State of the Music Industry
State of the Music Industry
** This blog was written mid way through 2009 and so it doesn’t include any 2009 sales numbers. I will be sure to add them later. Even though it is not 100% up to date, the trends talked about are more true now in 2010 then they are in 2009, so I feel its just as powerful of a blog now as it was in 2009. Enjoy. **
The music industry is dying! !! What are we as producers, engineers, and musicians to do?!? For one, we can’t buy into the hype behind the claims of the music industry dying. In fact, quite the opposite is true. The music industry is thriving, but in ways that it hasn’t previously thrived before, but more on that in another blog to come later. So why then all of these claims of a dying music industry? Well, because a big aspect of the music industry is in fact, for lack of a better term, dying and is on its way out. CD sales over the past 10ish years have reached an all-time incredible high followed by a blood curdling low with the sales numbers continuing to plummet yearly. And so, according to major record labels who’s success is primarily dependent on record sales, yes indeed the music industry is failing, or rather the business of selling physical shinny disks with audio imprinted business is on its way out. Let’s take a look at these numbers, because to be honest it is pretty astounding.
In 2007 physical album sales fell around 19%. Ouch. In 2008, physical albums fell an additional 20%, equating to just 362 million albums sold. Even bigger ouch. Ok, I know what you are thinking; 362 million albums sold sounds like a lot. Let me throw this tasty little fact your way then. The most dominate year in physical album sales was in 2000, cranking out well over 940 million albums sold. Since then, album sales have dropped a staggering 54% to the 362 million in 2008. Lets bring this even more in perspective. In 2000, ‘N Sync dropped their “No Strings Attached” album which was certified double-platinum after just one week on the sales shelves. For those of you who are a stranger to what platinum means numbers wise, it’s the equivalents to 1 million copies sold, thus being double platinum certified means over 2 million copies sold for ‘N Sync in their albums debut week. In 2008, the highest selling albums were Lil Wayne’s “The Carter III” with 2.87 million copies sold, Coldplay’s “Viva la Vida or Dean and All His Friends” with 2.14 million copies sold, and Taylor Swift with 2.11 million copies sold. Lets ponder this for a moment. It took Taylor Swift 365 days to accumulate just over two million album sales. It took ‘N Sync only 7 do accomplish almost the same thing in 2000. Crazy.
The proof is in the numbers ladies and gentlemen. CD sales are on their way out, thus making the life spans of what major labels we have left shorter and shorter with each passing year. But let’s be honest, CD’s won’t ever die out. There are plenty of die-hards like myself who love going to the record store and perusing though the rows of CD and getting in your car and cursing out loud as you try to get the damn wrapper off and throw the brand new shinny disk into you car stereo and pulling out the CD inserts to read the lyrics and check out the photos. So yes, CD sales won’t ever completely die out, but will they ever reach the volumes they once had 10 years ago. Not likely. Let’s just say you have a better chance of hitting 21 in blackjack when you already have two kings in the hole.
“But I thought you said in the beginning that the music industry is thriving? You are a lying douche bag!” I did indeed say the music industry was thriving, and I stand by my word. Yes, CD sales have drastically dropped, but times are changing my friend. We are in a digital era and it’s beginning to take the lead roll. In 2003 it was reported that 19 million songs were purchased as downloads. In 2007, internet sales tapped in at over 1.4 billion songs downloaded. 19 million to over 1.4 billion in 4 years time. Incredible. 2008’s top selling digital artist was break-out star Rihanna with 9.94 million tracks sold. Let’s do a little math here. There were 15 tracks on the album, divide that by the 9.94 million singles sold, and her digital single sales equivalents to roughly 662,000 albums sold. Not bad at all. In an even stranger twist of events, vinyl sales rang in at 1.88 million units sold. “Vinyl you say? I didn’t even know they still made them!” Yes indeed they are still cranking out the vinyl. In fact, the 1.88 million sold in 2008 was the highest recorded vinyl sale since 1991. The ring leaders being Radiohead with 26,000 vinyl sales of their album “In Rainbows,” The Beatles “Abbey Road” counting 16,500 in vinyl sales, and Guns ‘N Roses “Chinese Democracy” rounding up the top three with 13,600 vinyl sales. It’s time to dust off the old Victrola
Feeling a little better now about the continued forward march of the music industry? Maybe this little bit of info will help. In the last 7 years the amount of titles released per year has almost tripled in numbers. So where is all of this new music coming from? Where is it going? What is it being used for? Is it making money? Amazing questions to be asking… which I will be happy to answer in blogs to come. I think I’ve given you enough food for thought for now. If nothing else, I hope I’ve given you some fun facts and ultimately a renewed faith in the prosperity that can indeed be found in the world of music.
Until the next time…
Chad Helmonds
Owner/Producer/Engineer
Black Apple Studios/Productions
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