SlideShare ist ein Scribd-Unternehmen logo
1 von 39
Downloaden Sie, um offline zu lesen
Music Business
      Basics?




Bruno Crolot, Head of midem, Reed MIDEM (France)
                @bcrolot | @midem
Part 1
Music, Brands &
Technologies Interact
Together in New Ways
7 of the top ten               accounts are musicians



1/3 of all                       videos are music-related



9 of the top ten                     videos are music videos, summing
up to almost 5 billion plays
(Gangnam Style by PSY is 3rd as of Oct. 22nd)
74% of music fans and 67%
of labels agree that more fans will

buy directly from the artists


Over 5M artists now meet,

engage & transact over online

communities

                    Source: Music Supported Here / The Oatmeal
97% of people think that music can
strengthen their brand




91% of consumers accept or are
positive about brand involvement in

music entertainment and culture


                         Source: Sounds Like Branding / Frukt
New Players
“We're using music now in every way,
shape or form. We're innovating, working
with startups, having writers write,
having artists approach us, directors
approach us, big stars wanting to do stuff
for us”


              Kevin Roberts, CEO, Saatchi & Saatchi
              midem 2012
“There’s a new currency that’s
emerging in the music industry,
which is how many people have
shared a given song or a given
artist on Facebook”




       Dan Rose, VP of Partnerships, Facebook
       midem 2012
“This gives me a
     platform that I would
     never be afforded
     maybe by Columbia
     Records for doing a
     song. I have to make
     it great, because this
     is maybe the biggest
     exposure I’ll have for
     a song”




Mark Ronson, Artist, Producer and DJ
midem 2012
A Changing Industry
from a Complex Value
Chain…
Source: Reed MIDEM
Towards a
Music
Ecosystem




            Source: Reed MIDEM
Part 2
Basics of the
Music Ecosystem
The Global Business is
Thriving?
The Broader Music Industry Value (Billions)

200


175                                               168
                                  152                      Other Revenues
                         150
                 139                      140
150                                                        Performance Rights
      132
                                                           Digital

125                                                        Physical



100

                                                         global recorded
 75                                                      music sales US$
                                                         billions, trade
 50
                                                         value)
                                                         -40% since 1999

 25


  0
      2005       2006    2007    2008    2009     2010

                                                           Source: IFPI / Floor64
The Broader Music Industry Value in 2010 (billions)
                                                              Publishing   Performance rights market
                            Music related video games sales     2,7%
                                          2,9%                                      1,0%
                         Music TV/mags advertising
                                 revenues                                                              Radio advertising revenues
                                   5,4%                                                                         19,4%

Music instrument sales
         9,8%




                                                                                                                                        Recorded music retail sales
                                                                                                                                                 16,6%
Live Music sector
     12,9%




          Portable digital players
                  14,4%                                                                                          Audio home systems
                                                                                                                        14,9%




                                                                                                                                    Source: IFPI Estimates / Music 3.0
Focus on Recording
Music Sales in 2011-2012
  2012 U.S. MID-YEAR SALES
  (Source: Nielsen SoundScan)


Overall Music Sales                                      Digital Album Sales
(Transactions, Albums, Singles, Music Video, Digital
Tracks - In Millions)                                    (In Millions)


Units Sold            2012          2011       % CHG.    Units Sold       2012    2011    % CHG.
                     853,2         820,5        +4,0%                     57,2    50,3    +13,8%

Total Album Sales                                        Digital Track Sales                       South     Korea
(Includes CD, Cassette, LP/Vinyl, Digital Albums - In
Millions)                                                (In Millions)                             grew by 6,4 % in
Units Sold            2012          2011       % CHG.    Units Sold        2012    2011   % CHG.
                                                                                                   2011, following
                     150,5         155,5         -3,2%                    698,0   660,8    +5,6%   a 12% increase
                                                                                                   in 2010



  In 2011:
   Album sales up for the first time since 2004: +3.2% w/ +19,5% digital album
     sales
   Overall music sales break 1.6 billion mark for first time
   But global revenue is down 3%                                     Source: IFPI / Nielsen
Digital Market – Digital Services
                                              Digital services:
                                               Downloads
                                               Streaming
                                               Internet radio
                                               Music video
                                               Mobile bundles

                                               70% K-pop revenue
                                                comes through digital
                                                channels, vs 55%
                                                across the market as
                                                a whole.
                                                 South Korea Placement in
                                                      Global Market
                     500 legitimate music        2007          23
          services worldwide offering up to      2009          14
                          20 million tracks      2011          11
                                                                    Source: IFPI
Digital Market – Download Services

                             Digital singles are the
                              main source of incomes.

