The Death Of The Music Industry

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Music Industry

The demise of the music industry

via businessman.com

A graphic display of the state of the music industry created by Bain…. What it speaks to is the head-in-the-sand approach that the industry had as a whole as the internet wave took over, reaching its peak in 1998. Technical chart readers will notice the perfect head & shoulders shape of the decline. Classic stuff.  Clearly, digital sales are not to suffice.  The industry will need to find a new way to entertain and render the value added of its artists.

ADDENDUM:  The revised (new & improved) chart (thanks to Mike in the comments below) from Business Insider:

Music Industry Sales ... a mountainous journey

Music Industry Sales ... a mountainous journey

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Minter Dial

Minter Dial is an international professional speaker, author & consultant on Leadership, Branding and Digital Strategy. After a successful international career at L’Oréal, Minter Dial returned to his entrepreneurial roots and has spent the last ten years helping senior management teams and Boards to adapt to the new exigencies of the digitally enhanced marketplace. He has worked with world-class organisations to help activate their brand strategies, and figure out how best to integrate new technologies, digital tools, devices and platforms. Above all, Minter works to catalyse a change in mindset and dial up transformation. Minter received his BA in Trilingual Literature from Yale University (1987) and gained his MBA at INSEAD, Fontainebleau (1993). His books include Heartificial Empathy, Putting Heart into Business and Artificial Intelligence, bowed in December 2018 and won the Book Excellence Award 2019 as well as being shortlisted for the Business Book Awards 2019. It's available in Audiobook, Kindle and Paperback. He is also co-author of Futureproof (Pearson, Sep 2017) and sole author of The Last Ring Home (Myndset Press, Nov 2016), a book and documentary film, both of which have won awards and critical acclaim. Minter's latest book, You Lead, How being yourself makes you a better leader, published by Kogan Page, won the Business Book Award 2022 in the category of Leadership. It's easy to inquire about booking Minter Dial here.

3 Comments, RSS

  1. Pierre-Julien Grizel
    February 24, 2011 at 1:53 pm

    The graph shows decline per physical support… But it’s been several years now since the music industry understood it has to find other revenue sources (esp. events, concerts, edition, …).
    I’d really like to see the ratio of CD/digital sales in those companies revenues.

  2. Mike Goitein
    February 24, 2011 at 3:37 pm

    Minter,
    The graph has been corrected, with several additional graphs:

    http://www.businessinsider.com/these-charts-explain-the-real-death-of-the-music-industry-2011-2

    Here are some important points coaxed from the data:

    So let’s correct the inaccurate conclusions one might reasonably draw from the misleading Bain chart:

    Wrong: The music industry is down around 40% from its peak in 1999
    Correct: The music industry is down 64% from its peak.
    Wrong: At least the music industry is almost 4 times better off than in 1973.
    Correct: The music industry is actually down 45% from where it was in 1973.
    Wrong: The CD era was the aberration. (Mr. Gruber’s reasonable take)
    Correct: The CD peak was only 13% better than the vinyl peak, not over 250% better as the Bain chart implies.
    The overall conclusion is that the music industry is actually doing much worse than the Bain chart implies:
    10 years ago the average American spent almost 3 times as much on recorded music products as they do today.
    26 years ago they spent almost twice as much as they do today.

    Cheers,
    Mike

  3. Minter Dial
    February 28, 2011 at 6:12 pm

    @PJ Grizel: You are right that they have known for a while… They certainly have taken a long time to shift gears! What I would like to see is the business model concerning concerts, tickets & merchandising…

    @Mike: thanks for the corrections and the most revealing stats. It makes me wonder how musicians are faring in all that? What’s working? Niche music, playing at clubs, genius kids on YouTube?

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