As the end of 2012 draws near, we find the music industry continuing to navigate a state of tremendous flux. While some prognosticators paint a grim picture, newfound optimism comes from an increasing devotion to new, innovative technologies, ideologies, and methods for connecting fans with the music they want. Of course, all this excitement comes at the price of constant uncertainty (enter those pesky prognosticators), as both major and indie players in the industry attempt to figure out their place in the future, attempting to find footing in a landscape that threatens to change with every step.
Though numbers don’t tell the whole story, we’ve collected some interesting stats that paint a fuller picture of the state of the music industry. Take a look below!
1. Streaming Plays Outnumbered Radio Spins 132 to 1 in 2011
Though radio still figures prominently into breaking and sustaining superstar artists, its monopoly over music delivery is long since over. In 2011, radio spins totaled 158 million. Streaming plays totaled 21billion, a ratio of 132 to one. The raw numbers are impressive, but, of course, don’t paint a complete picture. Still, with streaming on the rise and increasing comfort with the delivery of music through digital means, it seems that the landscape is ripe for a company like Shazam to take the reins from radio once and for all.
2. Justin Bieber’s YouTube Play Count is Greater than the Combined Population of China and India
According to 2011 census estimates, the combined population of China and India totals roughly 2.6 billion. According to a quick YouTube search, Justin Bieber‘s official VEVO account has garnered 3,169,095,207 views. Including videos with other artists (such as Chris Brown’s “Next to You”) the number creeps close to 4 billion, approximately 1 1/2 times as much as the combined population of China and India, roughly 4/7 of the earth’s current population, and about half as many times as the P&P staff has privately listened to “Runaway Love.”
3. Revenue from Digital Music Is Projected to Top $8 Billion Globally in 2012
While the music industry is still often described as having its back against the wall, digital music sales have increased steadily over the past half decade as online outlets and options have increased. 2012 saw the industry’s best year yet, with a projected $8.6 billion in digital revenue, with an astonishing $5 billion alone coming from the United States, according to Strategy Analytics:
“Streaming revenues will increase 40 percent in 2012 – to $1.1 billion – whilst download revenues will increase by 8.5 percent to $3.9 billion… Therefore, streaming services will take over as the leading revenue growth engine for the music industry in 2012, generating an extra $311 million – $8 million more than downloads at $303 million.”
4. The Artist With The Most Appearances on the Billboard Hot 100 is…the Cast of Glee
The list of fifteen artists who have charted the most times on the Billboard Hot 100 reads as a shortlist of music’s legends: The Beatles, Aretha Franklin, Elvis, James Brown, Ray Charles, Stevie Wonder, Elton John, Frank Sinatra, the Rolling Stones. Even Lil Wayne–who has the second most appearances on the chart with 109–makes sense to a degree, a rapper, once held by many the best alive, who turned druggy punchlines into pop gold. The “artist” that sits atop this vaunted list, however, is nowhere to be found in the Rock and Roll Hall of Fame, or, really, in any discussion of all time greats. That artist is the cast ofGlee.
5. The Four Major Labels Account for Nearly 88% of Album Sales
At the halfway mark of 2012, Nielsen reported that the four major labels–Sony Music Entertainment, Universal Music Group, Warner Music Group, and EMI–accounted for a staggering 87.73% of record sales. While tremendous new opportunities exist for sharing music with fans, the old guard of the industry continues to dominate the traditional sales landscape.
6. Users Have Streamed 1500 Years Worth of Music with Spotify
It’s impossible to keep up with the astounding stats in this#spotify presentation. 1.5B FB shares, 50B reach, 1500 yrs in apps#aadigital
At the recent Business Inside: Ignition Conference, VEVO (the music video service co-owners Universal Music Group, Sony Music Entertainment, Abu Dhabi Media, and E1 Entertainment hope to turn into a juggernaut) reported that it has paid $200 million to artists in royalties since opening its doors in 2009–more than any other music video service. These numbers may, however, be a bit misleading, as pointed out by The Hollywood Reporter:
“…many of those payments don’t go directly to artists once they’re distributed by SoundExchange, the organization that collects digital performance royalties on behalf of sound recording owners and performing artists. â¨â¨So an artist like Drake, whom Pandora claimed would receive performance royalties of nearly $3 million a year, would only actually receive $1,278,450 as the performing artist, since SoundExchange distributes 45% of net royalties to the performing artist of the sound recording. The label would get $1,562,550, as the owner of the recordings, and other musicians would receive $142,050, or 5%.”
Following 2009’s No Line on the Horizon, superstar rockers U2 embarked on their massive 360° Tour, a global two year romp that brought in $736 million in revenue, nearly $200 million more than the runner up, the Rolling Stones’ A Bigger Bang Tour.
9. It cost approximately $1 Million to create Rihanna’s “Man Down”
Factoring in producers, studio time, and a heaping helping of cash to grease the wheels of the radio and publicity machine, NPR reported last year that it cost just north of $1 million to create Rihanna‘s “Man Down” and bring it to market. While “marketing” (what amounts, it seems, to modern payola) accounts for a large portion of that bill, “Man Down” provides an example of the heavy burden major labels feel to guarantee a hit record, and the expenses they’re willing to spare in order achieve success (a strategy close at heart to Hollywood’s spend-big-win-big ideology with films like the recent Batman trilogy and The Avengers–a strategy littered with films that received greetings similarly tepid to that which met “Man Down”).
10. The Entertainment Industry (Music, Film, and Television) Has Spent Over $1 Billion in Lobbying Fees Since 1996
Each year, the major corporations at the heart of the entertainment industry spend millions of dollars in attempts to influence legislative policy that affects artists, listeners, and employees–from the most overlooked mailroom clerk to the most well known executive–alike. One of the music industry’s organizations most famous for spending money to reach the ears of legislators is the RIAA (Recording Industry Association of America), which has spent $30 million in the last five years in lobbying costs.
11. Clear Channel Faces $10.1 Billion In Debt in 2016
Media giant Clear Channel Communications will need to perform well above current levels if it seeks to avoid the massive $10.1 billion debt it faces in 2016. Though the corporation’s reach includes television, live events, news, outdoor advertising, and even real estate subsidiaries, approximately half of Clear Channel’s revenue is generated by its more than 800 domestic radio stations and near 5,800 syndicated affiliates. With digital radio and other new music services threatening terrestrial radio’s market position, it seems likely that Clear Channel will be able to improve its performance without radical rethinking of its holdings.
12. Physical Album Sales Are Projected to Hit an 18 Year Low in 2012…But Still Account for 61% of Albums Sold
Physical album sales in 2012 are predicted to come in at approximately 200 million, marking an 18 year low. In spite of this continued decline, physical copies still account for well over half of all albums sold, further proof that we live in a world driven by technologies that tout the primacy and ease of the single.
13. Vinyl Sales Are Increasing: 3.2 Million Records Sold in 2012
While some sectors of the music industry continue to crumble (don’t ask about CD sales), others are seeing surges. In 2012, vinyl sales continued their six year upward trend with 3.2 million units sold, a 16.2% increase from 2011.
