Music industry "optimistic" about digital future

[arXter]

Sony BMG exec gives his premonitions of where the industry is heading. some outlines of his views:

• 3 trends to continue/pop up : - selling non-copy-protected downloads; selling music in bundle packages (mobile phones, broadband deals); and free music downloads of ad-supported music.

• physical business will not disappear, since Sony are to become even more focused on creating "premium" products, box-sets and special editions.

• Simon Cowell and Disney are geniuses.

​

Music industry optimistic about digital future

By Mikael Ricknäs IDG News Service , 10/16/2008

The music industry is going through a lot of changes as it tries to grapple with the move to digital, but these days it is much more upbeat about the future.

"I actually think it's a really exciting time in the development of digital music business," said Ian Henderson, vice president, EMEA Digital Music Development at Sony BMG Music Entertainment, in panel discussion on the future of music at the ETRE08 conference in Stockholm on Thursday.

He sees three major trends that will start to take off this year, but really make an impact during 2009. Two of them are a la carte downloads in a non-copy protected form and selling music bundled in with other products (including Nokia and Sony Ericsson handsets, broadband or mobile access packages). "The consumer pays for a device or a telco tariff, and the music is bundled in," said Henderson.

The last trend is free for the user ad-supported music. "MySpace has an element of that, and there is a fantastic company right here in Stockholm called Spotify, which I think is going to be a leader in this space," said Henderson.

All are pretty big jumps for the music industry in terms of trying new things, and an important step as it tries to give consumers a lot of choice, instead of downloading it free. "You have to offer consumers free music in an environment where you get compensated, and you have to offer them cheap 99-cent downloads, all the music they want in a telco package or a premium box set for $50," said Henderson.

Music in the mobile phone has received a lot of attention lately, thanks in part to the launch of Nokia's Comes With Music, which bundles unlimited downloads for a year with a mobile phone.

Music in this space used to be all about ring tones, but that market is not what it used to be, and downloading separate songs has never really worked, according to Henderson.

Besides digital music, there is also growth in other areas. The economies around live music are also growing, according to Jamie Kantrowitz, senior vice president at MySpace, who was on the same panel.
"One of the advantages of technology is that artists can also build larger and broader audiences," she said.

The music industry is currently in a state of flux, but the record companies still have a roll to play, even in the digital age. "It's really easy for a one-man record label to get his music onto iTunes, but you do still need large companies like Sony Music to create global super stars, and to take artists to the level of a Britney Spears or a Christina Aguilera," said Henderson.

The physical business will not go away completely, either. It will bottom out at some point and also change in nature, according to Henderson. "Sony Music will become increasingly focused on how to create premium products, box sets and special editions," he said.

In the end, it isn't Nokia -- or any of the other companies that currently are getting a lot of attention -- that has impressed the panel the most. Instead that honor goes to Simon Cowell, best known as a judge on TV shows such as "Pop Idol" and "American Idol," and Disney, which has had great success with the "High School Musical" franchise.

"Disney is genius," said Kantrowitz.​

 

[Rebirth]

Go ahead but I am not going to join this digital purchase bruhaha. I am very sure that a big percentage of people -would not be able/do not want- to join it as well.

Let's observe South East Asia alone. South East Asia consist of Singapore, Thailand, Indonesia, Malaysia, Philippines, Brunei, Vietnam, Cambodia, Laos, Myanmar and East Timor. Majority of these countries are widely exposed to the Internet however

• Majority of people still do not have access and do not aware of Paypal or any other type of online payment. Paypal still do not cater a lot of countries worldwide.

• Majority of people are aware of digital downloading - but for free and illegally. Hence the concept of digital purchasing will not be successful thoroughly. It is not effective in the present days and I predict in the future as well.

The physical business will not go away completely, either. It will bottom out at some point and also change in nature, according to Henderson. "Sony Music will become increasingly focused on how to create premium products, box sets and special editions," he said.

Yes and ready to lose a really large percentage of traditional consumers. Why fix something that is not broken? Okay, fair enough to say that it is partially broken but getting rid of it completely is not the answer.

I like to hold and have a CD jewel case, a physical CD with a fancy booklet. I feel that I very much own it unlike digital download. Be my guess to alienate this one loyal traditional consumer while he weeps at the very edge of a cliff.

