Music is all around us, all the time – as we shop in a store, eat in a restaurant – or work off those calories in a spin class. In this episode of Musonomics, Prof. Larry Miller from the NYU Music Business Program explores the evolution and licensing issues of background and foreground music used in businesses, from the birth of Muzak in the wartime factory — and then we shift into overdrive with Soul Cycle’s rawk gawd Sean Linehan on how he sculpts the playlists for each of his sold out spin classes.
For millions of us, artificial Intelligence got real when we added smart speakers to our homes. Our AI assistants are standing by, ready to play music, turn on the news, start the oven, or see who’s at the front door. But as they make life easier, they’re also creating new challenges for the music and entertainment industries. And then there’s the matter of security…just how smart do we want our AI devices to be?
Amazon, Google, and Apple are all now competing to be the smart speaker in our homes — and cars. As their underlying voice assistants become more integrated in our homes, the entertainment industry must rethink how to reach these consumers. How will Alexa, Google Home or Siri travel beyond our households and into the connected car? In this episode of Musonomics, we’ll hear from industry reporter Cherie Hue and Larry Rosin of Edison Research.
Digital music services continue to drive recovery of the music industry after a long period of decline, and the AM/FM music radio business is starting to feel it. Young people born after Millennials don’t use radio the same as previous generations. Can commercial AM/FM radio compete with pure play digital music services? Russ Crupnick of MusicWatch and Steve Goldstein of Amplifi Media join us to discuss what’s happening to radio listenership, and how radio needs to respond to the threat posed by unlimited, commercial-free music.
The way radio pays for music it uses may have acted as a kind of an economic disincentive for radio to invest in its own digital future. AM/FM radio broadcasters in the US pay a tiny amount, about 4% of revenues, to songwriters and music publishers, but American AM/FM stations are exempted from paying anything to the artists who performed the music or their record companies. This exemption doesn’t apply to digitally delivered radio streams, like SiriusXM or Pandora, or even the digital streams of AM/FM radio broadcasters.
Edison Research’s “Share of Ear” report shows that AM/FM radio is responsible for over half of all time spent listening to music in the U.S. among listeners 18 and older. Radio believes the power of its strong, local brands will insulate it from digital competition. However, this may not be the case in the car as the dashboard reconfigures around connectivity with advanced digital services. The car is currently the number one location for listening to radio, and automotive is the number one revenue category for radio. The connected car and its multiple audio offerings may be the greatest threat to AM/FM radio broadcasting, with 75% of new cars expected to be connected by 2020. Listen to this episode of Musonomics as we dive into the uncertain future of radio.
It’s not a secret that live music has kept many artists afloat as the recorded industry has cratered. But fifty percent of last year’s top 100 grossing acts are over 50 years old. Mick Jagger is 73 years old. So what will happen to the live music industry when they’re no longer around? On this episode of Musonomics we’re talking about the future of the live music industry and rock’s demographic crisis. Neil Shah, a staff reporter at The Wall Street Journal, is wondering whether the next generation of artists will be able to command the same ticket prices and bring the same revenue to fill the hole that would exist when Mick Jagger no longer sings “Satisfaction” at sold out stadiums. And if they do — are they gonna be able to do it for the next thirty years?
Music festivals are a big source of income – especially this time of year. Over 32 million people attend music festivals in the US every year. This year’s Coachella sold out in only three hours after the lineup was announced in January. Over the last ten years, concert promoters have been buying stakes in music festivals. Live Nation recently became the majority shareholder in Bonnaroo and the Isle of Wight and is now producing over 60 festivals. AEG Presents, the world’s second largest music promoter, is producing 18, including Coachella the highest grossing music festival. Neil Shah says the promoters are looking to take stakes in a business that will increasingly provide a bigger share of live music revenues.
But it’s not all sunshine. 2016’s Bonnaroo was the least attended in that festival’s 15 year history. And both Tomorrowland and Wakarusa cancelled their festivals last year. This – paired with a lot of lineup overlaps – has raised the question whether we have in fact reached what’s been called peak music festival. Cherie Hu writes about music and technology in Forbes. She thinks characterization of the current scene as “peak festival” is an oversimplification. To get to the bottom of the claim that festivals have a lot of lineup overlaps, she analysed the data from nine upcoming festivals. Hear what she found out in this episode of Musonomics.
China has the largest population in the world and an economy that keeps growing at a steady pace. But China’s music industry is still the size of small European countries like Austria and Sweden. Why is that? On this episode of Musonomics we take a look at the Chinese music market, so full of potential and changing more in the last five years than in the last 50. We’ll address how decades of piracy have shaped consumer behavior; discuss the major players when it comes to Chinese streaming services and project what will happen in the next few years.
You’ll hear from Ed Peto, the music executive who moved to China to build a bridge between the Chinese music market and the western music industry. Ten years later he’s running Outdustry and helped launch the selling record ever — Adele’s 25 — in the Chinese market.
