Tuesday, May 31, 2011

Radio Promotion Today

Rick Goetz posted a great interview with independent radio promo guy Drew Murray on his musiccoaching.com site. The interview provides a number interesting tidbits about the state of music radio today. Here are a few excerpts.

On not needing a song on the radio to be successful:
At Sanctuary – and Sanctuary thought of itself as a management company first and a label second – that was the mantra that was definitely drilled into us:  radio is the icing on the cake, but not the cake itself. Even at the beginning of the Digital Age – because it was 2001 when I went to go work for them – that mantra was still the basis. They used Iron Maiden as the example:  “Iron Maiden can sell out stadiums and arenas across the planet without a song on the radio.” If they do get a song on the radio, they’re that much better. And again, they were huge with touring and merchandising. The idea of not needing to have a song on the radio to be successful was drilled into my head every day for the seven years I worked at Sanctuary.
On new radio ratings technologies:
I think a lot of this is still evolving, because some of that technology has only been around for about four or five years. It only became national about two years ago. So, radio stations are still figuring out how to read the raw data. I’ll give you a prime example of an argument I had with a Hot AC station, which targets to adult women. Your typical listener might be in her car, driving to the mall. The number one single on your station this week might be P!nk’s “Perfect,” and as radio station, you are playing that song because you know it is doing great for you. But this listener gets to the mall while this song is on and turns off her car radio. The first store she goes into to buy something for her daughter is Hot Topic. So, according to this tracking technology, if it is the be all, end all for you as a radio station, you’re going to drop this particular playlist and add Metallica, because it’s getting played in Hot Topic, and therefore it’s what she’s listening to now. The main point is, you have to be able to interpret the data and what is really going on. This is what radio people will complain about, and it’s always been a problem with the technology when you break it down:  The sample size is still tiny. I don’t know the exact number, but I think that for the New York metropolitan area, which has 15 million people, there are maybe 500 people with people meters. One person could have an effect on over a million listeners.
On radio being open to independent music:
It depends. There are success stories, but mostly in the rock formats these days. It’s mostly alternative or active rock or Triple A with singer/songwriters. Those formats are definitely more open to independent music than Top 40 and Hot AC. Those two and also country are very tough if you’re not signed to a major label.
Read the rest of this great interview at musiccoaching.com.
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Monday, May 30, 2011

7 YouTube Alternatives

Whenever we think of online video, we always think of Youtube, but I bet you'd be surprised to learn that there are over 50 other online video networks in the US alone. Most of them are very targeted and specialized, but there are a few that are clear competitors for Youtube's throne (although there's not much chance of them overthrowing the king anytime soon).

Here's a great article from Mashable regarding 7 Youtube alternatives that are definitely checking out.

1. Blip.tv

What it is: Online video with a strong slant toward webisodes, web series, and other serial content. Blip users rarely post one-off videos — in fact, Blip encourages regular content — so quality is usually pretty high.

Features: Supports most video formats and has 1 GB of storage per user. There is a pro account for more storage and better conversion rates. Any user can sign up for an advertising account that splits ad revenue 50/50. There’s a dashboard to let you plan your web series in advance, share your videos, and use analytics. Blip also distributes through most major video platforms (including YouTube), so maximizing reach is less of a concern.

Why Blip.tv?: Use it if you’re planning on starting a series and want a suite of tools to help you create, manage and promote your work.

2. Vimeo


What it is: Vimeo is the artsy cousin of YouTube. Home to many creative-types, Vimeo users usually aim for high-quality content over fails or cat clips.

Features: It comes with the standard suite, plus the ability to create and share videos to groups or channels. There’s also a video school to help you make better videos. A pro account will let you bump up your weekly upload capacity from 500 MB to 5 GB with unlimited HD uploads.

Why Vimeo?: It’s a solid platform if you feel more serious about video as creative outlet or are just looking for a more constructive community (i.e. less trolls, more feedback).

