I am beginning a new series of blog posts regarding the new music industry. In it I will layout some definitions, myths, and truths as they pertain to the music industry, record industry, radio industry, and more. These industries are notorious for confusing the musicians, fans, and businesses that work in them. Let’s try to get some things cleared up.
First, the music industry is not the record industry. Let’s get that straight. The music industry is comprised of musicians; the record industry is made up of corporations and business people.
Secondly, CD sales do not mean the music industry is in a dismal state. The way that the numbers are skewed is ridiculous. Rather, the music industry is booming. The major labels want you to believe that they are a product of the economy and the piracy issue. Even the state of radio has changed dramatically. We have changed the way we as listeners consume music. We have changed the way we hear about new music. Failing companies have tried to change their models while others have stuck to their guns. The bottom line is that the fans won’t wait for them to catch up.
How many new artists did you hear in 2010 compared to new artists in 1996? The music industry is alive and thriving, regardless of what you read about music downloads and CD sales or radio. Let’s talk about the condition of radio.
1996
The number of commercial radio stations? Roughly 6,100.
In 1996 the top ten radio companies controlled only 600 or so radio stations.
2010
The number of commercial radio stations? 6,479. That’s an increase of just over 300 new stations.
Today Clear Channel owns more than 800 radio stations.
One company today controls more radio than the top ten companies of 1996 combined.
I am not happy with the current way that radio stations are run. The majority of major market radio stations nation-wide (USA) are owned by Clear Channel, reaching the majority of the country. I would classify that as a monopoly. Fifteen years ago there was diversity among the markets. Today, the stations are owned by a few large corporations and play the same tracks by the same artists all day long, all over the country.
Number of markets reached by radio in 2008
I for one do not like to be “sold” something. Especially music. I like what I like. I don’t need some major record label spending millions of dollars to tell me why I should buy the latest pop record that the 13 year old girls are buying. I will go to shows, talk with friends, and work with artists. These are a select few ways I find new music. On a side note, here’s a related post I wrote on buying songs versus buying artists. Remember that the music industry is changing daily. Bands need to find new ways to make a dollar. We all know at this point that it’s not going to be from your next album. It will be from partnerships, collaborations, integration, and networking.
There is little chance for an independent artist to get serious exposure on the radio without being endeared by Clear Channel. The upside to this situation is that the radio stations in their current format, and as we know them, are on their way out, just as are the major record labels. The music industry is changing, not dying.
If you haven’t noticed, Internet radio, Pandora, AOL Radio, Shazam, Last.fm, and other digital music outlets are exploding. These platforms are affecting the way we consume music. Why would someone listen to a Top 40 station anymore when they can pull up Pandora and have a highly customized library of music literally catered to them? Why buy a physical CD when you can have your music streamed to you anytime and anywhere? Services like these are intelligent and adaptive. This is what makes them appealing. Major record labels, and in turn major radio, tells us what to listen to. The digital platforms allow us to decide what we listen to. Pandora and similar platforms listen to the user and adapt. They are embracing social media in its truest sense, encouraging constant communication from both sides.
The old way of doing things is changing. Major record labels, FM radio, and traditional print advertising will never cease to exist completely. They will, however, cease to be the norm. CD sales are declining. Radio is becoming just one big playlist. Illegal downloads are thriving. Yet in spite of this we are discovering new working bands on a daily basis and purchasing their music, tickets, and merchandise.
The music industry IS NOT the record industry. The record industry as well as radio are losing out. The music will prevail.
That’s a wrap for the first post in the series titled “The New Music Industry Series”. Coming up, I’ll be writing about how an artist can make money and survive in the new industry without a record label, how to use social media as a band, whether or not you need a manager, and much more.
