This blog post will focus on current music trends, as well as looking to the future to see where the current trends may take the music industry in the near and far future.
Crowd funding has become a major part of the current music industry, so what is crowd funding? Well crowd funding or fan funding as its name suggests is a way fro musician or artists or anyone for that matter to be directly supported by their fan base. Sites such as kick starter and pledge music allow creative individuals to be able to fund larger projects, the funding comes from people who actually believe in the individual that has set up the project. Normally bands or artists without the backing of a label need this sort of help to get them through and album or event. But with this is a problem where the people who back these projects don’t really know if what it ends up being will be something that they like so backers have to have a lot of trust in people they do not know personally. Kick starter is a crowdfunding site that allows any sort of project no matter how strange to be backed, big names in music such as de la soul have used kickstarter to fund their own album all by themselves. “Kickstarter is one of those platforms that gives you space to work with people who know you, love you, and support you.” de la soul said this in an interview with kickstarter, it is easy for musicians such as de la soul to have successful kickstarters because they have an already large fanbase that is dedicated, but for smaller artists it might be a big stretch.
Some kickstarter figures:
If a project is successfully funded, Kickstarter applies a 5% fee to the funds collected for creators. Our payments processor will also apply payment processing fees (roughly 3-5%). The complete fee breakdowns are available here. If funding isn’t successful, there are no fees.
total dollars pledged to Kickstarter projects
Successfully funded projects
Pledge music is a crowd funding platform made for musicians, it allows fans to fund artits and follow their journy through the process of making the album or whatever prjoect is being made. For someone who doesn’t really know anything about the creation of music this could be a really interesting insight for many people and for people who do know about the creation of music, it helps give maybe a different perceptive into it.
- The average spend per fan on PledgeMusic is $55.
- 910,000 users
- $50 mill
- Their cut is $7.5 mill
As you can see by the first figure $55 is the average spend per fan on pledge which is still quite a lot because pledge only takes 15% of that which is a fair amount.
- For targeted campaigns, PledgeMusic says emerging artists hit and exceed their projected goal 87% of the time. For frontline acts that number ticks up to 90%. Combined they exceed their intended goal by an average of 12%.
- 88% of fans on the platform buy a physical product, and the compact disc is still alive and well there, with vinyl coming in a close second.
- Pledge Music artists create over 400 pieces of unique content – behind-the-scenes posts featuring exclusive music, video, and images – each week and a growing number of these are being viewed on our PledgeMusic app.
- Since 2014, PledgeMusic artists have charted over 130 times on the Billboard charts.
- PledgeMusic artists have also held top spots on the charts globally throughout 2015 and, within a single week in the UK, Pledge artists held the No. 2 (Bring Me the Horizon) & No. 3 (The Libertines) spots on the UK album charts.
- The Pledge Music recommendation engine drives up to 10% of pre-sales.
With the steady decline in recorded music, the live music sector has defenitly taken of in recent years. Almost half (47%) of pubs, clubs, student unions and restaurants featured at least one live act in the past year, and a fifth (19%) of small venues staged gigs at least twice a month, the Live Music Forum poll found. In all, an estimated 1.7m gigs were staged across England and Wales. It seems that many young people would rather go to a gig than a club with it being as acceible as ever. Also with ticket prices rising for bigger venues and even more people going to see live music as ever it is obvious that this huge growth would happen. Most of the money artists are making these days all relies on live music the album is mainley there to promote the tour which will be the big money maker for the artists. But problems have accured becuase of this, one thing in particualr is the secondary market which allows companies such as Viagogo to sell on tickets at a higher price, this is a problem mainly for the people going to shows becuase of how much they raise the price. Companies like Viagogo
Streaming is something that has really taken over the music industry recently, more people are now streaming music so much so that they have also stopped buying music physically and digitally. Spotify now has over 100 million users and over 50 million of those are paid subscribers, these figures are incredible especially since it has only really taken off recently. With such amazing figures you would think that spotify would be able to pay the rights owners a fair amount of money. But that is where you would be very wrong. In the case of Kevin Kadish who was the song writer of Meghan Trainor’s all about the bass which was a number 1 in 78 countries was only paid $5,679.00 by spotify. The song had over 200 million streams yet he only received such a small amount from it, in some cases it seems that the consumer may benefit more from streaming than the actual people involved in the creation of said music. Also with spotify as well as all other music streaming companies still not making money and constantly losing millions every year is streaming something that will last? Well even though they lose money they are still very beneficial to the big major labels as it gives lots of exposure and money to them it seems that streaming is a thing that should stay for the sake of everyone involved from the creators to the consumers.
Decline In Music Sales
This graph is a perfect example of what the state of recorded music sales are, although out of date it is still very much a relevant graph. It shows the peaks and declines within different formats and as you can see everything is going down, although in recent years there has been an increase in. For example vinyl sales have seen an increase of 53% to reach 3.2 million units sold which is the most sales of vinyl in a year since 1991. In comparison in 2007 there where only just over 200,000 LPs purchased this really puts into perspective how much of a big comeback vinyl is making while CDs for example continue to decline. With a 11.7 per cent drop in 2016 it seems that CDs are on the way out for good. But the vinyl resurgence alone is only a small part of the industry and it alone can’t change the huge dip in recorded music sales. Streaming is on the rise but streaming sites such as spotify are losing millions every year and if they can’t change this it could be an end to streaming the way we know it right now.
As we look to the future it is clear that although slowly people are starting to buy recorded music through vinyl mainly it seems that streaming is what is going to be on top. It grows bigger and bigger every year and it seems to never stop, but who knows what will come of streaming companies as they all continue to lose money but gain users.