2017: A Review of the Business of Music!

2017: A Review of the Business of Music!

Tempo gives its take on some of the music industry’s biggest recent affairs. This month, we delve into new industry stats that have affected the global music industry.

2017: A Review of the Business of Music!APPLE MUSIC
This big Apple Music announcement – reported by Music Business Worldwide via The Cupertino company – is giving us entrepreneurship envy…

Last year, Apple Music added 10 million subscribers! This surpasses Spotify’s growth model which took Spotify seven years to reach 20 million subscribers. Apple reached the same milestone in less than 18 months after the streaming service launched in June of last year. Now Apple Music officially has more than 20 million paying subscribers, making it the world’s most robust, entertaining and popular platform.

2017: A Review of the Business of Music!SONY MUSIC
It has been announced that Sony Music’s biggest money-making format is streaming. More than iTunes and others, Sony is generating double the money in streaming. Sony’s total music income – including publishing, records and ‘visual, media and platform’ has grown by 19 percent. In the first three months of 2016, Sony brought in $908 million from streaming, and $491 million from downloads. Physical sales were steady and generated $889 million. With these figures, Sony is set to surpass $1 billion in the coming year.

RECORD LABEL A&R SPENDING AND MARKETING

A&R, short for Artists and Repertoire, is the division of a record label or music publishing company that is responsible for talent scouting and overseeing the artistic development of recording artists and songwriters. A&Rs are responsible for overseeing the direction of an artist’s album, aesthetic, and career trajectory as it relates specifically to their music. In 2015, the global recorded music business spent $2.8 billion on A&R, which was its highest figure in more than five years. While labels were struggling to break new artists in the music industry, the marketing push to break these artists has dropped significantly. Spending in marketing dropped by approximately $100 million in the same period that A&R spending surpassed $2.8 billion.

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