With the declining state of the music industry and record
sales many industry professionals have been scrambling to find and answer to
the woes of the of continued album sales.
According to the RIAA
revenue generated by subscriptions to streaming music service such as Rhapsody
and Spotify are up 13.5 percent at the end of 2011 that’s from 212.4 million in
2010 to 241 million. This comes on the heels of some backlash the services had
been receiving from indie labels and recording artist claiming that streaming services
would cause consumers to not purchase actual songs which were made available to
them through these sites. Due to the
negative press many artist and independent labels pulled their material from
these online platforms but after these numbers and new stats from the RIAA many
companies may reconsider the impact of having their music on these platforms.
Digital sales have also shown a significant increase over
the past few years with singles increasing 13 percent and digital albums up
25.1 percent so you can clearly conclude that the impact that digital platforms
along with the streaming music site is undoubtedly helping revive record sales.
Although the sale of physical albums continue to steadily decline now with the
increase of digital sales their should be some record executives breathing a
little easier and streamlining their business models to adapt and suit an ever
changing digital technology environment. This should also easy some tension on
the artist royalty issue with the RIAA revealing digital performance royalties
have also increased from 249 million in 2010 to 292 million in 2011 their
certainly seems to be more hope for the future of the recording arts industry
going forward the question is will they be able to adapt to the digital environment
in time to keep from sinking in the meantime.
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