Saturday, June 2, 2012

Music Sales Breathes Life Back Into The Music Industry



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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