In the world of music, other moneymaking counterparts now
accompany the digital download. The music business can now look forward to
online subscriptions, and digital performance royalties based on the “Likes” of Pandora and Sirius XM as additional revenue streams. As technology continues become more accessible
and portable, the music industry will continue to have more opportunities to
gain revenue digitally by way of these counterparts. According to the RIAA, digital and synchronization revenue in the U.S. recorded music business has increased 0.2% in 2011. This provides a balance from the void left by the decline of physical music revenue.
These figures show a huge decline in Music Video revenue by 11.6%. This figure is important because it raises questions to the source of sales and revenue from this area. I would assume it is from digital downloads via Amazon, iTunes, or other purchasing sources. I would like to know if music video revenues generated from Vevo and YouTube are calculated in this equation, but it is not indicated.
My interest is peaked by the 38% decline in the area of Mobile sales and distribution. The figures in that area are calculated in the categories of master ringtones, ring-backs, music videos, and full length downloads. This significant decline can only be explained by the massive increase of ringtone making apps that elude ringtone purchase by allow users to edit songs they already to create their own ringtones free of charge. As mentioned above, Vevo & YouTube allow users to view music videos at their own will that only requires internet service and availability. Full length downloads have most likely went down due to the plethora of streaming options such as Spotify, Rhapsody and Pandora.
As technology progresses, the distribution of revenue will continue to fluctuate in the music business. Digital Performance Royalties and Synchronization Royalties have streamed a new source of revenue in the music world by adapting to the digital changes in society.
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