Is there any surprise that the results of the Artist Compensation of the Future panel at the recent SXSW Conference was virtually nada, zip, or nothing? In other words, according to a recent report in Billboard, the attendees in the jam-packed room heard ideas that ultimately came from “familiar territory”. The story of how today’s 360 deals are complicated, signing a record deal is relative to circumstances, and, publishing deals are a matter of short and long term funding considerations were the main “takeaways” from the panel. 1 A concern about profitability in the music business for those outside the “chosen few at the top” of the charts, is a legitimate concern in light of a recent decrease in profit growth gains from 2006-2010, according to a recent report from Earnst and Young as reported in Billboard; Moreover, a gradual 11% increase in the profit margins of the music and film industries reflected a better marketplace yield than some stocks.2 The curiosity about profitability in the music, thus, the ability for artist to make some money from retail, is enhanced by the recent report of sales declines for those Best Buy stores that have been open for over 14 months.3 Buying music from retail stores has been considered a “dying slow” customer habit, however, the music business savior – digital downloads – has yet to deliver the trade from its sales slump either; furthermore, companies like EMI have successfully began offering past and present songs from their catalogs at .69 each on iTunes.4 Realities of cheaper downloads, slower retail sales, and overall declines in profit growth can give artist enough reasons for concern; therefore, in regards to earning sufficient money in the music business, many artist are feeling like they too – like the legendary MC Rakim – “Don’t like to dream bout getting paid”.
REFERENCES:
1) Panelists On SXSW's 'Artist Compensation Of The Future' Don't Know What's Next, Either; Billboard Magazine; Cortney Harding, New York, March 17, 2011
2) Music, Film Industries Average Lowest Profit Margins Among Media Sectors; Billboard Magazine; THR; March 15, 2011
3) Best Buy’s Same Store Sales Fall Again; Billboard Magazine; Reuturs, March 24, 2011
4) Business Matters: EMI/iTunes '69-Cent Songs' Promotion A Hit At iTunes; Billboard Magazine; Glenn Peoples, March 18, 2011
