2010 - Peak Free Music - $7B: Over 10 years, revenue halved thanks to Napster, Limewire, and other web apps that made musical theft insanely easy.2000 - Peak CD - $14.3B: When cars were racing to hold more CDs in their XX disc-changer stereo, musicians made $14.3B selling their music in the US.The industry was popping platinum bottles in the year 2000, aka "Peak CD." Warner just took a DNA test and it turns out: it just made its highest quarterly revenue in 16 years. Market, monetize, manage: According to Warner's S-1, it makes 86% of its revenues by managing the careers of Lizzo, Metallica, Ed Sheeran, and Madonna and other stars.Negotiate with streamers: The labels ensure musicians get paid for each stream on Apple Music, Pandora, and Spotify.Pick winners: Besides Macklemore rap/bragging about doing it solo, there aren't many musicians who found fame without being signed by a record label.Sign artists: Kind of like VCs or European soccer clubs, music labels spot talent early, convince them to sign, then try to make them big stars.Here's what Warner Music does for a living: The first two are owned by much bigger conglomerates ( Vivendi and Sony), but the last one just filed to become a publicly traded stock. The music biz is dominated by 3 labels: Universal Music, Sony Music, and Warner Music. Perfect for an industry that loves making up words ( supercalifragilisticexpialidocious, for example). "Three-opoly" is our favorite made-up word. Warner Music files to IPO - it could become the top "music" stock
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