PriceWaterhouseCoopers Report:
Global Music Sales To Slip
June 18, 2008 -
By Antony Bruno, N.Y.A new report from PriceWaterhouseCoopers says global spending on recorded music will fall from $33.4 billion worldwide in 2007 to $32.5 billion by 2012, a .6% compound annual decline.
That's for all formats of recorded music combined.
Regionally, Latin America and Asia are expected to see gains, driven mostly by digital formats, but declines in the U.S. and the rest of the world will offset that positive note, the report says.
Not surprisingly, digital formats are expected to explode in that time.
Global spending on digital music formats is predicted to reach $18.8 billion by 2010, from $7.3 billion in 2007, a more than 20% compound annual gain.
Regionally, Asia is expected to contribute $7.5 billion to the 2012 digital total;
the U.S. $5 billion;
Latin American $1 billion;
and almost $5 billion for the rest of the world.
PWC says digital revenues will overtake physical revenues in Asia by 2009, Latin America by 2010, by 2011 in the U.S. and Canada, and not until 2010 for the rest of the world.
And while mobile will edge out Internet-based distribution as the more lucrative channel, the Internet will remain the fastest growing with a compound annual rate of over 27% to $8.6 billion by 2012, while mobile phones will grow by 16.7% for a total of $10.3 billion.
PWC says there were 361 million songs downloaded via mobile phone worldwide last year, and expects that figure to grow about 4% to 373 million this year, and to 580 million by 2012.
In the near term, single-track sales remain the dominant component of digital sales, at $802 million, but album downloads increased by 54% in 2007 over the prior year.
The company expects single downloads to grow to 1.9 billion a year by 2012 (or $2.2 billion) worldwide, while album downloads will rise to 120 million units a year by the same time (or $1.2 billion).
Interestingly, PWC believes tracks will cost more in the near future, to an average of $1.15 by 2012, while albums will average $10.15.
PWC pegged the music subscription market at $201 million and a total of 1.8 million subscribers.
It says the market will increase slowly at about 2% annually to $218 million by 2012.
Unlike the increase in track sales, PWC says subscription prices will fall, to an average of $8 a month by 2012.
Another artist is joining Live Nation.
This time, it's Latin sensation Shakira!
The pop star is close to signing a contract with the concert promoters which includes recording, touring, and merchandising.
The deal is said to be in the multi-million dollar range and should be finalized before the end of the year.
Some reports are estimating she'll be receiving $70 million, though others estimate it's closer to $90M.
Live Nation and Shakira have worked together in the past when they handled the US Leg of her Oral Fixation tour last year.
Reports were that the tour made more than $100M.
Seems like Live Nation made a good investment in Shaki!
Pharrell Williams revealed to British Vogue that he's using a revolutionary procedure to rid himself of his tattoos.
Tats just don't 'go' with the grown up image he'd like to project.
But, forget the painful laser procedure that could scar!
He's going to have replicated skin cover his tats.
The N.E.R.D. front man said, "It's basically like getting a skin graft, but you're not taking skin from your ass or your legs.
These guys actually grow the skin for you.
First you have to give them a sample of your skin, which they then replicate.
Once that's been done, they sew it on - and it's seamless."
It's expensive…but that's irrelevant says Pharrell.
Isn't it nice to have $$ to throw round?
"It's going to be pricey, but worth it," he says.
"I got fire on my arms! I'm a grown man!"
We're sooo glad we never jumped on to the tattoo bandwagon!
July 1
LAS VEGAS --
Soaring gas prices have hurt business here in Sin City but you’d never know it when you drop by the worst show in town -- the ubiquitous Blue Man Group.
I’ve always admired the men in blue purely as a business venture.
Three anonymous guys with blue faces and marginal talents (and spartan production values) pack their theater at the Venetian night after night.
Entertainment writers keep turning out laudatory pieces about the mega business run by Cirque de Soleil (a company that turns out great productions) but, as a business venture, I have to give the prize to Blue Man Group.
At the Venetian last night, while the Phantom played next door (how many times can folks keep returning?) and Jersey Boys does its sing-a-long, the three Men in Blue did their routine --
tossing and catching marshmallows in their mouths, stuffing themselves with Capt Crunch, banging out lame tunes on their giant xylophone they call an Aronophonic.
There’s lots of audience participation shtick, dragging reluctant participants from the audience who are then painted blue or fed Twinkies.
And for the big close?
Giant rolls of paper billow across the audience from the back of the theater causing folks to thrash around amid the onslaught --
a sort of toilet paper avalanche.
I’ve heard of papering the house, but this gave the term new definition.
Mind you, folks from the fly-over country found all this modestly amusing and a steady blast of drums kept them from nodding off.
But, to use Variety lingo, the hix from the stix deserve better trix.
The so-called script (what little there is) feels like it was written thirty years ago.
Considering the glitz of modern Vegas, the production values are embarrassing (folks in the first ten rows are asked to put on plastic ponchos as though to protect them against some spectacular detonations, but nothing occurs).
The success of Blue Man clearly represents a triumph of show business branding.
The Blue Man Group was formed in New York in ‘88 and struggled to survive for several years.
The founding fathers are Chris Wink, Matt Goldman and Phil Stanton and they still all share one office.
But rake in an estimated $8 million in revenue per month.
And while the Quebequise behind Cirque have been immortalized in countless articles, the Blue Crew has chosen to remain substantially below the radar.
That is just as well:
They should remain there until they invest some their money and talent and re-energize their show.
LBN-HOLLYWOOD INSIDER:
***Hollywood is preparing for another crippling strike after the largest actors' union failed to agree on a new contract with the US entertainment industry's key studios and networks .
The 120,000-member Screen Actors Guild has been locked in talks with the studios for several weeks, with both sides working towards a deadline of midnight on Monday night.
By Laura Leebove, N.Y.
Razor & Tie Entertainment and Gary Gersh's The Artist Organization (TAO) have partnered.
Under the deal, Razor & Tie will provide marketing, sales and distribution to TAO.
The two companies plan to sign a handful of artists per year, beginning with Athens, Ga.-based band Dead Confederate.
The quintet's first full-length album, "Wrecking Ball," is slated for a fall release through TAO/Razor & Tie.
Industry veteran Gersh was the former president of Capitol Records and has been instrumental in the success of artists including Nirvana, the Beastie Boys and Sonic Youth.
Razor & Tie's record label roster includes Dave Barnes, All That Remains, EndeverafteR, Angelique Kidjo, Ryan Shaw, Twisted Sister and Neil Sedaka, among others.
1 comment:
Sales have already taken a dip and it's not surprising to see it decrease even more.
Sadly, this will come to the expense of Indie bands trying their luck in the real world.
Perhaps it's high time for such artists to look at selling songs online instead - on their own.
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