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SILVERWOODSTUDIO
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7/15/2016 5:21:54 PM
the future for online digital sales
Found this today ---what do you think ----agree or disagree ??
"Single-track download sales in the US have crashed by 42% since their peak just four years ago – sparking the real possibility that they could become a dead format within half a decade.
In the first half of 2016, single-track download purchases plummeted by 24% year-on-year, falling by 127.3m sales compared to the same six months in 2015.
Should the US download market continue to see that level of sales disappear each year, music purchases on the likes of iTunes would be rendered non-existent by 2020.
According to historical Nielsen figures, H1 2016’s haul of 404.3m US download sales was down 42% – or a painful 293.7m – on 2012’s peak tally of 698m.
2016’s 24% year-on-year fall in track downloads compares to a 10% annual fall between 2014-2015 and a 13% drop in 2012-2013 – a hefty jump in the rate of decline for iTunes.
Consider that a typical hit music download now sells for $1.29 in the US, and the H1 drop in downloads since 2012 represents a fall of comfortably over $300m a year for the music business and its digital retail partners – especially Apple.
Where’s that money gone? Try audio streaming, which just jumped up 97.4% in consumption terms year-on-year in the US.
According to Nielsen, 113.6bn audio streams took place in the US in the first half of 2016. That equates to around 620m streams every day, 26m streams each hour, and 431,000 streams every minute.
And that doesn’t even take into account video platforms like YouTube.
Analyst Mark Mulligan at Midia doesn’t forecast that downloads will be gone completely by 2020 – but that’s when he believes Apple will ‘turn off’ the iTunes store in music.
“By 2020 [Apple’s] download business would be tracking to be 10 times smaller than streaming revenue but, crucially, streaming revenue would nearly have reached the 2012 iTunes Store download revenue peak,” he wrote in May.
“This is the point at which Apple would chose to turn off the iTunes Store. The narrative of services based music business would be complete.”
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Bryon Tosoff
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7/15/2016 5:25:39 PM
True, point is, streaming is becoming king, example is my brothers band are getting huge streams via spotify and making some serious cash. and on other platforms. me, not so much, although still pulling in some coin on airplay royalties some streaming and even some netflix royalties and others who are using my songs
good article.
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Two Silo Complex
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7/15/2016 7:45:14 PM
Why buy the cow when you get the milk for free? Streaming has killed what little chance of sales there was. Take for example I price my songs 50 cents and you can hear those crickets loud and clear.
Two Silo Complex,
Ken
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LyinDan
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7/16/2016 4:09:23 PM
The future of online sales is to have none.
The future of profit for online musicians is to beg for money, basically. Mark my words.
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SILVERWOODSTUDIO
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7/16/2016 4:44:58 PM
Hi all
Your post got me onto this Bryon---now weddings and funerals are still cash---but we have to play mostly covers of course----who wants original music at a funeral LOL ?
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Bryon Tosoff
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7/16/2016 6:02:55 PM
ok,this is slightly off topic but kinda on with the streaming and royalties thing I make a living in the music business, that is what I do and make a good living doing it .
I teach music. primary income , I dont do the 40-50 student anymore, dont need to, 10 is fine. I charge 60 per hour. good income there.
I promote artists secondary income, decent work there,
third I get royalties and streaming income.
plus I get the occasional gig and make cash there
so 4 income streams so to speak. and been doing it for over 30 years.
it has been a good life.
now before that I could tell a story of what I used to do and you be going whaaaat
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Duane Flock
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7/16/2016 11:04:33 PM
While I was on vacation last week, I rode in a car with two twenty yr old nephews. Jacob was in charge of the tunes. He would play something from his phone stash and change it every 90 seconds. Two minutes if you were lucky. By the time you got to the 2nd verse, or just past the hook he would put on another tune.
Grant you a lot of these included older rock classics. I asked him why he did this, and he simply said He Got Bored with the song! I asked Ryan if he did this too and he said "sometimes".
It's the changing times of a fast paced lifestyle and electronic gizmos. The younger generation has the attention span of a Fly (sorry Fly).
Maybe we'd be better off creating medleys?
I'd hate to be a DJ at some of those guys parties...........
Maybe if ASCAP or BMI would pay off like our Stat Cave rates the tunes we could get "peace work" pay in the future.
I'm glad I make music for the art aspect and fun of it. Cash would certainly be cool, but it seems less and less likely.
D.
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