Who said file sharing was bad for business
Studies shows that file sharing only seems to have hit record sales of the bigname artists and not the mass of musicians. Other stats shows touring revenue was up 24.6% compared to last year for mainly the big name artists.
Could it be that big name hit artists can make a fine living in the copy age?
July 24th, 2006 at 7:40 pm
As someone who has been involved in “small-name” music, my limited studies of the music business (ie. asking everyone I know who releases music) show that file sharing has nearly killed the small-name music.
Then again, I only speak from experience of electronic music, and considering the quality of the mass of electronic music released recently that small-name business would very well deserve to die.
But seriously, it is very, very hard to make profit with small releases nowadays. If Madonna sells 10 million albums or 7 million albums, the difference is being filthy rich or rich and disappointed. If my friend the label manager sells 500 EPs or 200 EPs, the difference is having a potential chance of making a living or getting another job to pay for the losses of the label.
July 24th, 2006 at 10:41 pm
Also, many up-and-coming bands are really beginning to take advantage of the internet and the have-you-downloaded-something-new-today mentality. Clap Your Hands An Say Yeah (http://en.wikipedia.org/wiki/Clap_Your_Hands_Say_Yeah) might be the best thing to come of this in 2006, but they’re not alone.
July 25th, 2006 at 5:31 am
On the other hand, the digital revolution has made it cheaper to release music than ever before. Music can be released via a print and manufacture on demand site like href=”http://www.lulu.com”>luluat no cost, except whatever it costs you to record it. It can also be marketed through instant messaging or other means. The indendent musician’s opportunities to get what they create to the masses is much greater, even if file sharing changes the equation of how you make money off your recording. Many options are open to the innovative entrepreneur. Yes, purchase of physical recordings is down, but so is the overhead. Think outside the box.
July 25th, 2006 at 5:06 pm
My gut feelings:
The biggest file sharing losses hit the big name artists because they have the biggest income. I’m not sure if I believe that the income of smaller players is proportionally less affected.
The small players do have new marketing opportunities, although those opportunities do not come for free (if you accept time as a currency).
The small players suffer more easily, ie. they have a smaller margin. Whether their costs are “actual” costs (manufacturing, distribution..) or “non-accounted” costs (time).
The long tail gets longer and everybody has to work harder to get noticed, and a lot harder to earn money. Unless you’re doing electronic music with pirated software (like the bulk of electro artists probably are), you’re financially on the red.
So what I’m saying is I don’t see outside the box, I just see the inside of a bigger box. And it’s not that I wouldn’t be trying (check out www.softys.net).