance. The "music industry" that brought us Britney Spears and Christina Aguilera. Using "music" in that sentence is like an oxymoron.

RE: I don't care...
By daftrok on 7/7/2008 9:33:08 PM , Rating: 2
Christina Aguilera is a VERY talented MILF with great songs. Britney Spears is OK, she was great in the 90s but now not so much.

RE: I don't care...
By TSS on 7/7/2008 5:23:57 PM , Rating: 2
you mean, if everyone was like him the only people left making music would be the ones doing it for the music not the money.

granted there wouldn't be much left after that much of a shock, but it'll get better....eventually...

RE: I don't care...
By sgw2n5 on 7/7/2008 12:39:14 PM , Rating: 2
I literally haven't bought a single RIAA affiliated CD in 10 years, I do not approve of their underhanded tactics, so they do not get my business.

I do, however, buy cd's directly from vendors at concerts, as well as t-shirts. Anything that the revenue goes directly to the artists.

I'm no saint, I know my way around a torrent site, but I only download old music that i've already bought several times already (first on tape, then CD) -I love older rock (Queen, Beatles, 80's hair metal, 70's rock) and I refuse to buy something that i've already bought sevaral time over and had the media break.

So, um, yeah. Skrew the RIAA. I guess they will have to settle for the 10K gold pool bar trim instead of the 14K...

RE: I don't care...
By exploderator on 7/7/2008 2:38:31 PM , Rating: 1
Amen. Every penny you give them funds an EVIL WAR against us. Worse than terrorism, so don't buy it.

Buy only direct from artists, they get more; or steal if you have to, and donate directly to the Artists. They need to eat too, and they might see us more as friends, and help us fight the big industry.

The music industry wants no less these days than to be the beneficiaries of a facist police state . They intend to have our internet censored, mandate our communications protocalls, mandate the technology that we are allowed to use, etc., and all for nothing but their excessively greedy profit. It's as bad as calling for a whole new set of nukes to exist where none did before. You build this weapon of control against the people, and facist accidents will happen. Hello DRM meets DPI meets biometric ID.

Who ever said that copyright was meant to elevate anyone to the level of gods? Obviously only thems that wishes for it, on the backs of everyone else.

Since "they" are waging a war to pervert our legal systems, and destroy our rights, I think it's high time we consider taking back away from them as much as they would take away from us. Remember that copyright is a meant to be a privilege at law, not a fundamental right. That's why it's not in the constitution or charter (Canada). It's just a nice fair bonus to have some protection legally, when you can't really quite do it physically (can't keep IP forever in a safe and still sell it). But since the big companies want to be unfair, then I say it's fair turnabout: our public wellbeing is worth protecting with punative retaliation. Teach those who replace them to play fair or suffer our indignation and wrath.

Too bad the governments are all sold out too. We have no advocates. Otherwise it never would have come to this.

RE: I don't care...
By HaZaRd2K6 on 7/7/2008 3:25:47 PM , Rating: 4
Alternatively, before you buy a CD, just run the band/artist name through . It's a great little app that will let you know if you're helping to fund the Evil Empire by purchasing said CD.

RE: I don't care...
By cubby1223 on 7/7/2008 4:59:50 PM , Rating: 2
As I don't buy music at all. Until the RIAA is dead, I refuse to buy any music on any platform... that is unless it is directly from the artists themselves where I can put cash right in their hands skipping the RIAA.

Well congratulations. You obviously care enough to comment in the thread. I take it either (1) you don't listen to the music anyways, regardless of RIAA, or (2) you download the music for free, skipping RIAA, in which case just admit that you'd do the exact thing RIAA or no RIAA.

Any way you slice it, I bet none of your money will ever go towards the artists. RIAA is just a convenient excuse.

RE: I don't care...
By michael2k on 7/7/2008 5:51:48 PM , Rating: 2
What's wrong with buying non RIAA music?