                             The combined sales of
                              the top ten digital
                              singles grew by 11% in
                              2011.

                             Digital albums sales
                              grew by 19,5% in 2011.

                             Mumford & Sons sell
                              600,000 units of their
                              new album in first week

                                     Source: IFPI / Nielsen
Digital Market – Revenues                                             Ringtones still make 4x
                                                                      more money than:

Worldwide Online Music Revenues in 2011

    Subscription
     Services
       8,4%                                                                              +

                                                                                         +

                                                                       Subscription to
                                                                        account for 30% in
                                                                        2015.
                                          Download
                                          Services
                                           57,3%
                                                     Country                  Revenues from
    Personalization
                                                                              digital sources
       Services
      (ringtones)
                                                     China                    71%
         34,3%
                                                     South Korea              53%
                                                     USA                      52%
                                                             Source: Evolver.fm / IFPI / Strategy Analytics / Gartner
Digital Market – Music Apps
Music app usage
                                          Music apps:
                                           Usage increased 530%
                                            in 2011
                                           9,000 music apps in
                                            iTunes (2% of the
                                            store)
                                           For creation and
                                            consumption




Users who downloaded music apps in 2012

Global – 26%
South Korea – 39%
                                            Source: Flurry Analytics / Ipsos & Music Matters
Focus on Live Music
Worldwide Live Music / Concert Revenues 2006-2011
                  (US$ billions)

25
                                                       +3.7%
                                        23,5
                                 22,2
                                                     in H1 2012
20                        20,8
                   19,4
            18,1
     16,6
15




10                                             We see increasing
                                               demand from other
                                               markets such as
 5
                                               South Korea, China
                                               and Indonesia…
                                               Alan Ridgeway
                                               Live Nation – April 2012
 0
     2006   2007   2008   2009   2010   2011

                                               Source: eMarketer / Pollstar
Focus on
Rights Collection
Collection Sets a New Record in 2010
  Total collections in 2010: €7.545 billion
  +5.5% worldwide year-on-year growth




                                               ASIA-PACIFIC
                                                €1.151 billion
                                                 collected
                                                15.3% of the total
                                                 royalties
                                                12% increase in
                                                 royalties (vs 2009)




                                                 Source: CISAC
Part 3
New Models & Trends
Tech Players




       Rovio & music   music hack days

                              Source: Rovio / Reed MIDEM
Brand Partnerships




  Coca-Cola & Music Dealers   Innovative Partnerships




                                        Source: Reed MIDEM / Sugarland at Amex Unstaged
Direct-to-Fan




      Zoë Keating   Joss Stone
                          Source: Reed MIDEM
Connected by
   Music
Industry
Meetings
Evolution
Music Business Basics - a midem presentation
Music Companies
Cutting-edge Technologies
Brands & Agencies
Artists
                                        Pete                                                           Imany
                                       Wentz




                                                                            Patricia Kaas

                                                            Damian Kulash
                Selah Sue                                                           David Guetta

                                                                  Alison
                                                                  Balsom




  Mark Ronson                Pharell           Joss Stone                              Amanda Palmer
                            Williams
midem 2013 trailer
26-29 January 2013, Cannes, France                                    Contact us: info.midem@reedmidem.com
                                                                      Visit midem’s website – www.midem.com
midem is the place where music makers, cutting-edge technologies,
                                                                      Follow us
brands & talent come together to enrich the passionate relationship
between people & music, transform audience engagement & form
new business connections.


  BRANDS TECH MUSIC             ARTIST                                Download midem iPhone App
                                                                      http://road.ie/midem

Más contenido relacionado

Was ist angesagt?

Understanding Digital Revenue Streams (for Musicians)
Understanding Digital Revenue Streams (for Musicians)Understanding Digital Revenue Streams (for Musicians)
Understanding Digital Revenue Streams (for Musicians)Deborah Gonzalez, Esq.
 
