I’m tired of hearing about the decline of the music industry. Today, listeners are BOMBARDED by more ways than ever to experience their favorite artists as well as having near endless options to discover new music. This all means m.o.n.e.y.

Let’s look at the numbers, courtesy of thelongtail.com:

Digital sales: +46%
Sync licensing: Warner reports $20 million gain
Vinyl sales: more than 2x in the UK
Ringtones: +86%
Live performance revenue & merchandise: +4%
And if you include MP3 player stats: +31%

In this equation, only CD sales are down (-18%) which represent a 25% decrease overall.

BUT, BUT, BUT, BUT, BUT, BUT!

I believe that this decline in CD purchases represents the shortcoming in Top 100 sales. Bands at the bottom of the curve are actually selling MORE these days, according to Derek Sivers at CD Baby. However, direct to consumer music sales are still not being done in amounts large enough to sustain most artists’ careers. Eventually, you have to commit to long-term success or starve. I think it’s that simple. The only way you’re going to have staying power over the long haul is to adopt practices that CULTIVATE your business. These days it may mean you’ll have to wait alot longer to monetize your fan relationships.

1998 = marginalization
2008 = equalization

These days, and with all the marketing data spelling it out, I venture to say that any low to mid-level artist that still tries to sell a cd is not serious about their career. With MANY barriers to entry removed, you can now compete on the most basic and fundamental level possible….it is the concept of FREE!

Why now?

Because the industry is starting to realize the futility of CD sales driving revenue.
Because FREE is the new cheap.
Because you have nothing to lose.
Because the record label is a failed business model. Why follow it any longer?

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