Thinking Out Loud: Music Industry Revenue Potential
Pretend that the graph above represents the breakdown of all page-views by source. For example, social networking generates 32% of all page views in the graph above.
Given all of the sources of page-views above, what percent of page-views would you attribute to page-views that are generated from activity connected to the music industry?
Here’s a short list of music-connected content that generates page-views:
- any activity connected to recorded music, including file sharing
- any activity connected to music videos
- any activity connected to lyrics
- any activity connected to images that are connected to music
- any social activity connected to anything connected to music
- email and instant messages connected to music
- anything connected to celebrities connected to music
- any activity connected to live music
- any activity connected to industry news
I think one could argue that the music industry is responsible for generating somewhere between 10% and 20% of all of the page-views (annually and globally).
And, 20% of the $50B+ (and growing rapidly), annual, online, global advertising spend is $10B.
It seems that artists and the companies that serve artists should be undertaking strategies that enable rightsholders to capture as much of this $10B in revenue as possible.
$10B split 50/50 with publishers/aggregators and then divided between the top 10,000 artists is $500,000 per artist (annual).
The music industry is not deriving enough revenue from all this activity and that has to change. We will never capture it all, but we do a lame job at capturing any of it now.
Artists / Rightsholders – control your brand; make sure you have a website; drive traffic to your own URL; and maintain control of, and syndicate out (for a fee), your “stuff” whenever possible.
More on this later...