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Just three outlets - iTunes, Amazon, and Spotify - account for more than 94.4% of indie digital revenues, according to a global estimate by AIM (Association of Independent Music). The rest are fighting over a paltry 5.6 percent.
Alison Wenham, head of the UK-based consortium, pointed to a lopsided logjam. "There are now a series of monopolies and it is jolly hard for anyone else to get a slice of the market," Wenham told Music Week (subscription req'd, here).
Indeed, this is an extremely top-heavy situation, though Wenham also
The study was done on behalf of the various AIM members, all of whom are also part of the Merlin consortium. Merlin has been quite the scrappy fighter against startups like Rdio, though after this report, battles like those seem totally peripheral.
And what about the US? Early Thursday morning, A2IM head Rich Bengloff pointed Digital Music News to some critical differences in the stateside market, noting that "we in the US have no US-based Spotify service and do have a large eMusic presence."
/pr.
Comments Closed
@ekeyandco Thursday, March 24, 2011
Emily Key
will the US embrace the music evolution??
@vigilbros Thursday, March 24, 2011
Vigil Bros.
I try to buy from Bandcamp when possible
CraigDiPaolo Thursday, March 24, 2011
What's the break down between itunes/spotify/amazon I wonder? Someone needs to get this details to Digital Music News.
Mike Gregoire Thursday, March 24, 2011
...are simply trying to prove that the majors cartels are still required to "make it". Not true.
Here are a couple questions:
1) What's the ratio of indie to major sales on these three outlets? What percentage do independent represent on these three outlets?
2) What % of sales are the artists who make up the last 5.6% taking home? Is it really a bad deal to be in that 5.6%?
This study is skewed in the same way that it makes out the digital download sales industry to be.
@NoTokens Thursday, March 24, 2011
Ross d'Avignon
Harsh but often true.
@juliomuniz Thursday, March 24, 2011
Julio Muniz
If you are indie, you know where you need to be.
andrewmccluskey Friday, March 25, 2011
..so what's the problem here?
I thought the "new world" was all about making it easy for the consumer - so long as my favorite artists are there (and through Tunecore, CD baby etc - every one has access to cheap and easy digital distribution) - I actually don't want a plethora of different digital stores.
@nextbigsound Friday, March 25, 2011
Next Big Sound
WOW
presnikoff Friday, March 25, 2011
INgrooves just shared their breakdown with us:
"We went back and ran our own numbers for 2010 to see what percentage iTunes, Amazon and Spotify sales were of our overall digital sales. The numbers paint a different story and we feel they exhibit the benefits of reaching beyond just the major players in digital retail (for example, working with a digital distribution company that has global reach and marketing services to generate greater retail diversity). For 2010 iTunes, Amazon and Spotify represented 74.5% of total digital sales at INgrooves. 25.5 % of revenue came from all other retail partners. "
And, this is what INgrooves CEO Robb McDaniels added.
“We think it’s important to clarify the difference in the AIM report and our own numbers regarding indie digital revenues”, says Robb McDaniels CEO INgrooves. “Independent labels that expand their retail network will benefit from a significant advantage; they will see more revenue and more worldwide activity in the digital marketplace."
@thornybleeder Saturday, March 26, 2011
Brian Thompson
?!
@JeffRabhan Sunday, March 27, 2011
Jeff Rabhan
What % of the music business is controlled by Itunes, Amazon, and Spotify? Blow your mind...@Hospitalrecords Monday, March 28, 2011
Hospitalrecords
but over 80% of that is itunes! Kinda misleading to make out that Spotify is a big revenue generator for indies!
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