3. Flickr


What it is: Didn’t see this one coming, right? Flickr actually lets you upload videos — just click on the Explore tab. The team still sees photo uploading as its main game, but it is also “gently” building out its video abilities. It calls videos “long photos” and limits their length to just 90 seconds.

Features: Basic users can upload two 90-second videos a month. Pro users have unlimited access. Options are a little sparse at the moment, with basically the same feature set as Flickr’s photo uploads.

Why Flickr?: It may seem restrictive, but users willing to embrace short-form video will have access to Flickr’s massive and active user base. It may not be a great option for your home video collection, but video experiments abound. Flickr’s video space is going to keep growing.

4. Veoh


What it is: On the flip side, Veoh lets you upload enormously long videos. The site, much like a YouTube for long-form videos, actually doesn’t have a size restriction for uploading. It’s become a space for full-length films and short clips alike.

Features: Unlimited upload capacity and a smart UI make it easy and relatively quick to load huge files. While it may not have the same audience as YouTube, the lack of restrictions has attracted some top-quality videos and shows.

Why Veoh?: If you’re feeling hamstrung by size restrictions but still want a quality platform, Veoh is your best bet.

5. Viddler


What it is: Billed as a way to build your brand, Viddler is more geared to companies and corporations than homemade video.

Features: With the business focus comes business tools — Viddler lets users access analytics, customize their video players, distribute to iTunes, place comments within the video and even monetize with Viddler’s adworks tool.

Why Viddler?: If you’re a brand looking to up your video content, Viddler provides a stable starter kit with an array of support features.

6. DailyMotion


What it is: Organized more like a content aggregator, DailyMotion offers videos of varying length organized by category. There’s plenty of user-made videos, but professional, quality clips are more prominently featured.

Features: The site supports the most common video formats but restricts storage capacity to less than 150 MB and less than 20 minutes per video. The emphasis is on community, with the ability to add other users in a contact list and send feedback. Most high-powered features, like HD uploads, are locked behind pro accounts.

Why DailyMotion?: It’s not the most intuitive site for uploaders, but it’s easy for curious viewers to browse. If you can manage the backend, there’s a good chance your video will reach new eyes.

7. yfrog


What it is: Finally, the dark horse. Yfrog is better known as a photo-sharing site for Twitter, but it also has the capacity for video, with a healthy and growing selection.

Features: You can upload short videos and post to Twitter all from one place. You can also see what videos (or photos) your network has posted using the site. There isn’t much of a search function, instead relying on news feed-style postings as your friends upload videos.

Why yfrog?: Don’t care about video hosting? Want a more personal take on online video? Yfrog lets you get your videos up and out through your social network faster than any of the sites above. There may be fewer features, but it’s really about uniting your own social community around video.
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Sunday, May 29, 2011

5 Things You Should Know About Cloud Music Services

Now that both Amazon and Google have launched their cloud music services, we're just waiting for Apple to complete the triumvirate with their imminent launch. In case you're not clear, a cloud music service (sometimes called a "music locker") stores your music on an online server then delivers it to any of your music playback devices. Before you choose a service though, here are a few facts you should know.

1. Why is a cloud music service so cool? Because you won't fill up half your hard drive with only music if it's stored online for one thing. You'll be able to access your music from any device that connects to the Internet, so you're not restricted to only the device that has your music loaded on it.

2. You have to manually upload your music on both Google Music and Amazon Cloud Drive. Because both Google and Amazon didn't get permission from the record labels, for right now at least you have to manually upload your entire library if you want access to it. That could take hours and hours depending upon how large the library and the speed of your Internet connection.

3. But you won't need to upload everything on Apple's service. That's the whole key about doing a deal with the record labels; if the service sees that you've already paid for a song or sees the song on your hard drive, it automatically loads a copy into your storage locker without you having to upload it. That means that you're uploading time can theoretically be a few minutes instead of hours and hours.

