Wednesday, September 30, 2015

Vinyl which is 10% of physical sales generates more revenue than streaming which is to be saving the world

Last week I saw this go up on a digital news site.  L O L*...  and it caught not only my attention, many of my friends have been emailing, texting and face booking me about the fact that vinyl makes more for the creators than streaming, which any reader of this blog already knows

LINK to the original article about this on Digital Music News)

So, let's really break down this situation. (Industry technical term I got a situation) By taking the numbers via Nielsen SoundScan (BTW this week there was a surge in digital going up 33 percent WTW for a total of 49% of sales - to round it up-  out of it's 2015 range of 43-46 % of sales.

Now as I pointed out in the title, Streaming is supposes to be the format saving the world and the Vinyl Records was supposed to be dead back in the 2000's.   Think about this streaming is supposed to be the fasting and best hope of the offerings from even the best Digital Distribution Deal

Considering I say all the time Vinyl wholesales for what CD's retail and now it's clear steaming within digital don't pay that well.   Sadly the all digital all the time manta still wins and  is the prevailing mindset way to often in artists and the press ~  just not the fans they want it physical always have and always will.

Vinyl as a format that was just .08 precent of total sales back in 2008 go to earning more than all of streaming the savior of music (or maker of tech dork billionaires) today in 2015 doesn't get near enough press coverage I have to ask?. 

We know elected officials are blind to the existence of what a vinyl pressing plant (story about coming next blog) or these independent merchants (mom & pops like CrookedBeat Records  to regionals like Dimple Records) are doing for their communities while dealing with local government that doesn't get or even want them sometimes, Not to leave out  Congress which keeps failing to fund creators on the front end via the MusicAct* when we already know that investing in Music raised our GDP and will continue to do so if we only start to support US Made Music.  Now  what do we have to do to get the ourselves out of this induced stupor for all things only one way.

Let's remember each (artists, band or ground - creators) is a means in and of themselves for commerce, culture and jobs in our local economy an when connected together {Network Effect} with labels, managers, promoters, studios, socials/pr and wholesalers we're now talking about trillions of dollars. Furthermore!  None of the Majors are offering to help any local community. And, in fact drain the best talent out of them as they Haliburtonize music by failing to export their artists bands and groups as Made in the USA products.

Since none of Majors export their music from US shores it would seem getting the non Majors or the the local music makers as our product to support would be on the top of every US officials agenda -- from Commerce, EXIM Bank, to State that keeps taking about "Cultural Diplomacy" via music which is impossible since we don't export it.  Not sure how we got so lost, yet lost we are and until we start rethinking some of what folks assume is working reality (Digital Rule) our Nation's and our future is being robed from us one song at a time.

Let me just say it here,  If we took one place DC and the Mayor, who is a smart capable leader, put the same amount of money into #DCMusic as #DCTech I would wager that at the end of one year that the payouts, earning and accolades for DC and the businesses involved would strongly favor the Music.

"I look forward to an America which will reward achievement in the arts as we reward achievement in business or statecraft."  --"Remarks at Amherst College upon receiving an Honorary Degree (439)," October 26, 1963, Public Papers of the Presidents: John F. Kennedy, 1963.

W/ Jess at the NEA 50th Anniversary in DC

*This will be one of the most visited post's for them and its not the stories that they thought they'd be publishing when naming it Digital Music News....

Tuesday, September 15, 2015

There are 4 Majors in distribution again.

I don't normally do multiple posts;  However this is really too big to let slip into our existence since there are economic ramifications and there's a very good reason why -- Money... While a lot is written about our industry there is as pointed out already almost no coverage about this aspect of it and since Distribution is Everything it makes no sense to me. Yet here we are...

"BERLIN, 14 SEPTEMBER 2015 – BMG recording artists Iron Maiden and Scarface have burst into the Top 10 of the US SoundScan albums chart, marking a new milestone for the new model music company less than 18 months since the company announced its entry into the frontline of the US record business."

The re-arrival of BMG into the "frontline of the US record business" is happening because no in the US could give two cows about it and another multi-national company (mmc) is stepping into the US market place and handing our economic assess to as with another US based distributor because there is a market for them to come into already.   So sure they're coming with some bad ass music and some is even made in the USA - it's just sold to us via a MNC and to add insult to trade imbalance -- then not exported out of the USA.  This is a missed opportunity for a US based company and from what I understand this is not the last of the old oversea's players plotting a path back into US distribution.  And why not it's wide open. 

As for what does this mean here in the states, Certainly there will also be a number of impacts.  The first is that another major entertainment company means more money for the whole sector and hopefully more awarenes in general as they fight it out for stars, time and attention of the public.  Another part of this will be in the way BMG itself operates having not been active in US distribution for almost a decade there's few in the industry others than those left know about the serious ball that BMG plays. Lastly,  this could also mean some more consolidation in the indie ranks as they considering getting market share and assets that help them compete in the US though acquisitions.    

Here's the link to the release

PS they're preparing to release  Alabama (18 September) and Janet Jackson (2 October).

A Major is a record label that has guaranteed distribution from the likes of Sony, Universal, and WEA and now of course BMG. 

Monday, September 14, 2015

Mic check looking for the Press you're needed in aisle 1-100

With the start of the ramp-up for fall and holiday sales the story still unfolding is the inability of digital to take away market share from physical sales.   There's a number of reason why this is happening; However the issue at hand today is the continued obsession by the press to cover only the digital side of music.

The lack of focused journalize and technical analysis keeps one of the US's best industries in check. 

The shear amount of press that Digital music get's vs physical on the market share alone shows something is amiss.  If 56 precent of the sales are physical why is digital covered at twice the rate of it's market share.   Or! perhaps worse is the complete lack of coverage in the US Press about our top culture export (Entertainment)  should be another sign.  Sadly the only story I've found about physical is from overseas.

"While HMV saw declines across both video and gaming, it held its value for physical music, helped by new releases including English Graffiti by The Vaccines and How Big, How Blue, How Beautiful, the third album from Florence and the Machine. With the re-launch of its online store in June 2015, HMV now has access to the 3.8 million shoppers who purchased physical music and video in this way in the last quarter, which should improve its performance. "  Author Fiona Keenan

How does the USA compete if we're not even in the game or the chosen market to be in pays in cents. It makes no sense.  Yet, that is the state of the art for today knowing the wrong data and acting in the wrong markets.