For the past ten years sales of recorded music have declined so steeply as to become a cautionary tale about the disruptive power of the internet. The rise of illegal file-sharing and the end of the digital “replacement cycle”, in which people bought CDs to replace tapes and records, caused spending to collapse. In Japan, the world’s biggest CD sales market, the number of discs sold fell by 6% in 2008 and 24% in 2009.
Yet the music business is surprisingly healthy, and becoming more so. 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). It is not that more people are going to concerts. Rather, they are paying more to get in. Fans complain bitterly about the rising price of live music.
Music’s best business customer is television. “Watch an evening’s worth of TV and count how many times you hear music in the background,” says Jeremy Lascelles, chief executive of Chrysalis.
In a sense, the recorded-music market is not so much dying as greying. America’s bestselling album since 2000 is “1”, a collection of Beatles hits from the 1960s. Some music executives fret that the stadium-filling acts will not be replaced.
Read more in The Economist.