You’ll also hear from Billy Koh, the Simon Cowell of China with a long view of the Chinese music industry. Billy is a popular judge on the TV talent shows and also the founder and CEO of the hit-making record labels Ocean Butterflies and Amusic Rights Management.
We know you probably don’t buy CDs anymore, and that you’re not reading the lyrics from the CD case insert. That doesn’t mean you don’t feel the need to look up the lyrics from time to time, right? Especially those fast-paced rap songs, they can be really tricky to figure out by just listening. But when you go online to do that, have you ever thought about whether these lyrics sites have the right to publish those lyrics and make money off of the ads on the site? Probably not.
On this episode of Musonomics we talk about lyrics licensing and how the changes in the music industry are affecting the hardworking people who wrote those lyrics – the songwriters.
You’ll hear from Darryl Ballantyne, CEO and founder of LyricFind. It’s a company that up to date has licenses with over 4,000 music publishers, to try and make sure that the songwriters and right holders are compensated for their work when the lyrics end up online. How did he come up with the idea to start licensing lyrics and how did the music publishers react?
In the end, the people losing out on unlicensed lyrics being published online are the songwriters, so we also talk to Phil Galdston, whose songs have sold 70 million copies worldwide. What’s his take on the songwriters’ struggle to be able to sustain themselves by just writing songs in the digital era? And if you want to hear a longer version of the interview with Phil Galdston, you can find it here.
It’s OK. We know you probably don’t use Tidal’s $20 per month highest fidelity music streaming service.
Or hey, maybe you do, but the fact of the matter is most people don’t spend their hard-earned money on luxury streaming services. But level with us here— even though you might not be subscribed to a high-fidelity streaming service, are you really satisfied with your earbuds?
On this episode of Musonomics, we investigate whether there’s enough room for a profitable niche market supporting multiple competitors in the high-resolution music market.
We’ll talk to MQA CEO Mike Jbara, 7 Digital deputy CEO Pete Downton, and HDTracks CEO David Chesky to see what the future of high quality streaming could become. Is there a real future for these high-quality music streaming services, and, if so, what does that future look like? Let’s find out. As always, you can listen to the new episode above iTunes, or stream it on Soundcloud or YouTube.
In our latest episode of Musonomics: why are more and more music industry insiders looking to Blockchain technology as a solution to the metadata problem? What really is the Blockchain? And why is it so important? These are just some of the questions host Larry Miller of NYU Steinhardt, and co-host Carmen Cuesta Roca will unpack.
To get you started, we’ve covered the Blockchain on our blog before. Here’s a good Blockchain explainer, and here’s another entry on its significance.
The episode features PledgeMusic founder Benji Rogers, who is evangelizing a comprehensive database of music metadata on the Blockchain. He’s also written on the topic, which you can access here. Singer-songwriter Imogen Heap sheds light on the potential for accurate and intricate metadata. And Bill Rosenblatt of Giant Steps Media Technology Strategies explains that industry-wide standards are key to the metadata problem, but the complexity of the music industry and its vast number of stakeholders will make those standards difficult to achieve.
No music startup has generated an operating profit in 20 years. Not Pandora, not Spotify.
The largest cost and greatest obstacle for music-streaming services like these is the the cost of the music they play, while prioritizing growth over profitability. Spotify pays out 70-80% of its revenue to rights holders for its on-demand service, and Pandora about 50% of its revenue for the radio-like service it currently offers.
But music startups all across the board are struggling. More than half of 2013’s most promising music startups no longer exist.
Why are music startups struggling to thrive, or even simply survive?
Cortney Harding, a digital music consultant, discusses the recent slowdown in the music startup space. Edward Ginis and Brady Brim-DeForest, share of the bootstrapping approach that’s worked for OpenPlay. David Pakman of Venrock explains why his firm has never invested in a digital media company, while Jon Vanhala, formerly of Universal Music and now at Crossfade Partners, offers insight into who can be blamed for the fact that music startups are finding it so hard to make money. But it’s not all bad news. Music isn’t going away, it’s an essential aspect of the human experience. Our episode concludes with Michael Dorf, who tapped into the value of the live music experience and his own love of wine. Michael is generating more profit than he ever did in the digital music business while operating and growing his City Winery locations across the country.
Hot on the tail of this year’s Record Store Day, we’re taking a fresh look at an old medium — vinyl records. About this time last year, we did our first show on the state of physical music retailing, and we concentrated on vinyl. We took a look at how Record Store Day helped revive a segment of the music industry and saved local record stores — but there’s more to the vinyl story than the retail effect.
In this episode of Musonomics, we look further up the vinyl production line to see how the format is maturing, and what’s still holding it back. Josh Friedlander, the RIAA’s data guy, talks about the continued growth of vinyl records. Billy Fields, the vinyl guy at Warner Music Group, chats with us about whether vinyl might be heading for a plateau. And Eric Astor of Furnace takes us into the factory and through the vinyl manufacturing process, from finished audio to a pristine, pressed record.