Music Economics

The Economist runs a nice article on what is and is not working in the music industry. The live performance can't be displaced by the internet.

The longest, loudest boom is in live music. Between 1999 and 2009 concert-ticket sales in America tripled in value, from $1.5 billion to $4.6 billion (see chart 1). Ticket sales wobbled in America during the summer of 2010, but that was partly because some big-selling acts took a break. One of the most reliable earners, Bono, U2’s singer, was put out of action when he injured his back in May. Next year many of the big acts will be on the road again, and a bumper year is expected.


It is not that more people are going to concerts. Rather, they are paying more to get in. In 1996 a ticket to one of America’s top 100 concert tours cost $25.81, according to Pollstar, a research firm that tracks the market. If prices had increased in line with inflation, the average ticket would have cost $35.30 last year. In fact it cost $62.57. Well-known acts charge much more. The worldwide average ticket price to see Madonna last year was $114. For Simon & Garfunkel it was an eye-watering $169. Leading musicians have also, by roundabout means, seized a larger share of the mysterious “service” charges that are often tacked onto tickets.

Budding artists, like Sean Fournier realize giving away the music might lead to ticket sales in the future. Download his album, rip, share, burn. Of course this strategy might be a bit more productive if I could find out where he is playing.

Working at Starbucks

There are a few things I hate about Starbucks. For starters I hate the sometimes forced interest in my life the baristas display. I'm a regular and even though I prefer to be anonymous, I'm not. But I still return. Unlike the other coffee shops in town, this isn't filled with annoying 20 year-old girls chatting about their drinking escapades. Well, not at 6am anyway.  But Starbucks does create a nice atmosphere with their musical choices. They seem to hit my work tempo just right, and help me discover new music.  This morning I heard the Sade tune "Soldier of Love" and they turned me on to the new Kate Earl CD. Here is the video for "Melody".

Music Man

NYT Magazine has a good piece on Rick Rubin specifically and the music industry more generally.

Back in the library, the singer-songwriter's demo is ending. Rubin opens his eyes, blinks and says to Kusatsu: "We may have found one. Does he have any other songs I can hear?" While Kusatsu cues up the next sampling, Rubin texts an assistant on his BlackBerry. Within minutes, a chocolate protein drink is brought to him. As Rubin sips, he listens to the next track — a derivative, meandering song that drones like early Dylan without the lyric sophistication. With his eyes closed, Rubin begins to shake his head slowly. He looks disappointed. "And you wonder why people don't buy CDs anymore," Rubin says. "One song is great and the other is. . . . "
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That old way of doing things is obsolete, but luckily, fear is making the record companies less arrogant. They're more open to ideas. So, what's important now is to find music that's timeless. I still believe that if an artist gains the belief of the listener, then anything is possible."
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Rubin sees no other solution. "Either all the record companies will get together or the industry will fall apart and someone like Microsoft will come in and buy one of the companies at wholesale and do what needs to be done," he said. "The future technology companies will either wait for the record companies to smarten up, or they'll let them sink until they can buy them for 10 cents on the dollar and own the whole thing."

The CD is dead. I just bought a few after a very long hiatus and am regretting the fact that 11 of the 12 tracks are a complete waste. Next time I'm buying the one track I like DRM free. I've just got to train myself to listen to music differently. I'm still stuck in the album model of listening. Time to get good at making mix playlists. I guess I should go watch High Fidelity again.