4. Apple also has a strategic advantage by doing the deals with the labels. If and when Amazon and/or Google decide that they really should have these deals in place, it's going to cost them a lot more to get the deal done. Apple has already set the deal precedent with their label agreements so they won't be getting better for the other two as a result. Any additional costs will get passed on the to consumer, so the Apple service may end up being cheaper than the other two in the long run.

5. Apple's service has another cool feature. Reportedly it pre-caches of a portion of the each song in your library on your player so that as soon as you choose a song, it instantly plays without having to wait to communicate with the cloud first unlike the other services.

The Apple announcement regarding the release of their cloud service is supposed to be any day now, and until that time, we won't have a real head-to-head comparison of services to look at. That said, cloud music is here to stay and it's just a matter of time before it becomes widely adopted.
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Thursday, May 26, 2011

A Comparison Of Online Music Distributors

Here's an interesting chart that I found (my apologies, but I can't remember where) that provides a nice overview of some of the popular online music distribution services. With all the hoopla over Tunecore recently raising their prices, it's interesting to see that they're really not that out of line when you look at a side by side comparison.

So which one should you choose? Price isn't always the most important element of your decision. Things like free UPC codes and which stores and subscription services they service are also important. Ultimately, the general feel of the distributor and their user interface may have more of an affect on your decision than anything, so make sure you check them all out before making your choice.
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Wednesday, May 25, 2011

Facebook Partners With Spotify For Blockbuster Deal

Forbes Magazine is reporting the Facebook has partnered with Spotify on a music-streaming service that could be launched in as little as two weeks, a deal that could have a huge effect on the music industry.

According to the article, "Clicking on the Spotify icon will install the service on their desktop in the background, and also allow users to play from Spotify’s library of millions of songs through Facebook. The service will include a function that lets Facebook users listen to music simultaneously with their friends over the social network, one of the sources said."

The partnership is a win-win for both services. Facebook gets the music app that it's long wanted, and Spotify gets exposure to a huge audience. Although there's no money changing hands and Spotify won't be seeing any of Facebook's ad revenue, it does give them a chance to upsell their Facebook users to their premium service, which is what they really need to prosper. Spotify is currently a free service but limits users to just 10 hours a month. The premium service is currently 10 pounds in the UK and 10 euros in the rest of Europe.

Want to know the downside? It still won't be available in the US until Spotify finishes up it's license talks with the labels, although that's rumored to be coming soon. When that happens, this deal will be a game-changer.

Read the entire Forbes article.
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Monday, May 23, 2011

A Startling Comparison Of Online Versus Broadcast Radio

Here's a couple of eye-opening charts that were presented at the NARM (National Association of Record Merchants) convention in Los Angeles last week by the research company Nielsen. The data is from a period of January to May 1st of this year. What you see is that online radio has more variety but traditional broadcast radio has way more reach.

These charts make it seem as if Internet radio doesn't stand a chance against broadcast radio, and this may be true in advertising only. Don't forget that it doesn't cover "personal radio" subscription services like Rhapsody, Rdio, MOG, etc. So if you're an artist, there's no question that you have a much better chance of being discovered online.
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Sunday, May 22, 2011

The Serious Ramifications Of The Eminem Lawsuit

As stated in the last couple posts about this subject, the Eminem win in court over Universal Music Group (UMG) would have some serious ramifications on the major labels at some point. It looks that point is now.

To catch you up, Eminem's production company sued UMG over how the royalties were computed for digital music. They suit hinged on whether a download is a treated like a record royalty or license agreement. The difference is that in a record deal, the record label manufacturers the product (CDs) and pays the artist a royalty of anywhere between 12 and 20% of the wholesale price. In a licensing deal, the record label provides the licensee (such as a distributor in another country producing CDs) with a master, and they in turn manufacture the product. The record label and the artist split the proceeds from the license deal 50/50.

Since in the case of digital downloads, a label doesn't actually manufacture anything and provides the user with a master, it sure looks like a license and the court agreed.

