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Record of the Week Smiling Dancing Everything Is Free All You Need Is Positivity ISSUE 491 / 16 AUGUST 2012 TOP 5 MUST-READ ARTICLES record of the week TuneCore founders Jeff } Settle Down multiple broadsheet features. The superb Price and Peter Wells exit video directed by longterm collaborator the company. (Billboard) No Doubt Sophie Muller is a global priority at Polydor/Interscope MTV and playlisted at 4Music, The Box, } Google to de-emphasize No Doubt return after a decade with Chartshow TV, and a ‘record of the week’ websites of repeat copyright a radio smash that is every bit the on VH1. Over their five albums together offenders. (FT) comeback fans had hoped for. We’re No Doubt have sold over 45 million hooked, and we’re not alone. The Mark albums and notched up 10 Grammy Universal could sell all EMI } ‘Spike’ Stent produced Settle Down is nominations, winning twice. With the bar if regulators rip ‘the heart picking up an exceptional reaction from set high on Settle Down, the return of out of the deal’ (HypeBot) the media, with Kiss playlisting, and the purveyors of hits such as It’s My Life, getting its first spin on Radio1 on Friday Hella Good and Don’t Speak, will act UK albums chart shows } as Annie Mac’s ‘Special Delivery’. A as a massive dose of adrenalin for pop lowest one week sales in major press campaign is confirmed for junkies around the world. Video. history. (NME) release with covers on a host of fashion Released: September 16 (album; Push and Shove and music magazines, as well as September 24) } 64% of US under 18s use YouTube as primary music CONTENTS source, Nielsen reports. (WSJ) P2 Comment P3 UK Music discuss London 2012 P7 Karin Park P9 George Michael P15 Karima Francis P4 Interview: LoveLive P6 Compass WORLDWIDE SALES P7 Agent News featuring Karin MARKETING AND Park and Above & Beyond DISTRIBUTION Plus all the regulars 1 comment David Balfour welcomes fresh evidence of a buoyant and varied digital music space The last week has delivered a flurry of need to be given a sober appraisal. Whilst market can and should see downloads and surprising picture, both in terms of how people indicators outlining the new and developing streaming income may be growing at streaming co-existing side by side. It’s also are consuming music and where the income is shape of the music business in 2012. A new five times the speed of digital download no real surprise that ‘free’ streaming models being generated. What they do show however report from Strategy Analytics predicted income, this does not mean that streaming like YouTube’s are popular with those such as is that the music industry is satisfying a range that music streaming revenues will grow is generating more money. In fact Strategy teenagers who have less money to spend on of consumer desires: both for physical and 40% globally in 2012, making streaming Analytics’ predicted streaming income for music. It’s heartening to see however that if a for digital, as well as for free sampling and for the ‘leading revenue growth engine for the 2012 is – at $1.1bn – worth less than one third person chooses to access most of their music lasting ownership, and even for cheap and music industry in 2012’. The same report also of the predicted downloads income of $3.9bn. via free channels that it doesn’t mean either premium digital formats to satisfy a range of painted a less buoyant picture for growth in One could be forgiven for interpreting the that A) they will never buy music or that B) wallet sizes and age groups. the digital downloads market. It found that rapid growth of streaming and the dominance this is evidence that ownership of music is no This has to be taken as a good report whilst download revenues will continue to rise of YouTube as an access tool as an indication longer important. card for the work the industry has put into in 2012, it will only be by 8.5%, and the report that ownership is no longer important to Perhaps more surprising were sections developing digital music. It’s also a pretty further suggests that “the downloads market is music consumers. Do these figures mean that of Nielsen’s data which dealt with music good report card for Google, which now ranks maturing and spending is flattening in all key streaming will inevitably eclipse a downloads discovery. Whilst YouTube may have been as the dominant search engine, the dominant territories.” market which is looking increasingly irrelevant utterly dominant as a listening source or destination for of music listening and also, via A separate report published this week by in the digital realm? Whilst there may well be ‘player’, it was not a trusted source for new advertising income, the biggest beneficiary of Nielsen also underlined the importance of some truth here, it again pays to read carefully music: only seven percent of music fans music listening on YouTube. Unlike Apple’s, streaming services, not just in terms of future and analyse all the statistics. Downloads surveyed used YouTube to discover music. Google also has a music model which impact but already-existing relevance. Nielsen are not only worth three times as much as Far more important was radio: 48% of people includes downloads on Google Play (albeit found in its research of American teenagers streaming income but they are also still discovered new music through radio, whilst so far only in the US) and free streaming on that 64% of them used YouTube as their growing their share of the market. Meanwhile, 10% discovered music through friends and YouTube. If it were to add some kind of slick primary source for music listening, confirming those who might argue that music ownership relatives. This is powerful evidence for both paid streaming service, it would have all main the oft-heard mantra that YouTube is the is no longer relevant will be confounded by the continued relevance of radio and for the sections of the music market covered. We’re “biggest and most important music service in Nielsen’s finding that those same teenagers undying need for people trusted to filter and not sure Google’s ever-increasing influence the world”. who prefer to access their music on YouTube provide the best music available. Ubiquity may on the music markets is a justifiable argument Both reports also noted unsurprisingly that are also very keen on owning music: 36% had enable unprecedented amounts of listening, for consolidation in the record industry, as CDs still play an important but declining role bought a CD in the last year; and 51% had but it cannot spot a good tune. some have tried to claim. Nevertheless, in the music markets. Nielsen predicts that purchased some kind of music download. Whilst it’s easy to pull a sensationalist what’s in no doubt is that Google’s influence is digital revenues will outstrip physical in the Here’s how we’d interpret the figures: headline out of these research stats, we increasing. US in 2012, whilst other ‘advanced’ countries streaming is indeed growing fast, but this feel that they actually point to a less than such as Sweden and South Korea are also steep growth curve looks especially sharp on track to soon be making more money from when compared to the download rate One could be forgiven for interpreting the rapid digital sales than physical. More importantly, for downloads which are a much more Nielsen predicts that digital music income will developed digital format. This sharp rise in growth of streaming and the dominance of YouTube as eclipse physical income on a global basis in streaming income doesn’t therefore mean an access tool as an indication that ownership is no 2015. that downloads are set to be replaced by As ever, such statistics and predictions streaming, just that a well developed digital longer important to music consumers 2 UK Music highlights a successful 2012 UK Music looks at how we can harness the Olympic spirit in order to enhance the future of British musical talent. By Jo Dipple, chief executive, UK Music. shone a light on indie, pop, compilations. Danny Boyle’s be for Britain what Usain Bolt of the industry. UK Music is classical, choral, electro Isle of Wonder compilation is for athletics – something working closely with DCMS and grime with the closing has registered in the top 10 of that grabs the attention of the and our members to promote ceremony featuring a 42 countries. whole world and refuses to a network for new and catalogue of legends from The love affair with let it go.” emerging performers. the last 60 years. Most of all, the Olympics seems to Our live venues and The sense of patriotism they exposed the wealth of be translating into sales – festivals are some of the that has come through creative talent we have in the people want to capture and best in the world. Last week the Olympics needs to be UK. own the experience of this UK Music together with Visit grasped. Farewell Olympics! We will have been a showcase and We need to make sure spectacular. HMV said it Britain unveiled a festival The Evening Standard miss you. You surpassed celebration of British music. that if the UK is home to expected sales of music by map of the UK, highlighting commented that the “can all expectations. Self doubt, It is not only sport where the a future Olympics, it will John Lennon, the Spice Girls hundreds of festivals taking do” spirit of the Olympics cynicism and a lack of UK punches above its weight.
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