Continuing our discussion of industry trends.

WEEK 1 CLASS 2

MUSIC INDUSTRY REVENUE

The data conclude that Americans spend three times less on music as they did in 2000 (Degusta, 2011).

Americans spent twice as much on music-related products two decades ago than they do today.

In terms of total profit margin, the US music industry is down 45% from its peak in the mid 1970s.

The vast majority of the music industry’s revenue came from full length albums.

BASIC POINTS

GROWTH OF THE SINGLE

According to US Census data from 2007 (last available), California had a total of 408 recording studios statewide which approximated nearly 40% of all revenue in the US.

Texas actually came in second with a total of 81 professional facilities and about 5% of total revenue in the US.

The studios surveyed in this study were those with full time staff on payroll.

Do you think those statistics will increase or decrease over time?

What does that tell you about the direction of the Commercial Music Industry?

RECORDING STUDIO STATS

WHAT DOES ALL THIS MEAN?

The music business is changing dramatically!

Understanding that your craft and talents are of some value.

Researching your chosen field before you graduate, to understand the challenges associated with it.

Cultivating relationships and building a real network of individuals that you can trust. (Passman calls this your “team”)

Maintaining a professional mindset even when you’re still in the “student” phase of your career. This means being organized, reliable and “on point”.

BUSINESS MINDSET

If the data reveals it is more difficult to get people to pay for music content, how can artists and

independents make money?

CREATING VALUE FOR AN AUDIENCE

Building an organized database of who your fans and contacts are.

Start locally and build modestly to begin with.

Entice those fans who support what you do with free content and/or product in exchange for more contacts.

Utilize social networking and text messaging to keep people updated on your activities.

Focus on your own craft and voice…in other words have something creative and individual to you.

The Goal is Below…Putting the plan in

place…

FANS ARE BUSINESS!

Tweet for a Track: Free Music

Cashmusic.org: Free Marketing Software for

Musicians

USEFUL RESOURCES

DeGusta, M. (2011). Retrieved from http://www.businessinsider.com/these-charts-explain-the-real-death-of-the-music-industry-2011-2

Geographic Distribution: Sound Recording Studios 2007. (2007.). Industry Statistics Sampler . Retrieved August 28,

2013, from https://www.census.gov/econ/industry/geo

SOURCES TO CHARTS