UMG originally won the case but lost the appeal, meaning that the court agreed that a download is really a license rather than a sale, awarding FBT (Eminem's production company) the right to collect a lot more money, reportedly as much as $30 million. The irony is that Eminem declined to be part of the lawsuit so as not to make waves with UMG, so he might not see an extra dime.

As predicted, more classic artists are coming forward to sue UMG. First came the estate of Rick James, then last week Rob Zombie, White Zombie, Whitesnake and Dave Mason filed a class-action suit against UMG in the United States District Court in San Francisco.

Supposedly a number of attorneys for other UMG classic acts are preparing lawsuits as well. As predicted, this will change the music industry in that the major labels don't have enough money as it is, and they'll all be in serious trouble if big payouts are necessary. That said, some artists are afraid to engage in a battle with a major label, especially if they depend upon royalties from their catalog. There's enough accounting shenanigans that goes on with labels already, and many artists are wary about giving them an excuse for more.

A suit by artists signed after about 2003 won't happen however, since the labels put language in the all contracts from that time on that clearly specifies that a digital download is a sale.
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Thursday, May 19, 2011

Ways To Get People To Remember Your Band

There was a great post by Chris "Seth" Jackson on howtorunaband.com the other day and I thought I'd run a version of it. The original post was called "No One Will Remember Your Band: 10 Ways To Stop Being Forgettable," and most of the ways pointed out in the article were dead easy and don't cost much at all. Here are the ones I like.

1. Large Banner On Stage - Displaying your band’s logo prominently while you’re playing has to be the number one way for everyone to know who you are. At any point during your set, people will immediately see who you are.

2. Something Free For Everyone - Have something with your logo and website that you can give to everyone at that show. Stickers are always good for this, but it could also be EPs or a small piece of artwork. The point is to get your band’s name into everyone’s brain.

3. Large Logo On The Merch Booth - In addition to hocking your wares, your merch booth has a secondary role for branding. A well designed (and well lit) logo above your merch advertises your band’s name for the entire night. Even those that didn’t see your set will still see your band’s name.

4. Posters - Posters are just cool. I rarely see bands with posters. I sometimes grab fliers for a show and hang on my wall. A cool poster lives a long life well past your show.

5. Logo On The Kick Drum - Put your logo on the kick drum. In addition to a banner, the kick drum is usually visible during your entire set.

7. Beer Coasters - If you’re playing a bar, create some cool beer coasters and give them to the bar. Your band’s name will be underneath everyone’s drink all night long. Maybe all month long.

8. Matches - Everyone smoker forgets their lighter. Give ‘em a nifty band branded set of matches.

For the full list, go to "No One Will Remember Your Band: 10 Ways To Stop Being Forgettable."
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Wednesday, May 18, 2011

The Economics Of Free

One of the guiding principles of the new economy of Music 3.0 is what's known as "the economics of free." This means that, contrary to what you might think, the more you give away, the more you sell. The concept was perfectly illustrated by Radiohead's In Rainbows album a few years ago, where the band let their fans determine the price.

Here's an excerpt from the Music 3.0 Internet Music guidebook that describes it in detail.
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By allowing the customer to set the price, Radiohead exercised a new business theory called “The Economics of Free” (or EoF).  In M30, EoF encourages content owners to give some of their products away for free because, if done correctly, you can increase your market size greatly, as seen in the case of In Rainbows. Both Franz Ferdinand and Arctic Monkeys are rumored to have unofficially leaked their initial releases for just the same reason, with great results.

You can’t just start giving away your precious content without thought though. It has to be the center of a larger marketing plan.  In terms of M30, an EoF campaign means the following:

You, the artist, have two types of products: infinite products and scarce products. Infinite products would be your music, especially in digital form. Physical products like CDs don’t fit in here because it actually costs you money to produce them (the CDs, not the music on them). Digital music is easy to copy and steal, and just as easy to give away.

