Music Matters US Blog http://whymusicmatters.com en Copyright 2015 2015-06-10T18:47:56+00:00 AppleMusic? The more, the merrier. http://whymusicmatters.com/blog/entry/applemusic-the-more-the-merrier http://whymusicmatters.com/blog/entry/applemusic-the-more-the-merrier Apple’s entrance into the subscription streaming market made a predictable splash.  It’s telling that Apple continues to pour significant time and energy into music.  It confirms once again that music is a dynamic space worth investing in.  As we have said often, music “punches up” and drives the online conversation far more than the relative economic size of the business. 

For some context, the paid subscription market has grown quickly both in the United States and globally.  According to our data, revenues from paid subscriptions in the United States alone were up 26% to just shy of $800 million in 2014.  The number of paid subscriptions also grew 25%, reaching 7.7 million for the year.  And that’s just part of an even larger global trend.  According to IFPI, about 41 million people subscribed to paid services worldwide in 2014, up from just 8 million in 2010.  The growth is encouraging, but here’s the key part:  it only captures a small part of the overall market of music listeners.  Ninety seven million people watch or listen to music on YouTube and Vevo in the United States (source: MusicWatch, Inc.).  Twenty seven million subscribe to SiriusXM.  Forty million subscribe to Netflix.  There’s a huge appetite for music and engaging entertainment, delivered by sleek and consumer-friendly platforms.  The potential is there, so it’s incumbent on everyone to make sure there’s a fair playing field so services like these can continue to grow.

That’s partly why we don’t subscribe (no pun intended) to the narrative of any new service being a “[insert streaming company name here] killer.”  There’s a healthy market for many services and lots of competition!   We can expect lots of innovation in the streaming marketplace as digital services compete for subscribers. Nor will it be one size fits all.  The record labels have been progressive in embracing a variety of models, so that consumers can have music when, where and how they want it.  Our revenue numbers reflect that diversification: there’s now a healthy mix of revenues of about 1/3 each for streaming, downloads, and physical products.

It’s also worth noting that healthy competition and a vibrant marketplace where various services angle to attract listeners is a good thing for both fans and the music business.  More digital services spending more of their energy and time thinking about expanding the music pie and attracting more paying subscribers is a win-win for labels, artists and songwriters.  It’s gratifying to see the news coverage enumerate all the licensed options for music fans.

Apple Music?  The more, the merrier. 

Jonathan Lamy and Josh Friedlander
RIAA

]]> 2015-06-10T18:47:56+00:00 A Chat With Multi-Platinum Singer/Songwriter, Label Exec & Grammy Winner NE-YO http://whymusicmatters.com/blog/entry/a-chat-with-a-man-of-many-hats-multi-platinum-singer-songwriter-label-exec http://whymusicmatters.com/blog/entry/a-chat-with-a-man-of-many-hats-multi-platinum-singer-songwriter-label-exec Upon a recent visit to Washington, D.C., multi-Platinum, Grammy-award winning artist NE-YO and RIAA Chairman & CEO Cary Sherman sat down to chat about a range of issues, including NE-YO’s storied music career, writing hits for Beyonce, Kanye West, Rihanna and others and his role as Senior Vice President of Artist and Repertoire (A&R) for Motown Records, among other topics.


“I just want to be one of the last great storytellers,” said NE-YO when describing his music career. “The greatest compliment I’ve ever been given – I’ve had people walk up on me and say, ‘Me and my wife’s first dance was to one of your songs,’ or ‘I was going through a really tough time with a breakup and your song helped me get through it.’ This is why I do what I do.”


As SVP of A&R for Motown Records, NE-YO is responsible for discovering new talent and bringing talent to the label. Asked by Sherman what he looks for in an artist he signs, NE-YO responded, “For me, it’s always about passion…if there’s no passion behind [your music], it becomes very ‘for the moment.’ And nothing ‘for the moment’ is ever worth it…”


“And you can definitely see it on a person. If there was no money, if there was no fame and fortune, he would still be somewhere with a guitar in his hand – that’s the guy I’m trying to sign.”


In his conversation with Sherman, NE-YO touted the benefits of being signed to a record label. “The label is support,” said NE-YO. “When you want [your music] to move a little further than just your block or your city, that costs money. It’s not a cheap thing. It’s not an easy thing. From a standpoint of distribution, from the standpoint of marketing and promotion, there’s a million things that you can do yourself, but when you need that extra long arm to get you even further, that’s where the label comes in.”


Check out more of their conversation here: http://www.youtube.com/watch?v=Gad95nm0ZYA&feature=youtu.be


A triple threat singer, songwriter, and actor, NE-YO’s hit “Let Me Love You (Until You Learn To Love Yourself)” was certified RIAA Platinum in 2013. Three of NE-YO’s albums -- 2006’s “In My Own Words,” 2007’s “Because of You,” 2008’s “Year of the Gentleman” – have gone RIAA Platinum and produced several popular hits, including “Miss Independent,” “Sexy Love,” “Because of You,” “Mad” and “Closer.” NE-YO has also appeared in several films including Stomp The Yard, Save the Last Dance, Red Tails, and Battle: Los Angeles and written music for films such as The Princess and the Frog, Precious: Based on the Novel ‘Push’ by Sapphire and I Can Do Bad All by Myself.

