Rise And Fall Of The Music Industry
In these last couple of years, the music industry has lost a significant amount of sales, which has caused numerous professional studios to close down and lower their prices. This is partly due because the number of home studios currently built is rapidly increasing. Recording equipment is affordable enough for a person to create a home studio and provide high quality CDs. These people can also distribute their own song by cutting the middleman and selling the songs themselves with help from online websites such as CD Baby or Sound Click. This has cut into the profit margin of many labels. However, the primary reason is that the digital era has overwhelmed the physical CD world. There is a slow but steady transition from physical CD to digital media. Consumers are buying more songs online then actual physical CDs. In 2007, 80% of record sales was from physical CDs and the remaining 20% was from digital downloads. In 2009, 64% of record sales were from physical CDs and the remaining 36% was from digital downloads. As you can see, the trend of digital downloads keeps rising. This has forced record labels to promote, distribute, and sell from what they are used to in the physical records realm. The music industry is slowly changing into the digital realm. There is a lot of material to capitalize on, but as of now, nobody has come up with a way to do this. The closest thing we have seen is iTunes, which is the biggest online music distributer. One of the areas, which is improving the music industry and is currently growing in numbers and sales, is concerts. It’s not that more people are going to concerts; it is however that people are paying more to get into concerts. The reason for this may be that concerts and live productions have improved tremendously. The growing income from live performance
has compensated losses from the dying sale of CD’s.
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