Tag Archives: Music industry

Facebook are dealing with the music industry

Facebook has a lot of DAU`s and more and more people spend time watching videos. Facebook is a young company and so far they already have billions of video views. But Mark Zuckerberg want to prosper from this industry.

There is no doubt that YouTube is the most popular video-sharing company in the world. Many artist has started their carriere at YouTube and one of them is Justin Bieber. In 2016, YouTube gave the music industry $1 billion in ad revenue, and Facebook wants to join.

 

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Streaming was a game changer on how media is bought. It changed how it`s consumed. It also changed who profits from it, and of course how much they all made in this industry. For the first time in 20 years, the music industry saw significant revenue growth in 2015.

The revenue from streaming is $2,9 billion world-wide, and revenue from video on demand rose almost 9% in 2015, and music clips can move about $50 – $70 billion from TV industry.

Facebook has nearly 2 billion users and still a growing advertising business, and a deal with the music industry can be a win-win agreement, which means billions in revenue from new sales for the music industry.

The interest in videos is growing and Facebook want to prosper from that, and that’s why they are so interested in music rights. Facebook moved billions in ad revenue from print and now many online firms have targeted TV.

Facebook are not alone on the market and they need to share some of the market with Twitter and Snapchat, but the biggest of them all is YouTube which is Faecbooks main rival. Googles YouTube channel said music is one of the most popular types of videos on their on-demand service.

TV networks and News organizations are experimenting with Facebook, just like they did with YouTube and this will continue. This is interesting because Facebook is big.

Thanks to streaming, the music industry is growing again and that is because of the paid streaming services from Apple and Spotify.

Facebook will probaby sign a deal with the music industry before the summer this year.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Music Streaming increased in 2015

2015 was a milestone year for streaming music in the United States. For the first time, streaming was the largest component of industry revenues, comprising 34,3% of the market, just slightly higher than digital downloads, according to RIAA.

All parts of the streaming music market grew in 2015, and total streaming revenue exceeded $2 billion for the first time ever. Combining all categories of streaming music like subscription, ad-supported on-demand, and SoundExchange distributions, revenue grew 29% to $2,4 billion.

The number of paid subscriptions grew 40% to an average of 10,8 million for the full year.

 

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Apple Inc launched its Apple Music last summer and I think that helped the streaming category a lot. Subscription and streaming went straight up. The streaming category includes revenue from subscription services such as paid versions of Spotify, Deezer and Apple Music to name a few.

It also comes from streaming radio services that are distributed by SoundExchange like Pandora, SiriusXM, and other internet radios. On top of that you have YouTube, Vevo and ad-supported Spotify.

This is all good for the artists and music industry, but for the distributors it can be different because they are all selling the same $9,99 product. They all have the same 30 million tracks and their target is the same group of consumers.

The rise of music streaming is clear. Streaming accounts for $2,4 million in 2015. Up from $1,9 in 2014. Downloads is down from $2,5 to $2,3 million in 2015, while physical is down from $2,2 to $2,0 million in 2015.

This data tells us that the music industry had the most balanced revenue mix in recent history were 1/3 of revenue coming from each of the major platform categories; streaming, permanent downloads and physical sales.

Streaming continue to increase its market share, but it is a big surprise for someone to see that Vinyl LPs were up 32% by value versus the prior year, and at $416 million Vinyl LPs were at their highest level since 1988.

 

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Phonogram is a patent by Ritter P Winne. A citizen of the United States, residing at Brooklyn, in the country of Kings and State of New York. The patent is from 4 December 1906 which means that the phonogram is celebrating 100 year on December 4, 2016.

Some people still print their news on dead paper. Some people still print their music on dead vinyl, and some people still use horses. But the majority prefer cars.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Idol delisted

The 15th farewell season of AMERICAN IDOL is about to begin. The first live audition is dated 7/10/15 in Denver at Denver Coliseum. The show will end after 13 years and 15 seasons. The show`s current rating aren`t even close to what they were during its glory days.

