the day the music died
TRANSCRIPT
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The Day TheMusic The Day TheMusic DiedDied
Social Media and the Music Industry
Social Media Conference NWBellingham, WA Sept 10, 2008
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Source: RIAA
$14.8B
$7.9B
$10.4B
incl. Digital
Recording Industry Revenue
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US ConstitutionUS ConstitutionSection 8Section 8Section 8Section 8
““To promote the Progress of Science and To promote the Progress of Science and useful Arts, by securing for limited Times to useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”their respective Writings and Discoveries.”
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19291919
Radio
Advertisers
1899
Songwriters
Publishers
1909
Labels
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Performers Audience
$
$
$
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Publishers
Radio
Audience
ASCAP
CHARTERAmerican Society of Composers, Publishers and Authors
A collective bargaining association representing the interests of its various Record Labels
Not For
Broadcast
1929 1939 1949
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SongRights
Phonorecord
Public Performance
Broadcast
Phonorecords
Synch
$% or Fee none
¢Statutory Rate
ConsumerProduct
$% or Fee none
$Negotiated Rate
$% or Fee
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Publishers
Record Labels
Broadcast
Audience
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1966
my darn good mixtape
1971 1979 1985
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1983 1988 1991 1994 1995Internet .COM Web Netscape Win95
Audio Audio Home Home
RecordingRecordingAct of Act of 19921992
Digital Digital Performance Performance
ininSound Sound
RecordingsRecordingsAct of 1995Act of 1995
Digital Digital MilleniumMilleniumCopyright Copyright Act 1998Act 1998
Digital Transition...?
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SongRights 1.1
Sound Recording
Public Performance
Broadcast
Phonorecords
Synch
$% or Fee none
¢Statutory Rate
$% or Fee none
$Negotiated Rate
Digital ¢Statutory Rate001001001001010010010010010100100001001001001010010010010010100100
101001110010010010010100100100100101001110010010010010100100100100101001001010011100100101010010010101001001010011100100101010010010
0100101001001010011100100100101001010010010100111001001001
$% or Fee
$% or Fee
ConsumerProduct
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Truth is, the record business was pretty messed up by the mid-90’s
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Launched
1999Summit
2000Peaked
2001Bankrupt
2002
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P2P
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Apple
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2 BillionP2P
5 BillioniTunes
Apple vs P2P
TotalTotal Per MonthPer Month
80 Billion?
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• Apple dominates digital
• CD, ringtones dropping
• International = fuggedaboutit
• DRM mostly dead (except at Apple)
Music Today...
• ASCAP, BMI at record revenues
• Synch growing
• Publishing assets dominate balance sheets
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Radio: “He’s only mostly dead.”
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Less Music?
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music nowDemand Control
Attention
Copy
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About Social Media...
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ThoughtsThoughts