Does this topic make you think? I mean, the music industry is a very large and established industry to just say it is now collapsing and will be dwindling away very soon, but there is great news. That is not the case here folks. It may actually seem like every industry is hurting due to our ‘so-called recession’ but believe it or not things are really starting to pick back up like never before. The great news is that digital sales are continually rising every year in music industry and even though album sales are still down at a low, people are always looking for the next big song. Let’s face it, we love music and we love to karaoke to our favorite tune, whether it be in the shower, the club or the church. Music will forever be around and for some reason will actually become even more popular according to several music research companies.
According to Grabstats.com, 66 million digital albums were sold online in 2008. Ringtones downloads have skyrocketed to an all time high and people are just not feeling like getting in their car, driving to the store and waiting in long lines just to buy a cd anymore. It’s all at their fingertips, which brings us to online revenues in the music industry. Its amazing but here goes. US Recording Industry Revenues from Online (2006-2011) – $1.1 billion(2006), $1.7 billion (2007), $2.2 billion(2008), $2.5 billion(2009), $2.8 billion(2010) and $3.0 billion(2011). Okay, do you get the picture? There is an increase in sale projections every year since 2006 in revenue from online sales, which menas every year for the last five years, people have been more prone to purchase or download an album on the internet in the comfort of their location and would rather just burn it onto a cd or add to their favorite mix tape of other hits.
Now, here’s the shocking part.
US Recording Industry Revenues from Physical (meaning on hand/in store, etc) (2006-2011) – $9.7 billion(2006), $9.1 billion (2007), $8.0 billion(2008), $7.1billion(2009), $6.4 billion(2010) and $5.7 billion (2011). Are you getting this picture? Sales are continually decreasing every year in physical store revenue. I am not posting this to scare you but just to educate you because we all can learn a little more everyday about what is going on in the world and since we are in the music business, these statistics become instrumental to a company’s future goals, strategies, projections and more as they plan for years to come.
Now let’s face it, you’re never gonna stop buying music. The day that happens is the day African Americans start populating to China and we know that ain’t gone never happen, but its interesting to see the things that we love so much, how they take their form in society. Give us your thoughts, ideas, concerns, suggestions and look out for the next blog. We’ll be discussing the music industry in the urban communities like r&b, jazz, gospel and pop. Where is it going for years to come and is it something that we need? Until then, Expect a Miracle!