Online Consumers re-energizing Music Industry

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Postby skyvalleyradio » Tue Jan 09, 2007 11:15 am

From Radioink.com:

Online Consumers Are Re-Energizing The Music Industry

According to a new survey released by the Digital Media Association, digital music consumers listen to more music, are exposed to more new music, talk more about music and attend more concerts.

Nearly 60 percent of online music consumers report that they are listening to more music since they started using an online service. The consumers surveyed listened to Internet radio, subscription music services, and pay-per-download music services, including AOL Radio, Yahoo! Music, iTunes, Rhapsody, Zune, Urge, Napster, Pandora, Live365 and others.

The majority of online music service users report that hearing music over the Internet has expanded their musical tastes, allowing them to discover new artists and explore new music genres. About 25 percent reported having discovered ?a lot? of new artists, while more than 60 percent of consumers surveyed say they have discovered some new artists.

According to the survey, online music listening has increased music fans' overall music discussion with friends and co-workers, with more than 35 percent now talking about music more. And, more than 75 percent of online music consumers report they have recommended a particular service to a friend or co-worker.

The survey also found that listening to and purchasing music over the Internet increases concert attendance. Fifteen percent of online music fans say they now attend more concerts.

"These findings demonstrate that real music fans ? and today's music tastemakers ? are online," said DiMA Executive Director Jonathan Potter. "This makes the 2006 holiday sales jump in music devices and sound recordings exponentially more important to artists, songwriters, producers and music publishers, as online music's impact extends way beyond immediate revenues. Consumers of innovative online music services are reviving the music economy as they enjoy more music and more new music in every way possible, and most importantly, as they introduce their friends to the music and online services they enjoy."

To view survey details, go to http://www.digmedia.org.
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Postby raverocks » Tue Jan 09, 2007 11:48 am

Until a couple of years ago, I had never realized how much control the record industry had on what music I got to hear on radio.

In the old days, someone at the record label would decide which (if any) european releases would get pressed and distributed here in North America. The labels would promote the product by giving copies of new releases to radio stations and record stores. If the music director liked a new track, we'd hear it and if they didn't like it, we the audience never knew it even existed.

The Internet has made music from the entire planet available for listening and downloading. As a consumer, I am no longer restricted by local radio play as to what I can hear. For some reason, the record labels and radio in North America have pretty much ignored certain genres that are very popular in Europe. Thanks to the Internet, genres like Trance, Techno, Euro-house, etc. are getting widespread exposure in North America, no thanks to domestic radio. If you like one of these genres, you are forced to turn off your radio and turn on your mp3 player.

For as long as I've been on this planet, the record and radio industries have used each other and have controlled what music we can hear over the airwaves. That control is now gone. The record industry has had to regroup and rethink its business strategy. It first blamed music downloads for a loss of business, but what was really happening is the audience stopped being consumers because the product they wanted to buy wasn't being released by the labels.

How long will it take for the radio industry in our country to stop playing down-tempo guitar based pop rock? Who says its the only format that the audience will listen to? The radio audience is deserting local radio because the stations are not playing what the audience wants.
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Postby skyvalleyradio » Tue Jan 09, 2007 1:33 pm

Raverocks - if the record industry (aka -the RIAA) & royalty societies in the US get their way, the fees for small, hobby "micro-broadcasters" such as myself will be so outrageous, it will be unaffordable and literally thousands of Internet broadcasters will go off the air - the very same stations that are presenting niche formats such as techno, trance, downtempo, acid-jazz, blues, roots music etc. For whatever reason, the industry feels more threatened by us micro-broadcasters - often programming to a hardcore audience of 100 - 200 listeners than they do the streams of conventional broadcasters and the 'professional' Internet-only stations. Many of the artists that are played on these stations are of the "do-it-yourself" variety which, of course, bypasses the RIAA labels & the "Big machinery" of the music industry. These artists press their own CDs with attractive packaging and sell through personal websites. There is a vast amount of hi-quality material by these artists for the most part. In a typical week, I and other Internet broadcasters, are often contacted by 1/2 dozen of these artists and groups and my mailbox rarely has less than a dozen CDs per week from these musicians. A bit of it is total shit, but the majority of these albums have some great material on them. Internet micro-broadcasters DO play an important part in exposing unheard music and fringe formats that just aren't profitable for conventional broadcasters to present
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Postby jon » Tue Jan 09, 2007 4:51 pm

Maybe, but these Internet-based stations could just move their hosting to other countries where there are no royalties to be paid. Like Canada. ...for now, but that is almost guaranteed to change in Canada, perhaps retroactively as it occurred in the U.S.

I would think that there will always be some countries that do not require royalties be paid.
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Postby skyvalleyradio » Tue Jan 09, 2007 8:32 pm

jonedmonton wrote: Maybe, but these Internet-based stations could just move their hosting to other countries where there are no royalties to be paid. Like Canada. ...for now, but that is almost guaranteed to change in Canada, perhaps retroactively as it occurred in the U.S.

I would think that there will always be some countries that do not require royalties be paid.

Jon - that is exactly what I and many other Internet "micro-broadcasters" will do. I'm not about to give up all the hard work, promotion and efforts I've put into my 'retirement' from radio just to get shut down by the greed of the recording industry. Some of us have even suggested to our providers, such as Live 365 that they start shopping for a new parking place for their servers. I don't mind paying my fair share for royalties and music licensing but refuse to be bullied for trying to serve a VERY SMALL niche audience on a non-profit, non-revenue basis.
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