[1] Simon Cowell and [2] Disney are geniuses.

[1] Spam.

[2] Becoming a successful spam.

 

[BPYTD]

to be honest just skimmed through that but I just wanted to say cant believe artists only get 4p and 7c (USA) for every song downloaded from iTunes
not really on topic I just didnt know it was so low lol

 

[troubleman84]

Digital, physical, artists are still getting little than what they need to get.

The music industry is so out of tune that it ain't funny.

 

[Superstition]

The digital future is going to get bigger regardless of who likes it or not, including the execs. Yes, CD's, vinyl, etc. will continue to have a place in the market for the foreseeable future, but the media heads really need to stop fighting the digital era and embrace it. They are just fighting a current. They may say they're embracing it, but they're not. They're trying to fight it.

Also, I agree with the above post, artists aren't getting paid fairly regardless of what form the media is on.

 

[arXter]

Britain's Warp label find key to survival in uncertain music industry

7 hours ago

LONDON (AFP) — Britain's pioneering Warp Records is surviving on a diet of innovation and experimentation, confounding predictions that traditional labels could die out as major bands release music independently.

For almost 20 years Warp co-founder Steve Beckett has steered the label through countless trends and industry changes but accepts that the distribution of free music by the world's best-known artists such as Radiohead could present the most difficult challenge yet.

"A big artist can now take more of the cut themselves but the danger is the small acts can't do that and that's where the big divide is coming," he told AFP.

"Labels are going to be less and less willing to invest in them and that's where the problems are coming from," he warned.

Warp has been defined by its diverse roster, which includes electro-pioneers Aphex Twin, indie band Maximo Park, maverick satirist Chris Morris and Hollywood bad-boy actor and musician Vincent Gallo, who Beckett reassures is "exactly as difficult to work with as his reputation suggests."

Beckett credits this eclecticism for his label's endurance: "We sign artists that we feel have got longevity so even though they might been making music that fitted in a scene they had a longer-term vision.

"I was always interested in new sounds, sometimes they don't work but other times they do and that's given us the longevity," he added.

Beckett and friend Rob Mitchell, who passed away in 2001, established the label in Sheffield, northern England, in 1989 during the acid-house explosion.

"It's a very industrial city and it's got the sounds of mechanisation wherever you walk," Beckett said of his home town. "It's got that romantic sound melded into the atmosphere."

The label's worldwide reputation for being at the cutting edge of electronic music attracted international artists including New York's Gang Gang Dance and Australian three-piece, Pivot.

Avant-garde Brooklyn collective Gang Gang Dance, whose fourth album Saint Dymphna is released internationally this week, explained their decision to join the label.

"We were fans of Warp. Aphex Twin is amazing and I've absolutely loved his music for years and years. They just gave us natural positive vibes," guitarist Josh Diamond told AFP.

"I think there's a role for the labels. There's a lot of things that labels do that I don't particularly want to do.
"I've had almost nothing to do with the music business and ideally a good label will insulate you from the actual nuts and bolts. We don't care, we're musicians."

Electro-rockers Pivot had a less auspicious introduction to the label, but were equally impressed by the label's philosophy.

Guitarist Richard Pike told AFP: "Because they can't make as much money on record sales they are signing bands to '360' deals which means they get involved with touring, merchandise and publishing. That's the main way labels can survive these days."

However, Beckett fears that the label's survival could be influenced by the current financial crisis.
"If people have only got a limited amount of money in their pockets and they've got a choice between spending it on food or a CD then how do you think they're going to spend it?" he asked.

"But in tough times people go into a deeper level of artistic expression, so in terms of the art that comes out it could be amazing. There's always a silver lining."​

 

[FinalEyes]

I think the reason people prefer mp3s over CDs is the immediacy (is that even a word? lol) of downloading. It's much easier and quicker to browse Itunes for albums, download them, and then listen to them right then, compared to driving to a store, browsing through tons of CDs (most of which may or may not be in the right order), pick out what you want, pay for it, drive home, unwrap it, and then put it in the CD player. It's like trading 6 big steps for 2 little ones. Plus, it's more convenient to carry your whole music library around with you on an mp3 player.

At least, that's why I prefer downloading.