Place the blame where it belongs
By phatboye on 7/7/2008 2:25:32 PM , Rating: 2
They need to look at their top 40 "artist" as the reason for the slump in music sales. There isn't anything worth buying. There are very few artists whoose music I'd even consider downloading online let alone paying for their entire album. Don't go off and place the blame on legal/illegal digital downloads when the real problem is the lack of good music.

RE: Place the blame where it belongs
By Spivonious on 7/7/2008 3:11:38 PM , Rating: 2
You do know that Top 40 lists are generated from sales data, right?

RE: Place the blame where it belongs
By ebakke on 7/8/2008 2:54:06 AM , Rating: 2
If a record sold 1 million copies, or 12 copies it'd still be in the Top 40 if less than 39 other records sold more.

Sure it's based on sales data, but it's all relative to the other records/artists. It's today's top 40, not the all time top 40.

By Spivonious on 7/8/2008 11:22:43 AM , Rating: 2
Yep, and it just goes to show you that people like buying crap these days.

By Polynikes on 7/7/2008 2:40:20 PM , Rating: 2
CD sales go down, digital music sales go up.

Clearly, the record industry is DOOMED. /sarcasm.

They try to make me go to rehab...
By drebo on 7/7/2008 2:54:07 PM , Rating: 1
Maybe they should concentrate on producing good music to solve their declining sales. A pretty face only gets you so far, but when that pretty face sounds like absolute horse-dung, no one is going to want to listen to it or buy their music.' s three syllables...not fifty. Most "popular" music is impossible to listen to without wanting to rip the singer's tongue out.

By MScrip on 7/7/2008 3:09:03 PM , Rating: 1
There are dozens of new albums that come out every Tuesday. And thousands of indy/unknown bands everywhere. There's no shortage of music.

Perhaps there's too much music and we don't have enough time to find the good stuff.

You pigeonholed Rihanna for having a popular song. She's obviously doing well for herself. If you don't like her, there's plenty more for you to listen to.

Profit Margins
By enlil242 on 7/7/2008 3:42:49 PM , Rating: 2
While record labels see higher profit margins from physical media sales like CDs

When CDs came out, the promise was that the price of music was supposed to fall once I adopted the CD format ... But instead they went up for "higher profit margins."

I am a musician, with a job that pays well. I respect that artists should be able to make a living, but somewhere, the whole thing got skewed.

I like the fact that artists have a new medium to produce their work outside of record companies (and subsequently the RIAA), but I still think the digital medium is a double-edged sword - See Radiohead. Not too many people opted to pay for their music when they opted for the "pay what you think it's worth model..."

I just think the Recording Industry screwed up and now us, people have no sense or regard for the "value" of real art and the hard work and sacrifice that artists put into it. This, of course, doesn't include the mega rich "Metallicas" of the industry either... They're just as bad.

Crazy World
By tubalcain on 7/8/2008 10:03:12 AM , Rating: 2
Here is a breakdown of a $15.99 CD

$0.17 Musicians' unions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists' royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead

You see that the stuff in bold is the big bulk that goes towards the RIAA labels, the artists under that regime are lucky if they see $1.60 off each CD sold, most see .75 on the dollar if that. One can argue that most of it goes to the labels and that again varies by contract. They have to do big tours & a big video or 2 that will eat up their budgets. Independent artists are more likely to see about $6-$7 of each album the rest of the $$ comes from shows and merchandising. Their promotion and advertising comes from word of mouth, leaks on torrent sites by the artist themselves, Youtube, Myspace, etc. Distribution through CDBaby and digital means. Even Itunes, Rhapsody and Emusic do a 70/30 split with the artist, Snocap does 60/40 all benefiting the artist. These independent guys/gals are the ones doing good music and makes me happy when they succeed even if its on small levels. Quite simply, the RIAA is scared of losing their cash cow which is the traditional pimp/ho model.

"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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