Explore the global value of the music industry at $41.5 billion, including topics like data transparency, the rise of vinyl, the relationship between music and gaming, and streaming price increases. The podcast also delves into the lack of transparency in the industry, money allocation and distribution, the future of vinyl sales, the impact of chat GPT on journalism, and the accuracy of global music industry figures.
The need for data transparency in the music industry and the importance of understanding its complex revenue distribution.
The resurgence in popularity of vinyl records driven by factors such as nostalgia, self-expression, and merchandise appeal.
Bureaucracy-related challenges that hinder vinyl production and distribution need to be addressed to meet the growing demand and ensure a smooth supply chain.
Deep dives
Vinyl's Resurgence and Supply Chain Challenges
Vinyl records have experienced a resurgence in popularity, with artists like Travis Scott and Taylor Swift seeing significant sales. However, there are supply chain challenges and bureaucracy that can hinder vinyl production and distribution. Companies like Pressing Business are working to increase production capacity and streamline distribution. The demand for vinyl is driven by factors such as nostalgia, self-expression, and merchandise appeal. It's important for artists to take risks and plan vinyl releases strategically to meet the growing demand.
The Role of Vinyl as a Form of Ownership and Intimacy
Vinyl records offer a tangible form of ownership and intimacy that digital streaming cannot replicate. Many vinyl buyers do not even own a record player, emphasizing the appeal of vinyl as a collectible item or merchandise. The desire to own physical music is particularly significant for younger generations who grew up in the era of digital streaming. The vinyl market benefits from the novelty factor and the association with self-expression and personal taste.
The Impact of Bureaucracy and Bureaucracy Barriers on Vinyl Production
Bureaucracy and bureaucracy-related challenges can hinder vinyl production and distribution. Issues such as customs, Brexit, and shipping delays need to be addressed to ensure a smooth supply chain for vinyl records. Efforts are being made to overcome these barriers, with companies like Pressing Business streamlining their operations and expanding their global distribution networks. The goal is to increase production capacity and reduce lead times to meet the growing demand for vinyl.
The Value of Music Copyright and its Implications
The annual report by Will Page on the global value of music copyright highlights the complexity of calculating the industry's revenue. The report estimates the global value of music copyright at $41.5 billion. This figure reflects the recorded and publishing sides of the business, as well as other areas that collect revenue. The distribution of revenue within the music industry continues to evolve, with songwriters, publishers, and collective management organizations gaining a larger share compared to previous years. The report emphasizes the need for transparency and understanding in the music industry and highlights the potential for future growth in publishing rights.
The impact of AI on the music industry
AI has disrupted the music industry by allowing the creation of fake songs, raising questions about authenticity and the role of algorithms. This highlights the need for policymakers to pay attention to the music industry and understand how disruption in this field can translate to other industries.
Gaming and music industries compared
Despite its large size, the gaming industry often lacks recognition and gravitas compared to the music industry. However, gaming's revenue is primarily driven by Asia, while music's revenue mainly comes from Western markets. Gaming also focuses more on engagement before monetization, using gaming culture and competitive elements to drive user participation. The music industry can learn from gaming's success by finding ways to apply a gamified ethos to music without creating negativity within fan bases.
How much money does the music industry really make on an annual basis? The answer is not as straightforward as you think. Most of the outlets that publish figures only report on one side of the business. But since 2014, former Spotify chief economist and author Will Page has made it his job to answer this question in his annual report on global music copyright. This year the global value is at $41.5 billion.
In this episode, I’m joined by Will and friend of the show, Tati Cirisano from MIDiA Research. We dive deep into the key findings of the report, the growth of publishing, vinyl sales, why “back catalog” is a dated term, AI’s disruption, and a whole lot more.
[00:04:06] The need for data transparency
[00:30:51] The rise of vinyl
[00:46:43] How music relates to gaming
[00:54:42] Streaming price increases
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