Is this another classic case of bad research, or is the recording actually rebounding? Here's what PricewaterhouseCoopers thinks is happening to the recording, across both physical and digital formats. By the end of this year, digital will have surpassed physical in the US, according to the group. And by 2016, recordings are projected to recover past $7.5 billion in revenues.
But if 2012 is the year that digital finally surpasses physical in the US, then 2015 is the year this happens on a global scale. In the UK, the transition just happened according to trade group BPI.
But what happens when you broaden beyond the recording? PwC sees major growth in live events, particularly from festivals, especially with labels now priming the pump. "The touring market rebounded in 2011, and local festivals contributed to the expansion," PwC asserted. "We expect a healthy festival market to drive growth during the next five years."
The predictions were part of the PwC's broader Entertainment & Media Outlook, 2012-2016.
Toy Needle Tuesday, June 12, 2012
The recording, the recording, the recording...the recording industry?
VC Slave Tuesday, June 12, 2012
"Growth in 360 deals with labels will enhance the market, as labels will be actively promoting tours as they share in performance revenues."
...and who will they promote these tours to, given that they neither know, nor have any credibility whatsoever with, the consumer?
Better question is, how do theories like this exist outside academia, let alone merit reprinting?
What precious bullshit you foist, sir.
Giacomo Predatore Tuesday, June 12, 2012
lifer Tuesday, June 12, 2012
The major labels, all three of them with a hundred different names to confuse you, are going to try and buy companies with consumer credibility, and they will acquire a few, but hopefully the stench of decades of predatory practices will scare the dickens out of anyone considering going into business with them.
mdti Tuesday, June 12, 2012
labels will be actively promoting (the 360 deals) as they don't share anything in performance revenues."
pun intended :-D
@andy_doe Tuesday, June 12, 2012
Is this a case of bad research? No. It's a guess made into a graph.
ZoSo Tuesday, June 12, 2012
or a laugh made into a graph?
Chris Daniels Wednesday, June 13, 2012
PW does hard-data research not speculation and this is some pretty good hard data. It is not new, all of this was projected back in 2009 and it's pretty much right on schedule.
What I think are the greater questions for both artists and music business people: (a) what outlets for recorded music will actually pay artists, or record companies of all sizes, enough to justify the cost of recording the music (b) with the added pressure on the live industry to fund the music business as a whole, how does that industry survive if we are now at a point of most fans going to about 1.4 concerts a year?
In my research at CU Denver, the outlook for the artists and record companies starts to look better in the next few years but still not great (see all the DMN articles on what Spotify, iTunes and others pay)
For the concert business, there are so many levels of that business it is hard to create one model that fits them all: small venues (clubs) are in a somewhat different world than AEG owning the 1st Bank Center and being both venue and presenter. My concern is the trend ... and that looks bad for the fan and the two major concert companies ... that trend is revenue going up and actual numbers staying the same and even dropping slightly ... if that's the case, will fans finally reach a tipping point where they go to less than 1.4 concerts? But again big general theories fall apart when you look at individual parts of the market (see Steve Knopper's great article about electronic dance music and the boom in that segment or the market).
paul Wednesday, June 13, 2012
You need to comment more!
R.P. Wednesday, June 13, 2012
Has PWC not heard of Roc Nation?
Someone who knows Thursday, June 14, 2012
These two charts are shit.
The reality is that 'marketing' or 'promoting' 360 deals won't generate revenue - at the majors, it's all about radio plays still.
Just remember, the best marketing plan in the world is a hit song.
@diymediaservice Friday, June 15, 2012