Your scarce products are tickets to live shows, access to musicians, signed merchandise, backstage passes, private concerts, custom CDs, CD box sets, time spent with you, writing a song for a fan willing to pay for it, and anything else that has a limited supply.

So to take advantage of the Economics of Free, the artist would:
1. Set the infinite products (or just some of them) free. Put it on your website, Facebook, Youtube and anywhere you can. The more you get it out there, the great publicity and wider the visibility.  This makes the scarce products more valuable.

2. Because of the free infinite products, you can now charge more for the scarce products. Before #1 is implemented, access to the artist or backstage passes might not be worth anything, but now they are. Before #1, maybe no one wanted your CDs, but now they’re valuable as a collectors item as are the box sets. 
Setting the infinite products free (your music) expands your tribe. As your tribe expands, the demand for your scarce products grow. In Music 3.0, an artist that sticks to the ways of Music 1.0 through 2.5 will be relegated to a small audience forever.

You can read additional excerpts from Music 3.0 at bobbyowsinski.com.
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Tuesday, May 17, 2011

The 25 Most Liked Facebook Pages

So you don't think that Facebook is a viable marketing tool? Well, think again. Just one look at the 25 most liked Facebook pages shows you just how powerful to your brand it can be.

There are 10 music celebs, 2 retail brands, 3 television shows, 2 movies, 2 movie stars, 3 Internet brands, and 1 sports star in the top 25. Each of them have at least 21 million likes. Some will be a surprise, and some won't.

1. Texas Hold’em Poker – 41,879,027


2. Facebook – 39,387,704

3. Eminem – 35,055,405

4. Lady Gaga – 33,309,733

5. YouTube – 32,493,953

6. Rihanna – 31,765,115

7. Family Guy - 29,561,707


8. Shakira – 28,102,699

9. Linkin Park – 26,999,932

10. Justin Bieber – 26,493,655

11. Coca-Cola – 26,216,683

12. South Park – 26,159,052

13. The Simpsons – 25,513,539

14. Cristiano Ronaldo – 25,063,441

15. Katy Perry – 23,684,621

16. Lil Wayne – 23,684,621

17. Bob Marley – 23,673,770

18. Megan Fox – 23,479,162

19. Vin Diesel – 22,824,393

20. Harry Potter – 22,361,593

21. Twilight – 22,177,948

22. Disney – 21,942,364

23. Music – 21,638,305

24. Starbucks – 21,596,340

25. Akon – 21,563,854
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Monday, May 16, 2011

When The Music Industry Changed

It's easy to think that the music industry underwent a wholesale change when digital music burst on the scene in the late 90's. While that certainly is true, the systemic change really happened in the early 80's when the suits took over. Here's an excerpt from Music 3.0: A Survival Guide For Making Music In The Internet Age that describes the era in detail, one which I call Music 1.5.
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The era of Music 1.5 produced the greatest level of business that the industry has seen or is ever likely to see.

Record companies got a boost to ever greater profits in several ways when the CD was released in 1982.  Because the technology was initially expensive, the labels increased the retail price on each CD while decreasing the royalty rate to the artist because of the “technology expense”. While the retail price never decreased even after the technology was amortized (the retail price increased, in fact), artists eventually saw this royalty charge eliminated, but never saw another contract remnant from the past terminated. Breakage, a 10% charge against royalties left over from the days when vinyl records would break in transit and now irrelevant in the new CD age, never was deleted from typical recording contracts.

Perhaps the biggest shot in the arm to record labels was the ability to resell their catalog to a public eager to switch to CDs and buy a copy of an album they already owned on vinyl. Catalog sales increased profits due to the fact that production costs were minimal (just the cost of pressing the CD) as were promotional costs. Consumers bought the new and better sounding (to some) CD to supplement their newfound CD collections, thereby providing a financial windfall for the labels deep with older product.