How The Love of Music has changed our Business World
How The Love of Music has changed our Business WorldHow The Love of Music has changed our Business World
How The Love of Music has changed our Business WorldThorsten Faltings
 
The Future of the Music Industry
The Future of the Music IndustryThe Future of the Music Industry
The Future of the Music Industrygmollison
 
Future Of The Music Industry
Future Of The Music IndustryFuture Of The Music Industry
Future Of The Music IndustrySheridanC
 
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryHow Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryPatrick Van der Pijl
 
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...Aram Sinnreich
 
TIDAL - a case study
TIDAL - a case studyTIDAL - a case study
TIDAL - a case studyBrian Yuwen
 
Digital revenue streams for sound recordings
Digital revenue streams for sound recordingsDigital revenue streams for sound recordings
Digital revenue streams for sound recordingsKristin Thomson
 
All the revenue streams for musicians
All the revenue streams for musiciansAll the revenue streams for musicians
All the revenue streams for musiciansKristin Thomson
 
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]Ardian Agung
 
Piracy Vs. Music Industry
Piracy Vs. Music IndustryPiracy Vs. Music Industry
Piracy Vs. Music IndustryKerry Snyder
 
Sbcrox iitkgp - Audio and Music Sector
Sbcrox iitkgp - Audio and Music SectorSbcrox iitkgp - Audio and Music Sector
Sbcrox iitkgp - Audio and Music Sectorsujit_iit
 
Connect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldConnect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldMartafy!
 
Music Distribution_MVT-SUGO
Music Distribution_MVT-SUGOMusic Distribution_MVT-SUGO
Music Distribution_MVT-SUGOjonathan johnson
 

Was ist angesagt? (18)

Understanding Digital Revenue Streams (for Musicians)
Understanding Digital Revenue Streams (for Musicians)Understanding Digital Revenue Streams (for Musicians)
Understanding Digital Revenue Streams (for Musicians)
 
How The Love of Music has changed our Business World
How The Love of Music has changed our Business WorldHow The Love of Music has changed our Business World
How The Love of Music has changed our Business World
 
The Future of the Music Industry
The Future of the Music IndustryThe Future of the Music Industry
The Future of the Music Industry
 
Future Of The Music Industry
Future Of The Music IndustryFuture Of The Music Industry
Future Of The Music Industry
 
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music IndustryHow Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
 
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...
Streaming Music in 2015: A Rapidly Growing, Maturing and Consolidating Market...
 
441 companyreport
441 companyreport441 companyreport
441 companyreport
 
TIDAL - a case study
TIDAL - a case studyTIDAL - a case study
TIDAL - a case study
 
Digital revenue streams for sound recordings
Digital revenue streams for sound recordingsDigital revenue streams for sound recordings
Digital revenue streams for sound recordings
 
All the revenue streams for musicians
All the revenue streams for musiciansAll the revenue streams for musicians
All the revenue streams for musicians
 
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]
POTENTIAM.IO - Decentralized Music Platform [WHITEPAPER]
 
Tidal analysis
Tidal analysisTidal analysis
Tidal analysis
 
Piracy Vs. Music Industry
Piracy Vs. Music IndustryPiracy Vs. Music Industry
Piracy Vs. Music Industry
 
Sbcrox iitkgp
Sbcrox iitkgpSbcrox iitkgp
Sbcrox iitkgp
 
Sbcrox iitkgp - Audio and Music Sector
Sbcrox iitkgp - Audio and Music SectorSbcrox iitkgp - Audio and Music Sector
Sbcrox iitkgp - Audio and Music Sector
 
Connect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 worldConnect or Die: How to survive in a Music 2.0 world
Connect or Die: How to survive in a Music 2.0 world
 
Audio today report julio 2018nielsen
Audio today report julio 2018nielsenAudio today report julio 2018nielsen
Audio today report julio 2018nielsen
 
Music Distribution_MVT-SUGO
Music Distribution_MVT-SUGOMusic Distribution_MVT-SUGO
Music Distribution_MVT-SUGO
 

Andere mochten auch

Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)
Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)
Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)Tommy Darker
 
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...midem
 
If it's not social it's not media
If it's not social it's not mediaIf it's not social it's not media
If it's not social it's not mediamidem
 
Paramore website research
Paramore website research Paramore website research
Paramore website research Issy Payne
 
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi SadegaSevenesia
 
BX Merchandise Notebook Ideas July 2013
BX Merchandise Notebook Ideas July 2013 BX Merchandise Notebook Ideas July 2013
BX Merchandise Notebook Ideas July 2013 BX Merchandise
 
Sick of it all interacts. WITH THEIR FANS!
Sick of it all interacts. WITH THEIR FANS!Sick of it all interacts. WITH THEIR FANS!
Sick of it all interacts. WITH THEIR FANS!Mike Rees
 
Target audience appeal
Target audience appealTarget audience appeal
Target audience appealGroup_22
 
Poster analysis
Poster analysisPoster analysis
Poster analysisjacklo1995
 
Website codes and conventions
Website codes and conventionsWebsite codes and conventions
Website codes and conventionsCoombeMedia1
 
One Nation. One Motion
One Nation. One MotionOne Nation. One Motion
One Nation. One MotionRossco2314
 
