written by Allen Johnston – The Music Specialist
At a recent music conference, an executive from an independent distributor expressed a wish for the demise of the Internet, blaming it for the significant decline in record sales. Similarly, a major market radio consultant attributed the decrease in radio listenership across the United States to the Internet, advocating for its prohibition.
To both assertions, I respond with a resounding “It’s about time.” The outdated business practices and limited opportunities within the radio and record store systems should have been challenged long ago.
Allen Johnston – The Music Specialist
Michael Harrison, the publisher of Talkers magazine, addressed the National Association of Broadcasters Radio Show, highlighting the encroachment of competing technologies such as the Internet, Wi-Fi, podcasts, and cell phones. He emphasized that these advancements are gradually filling the niche currently occupied by traditional terrestrial radio, signaling dark times ahead for the industry.
The traditional record industry heavily relied on radio airplay and later incorporated platforms like MTV and BET to boost sales. However, this model has begun to crumble with the advent of technology, which has empowered more creators to produce music and multimedia content. Consequently, new avenues for exposure and consumption have emerged, marking the birth of a new era in the music industry.
RADIO
To remain profitable, radio stations must shift their focus to local sponsors and community engagement. The prevalence of genre-specific radio formats, including Hispanic, sports, talk, Asian, and Haitian, is on the rise. It’s foreseeable that such audience-targeted formats will become mainstream, especially considering the wealth of music available through various devices, leading listeners away from traditional radio.
RETAIL
Independent record retailers are facing extinction, prompting them to diversify their offerings with clothing, multimedia accessories, and adult novelties tailored to their specific customer base. Positive developments include partnerships like the one between MUSICNET and LA CURACAO, which has led to the creation of PASITO TUNES, a Hispanic-focused digital music service catering to diverse Latino music genres.
RECORDS
Sales of CDs, vinyl, and cassettes are rapidly declining, while digital sales are increasing, albeit not compensating for the loss. Record labels are adapting by shifting their focus from promoting records to licensing content. For instance, UNIVERSAL MUSIC GROUP is exploring a comprehensive subscription plan called TOTALMUSIC, contingent upon cooperation from ISPs and mobile access providers.
The NATIONAL MUSIC PUBLISHERS ASSOCIATION is intensifying efforts to combat unauthorized song lyric websites, demanding that search engines like GOOGLE and YAHOO! remove references to them. This move coincides with the industry’s efforts to launch official online lyric offerings through platforms like YAHOO! MUSIC and REAL NETWORKS’ RHAPSODY.
Since 2003, IODA has been a pioneer in digital independent music distribution. Expanding into digital video distribution, IODA/THE ORCHARD now offers content from top-tier indie film production companies alongside its music video catalog, available on various distribution outlets.
In summary, the music business has evolved into a licensing-centric industry, propelled by technological advancements and shifting consumer preferences.
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