The Death Of The Music Industry

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Music Industry

The demise of the music industry

A graphic display of the state of the music industry created by Bain…. What it speaks to is the head-in-the-sand approach that the industry had as a whole as the internet wave took over, reaching its peak in 1998. Technical chart readers will notice the perfect head & shoulders shape of the decline. Classic stuff.  Clearly, digital sales are not to suffice.  The industry will need to find a new way to entertain and render the value added of its artists.

ADDENDUM:  The revised (new & improved) chart (thanks to Mike in the comments below) from Business Insider:

Music Industry Sales ... a mountainous journey

Music Industry Sales ... a mountainous journey

3 thoughts on “The Death Of The Music Industry

  1. The graph shows decline per physical support… But it’s been several years now since the music industry understood it has to find other revenue sources (esp. events, concerts, edition, …).
    I’d really like to see the ratio of CD/digital sales in those companies revenues.

  2. Minter,
    The graph has been corrected, with several additional graphs:

    http://www.businessinsider.com/these-charts-explain-the-real-death-of-the-music-industry-2011-2

    Here are some important points coaxed from the data:

    So let’s correct the inaccurate conclusions one might reasonably draw from the misleading Bain chart:

    Wrong: The music industry is down around 40% from its peak in 1999
    Correct: The music industry is down 64% from its peak.
    Wrong: At least the music industry is almost 4 times better off than in 1973.
    Correct: The music industry is actually down 45% from where it was in 1973.
    Wrong: The CD era was the aberration. (Mr. Gruber’s reasonable take)
    Correct: The CD peak was only 13% better than the vinyl peak, not over 250% better as the Bain chart implies.
    The overall conclusion is that the music industry is actually doing much worse than the Bain chart implies:
    10 years ago the average American spent almost 3 times as much on recorded music products as they do today.
    26 years ago they spent almost twice as much as they do today.

    Cheers,
    Mike

  3. @PJ Grizel: You are right that they have known for a while… They certainly have taken a long time to shift gears! What I would like to see is the business model concerning concerts, tickets & merchandising…

    @Mike: thanks for the corrections and the most revealing stats. It makes me wonder how musicians are faring in all that? What’s working? Niche music, playing at clubs, genius kids on YouTube?

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