The music industry continues to progress and evolve explosively. Can it possibly be restrained? We hope not…
$2.9 billion (USD) was what international live music performance booking agency Live Nation reported as income earned through concerts, sponsorship and advertising, and ticketing for the past year as of the financial quarter ending on June 30, 2018. Live Nation president Michael Rapino said, “We have built the industry’s most scalable and unparalleled live platform, bringing over 550 million fans in 40 countries to live events each year. With our key metrics in concerts, sponsorship and ticketing all pacing ahead of last year, we are confident that in 2018 we will again deliver double-digit operating income and AOI growth for the company.”
£9.99 is the standard cost among European Nation members for a monthly subscription to Amazon’s Prime streaming music service, which primarily gets accessed and played via the Amazon Alexa portable speaker. Company executives say that this small price is resulting in the promotion of new music artists. Paul Firth, director of Amazon Music, says, “The change we are seeing now is the impact voice is having on the way people are listening. It’s bringing a whole different type of customer into music streaming.” The company is especially proud of how its Alexa speakers are helping to introduce new UK music artists to the world.
$100 million (USD) is how much money Bruno Mars has grossed in the last year. His world tour alone has brought in a gross of over $300 million since it began in 2017. What’s so important about these figures? They’ve all been attained without the use of a manager. Mars, like other music artists, has eschewed hiring a manager who would take a cut of his earnings, and has become self-managed. But a lot of music artists insist that the services rendered by a good music manager are worth their weight in gold, and help the artist make a lot more money than it otherwise would. Mark Gillespie, who earned $48 million last year as the manager of Calvin Harris, says, “It depends on whether you see it as giving up ten to twenty percent or whether you see it as somebody that you’re going to bring into your organization that’ll add more than 20% worth of value to your business.”
$33.3 billion (USD) is what Spotify’s market cap worth is as of this writing. At the same time, reports are that Netflix missed earnings expectations for the fiscal quarter ending June 0th by $9.1 billion. Given that Spotify and Netflix aren’t exactly rivals (at least, not to any significant extent), what’s the salient point here? Well, the point is that if Netflix isn’t “too big to fail” in the eyes of investors, then neither is Spotify, which has already seen a significant drop in stock price in the first half of the fiscal year. Spotify is seen as being as disruptive to the music industry as Netflix has been to the TV/home movie industry. Like Netflix, the music streaming service provider needs to maintain its cutting-edge disruptiveness or lose profits.
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