Even though seemingly booming, the music industry can face serious issues in the upcoming future. For years it has been known that the industry has been overcomplicated and crowded, and even the slightest threats can have a downfall effect.
In today's blog, threats will be defined as anything that can interfere with the music industry economy and the artists behind it.
Taking the 2017 Global Piracy Report into consideration, there were roughly 74 billion visits to piracy websites specialized in music. Surprisingly, the United States users are leading the rankings with being the nation with the largest number of piracy media website visits with more than 27.9 billion viewings. Even though we live in the era of streaming and having easy access to music, piracy is alarmingly growing.
European Economy Slowdown
According to the IFPI 2019 Global Music Report, the European music industry had almost close to zero growth last year. The trend for the European market is that it doesn't contribute as much as it was before - and it has increased with just 0.1 percent from 2017.
The reasons for the slowdown are due to the lost interest in obtaining physical music - CD, vinyl, cassettes, and the rise of the streaming platforms are overtaking Europe.
It seems that nowadays everything is getting more expensive and costs are increasing for the music industry as well. For example, live music is the biggest financial mean for artists. However, playing live costs the musician a lot of money.
Touring is expensive, especially for newcomers that want to build their brand. As with the increased costs of performing live, the tickets are becoming unbearable - causing fewer ticket sells and a chance of insolvency.
Not only live performances are considered as expensive - producing, collaborating with another artist, creating video clip - they all cost a fortune.
Artists are taking up on new approaches when touring - they are working during the weeks and building their fan base during the weekend. They are also sharing some of their costs by looking for sponsors, or going on tours with another artists.
Who is still buying CDs? Unfortunately, with the boom of the now many streaming platforms, owning physical music is an aging concept. The golden age for the CDs are way past this time and it seems like it is only a matter of time to become an antiquated method of listening to music.
However, there is still hope for the CD music lovers. According to the IFPI Global Music Report, there is moderate growth in the physical distribution revenues in India (+21.2%), Japan (+2.3%) and South Korea (+28.8%). Moreover, physical revenues still form a significant market in the countries of Japan (71%), Poland (47%), and Germany (35%).
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