What are your views in present scenario when somebody asks about the recorded music revenue? Can’t you still observe it dying? Well, it now confirmed that recorded music revenue is dying quickly and constantly. Aren’t we witnessing the plight of artists, record labels and managers who are all striving really very hard to remain relevant in a world in which music sales is becoming difficult? But the shrinking revenue from recorded music has become so obvious at exactly the same time that the live music industry has undergone a huge transformation. However, despite the online effect, publishing revenue which is competing well in this situation and the growth of otherwise low merchandise revenue are the major reasons why the global music industry has largely held its own. Because of this the recorded music revenue between 2000 and 2013 shrinked by just 3% (check the figures below). If we compare the decline of recorded music revenue in retail over the same period, it was as much as 41%.
Thus, it is simply the 60% increment in revenue via live media that has neutralised the impact of declining music sales.
Thus, the most prominent feature of the contrasting destiny of the music industry’s two significant revenue sources is this that the share of total revenues accounted for in the great music industry by recorded music income has drastically gone down from 60% in the year 2000 to just 36% in the year 2013. This clearly proves that the balance of power has firmly shifted away from record labels to the live streaming music.
Yet there are certainly more dimensions of this development to understand the scenario in music industry. Recorded music by various record labels is still the primary way public interacts with music. Whether it happens to be on YouTube, Spotify, an iTunes or even radio, the majority of listeners consume the recorded products by record labels not the live products.