Tales of financial woe are commonplace for nearly every major industry today, and the music business is no exception (aside from its oft-rumored impending death ever since home taping began.) However, just how accurate are assertions that the CD is dead and record labels are quickly becoming extinct?Fanatic Promotion partner Sean Boyd, interviewed on the Fox News Network debunked many of the current myths about the music industry (watch HERE). “All of the press coverage is unfairly presenting the point of view of the major label companies,” Boyd suggests in a written statement. “Further, they are obfuscating the real issue by saying the industry is dying and that music sales will cease to be part of the equation and that songs will simply become adjunct content for other entertainment media as well as advertising. This is not the case at all.”
In the Fox Business interview segment, Boyd elaborates how the industry is changing. “Over the last 10 years, the amount of recordings sold has increased even though revenue is going down,” Boyd explains. “The reason for that is we’re paying less for music -- 99-cents per song on iTunes and AC/DC is selling for $8.99 at Wal Mart, 3 million copies. Basically we’re paying less for music but selling more.”
What is the music industry doing to survive?
“Lawsuits. They’re suing [illegal file-sharing sites] and that’s the main income for most of those large companies because they can’t adjust to the new retail price quickly enough to remain profitable. So, [the major labels’] biggest revenue stream is coming from suing people who are giving music away.” While the Recording Industry Association of America recently announced plans to abandon its practices of suing individuals for illegal file-sharing, the major labels’ lobbying group has instead enlisted the aid of Internet Service Providers in tracking and prosecuting violators.
“The industry is strong and will be here long after the majors are dead, and we will all still buy music,” Boyd says. “The story we are not getting is that there are more units sold than any other time in history.” Meanwhile, tales of the music business collapse overlook the rapidly strengthening new paradigm for the industry.”It’s all about newer companies coming out with lower expenses,” Boyd says.
While Fanatic has already positioned itself as one of the pioneers in a new breed of promotion companies, its latest venture, Fanatic Records (LINK) launches soon and will take advantage of the knowledge that Boyd exemplifies in the Fox piece. The record label branch adds all-inclusive recording at its own state-of-the-art studio, as well as album production, marketing and distribution to its comprehensive and innovative means of developing its artists.
More about Sean Boyd:
Sean Boyd has had success in managing business in a diverse array of industries. His first venture was Reasonable Resources, a firm specializing in supplying office supplies manufactured from post-consumer recycled materials. To offset the additional expense of products with recycled content, Reasonable Resources had its own in-house graphic design team. By taking advantage of the advent of desktop publishing technology, artwork for collateral was created at a lower price than clients were familiar with so the overall cost to the consumer was the same as buying products manufactured from non-recycled materials. His next venture was Grove Restaurant in Greenwich Village. Serving as many as 300 customers per day and well received by the New York press, the restaurant had revenues of over a million and a half dollars per year. For the past 10 years, Boyd has been the owner and in-house producer of Artfarm Recording (LINK), a state-of-the-art recording facility in upstate New York that includes housing for bands. Joining Fanatic Promotion in 2006, Boyd was instrumental in bringing efficiency to the data systems, financial management and human resource management of a company already successful in the promotion realm.
More about Fanatic Promotion, Inc.
Fanatic Promotion, Inc. began in the summer of 1997 with a passion for building connections. Now, working in the areas of radio promotion and press relations, it is an organization of a dozen “Fanatics” with the connections to channel those passions. As the name implies, Fanatic is made up of an innovative collective of music enthusiasts who have learned to work within the increasingly consolidated major label system while still utilizing their contacts within the already existing and thriving independent scene. Fanatic believes that artists should have the right to grow their careers in an intelligent and strategic manner that suits their particular style, market and technical expertise. Fanatic enables artists and record labels to navigate the industry, develop a buzz, and properly distribute their products by offering an array of proven marketing techniques.
Known for nearly a decade of marketing and promoting expertise, Fanatic has proven itself time and time again as a loyal and successful promotions partner for breaking new artists. The list of artists that Fanatic has represented is not only impressive, but makes up much of its collective record collection. Throughout the years, Fanatic has created a strong reputation among tastemakers in all of the key media markets. This has created a focused and effective outlet for artists to develop the fan base and tools necessary to succeed. With an extensive contact list, experience in the field, and a unique ability to cross-market and cross-promote their projects, Fanatic can expose both new and established artists. Fanatic’s combination of underground and commercial media contacts, together with its long-term industry relationships creates a way for clients to develop the concentrated campaigns which they feel their artists deserve.
Further Reading:
Music Industry To Abandon Mass Suits:
http://online.wsj.com/article/SB122966038836021137.html
AT&T First To Test RIAA Antipiracy Plan:
http://news.cnet.com/8301-1023_3-10203799-93.html
The Orchard Reports Fourth Quarter and Full Year 2008 Financial Results:
www.marketwatch.com/news/story/orchard-reports-fourth-quarter-full/story.aspx?guid=%7B1CFF2DED-52FB-455A-BC64-CB5DF4188801%7D&dist=msr_3
Downloading Increases While CD Sales Decline:
www.pollstar.com/blogs/news/archive/2009/03/18/655077.aspx
AT&T Learns From Mom In Fighting File Sharing:
http://bits.blogs.nytimes.com/2009/03/26/att-learns-from-mom-in-fighting-file-sharing
Subscribe To Fanatic:
www.fanaticpromotion.com
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