Chris Anderson, the fellow who coined the phrase “Long Tail” in 2004, has a great post on his blog about the current state of the music industry. The short of it: every part of the music industry except the sale of compact discs is up.
Here’s an overview from his post:
* Concerts and merchandise: UP (+4%)
* Digital tracks: UP (+46%)
* Ringtones: UP (+86% last year, but probably just single-digit percent this year)
* Licensing for commercials, TV shows, movies and videogames: UP (Warner Music saw licensing grow by about $20 million over the past year)
* Even vinyl singles (think DJs): UP (more than doubled in the UK)
* And, if you include the iPod in the music industry, as I’d argue a fair-minded analysis would: UP, UP, UP! (+31% this year)
It’s key to realize that the music business is NOT the same as the record business. This is a fundamental concept featured in one of the courses I’m teaching: The Future of Music and the Music Business, authored by Dave Kusek. People are more into music than ever, it’s just the revenue streams that are adjusting. Great time for entrepreneurs to be sure.