Simon Cowell and his team left the show to do the American version of the X-factor, and Fox and American Idol started to writing its own death certificate a few years ago. Jennifer Lopez, Harry Connick Jr and Keith Urban will run the last show together with the host Ryan Seacrest.

Sad but true because there are so many talented artists out there. But there are still hope. X-factor is a great follow-up. A program that started September 4, 2004.

X Factor UK judge Cheryl Fernandez-Versini is often brought to tears during the competition`s performances. I can fully understand it because I have seen some of the artist perform their incredible songs. It`s amazing.

Sherilyn Hamilton Show did a great gig with Whitney Houston`s classic «I don`t know my own strength». But have a listen to 17 years old soul singer Louisa Johnson covers «Who`s loving you» by Michael Jackson. This is awesome! Incredible performance! Absolutely stunning! Wow!

Is this tomorrows superstars?

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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All-Time High for Digital Music

As a music lover I`m following the music market closely, and streaming services has increased in value of one-third from 2013. The streaming services is overtaking CD`s for the first time. Pandora, Spotify, Rhapsody and SiriusXM are among the leaders in this business.

Audio streaming and downloads accounts for 64% of the total market, and according to the Recording Industry Association of America (RIAA), sales of digital music formats hit $4,51 billion in 2014.

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Permanent downloads remain the largest source of revenue at 37 percent.

Streaming services is up $1,87 billion in 2014 and paid subscriptions earned $7,7 million last year. Retail revenue value came in at $6,97 billion last year.

The figure is slightly down from the previous year and points to a flat revenue picture for the industry, which has long worried about revenue decline from digital music piracy and the obsolescence of physical formats like CD`s.

Apple`s acquisition of Beats Electronics will change the streaming business. Apple`s iTunes revenue has plummeted and that`s why they bought Beats. They want to compete with one of the biggest in this business; the Swedish brand Spotify.

Apple is planning to sell the music cheaper than it is today. Is that good for the music industry?

The problem in the music tech industry right now is that the ecosystem is broken and has been broken for many years now. If Apple sells the music cheaper, then the others will follow. Apple and Spotify will earn on it, but I don`t really care about them.

The most important thing in the music industry is that the money goes to the producers and artists of the music. Not to the distributors. The music industry need a new business model for music tech companies and change the copyright reforms.

Spotify is used by more than 50 million people but is it profitable for the artists? Taylor Swift`s decision to yank her music off of Spotify is one of the latest episode in the battle over the music industry`s diminishing profits.

Spotify`s payout range is $0,006 to $0,0084 per stream. With 46,3 million streams, Taylor Swift`s payout is $280k – $390k for her chart-toppin single «Shake it off».

Apple already have their own market and is poised to be a big winner, but Spotify will be difficult to break. Rdio and Deezer need to kick ass to still be in the market, and Facebook has been in bed with Spotify for years now, so Spotify will remain strong.

Artists can earn money from other arenas like the live concert subscription service Jukely. People can see all the concerts they want for only $25 a month. Live.ly failed but a similar product is up and running right now. Maybe they will succeed with their new Set.FM.

YouTube is planning to debut an analytical tool that will provide geographical viewer information to help artists route tours and that one is similar to Pandora`s Amp. Facebook inches closer to YouTube`s traffic with 3 billion views a day.

Clean Bandit`s megahit «Rather Be» is the most streamed song of 2014, the Official Chart Company can reveal. The song was streamed 39,7 million times. 15 billion songs were streamed in 2014, and the number is almost double of that in 2013, where 7,5 billion tracks were streamed.

«Rather be» fends off competition from Pharrell Williams’ monster hit Happy, which takes second place with 35 million streams. Close to Happy is John Legend`s «All of me» with 34,9 million streams.