Conventions of a band website
Conventions of a band websiteConventions of a band website
Conventions of a band websitetobytrew
 
McCormick LiveNation Strategic Assessment Project
McCormick LiveNation Strategic Assessment ProjectMcCormick LiveNation Strategic Assessment Project
McCormick LiveNation Strategic Assessment ProjectDustin McCormick
 
The future of the music business: creating a new ecosystem (Futurist & Keynot...
The future of the music business: creating a new ecosystem (Futurist & Keynot...The future of the music business: creating a new ecosystem (Futurist & Keynot...
The future of the music business: creating a new ecosystem (Futurist & Keynot...Gerd Leonhard
 
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes Strategy
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes StrategyTectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes Strategy
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes StrategyCoreOS
 
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13Sevenesia
 

Andere mochten auch (20)

Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)
Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)
Leena Sowambur - Music Business Entrepreneurship (Darker Music Talks July '13)
 
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...
Mike Masnick: A Totally Positive Look at the State of the Industry - midem Vi...
 
If it's not social it's not media
If it's not social it's not mediaIf it's not social it's not media
If it's not social it's not media
 
The Future Of Music
The Future Of MusicThe Future Of Music
The Future Of Music
 
Task 10
Task 10Task 10
Task 10
 
Digipak research
Digipak researchDigipak research
Digipak research
 
Task 6
Task 6Task 6
Task 6
 
Paramore website research
Paramore website research Paramore website research
Paramore website research
 
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega
#KOPDAR Seven Music vol.8 Dari Band Jadi Brand! presented by Dochi Sadega
 
BX Merchandise Notebook Ideas July 2013
BX Merchandise Notebook Ideas July 2013 BX Merchandise Notebook Ideas July 2013
BX Merchandise Notebook Ideas July 2013
 
Sick of it all interacts. WITH THEIR FANS!
Sick of it all interacts. WITH THEIR FANS!Sick of it all interacts. WITH THEIR FANS!
Sick of it all interacts. WITH THEIR FANS!
 
Target audience appeal
Target audience appealTarget audience appeal
Target audience appeal
 
Poster analysis
Poster analysisPoster analysis
Poster analysis
 
Website codes and conventions
Website codes and conventionsWebsite codes and conventions
Website codes and conventions
 
One Nation. One Motion
One Nation. One MotionOne Nation. One Motion
One Nation. One Motion
 
Conventions of a band website
Conventions of a band websiteConventions of a band website
Conventions of a band website
 
McCormick LiveNation Strategic Assessment Project
McCormick LiveNation Strategic Assessment ProjectMcCormick LiveNation Strategic Assessment Project
McCormick LiveNation Strategic Assessment Project
 
The future of the music business: creating a new ecosystem (Futurist & Keynot...
The future of the music business: creating a new ecosystem (Futurist & Keynot...The future of the music business: creating a new ecosystem (Futurist & Keynot...
The future of the music business: creating a new ecosystem (Futurist & Keynot...
 
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes Strategy
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes StrategyTectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes Strategy
Tectonic Summit 2016: Ticketmaster's Public Cloud & Kubernetes Strategy
 
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13
#KOPDAR Seven Music Vol.7: #MusicMerchandising presented by Arian 13
 

Ähnlich wie Music Business Basics - a midem presentation

Around Asia'a Key Markets: Music Industry Overview
Around Asia'a Key Markets: Music Industry OverviewAround Asia'a Key Markets: Music Industry Overview
Around Asia'a Key Markets: Music Industry OverviewBranded Ltd
 
Grant Goddard, Totally Radio, Music 4.5 Smart Radio
Grant Goddard, Totally Radio, Music 4.5 Smart RadioGrant Goddard, Totally Radio, Music 4.5 Smart Radio
Grant Goddard, Totally Radio, Music 4.5 Smart RadioMME 4.5 / Music 4.5 / 2Pears
 
The future of music industry 2019 update
The future of music industry   2019 updateThe future of music industry   2019 update
The future of music industry 2019 updateStefanoCatracchia
 
Basic Music Industry Research
Basic Music Industry ResearchBasic Music Industry Research
Basic Music Industry Researchgeorgieann_
 
Presentazione IPO Vitaminic
Presentazione IPO VitaminicPresentazione IPO Vitaminic
Presentazione IPO Vitaminicmatteopanfilo
 
Forrester: Getting out of the digital music impasse | MidemNet 2011 Presentation
Forrester: Getting out of the digital music impasse | MidemNet 2011 PresentationForrester: Getting out of the digital music impasse | MidemNet 2011 Presentation
Forrester: Getting out of the digital music impasse | MidemNet 2011 Presentationmidem
 
