The following is an academic essay that I wrote about the recording industry. Rather than publishing it through peer-review journals, I decided to release it to everyone. Please have a look and let me know what you think. It is particularly important because of the newly proposed copyright law. What it shows is that the trade organizations such as the Recording Industry Association of America (RIAA) and the International Federation of Phonographic Industries (IFPI) are very candid with regard to to the way they aim to change the industry. Please read and let’s start a conversation about the impact of the proposed copyright law. Continue reading
As more data is released from 2014, we can see that major record labels celebrated a year of indisputable growth. Yet, they continue to include language that makes it sound as if the industry shrank.
“While the U.S. music industry suffered through its worst sales year since the advent of SoundScan (now Nielsen Music) in 1991, streaming was so strong last year that the industry nevertheless saw growth — yes, growth — in 2014, when new metrics to measure music revenue are taken into consideration.” Continue reading
In a moment of clarity, Billboard admits that album sales don’t tell the whole story of record label revenues. According to Billboard, “there’s more to the story. Recorded music looks better when streaming gains are taken into account.” As I’ve been arguing for a while, record labels earn revenue from a number of sources well beyond album sales. So the recent decline of albums and tracks is rather irrelevant when considering industry profits.
Album sales are down. But that really isn’t the point. Albums were the logical result of the available recording technology. At first, recorded music was limited by the “brevity dictated by the size of the shellac plate.” In other words, the length of a song was limited to the length of a side of a 78-rpm record, which for a while was about 3 minutes. The album only developed as a concept with the 33 1/3-rpm LP record, which could initially hold 22 minutes of music per side. Rather than lengthening a song, record companies began bundling 3 minute songs together in the form of an album. With digital music, it does not necessarily make sense for record labels to produce albums if they can release digital tracks. Continue reading