Time to get out of the distribution business

Really interesting piece of analysis by The Times Lab on the changing landscape of revenue in the music business (in the UK) between artists and the industry.  

 
 

A few things jumped out at me:

1.  It's the graph the music industry doesn't want you to see.  It shows how artist revenues have actually increased in the era of file sharing while the revenue going to the industry has decreased.  So, if you're business model is purely one of content distribution it's perhaps time to exit.

2.  The fastest growing area of revenue is that of live shows. As the post points out, "at some point next year revenues from gigs payable to artists will for the first time overtake revenues accrued by labels from sales of recorded music".   Not sure if this is a case of more people going to shows, more shows occurring or more profitable deals for artists, but it does suggest to me that this is perhaps evidence of the fact that we tend to enjoy doing stuff together.  Perhaps music is the ultimate social good, rather than the private good record labels would like it to be.  

3. Arguably, the last century of recorded music has been an anomaly in how we consume music and we're going back to how we have always enjoyed it - live and together.  The content distributed is perhaps really no more than a calling card and artifact of something far bigger and more powerful.

Comments

[Jeff]

Thanks for using three line colors in the graph that are almost indishtinguishable.

[T]

i think you may be colorblind.

[Gareth]

Please feel free to tell the times

[Articlescreen]

I agree with your analysis and the graph shows what you are trying to say.

[verbal space]

fundamentally, the music industry is flawed. bands should no longer want a record deal. promote yourself via social media, record music and sell it for cheap (or free downloads for band awareness) and play live like mad.

[Katy]

really interesting data, although as someone whose other half makes a living from recorded music (and loathes how the labels have missed a trick at every opportunity to keep up with how the world works), I like to point out that the data doesn't quite tell the whole picture - doesn't change the point you make, but poss useful context:

1) long tail: PRS revenue is now made up of millions of micropayments as online sites are registering

2) the type of artists who are really benefiting from live revenues - apart from the long tail, a large chunk of the revenues are from the big pricey tours for established artists who already have a recorded music career, and who are most likely signed by one of the majors...

[Simon Pearce]

There's probably still money in distribution, just not using the current model. Myspace is arguably a profitable music distribution business, just nothing like Island Records. Also, it makes you wonder what's going to happen to TV revenues with companies like Blip.TV coming along ... (I don't have an answer there, I'm afraid)

[Promotional Products]

I think this is awesome for musicians, you know, the people that actually do all the work and perform the music. Shouldn't they be able to collect a majority of the revenue. I think that the emergence of indie labels has been great for the industry. No longer can the huge labels control what the public listen to. Now the listeners have more control and are telling the labels what they want to hear.

[mark rukman]

very interesting pieces of data. the internet overcomes traditional distribution models, also it kills mediocrity quicker. we still need a record label in identifying and promoting talent, just not as much. and some bands, because they are really good, don't need a record label. you still need a record label to make a very good band, big time. there is a huge leap from 2,000 person venues, to selling out a football stadium. you still need labels for that. funny a lot of very good things can get pretty big with all that much help. to get really big you need to bring the experts to accelerate the growth, kinda like natural training will only get you so far, after a certain point you need steroids. just ask barry bonds

[viagra online]

So, if you're business model is purely one of content distribution it's perhaps time to exit.

[College Term Papers]

I really admire this, I mean it really looks interesting! Very nice research. Thanks to the author.

[how to tie a tie]

"1. It's the graph the music industry doesn't want you to see. It shows how artist revenues have actually increased in the era of file sharing while the revenue going to the industry has decreased. So, if you're business model is purely one of content distribution it's perhaps time to exit." Interesting find, still true today in 2010

[NFL Jerseys]

So, if you're business model is purely one of content distribution it's perhaps time to exit.

[fade watches]

I am a fanatic watch collection, especially the well-known watches, you also can do, click on my name!

[fadewatches]

I am a fanatic watch collection, especially the well-known watches, you also can do, just click on my name!!!!!!!!

[viagra pills]

Yes Time is come to switch over one has to do it as fast as possible.

Smith Alan
http://www.raymeds.com/blog

[Casual Shoes]

especially the well-known watches, you also can do, just click on my name!!!!!!!!

[Free Web Space Hosting]

Its absolutely Right time is very important part because according to me time is money for our business. if possible, as you gain information, please update this blog with more information.

[Stockmeds.com]

Your way of expressing articles through words is excellent.he way of expressing things is best and informative.Keep sharing articles like this.A great article with best possible effects.I am great fan of your blog.

[astermeds.com]

Hey awesome blog.. its great.. i really like the way you wrote your views in this blog... i found it very interesting to read...

[medicine forum]

Thanks to a brilliant effort in publishing your article. One can be more informative as this. There are many things I can know only after reading your wonderful article.

[Natural supplements]

I have no words to appreciate this post ..... I'm really impressed with this post
.... the person who created this post was a big thank you man .. for sharing with us.

[learn spanish online]

This is the perfect blog for anyone who wants to know about this topic. The article is nice and it’s pleasant to read. I have known very important things over here. I admire the valuable advice you make available in your expertly written content. I want to thank you for this informative read; I really appreciate sharing this great.

[model agency Switzerland]

Good work…unique site and interesting too… keep it up…looking forward for more updates.

[commodity tips]

I am hoping the same best work from you in the future as well.
Wow... Thanks... I'm at the first time on your blog! And I like it! Thanks for sharing info. Keep up the good work.