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)Product Market Study – Multimedia & Digital Contents Market in Japan (2012)
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)Technopreneurs Association of Malaysia
 
A new era for music?
A new era for music?A new era for music?
A new era for music?Neomobile
 
Music business
Music businessMusic business
Music businessDiaz Bai
 
Rotor Videos Proposal 2018
Rotor Videos Proposal 2018Rotor Videos Proposal 2018
Rotor Videos Proposal 2018Diarmuid Moloney
 
IPFI Digital Music Report 2015
IPFI Digital Music Report 2015IPFI Digital Music Report 2015
IPFI Digital Music Report 2015Henky Hendranantha
 
Digital Music Distribution
Digital Music DistributionDigital Music Distribution
Digital Music DistributionKaren Oliver
 
Zhejiang U Media Presentation
Zhejiang U Media PresentationZhejiang U Media Presentation
Zhejiang U Media PresentationKeith Hatschek
 
Current Situation Of Sony Entertainment
Current Situation Of Sony EntertainmentCurrent Situation Of Sony Entertainment
Current Situation Of Sony EntertainmentAlyssa Schulte
 
Music Business Threats & Opportunities
Music Business Threats & OpportunitiesMusic Business Threats & Opportunities
Music Business Threats & OpportunitiesChristopher Baker
 
The year of Audiotainment - an international outlook
The year of Audiotainment - an international outlook The year of Audiotainment - an international outlook
The year of Audiotainment - an international outlook Loburets Yuri
 
Dmr2010 Key Highlights
Dmr2010 Key HighlightsDmr2010 Key Highlights
Dmr2010 Key HighlightsFacu Castro
 

Ähnlich wie Music Business Basics - a midem presentation (20)

Around Asia'a Key Markets: Music Industry Overview
Around Asia'a Key Markets: Music Industry OverviewAround Asia'a Key Markets: Music Industry Overview
Around Asia'a Key Markets: Music Industry Overview
 
Grant Goddard, Totally Radio, Music 4.5 Smart Radio
Grant Goddard, Totally Radio, Music 4.5 Smart RadioGrant Goddard, Totally Radio, Music 4.5 Smart Radio
Grant Goddard, Totally Radio, Music 4.5 Smart Radio
 
The future of music industry 2019 update
The future of music industry   2019 updateThe future of music industry   2019 update
The future of music industry 2019 update
 
Basic Music Industry Research
Basic Music Industry ResearchBasic Music Industry Research
Basic Music Industry Research
 
Presentazione IPO Vitaminic
Presentazione IPO VitaminicPresentazione IPO Vitaminic
Presentazione IPO Vitaminic
 
Poster Information
Poster InformationPoster Information
Poster Information
 
Mobile Monday Um 14 09 09
Mobile Monday Um 14 09 09Mobile Monday Um 14 09 09
Mobile Monday Um 14 09 09
 
Forrester: Getting out of the digital music impasse | MidemNet 2011 Presentation
Forrester: Getting out of the digital music impasse | MidemNet 2011 PresentationForrester: Getting out of the digital music impasse | MidemNet 2011 Presentation
Forrester: Getting out of the digital music impasse | MidemNet 2011 Presentation
 
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)Product Market Study – Multimedia & Digital Contents Market in Japan (2012)
Product Market Study – Multimedia & Digital Contents Market in Japan (2012)
 
A new era for music?
A new era for music?A new era for music?
A new era for music?
 
Music business
Music businessMusic business
Music business
 
Rotor Videos Proposal 2018
Rotor Videos Proposal 2018Rotor Videos Proposal 2018
Rotor Videos Proposal 2018
 
IPFI Digital Music Report 2015
IPFI Digital Music Report 2015IPFI Digital Music Report 2015
IPFI Digital Music Report 2015
 
Digital Music Distribution
Digital Music DistributionDigital Music Distribution
Digital Music Distribution
 
Zhejiang U Media Presentation
Zhejiang U Media PresentationZhejiang U Media Presentation
Zhejiang U Media Presentation
 
Current Situation Of Sony Entertainment
Current Situation Of Sony EntertainmentCurrent Situation Of Sony Entertainment
Current Situation Of Sony Entertainment
 
Music Business Threats & Opportunities
Music Business Threats & OpportunitiesMusic Business Threats & Opportunities
Music Business Threats & Opportunities
 
The year of Audiotainment - an international outlook
The year of Audiotainment - an international outlook The year of Audiotainment - an international outlook
The year of Audiotainment - an international outlook
 
