Money, Music and Piracy
- Total U.S. music sales 1999-2008: 1999 - $14.584.5; 2000 - $14.323.0; 2001 - $13.740.9; 2002 - $12.614.2; 2003 - $11.854.4; 2004 - $12.345.0; 2005 - $12.296.9; 2006 - $11.758.2; 2007 - $10.372.1; 2008 -
$8.480.2. The figures above (in millions) indicate the sound recording industry based on sales numbers for both physical and digital media at suggested list prices.
Overall, global music sales in the first half of 2009 were down by 12% (physical and digital sales).
- Live music/concert ticket sales 2006-2011: 1) North America: 2006 - $7.3bn; 2007 - $7.9bn; 2008 - $8.5bn; 2009 - $9.1bn; 2010 - $9.7bn; 2011 - $10.3bn; 2) Worldwide: 2006 - $16.6bn; 2007 - $18.1bn; 2008
- $19.4bn; 2009 - $20.8bn; 2010 - $22.2bn; 2011 - $23.5bn.
Digital sales globally now account for around 20% of recorded music sales, up from 5% in 2007: 2007 ~ $15bn; 1010 ~ 20bn.
Most downloaded songs of all time (iTunes): 1) I Gotta Feeling - Black Eyed Peas; 2) Poker Face - Lady Gaga; 3) Boom Boom Pow - Black Eyed Peas; 4) I'm Yours - Jason Mraz; 5) Viva la Vida - Coldplay; 6) Just
Dance - Lady Gaga & Colby O'Donie; 7) Low - Flo Rida (featuring T-Pain); 8) Love Story - Taylor Swift; 9) Bleeding Love - Leona Lewis; 10) Tik Tok - Ke$ha.
Digital revenue streams by industry: games - 35%; music - 20%; newspapers - 4%; films - 4%; magazines - 1%.
- Where does the money go? CD sales breakdown. Based on a $15.99 album: marketing/promotion - $2.40; label profit - $1.70; label overhead - $2.91; retail overhead - $3.89; artists' royalties - $1.60; distribution -
$0.90; retail profit - $0.80; publishing royalties - $0.82; packaging/manufacturing - $0.80; musicians' union - $0.17.
- How much do music stars get paid for a show. Cost to hire for show, average cut for artist: Foo Fighters - $200k, $18.7k; Alicia Keys - $150k-$200k, $16.3k; Alanis Morissette - $125-150k, $12.8k; Katy Perry -
$100-150k, $12.8k; Beck - $100k+, $9.3k; Snoop Dogg - $75k, $7k; Ke$ha - $50k-$70k, $5.6k; Snow Patrol - $40k-$50k, $4.2k; Stereophonics - $15k, $1.4k; Vanilla Ice - $10k-$15k, $1.1k.
back up dancer $12 an hour average (up to $1.000 per day for big video shoots). All figures approximate - hiring costs vary massively depending on individual contract and size of venue. Artist earnings based on industry
- Who's getting paid what: distributors - 63%; record label - 24%; band - 13% (lead guitar - 18%, singer - 18%, drummer - 18%, bassist - 18%); personal manager - 15%; business manager - 5%; lawyer - 5%;
producer - 3%.
The music industry has increased its digital revenues by 940% since 1004 but suffered an overall global market decline of around 30% in the same period. The IFpI (International Federation of the Phonographic Industry)
claim piracy is a huge factor.
- Countries on the U.S, priority watch list for piracy: China; Russia; Algeria; Argentina; Canada; Chile; India; Indonesia; Thailand; Pakistan; Venezuela.
- Cost to U.S. economy: loss of U.S. jobs - 71.060; U.S. loss of worker earnings - $2.7bn; loss of U.S. tax revenue - $422m.
In less than two years the RIAA (Recording Industry Association Of America) has sent copyright infringement notices to 1.8 million Internet subscribers and 269.609 to colleges and universities in the U.S.
- Cost to global economy: global revenue (2009) - $35.4bn (recorded music only); global economic losses - $12.5bn annually.
- Comparison to movie piracy: U.S. film revenue - $108bn; estimated loss of U.S. revenue due to piracy - $20bn.
Industry employees: 500.000. Average studio film budget: $100m.
(This results in approximately 181 films a year not being made).
According to the latest l.E.K study, 80% of U.S. losses resulted from piracy overseas, 20% domestically.
The film industry estimates illegal film streams and downloads account for 40% of its piracy problem by volume (MPAA).
MPAA: Motion Picture Association of America.
21% of Internet users in Europe admit to regularly sharing illegal music (with a high of 32% in Spain). In the U.S. this figure is around 36% (Harris Interactive Survey).
- Worldwide, IFPI famously claimed that 95% of all digital music had been illegally downloaded.
Sources: RIAA, IFPI, BBC, intotheunknown.co.uk, andrewapeterson.com, minorityfortune.com, businessweek.com, grabstats.com, apple.com, safeconcerts.com, prettypolly.com.