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Money, Music and Piracy

MONEY, MUSIC AND PIRACY TOTAL U.S. MUSIC SALES 1999- 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $14,584.5 $14,323.0 $13,740.9 $12,614.2 $11,854.4 $12,345.0 $12.296.9 $11,758.2 $10,372.1 $8,480.2 The figures above (in millions) indicate the sound recording Industry based on sales numbers for both physical and digital media at suggested list prlces. OVERALL, GLOBAL MUSIC SALES IN THE FIRST HALF OF 2009 WERE DOWN BY 12% (PHYSICAL AND DIGITAL SALES). / CONCERT TICKET 2006 SALES LIVE MUSIC 2011 North America $7.3bn $7.9bn $8.5bn $9.1bn $9.7bn $10.3bn Worldwide $16.6bn $18.1bn $19.4bn $20.8bn $22.2bn $23.5bn 2006 2007 2008 2009 2010 2011 20- DIGITAL SALES GLOBALLY NOW ACCOUNT FOR 15 AROUND 20% OF RECORDED MUSIC SALES, UP FROM 15% IN 2007. 10 2007 2010 Most Downloaded songs of all time (iTunes) Digital revenue streams by industry Magazines 1% Films 4% I Gotta Feeling Black Eyed Peas Newspapers 4% Poker Face Lady Gaga Boom Boom Pow Black Eyed Peas 4 I'm Yours Jason Mraz Viva la Vida Coldplay Games 35% 6 Just Dance Lady Gaga & Colby O'Donis Music 20% Low Flo Rida (featuring T-Pain) Love Story Taylor Swift Bleeding Love Leona Lewis 10 TIK ToK Ke$ha IN GERMANY, DIGITAL SALES REPRESENTS LESS THAN 25% OF ALL MUSIC UNITS SOLD. IN THE U.S. DIGITAL OUTSELLS PHYSICAL WITH 70% OF ALL SALES. WHERE DOES THE MONEY GO? CD SALES BREAKDOWN based on a $15.99 album Musicians' Unions $0.17 Packaging/manufacturing $0.80 Publishing royalties $0.82 Retail overhead $3.89 Retail profit $0.80 Distribution $0.90 Artists' royalties $1.60 Label overhead $2.91 Label profit $1.70 Marketing/promotion $2.40 HOW MUCH DO MUSI C STARS FOR A SHOW GET PAID Cost to hire for show Average Cut for Artist Foo Fighters $200k $18.7k Alcia Keys $150-200k $16.3k Alanis Morissette $125-150k $12.8k Katy Perry $100-150k $11.7k Beck $100k+ $9.3k Snoop Dogg $75k $7k Ke$ha $50-70k $5.6k Snow Patrol $40-50k $4.2k Stereophonics $15k $1.4k Vanilla Ice $10-15k $1.1k 50 100 150 200 Back up dancer $12 an hour average (up to $1,000 per day for big video shoots) All figures approximate - hiring costs vary massively depending on individual contract and size of venue. Artist earnings based on industry averages. GETTING PAID WHAT WHO'S Distributors Record Label Band Distributors 63% Record Label 24% Band 13% Bassist, 18% Lead Guitar 18% Drummer 18% Singer 18% Personal Manager Business Manager Lawyer Producer 5% 15% 5% 3% MUSIC PIRACY The music industry has increased its digital revenues by 940% since 2004 but suffered an overall global market decline of around 30% in the same period. The IFPI (International Federation of the Phonographic Industry) claim piracy is a huge factor. PRIORITY COUNTRIES ON THE U.S. WATCHLIST FOR PIRACY China Russia Algeria Argentina Canada Chile India Indonesia Thailand Pakistan |Venezuela COST TO U. S. ECONOMY TU.S LOSS OFORAMIERLOSS OF U.S TAX REVENUE 316798738 LOSS OF U.S JOBS WORKER EARNINGS WASHINGTON 6798736 71,060 $2.7bn $422m IN LESS THAN TWO YEARS THE RIAA (RECORDING INDUSTRY ASSOCIATION OF AMERICA) HAS SENT RIAA) COPYRIGHT INFRINGEMENT NOTICES TO 1.8 MILLION INTERNET SUBSCRIBERS AND 269,609 TO COLLEGES AND UNIVERSITIES IN THE US. COST GLOBAL ECONOMY Global Revenue (2009) $35.4bn $12.5bn (recorded music only) annually Global economic losses COMPARI SON TO MOVIE PIRACY US film revenue Estimated loss of US revenue due to piracy $108bn $20bn Industry employees: 500,000 Average studio film budget: $110m (This results in approximately 181 films a year not being made). ACCORDING TO THE LATEST L.E.K STUDY, 80% OF U.S. LOSSES RESULTED FROM PIRACY OVERSEAS, 20% DOMESTICALLY. The film industry estimates illegal film streams and downloads account for 40% 21% of Internet users in Europe admit to regularly sharing illegal music (with a high of 32% in Spain). In the US this figure is around 36% (Harris Interactive survey). of its piracy problem by volume (MPAA). MPAA: Motion Picture Association of America WORLDWIDE, IFPI FAMOUSLY CLAIMED THAT 95% OF ALL DIGITAL MUSIC HAD BEEN ILLEGALLY DOWNLOADED. Sources: RIAA, IFPI, BBC,,,,,,,,

Money, Music and Piracy

shared by rmmojado on Jan 24
Now that the wildly popular music-streaming service Spotify has come to the U.S., all bets are off as to the future of the American music industry. The downward trend in music sales that began with th...


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