Dmr2010 Key Highlights
Dmr2010 Key HighlightsDmr2010 Key Highlights
Dmr2010 Key Highlights
 
Dmr2010 Key Highlights
Dmr2010 Key HighlightsDmr2010 Key Highlights
Dmr2010 Key Highlights
 

Mehr von midem

Marketing for People, Not for Robots: Less Killer App, More Killer Experience
Marketing for People, Not for Robots: Less Killer App, More Killer ExperienceMarketing for People, Not for Robots: Less Killer App, More Killer Experience
Marketing for People, Not for Robots: Less Killer App, More Killer Experiencemidem
 
Training session - Pitching Your Startup or App to the Media
Training session - Pitching Your Startup or App to the MediaTraining session - Pitching Your Startup or App to the Media
Training session - Pitching Your Startup or App to the Mediamidem
 
Microsoft BizSpark: Tips for Startups - midem 2012 presentation
Microsoft BizSpark: Tips for Startups - midem 2012 presentationMicrosoft BizSpark: Tips for Startups - midem 2012 presentation
Microsoft BizSpark: Tips for Startups - midem 2012 presentationmidem
 
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...midem
 
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...midem
 
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentation
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentationBas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentation
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentationmidem
 
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...midem
 
Virginie Berger: New Digital Music Tools for New Needs - midem white paper
Virginie Berger: New Digital Music Tools for New Needs - midem white paperVirginie Berger: New Digital Music Tools for New Needs - midem white paper
Virginie Berger: New Digital Music Tools for New Needs - midem white papermidem
 
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white paper
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white paperDina LaPolt: Building your Artist's Brand as a Business - exclusive white paper
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white papermidem
 
Marketing Music on Twitter
Marketing Music on TwitterMarketing Music on Twitter
Marketing Music on Twittermidem
 
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-up
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-upNancy Baym: How Artists Interact with their Audiences - Interview series wrap-up
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-upmidem
 
Steam Republic presents Mobile Backstage | MidemNet Lab 2011
Steam Republic presents Mobile Backstage  | MidemNet Lab 2011Steam Republic presents Mobile Backstage  | MidemNet Lab 2011
Steam Republic presents Mobile Backstage | MidemNet Lab 2011midem
 
Play My Song | MidemNet Lab 2011
Play My Song | MidemNet Lab 2011Play My Song | MidemNet Lab 2011
Play My Song | MidemNet Lab 2011midem
 
Nearverse presents Lokast | MidemNet Lab 2011
Nearverse presents Lokast | MidemNet Lab 2011Nearverse presents Lokast | MidemNet Lab 2011
Nearverse presents Lokast | MidemNet Lab 2011midem
 
Mix Me In | MidemNet Lab 2011
Mix Me In | MidemNet Lab 2011Mix Me In | MidemNet Lab 2011
Mix Me In | MidemNet Lab 2011midem
 
Jammbox | MidemNet Lab 2011
Jammbox | MidemNet Lab 2011Jammbox | MidemNet Lab 2011
Jammbox | MidemNet Lab 2011midem
 
Airbuzz | MidemNet Lab 2011
Airbuzz | MidemNet Lab 2011Airbuzz | MidemNet Lab 2011
Airbuzz | MidemNet Lab 2011midem
 
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...midem
 
MIDEM 2011: VC presentation
MIDEM 2011: VC presentationMIDEM 2011: VC presentation
MIDEM 2011: VC presentationmidem
 
MIDEM 2011: General presentation
MIDEM 2011: General presentationMIDEM 2011: General presentation
MIDEM 2011: General presentationmidem
 

Mehr von midem (20)

Marketing for People, Not for Robots: Less Killer App, More Killer Experience
Marketing for People, Not for Robots: Less Killer App, More Killer ExperienceMarketing for People, Not for Robots: Less Killer App, More Killer Experience
Marketing for People, Not for Robots: Less Killer App, More Killer Experience
 
Training session - Pitching Your Startup or App to the Media
Training session - Pitching Your Startup or App to the MediaTraining session - Pitching Your Startup or App to the Media
Training session - Pitching Your Startup or App to the Media
 
Microsoft BizSpark: Tips for Startups - midem 2012 presentation
Microsoft BizSpark: Tips for Startups - midem 2012 presentationMicrosoft BizSpark: Tips for Startups - midem 2012 presentation
Microsoft BizSpark: Tips for Startups - midem 2012 presentation
 
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...
Marketing Tips for Classical Music Artists - midem 2012 Carnegie Hall present...
 
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...
Marketing Tips for Classical Music: Digital Content Marketing – midem 2012 pr...
 
