Industry Analysis & Industry Trends
Revenue in the Global Music Production and Distribution industry fell over the five years to 2013 because many of the industry's largest companies have failed to leverage a crop of potential new revenue streams to compensate for the extreme drop in physical album sales over the past five years. Unfortunately, over the five years to 2018, industry revenue is expected to continue contracting, and music companies' performance over the next five years hinges on their ability to embrace new technology... read more
Starting a New Business
Barriers preventing new entrants into the industry have been falling rapidly since low-cost digital recording, online music retailing and streaming of songs became commonplace and widely accepted. What is unusual about this industry is that so many are making the effort to enter an industry that is clearly in decline.
Irrespective of the rationale behind entering a failing industry, small firms are propping up industry establishment growth. Excluding India – whose music industry is closely tied to the booming film industry – establishment numbers worldwide fell 2.4% per year between 2008 and 2013, as opposed to average annual falls in revenue of around 4.5%. This drop is due to a surge in small companies that lack the multiple offices of EMI or Warner, for example... read more