The future of music

Good news – contrary to popular belief, the music industry is in a state of rude health (or at least is out of intensive care).

The International Federation of the Phonographic Industry (IFPI) has just released their annual Digital Music Report for 2012, and the figures are surprisingly positive.

In 2011, digital music revenues to record companies increased by 8% globally, to an estimated US$5.2 billion, up from 5% in 2010. Worldwide, an estimated 3.6 billion downloads were purchased, an increase of 17%. Digital formats have become the dominant revenue stream in the US market, and it’s likely that music markets in the rest of the world will follow suit. Overall, consumer demand for digital music services is growing, and more people than ever before are engaging with and enjoying music.

Digital music has now split into two main consumption models that determine how people access and consume music – essentially, ownership (downloading music) and access (streaming or subscription services). This is great for consumers, who can now choose the method that best suits their needs.

But what percentage of the money being made actually lands in the pockets of the people who created the music? The money that artists receive from streaming services is negligible at best (Lady Gaga supposedly earned the princely sum of just $167, or around 113 Euros, for over a million plays of her hit track ‘Pokerface’ on Spotify). For artists, digital download services pay better revenues than streaming services, but record companies and labels still take a cut of their profits.

How can independent musicians get a foothold in the industry, make money and gain the recognition they deserve? It’s simple – by going the Bandplanet way!

Bandplanet was created as a platform for listening, sharing and buying music in a fair way – a fair trade music marketplace where independent artists receive 100% of the money generated from their music, without having to pay intermediaries. That’s unprecedented, and we’d like to think it’s the way of the future.

After all, it’s only fair that great independent artists get the reward they deserve – all of it.

Source: IFPI Digital Music Report 2012