Next Big Sound (a/o May 16th):
Welcome to one of the most serious problems facing the economy, of which the music industry is completely dependent. Because no matter how fast upper class grows, rich people simply can't buy enough stuff to power a robust economy. They can't buy enough homes, clothing, cars, food, or vacations to prop an entire economy or industry. And they can't buy enough of the things the music industry is selling: concerts, downloads, merchandise, premium subscriptions, instruments, vinyl.
Real spending has to come from the middle class masses. Which makes this latest report from the Federal Reserve an alarming one. It's called the Survey of Consumer Finances, a report issued every three years and widely regarded as one of the most authoritarian on US-based family income. The latest stats, released this week, showed:
Overall, the report found that the middle class has sustained a far greater blow from the Great Recession than poorer or wealthier groups. And a major reason for that is housing. In fact, roughly three-fourths of the net worth plunge came from housing declines, though a two-decade reversion shows that damage is coming from other areas as well.
So how resilient will this group be? The data leaves out the last two years, and on the ground, places like Coachella, EDC and Bonnaroo are stuffed with people. Elsewhere, things like iTunes downloads and Spotify subscriptions are growing (though in fairness, CDs are plunging). The question is whether the middle class will have the firepower to create a seriously robust music industry - one that depends on buying lots of stuff, over and over again.
@ronstew Tuesday, June 12, 2012
Whoa.
FarePlay Wednesday, June 13, 2012
Haven't we done enough by reverting to a singles world, a buck for a tune is cheap. I also understand that Starbucks had a very good year, last year. Talk about "disposable" income, but then again caffeine is an addictive drug.
I know, I have the addiction.
Lastly, it really does come back to the perception of value. After people getting it for free for over a decade and now Spotify, where is the incentive to buy?
QSDC Tuesday, June 12, 2012
Instead of focusing on how to continue selling $12-15 CDs to the 50-100 million people, or so, in developed countries who still buy them, the industry should focus on how to monetize the BILLIONS of people in the world who mostly cannot afford CDs, but have internet access and can contribute a river of pennies via free streaming options.
A la carte sales don't work on the Great Copy Machine of the Gods/Internet.
ZoSo Tuesday, June 12, 2012
Seriously? Does anyone really care about CDs? The larger issue is the illegal exploitation of artists rights without consent or compensation. All recorded music models are challenged by this illegally exploitation by commercial businesses for profit.
http://thetrichordist.wordpress.com/2012/06/05/artists-know-thy-enemy
http://thetrichordist.wordpress.com/2012/05/22/why-arent-more-musicians-working-professionally
FarePlay Wednesday, June 13, 2012
Pennies is right.
Visitor Tuesday, June 12, 2012
The only thing you left out is how much the weathly have really prospered during all this. With the help of the US governement, the investor class can rest assured!
@mitchlafon Tuesday, June 12, 2012
No music industry? Interesting...
Ignorance is bliss Wednesday, June 13, 2012
Another stupid article on this site. Yes I own A digital Label and I'm an Artist. But I also have been part of the Private Equity World for a long time.
The networth drop is primarly based on "HOUSE" RICH. If one's networth is heavy in their HOUSE...yes, game over for them because they can't use it for an ATM machine to buy more "THINGS" and try to be "RICH" when they never where. Keep'n up with the Jone's has all but been haulted.
EU is not only bankrupt but will end up falling apart this decade.
Socialism has proven to be a cancer (Yes Corporate Socialism as in TOO BIG TO FAIL) and all levels of socalism will impload.
Change is coming faster than Digital Music News can comprehend or the avearge US citizen or average Global Citizen can understand.
Depression? What ever you want to call it, it's here and EU is going to take the brunt of it. The US should Limp along and ASIA will recover.
With that said. MUSIC is not going away. Do your research you lemmings. Read what happen during the First Depression. Music, shows, concerts did not go away.
Now, if you mean LIVE NATION and ARTIST in the POP WORLD charging 300 bucks or 600 pounds to listen to a bunch of Garbage.... Yes, prices will fall.
Music purchases? My label has been doing about the same over the last year or so, some months we get a spike in sells, some we do not. Of course, Techno or EDM for you lemmings isn't a big piece of the pie.
A Depression isn't so bad for the "MIDDLE CLASS" unless they are under huge amount of debt. And then again, who's choice was it to buy the car they can't afford, the house that is far to expensive and all the bling so they can be like their favorit MTV hero when they head out on the weekends?
Sure, there were some innocent people caught in this down draft. But the middle class has been destroyed, years ago..they just found a way to "CREDIT" and now, that is crashing down.
brooklyn habitat Wednesday, June 13, 2012
This is going far beyond housing I hate to say. Believe me people cut back on things like Spotify subscriptions this could easily stunt that growth.
Remember: CD's happened in a period of very strong growth and confident middle class. Not now.
FarePlay Wednesday, June 13, 2012
Interesting that you would refer to this as another stupid article, then preceed to compose a lengthy response. Explain please?
@mixsky Wednesday, June 13, 2012
Whaaa? Cool article
@nrelizondo Thursday, June 14, 2012
Being tone deaf hits a sour note for eveyone!
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