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentation
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentationBas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentation
Bas Grasmayer: An Interconnected Ecosystem of Fans - midem 2012 presentation
 
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...
Future of Music Coalition: The New Power Trio: Brands Bands and Revenue - mid...
 
Virginie Berger: New Digital Music Tools for New Needs - midem white paper
Virginie Berger: New Digital Music Tools for New Needs - midem white paperVirginie Berger: New Digital Music Tools for New Needs - midem white paper
Virginie Berger: New Digital Music Tools for New Needs - midem white paper
 
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white paper
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white paperDina LaPolt: Building your Artist's Brand as a Business - exclusive white paper
Dina LaPolt: Building your Artist's Brand as a Business - exclusive white paper
 
Marketing Music on Twitter
Marketing Music on TwitterMarketing Music on Twitter
Marketing Music on Twitter
 
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-up
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-upNancy Baym: How Artists Interact with their Audiences - Interview series wrap-up
Nancy Baym: How Artists Interact with their Audiences - Interview series wrap-up
 
Steam Republic presents Mobile Backstage | MidemNet Lab 2011
Steam Republic presents Mobile Backstage  | MidemNet Lab 2011Steam Republic presents Mobile Backstage  | MidemNet Lab 2011
Steam Republic presents Mobile Backstage | MidemNet Lab 2011
 
Play My Song | MidemNet Lab 2011
Play My Song | MidemNet Lab 2011Play My Song | MidemNet Lab 2011
Play My Song | MidemNet Lab 2011
 
Nearverse presents Lokast | MidemNet Lab 2011
Nearverse presents Lokast | MidemNet Lab 2011Nearverse presents Lokast | MidemNet Lab 2011
Nearverse presents Lokast | MidemNet Lab 2011
 
Mix Me In | MidemNet Lab 2011
Mix Me In | MidemNet Lab 2011Mix Me In | MidemNet Lab 2011
Mix Me In | MidemNet Lab 2011
 
Jammbox | MidemNet Lab 2011
Jammbox | MidemNet Lab 2011Jammbox | MidemNet Lab 2011
Jammbox | MidemNet Lab 2011
 
Airbuzz | MidemNet Lab 2011
Airbuzz | MidemNet Lab 2011Airbuzz | MidemNet Lab 2011
Airbuzz | MidemNet Lab 2011
 
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
What is music marketing? | Virginie Berger, Don't believe the hype | MIDEM ex...
 
MIDEM 2011: VC presentation
MIDEM 2011: VC presentationMIDEM 2011: VC presentation
MIDEM 2011: VC presentation
 
MIDEM 2011: General presentation
MIDEM 2011: General presentationMIDEM 2011: General presentation
MIDEM 2011: General presentation
 