Record companies now had a cash cow that shot profits through the financial stratosphere, which immediately gained the attention of Wall Street. Always the poor step-child of the entertainment industry, the record business was suddenly every investment banker’s darling, with the remaining 4 of the 6 major labels still independently controlled sold to a conglomerate during this period. Columbia was bought by Sony, Warners by Time Inc. (to become Time-Warner), Universal by Matsushita (later purchased by Vivendi) and EMI by Thorn Industries. Polygram was already owned by a conglomerate (the Dutch electronics company Philips), and BMG was owned by the German giant Bertelsmann AG (although it recently merged, then de-merged, with Sony). Now all 6 major labels were under conglomerate control.
The other big thing that happened was the compact disc. When it came along there was a big upsurge in the growth of the business and a lot of large corporations began to take notice. When CBS, who was the king of the business at the time, sold their record business to Sony - that was huge! It was a momentous happening because CBS decided they wanted to exit the music business , which they had been in for years.
Rupert Perry
With conglomerate ownership came MBA’s, accountants and attorney’s running the business, a major departure from the seat-of-the-pants, street-smart music men like Mo Ostin, Ahmet Ertegan, Jac Holtzman, and Howie Stein that could feel a hit in their bones.  Where a label previously would nurture an act through 3, 4, even 5 albums until they broke through, the new corporate structure demanded instant results “this quarter.” Artist development, so crucial for the stars and superstars that we know today, died, slowly at first, then faster and faster as bottom line results became the mantra.

About this time another unexpected boost came to the music industry in a small cable television network startup called MTV. Suddenly music was on television and a new level of exposure increased sales yet again. MTV soon had the power to “make” a hit, just like radio previously could, by the simple act of placing a video in heavy rotation.

Although no one expected it at the time, the Buggles song “Video Killed The Radio Star” (the first video played on MTV) actually came to pass. Image soon became much more important than actual musical ability. If you didn’t look appealing, you weren’t getting on MTV and if you didn’t get on MTV, your chances of having a hit diminished greatly. Quickly the new-found corporate culture began to shift gears to find good looking “musicians” to fill the bill. Artistry now became just a component of a new act (instead of “the” component), as image now became foremost in the label mindset.

To a non-record industry executive, art doesn’t make sense.  Academia demands repeatable outcomes and art (remember the phrase about art and craft at the beginning of the book?) is not a part of that equation. Craft was a big part of the corporate hit-making formula though. First, find an artist similar to whomever is the most popular of the moment. Then get a songwriter to write the perfect generic (usually Pop) song, then add a producer with a proven track record and record it all in a studio where big hits have been made with musicians who have played on those hits. The actual “artist” matters little in this corporate scenario. She better look great though, because the music videos (put together by directors, choreographers and stylists with recent hits on their resumés) must project the image that Madison Avenue deems correct to sell product, because that’s ultimately who’s footing the bill.

To read more Music 3.0 excerpts, go to the excerpts section of the bobbyowsinski.com website.
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Sunday, May 15, 2011

Music Sales Are Up, But Is It Due To The Beatles?

It seems that music sales in the U.S. are up 1.6 percent in 2011, according to Nielsen SoundScan. That doesn't seem like much, but there are some interesting facets to that number.
  • Digital album sales were up 16.8 percent and single track purchases by 9.6 percent over last year.
  • Catalog album sales are up 5.4 percent in 2011, which believe it or not is mainly attributed to the availability of  The Beatles’ albums on iTunes for the first time. 
  • Vinyl sales were up by 37 percent in the beginning of 2011 over the same period last year. 
  • Album sales at independent record stores increased by 39 percent the week of Record Store Day (April 16) from the prior week – an increase of 180,000 units – and 12.7 percent compared to 2010.
  • In a bit of a surprise, rock has returned as the most popular genre of music, with 32 percent album share, while pop music represents 40 percent of all current digital tracks sold.
  • Ninety-three of the 100 best selling vinyl albums in 2011 fall within the Rock or Alternative genres.
So it looks like music has made a bit of a comeback this year so far. Let's see it the good news continues.
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Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

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