This is a big jump in music streaming in only one year, but this is just the beginning. The massive growth means that streaming now accounts for 12,6 percent of all music consumed in the UK, compared to only 6,2 percent in 2013.

What do you think will happen with new services including Apple`s Beats and Google`s YouTube Music Key set to launch later this year? The platform`s growth will skyrocket in the next 12 months as it cements its position at the heart of mainstream music consumption.

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Music business

«Love never felt so good» was released on May 1st. The song is written by Michael Jackson him self together with Paul Anka. So, this is an old song that is never released before. What makes it even better is that this song is produced by on of my favorite producers; Timbaland.

The new Michael Jackson album is called «Xscape», which is released on May 13. All songs are previously recorded and unreleased songs. The song «Love never felt so good» was premiered on the iHeart Music Awards, performed by L.A Reid and Usher.

The version performed at the iHeart Music Awards did not have Justin Timberlake`s part in it. This is a great song which is at nr 9 on the Billboard Hot 100 chart. I like the «old school» style in the song. It reminds my of the hit «Rock with you» from one of my favorite albums called «Off the wall» from 1979.

Michael Jackson became the first solo artist to have four singles from the same album peak inside the top 10 of the Billboard Hot 100. As of 2014, «Off the wall» is certified 8 x Platinum in the U.S, and has sold more than 20 million copies worldwide, making it one of the best-selling albums of all time.

That`s business! But how many copies will «Xscape» sell? Not many, because no one buy a CD album anymore. The business is streaming and the biggest music-streaming company now is the Swedish company Spotify which have 10 million paid subscribers.

Spotify has 40 million active users to its name and listeners are creating or updating 5 million new playlists every day. In March 2013, Spotify had 6 million users opted for a paid subscription. A Premium Spotify subscription includes ad-free mobile and offline listening for US$9,99.

Spotify are growing from 20 markets to 56 and by comparison, Internet radio service Pandora had 76 million active users as of April 2014. In October 2013, apple said that 20 million listeners were using iTunes Radio.

Spotify are expanding and shares its catalog with iOS DJ app djay 2. Yesterday, Spotify added its catalog of more than 20 million songs to djay 2, which is one of the most-used DJ apps. In February, Spotify integrated itself on the Pacemaker iPad DJ app.

Apple buy Beats Electronics for $3,2 billion, but the deal would go beyond headphones. Apple and Beats will challenge Spotify. Sales at iTunes is declining, so streaming seems to be the future in the music industry.

Spotify pay 70% of its total revenue back to the publishers. Music labels and publishers pay artists a portion of the royalties, an amount that varies depending on individual record contracts. Spotify doesn`t pay on a «per song stream» model like iTunes.

It’s estimated that the average song generates between $0,006 and $0,0084 per stream in royalties. This can be business, specially for big artists. Spotify says the biggest album on the service each month generates more than $400,000 in royalties.

A big start can generate about $3 million in royalty payments in one year, but that amount will increase dramatically as its revenue increase but the number of artists splitting the money remains more or less the same.
Let`s look at some artist and how they have earned money on Spotify;

Miley Cyrus – Wrecking Ball – 60 million streams ($363,000 – $508,000)
Avicii – Wake me up – 152 million streams ($913,000 – $1,3 million)
Kate Perry – Roar – 65 million streams ($388,000 – $543,000)

The picture is not as rosy for smaller acts. The total royalty payments split between record labels, music publishers, songwriters and artists. In older formats, like CD`s and iTunes downloads, artists pocketed about 10% of the retail price.

Spotify faces an ever-growing number of music streaming competitors like YouTube. Money makes the world go round, and so is it in the music industry. The audience must be convinced that todays streaming platforms is worth paying for. Michael Jackson`s album «Thriller» is the best-selling album.

Is Michael Jackson`s new album a new best seller and will the new song «Love never felt so good» reach the top at Billboard Hot 100? Michael Jackson is my number one favorite artist and will always be. Michael Jackson is still alive!

Reports today:
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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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