Music Business Basics - a midem presentation

  • 1. Music Business Basics? Bruno Crolot, Head of midem, Reed MIDEM (France) @bcrolot | @midem
  • 2. Part 1 Music, Brands & Technologies Interact Together in New Ways
  • 3. 7 of the top ten accounts are musicians 1/3 of all videos are music-related 9 of the top ten videos are music videos, summing up to almost 5 billion plays (Gangnam Style by PSY is 3rd as of Oct. 22nd)
  • 4. 74% of music fans and 67% of labels agree that more fans will buy directly from the artists Over 5M artists now meet, engage & transact over online communities Source: Music Supported Here / The Oatmeal
  • 5. 97% of people think that music can strengthen their brand 91% of consumers accept or are positive about brand involvement in music entertainment and culture Source: Sounds Like Branding / Frukt
  • 7. “We're using music now in every way, shape or form. We're innovating, working with startups, having writers write, having artists approach us, directors approach us, big stars wanting to do stuff for us” Kevin Roberts, CEO, Saatchi & Saatchi midem 2012
  • 8. “There’s a new currency that’s emerging in the music industry, which is how many people have shared a given song or a given artist on Facebook” Dan Rose, VP of Partnerships, Facebook midem 2012
  • 9. “This gives me a platform that I would never be afforded maybe by Columbia Records for doing a song. I have to make it great, because this is maybe the biggest exposure I’ll have for a song” Mark Ronson, Artist, Producer and DJ midem 2012
  • 10. A Changing Industry from a Complex Value Chain…
  • 12. Towards a Music Ecosystem Source: Reed MIDEM
  • 13. Part 2 Basics of the Music Ecosystem
  • 14. The Global Business is Thriving?
  • 15. The Broader Music Industry Value (Billions) 200 175 168 152 Other Revenues 150 139 140 150 Performance Rights 132 Digital 125 Physical 100 global recorded 75 music sales US$ billions, trade 50 value) -40% since 1999 25 0 2005 2006 2007 2008 2009 2010 Source: IFPI / Floor64
  • 16. The Broader Music Industry Value in 2010 (billions) Publishing Performance rights market Music related video games sales 2,7% 2,9% 1,0% Music TV/mags advertising revenues Radio advertising revenues 5,4% 19,4% Music instrument sales 9,8% Recorded music retail sales 16,6% Live Music sector 12,9% Portable digital players 14,4% Audio home systems 14,9% Source: IFPI Estimates / Music 3.0
  • 18. Music Sales in 2011-2012 2012 U.S. MID-YEAR SALES (Source: Nielsen SoundScan) Overall Music Sales Digital Album Sales (Transactions, Albums, Singles, Music Video, Digital Tracks - In Millions) (In Millions) Units Sold 2012 2011 % CHG. Units Sold 2012 2011 % CHG. 853,2 820,5 +4,0% 57,2 50,3 +13,8% Total Album Sales Digital Track Sales South Korea (Includes CD, Cassette, LP/Vinyl, Digital Albums - In Millions) (In Millions) grew by 6,4 % in Units Sold 2012 2011 % CHG. Units Sold 2012 2011 % CHG. 2011, following 150,5 155,5 -3,2% 698,0 660,8 +5,6% a 12% increase in 2010 In 2011:  Album sales up for the first time since 2004: +3.2% w/ +19,5% digital album sales  Overall music sales break 1.6 billion mark for first time  But global revenue is down 3% Source: IFPI / Nielsen
  • 19. Digital Market – Digital Services Digital services:  Downloads  Streaming  Internet radio  Music video  Mobile bundles  70% K-pop revenue comes through digital channels, vs 55% across the market as a whole. South Korea Placement in Global Market 500 legitimate music 2007 23 services worldwide offering up to 2009 14 20 million tracks 2011 11 Source: IFPI
  • 20. Digital Market – Download Services  Digital singles are the main source of incomes.  The combined sales of the top ten digital singles grew by 11% in 2011.  Digital albums sales grew by 19,5% in 2011.  Mumford & Sons sell 600,000 units of their new album in first week Source: IFPI / Nielsen
  • 21. Digital Market – Revenues Ringtones still make 4x more money than: Worldwide Online Music Revenues in 2011 Subscription Services 8,4% + +  Subscription to account for 30% in 2015. Download Services 57,3% Country Revenues from Personalization digital sources Services (ringtones) China 71% 34,3% South Korea 53% USA 52% Source: Evolver.fm / IFPI / Strategy Analytics / Gartner
  • 22. Digital Market – Music Apps Music app usage Music apps:  Usage increased 530% in 2011  9,000 music apps in iTunes (2% of the store)  For creation and consumption Users who downloaded music apps in 2012 Global – 26% South Korea – 39% Source: Flurry Analytics / Ipsos & Music Matters
  • 23. Focus on Live Music
  • 24. Worldwide Live Music / Concert Revenues 2006-2011 (US$ billions) 25 +3.7% 23,5 22,2 in H1 2012 20 20,8 19,4 18,1 16,6 15 10 We see increasing demand from other markets such as 5 South Korea, China and Indonesia… Alan Ridgeway Live Nation – April 2012 0 2006 2007 2008 2009 2010 2011 Source: eMarketer / Pollstar
  • 26. Collection Sets a New Record in 2010  Total collections in 2010: €7.545 billion  +5.5% worldwide year-on-year growth ASIA-PACIFIC  €1.151 billion collected  15.3% of the total royalties  12% increase in royalties (vs 2009) Source: CISAC
  • 27. Part 3 New Models & Trends
  • 28. Tech Players Rovio & music music hack days Source: Rovio / Reed MIDEM
  • 29. Brand Partnerships Coca-Cola & Music Dealers Innovative Partnerships Source: Reed MIDEM / Sugarland at Amex Unstaged
  • 30. Direct-to-Fan Zoë Keating Joss Stone Source: Reed MIDEM
  • 31. Connected by Music
  • 37. Artists Pete Imany Wentz Patricia Kaas Damian Kulash Selah Sue David Guetta Alison Balsom Mark Ronson Pharell Joss Stone Amanda Palmer Williams
  • 39. 26-29 January 2013, Cannes, France Contact us: info.midem@reedmidem.com Visit midem’s website – www.midem.com midem is the place where music makers, cutting-edge technologies, Follow us brands & talent come together to enrich the passionate relationship between people & music, transform audience engagement & form new business connections. BRANDS TECH MUSIC ARTIST Download midem iPhone App http://road.ie/midem