I was looking for some info on the 1D GCSE exam case study but spotted a number of great articles on here. So here's a few pointers based on the site.
You can find a bullet list I previously did summing up some key music industry points (with many links to posts) here.
AS CDS DISAPPEAR TOURS ARE JUST THE TICKET: 1D EXAMPLE
A point I make many, many times: the traditional music industry model has been through disruption from digitisation (though it hasn't rebalanced the competition in favour of Indies; see Anita Elberse's fascinating analysis of how big 3 acts utterly dominate Amazon sales, making the 'long tail theory' seem absurd), so labels are looking for new revenue sources. Merchandise is a key factor - when I went to see The Wedding Present (UK Indie band) in Luxembourg last year, I got to chat to the singer after the gig, who was at the merch stall signing his own comic book range alongside the usual tee-shirts etc.
The likes of 1D aren't going to do that. They did sell VIP packages for gigs - something else I saw at a Depeche Mode gig, with multiple tiers including a basic that simply allowed you into the venue earlier to hear the soundcheck. I've blogged on Taylor Swift and Katy b Perry doing this, with fans paying a lot for a selfie opportunity. [meet-and-greets post]
The basic breakdown is clear though - most major artists (Indies too) will gain more from tours than album sales. Even combined with streaming (which is now bigger than physical sales and download sales combined) that remains the case. Getting onto TV ads, film/game OSTs are also potentially lucrative.
Here's that 1D breakdown:
One Direction’s latest album, Made In The AM, was a big success, selling just over 1m copies across the UK and US in 2015 after being released in November.
Judging by the 2014 calendar year performance of its predecessor, Four, it’s a fair bet that the newer album sold around 3.2m units across the world before last year was finished.
At an average US sale price, you’d therefore expect it to have grossed somewhere around $36m – although that is without streaming revenue.
Being generous, adding in streaming and single sales, let’s round it up to $50m.
The fact that this total is approximately one sixth of the size of 1D’s 2015 tour gross probably tells its own story.
The fact it’s less than half of the band’s secondary ticketing gross alone tells another.
Remind us again: what’s an artist’s core product – and what’s their ‘ancillary income’? [article]
GOOGLE IS COMING...
YouTube has had a subscription option for a while (launched Oct 2015), but it seems there will soon be either 2 options or a renewed, rebranded option.
YouTube Red is its current $9.99/month option, offering:
- no ads
- video downloads
- exclusive content (which they're expanding)
- the ability to continue playing YouTube when switching to other apps
The clear categorization of Youtube Red as a music-first platform comes at an interesting juncture: YouTube is widely expected to reveal a new Spotify rival, currently codenamed Remix, in the coming weeks.
‘Remix’ looks likely to supersede Google Play Music, and has reportedly been made possible by YouTube’s recent deal renewals with the likes of Universal, Sony and Warner. [article]