]]> 2014-02-26T14:52:14+00:00 Music Remains http://whymusicmatters.com/blog/entry/music-remains http://whymusicmatters.com/blog/entry/music-remains [As posted to riaa.com's blog on 2.18.14.]

“What’s the one thing that never gets old? Listen how the story unfolds…”

RIAA's sister trade org in London, IFPI, recently launched a new Rube Goldberg-inspired video featuring talented MC Pepstar that takes the viewer on a creative tour through the history of recorded music in 90 seconds. Filmed at the iconic Abbey Road Studios, the video tells the story of the staying power of music: while technology has changed – and continues to change – one thing that forever remains is the music. It’s an entertaining and inspirational video that’s sure to impress. Check it out here: www.musicremains.org.

]]> 2014-02-18T22:14:00+00:00 A LITTLE TUNE UP GOES A LONG WAY http://whymusicmatters.com/blog/entry/a-little-tune-up-goes-a-long-way1 http://whymusicmatters.com/blog/entry/a-little-tune-up-goes-a-long-way1 With the recent launch of new streaming service Beats Music (and its new addition to this site), we thought it a timely opportunity to highlight all the great streaming services in the marketplace today. Want background music as you work out? Or maybe as you work? Want to pick and choose the songs you listen to on your phone while running errands? Want to connect and share your musical experience and tastes with friends, family or followers (our colleague has more to say about that particular point here)?  There are services to fit every need and preference.  Don’t be afraid to hop on the streaming bandwagon – it’s easier than you think. Check out these authorized services here.

To take it a step even further, if you like streaming and you’re curious about some of 2013’s best (and highest certified) music, check out RIAA’s 2013 year-end Gold & Platinum recap here (the G&P Program now counts on-demand streams as part of its song tallies). Maybe add the year’s top digital songs to your playlist (if they’re not already there) or download the highest-certified albums. It’s all there waiting for you – what are you waiting for?
 

]]> 2014-02-10T17:44:14+00:00 Musicians Driving Social Media: A Fresh Look http://whymusicmatters.com/blog/entry/musicians-driving-social-media-a-fresh-look http://whymusicmatters.com/blog/entry/musicians-driving-social-media-a-fresh-look As Posted on RIAA.com Blog; November 05, 2013

Those who follow @RIAA on Twitter, read RIAA's blog or have caught RIAA's Chairman & CEO Cary Sherman presenting at a campus or forum near you  know we often discuss examples of how music is a centrifugal force of commerce and culture.

One way to view and consider just how much music is driving culture and innovation today?  Look no further than top social networking and entertainment sites Twitter, YouTube and Facebook.  You’ll find that 7/10 most followed on Twitter are musicians, 9/10 most watched videos ever on YouTube are professional music videos and that 9/10 most “Liked” celebrity accounts on Facebook are those of musicians. Take a look:

]]> 2013-11-06T15:16:38+00:00 An Open Letter To IT Executives: Don’t Block The Rock http://whymusicmatters.com/blog/entry/an-open-letter-to-it-executives-dont-block-the-rock http://whymusicmatters.com/blog/entry/an-open-letter-to-it-executives-dont-block-the-rock Academic studies are showing that music is a great way to keep employees focused and productive in the face of rapidly changing workplace environments.  In today’s workplace, with open office plans, telecommuting, and other distractions abounding, it’s a good thing that help is already widely available. But at the same time this information is coming to light, nearly half of IT administrators are blocking, throttling or banning access to legitimate music streaming services like Spotify, Vevo and Pandora on employee computers and mobile devices. It doesn’t add up, and we believe it’s time for business leaders to rethink their current IT policies: don’t block the rock.    

The research supporting music in the workplace is strong. For example, a study released by the Society for Education, Music, and Psychology Research that was cited in the New York Times (p. 173) found that “positive affect and quality-of-work were lowest with no music, while time-on-task was longest when music was removed” for 56 software developers. It goes on to say: “When music evokes a pleasant mood and an increased arousal state, participants perform better on nonmusical tasks. Thus, there is support for an increase in creative problem solving and task performance by workers…”

Similarly, a study by VisionCritical among 1,000 U.K. businesses found that in certain industries, music in the workplace helped boost sales: “Eighty-one percent of retailers believed music boosted staff morale, while 84 percent of owners in the hospitality business said the same. Without music, 25 percent of retailers and 33 percent of hospitality companies would actually lose business, according to these respondents.” See here and here.

We know there are legitimate concerns about the legality of some sources of digital music, but the music business has transformed itself over the past decade.  Ten years ago, there were few authorized digital music services, and the overwhelming majority of online music originated from illegal services often rife with spyware or viruses.  Today, the legitimate music marketplace is teeming with digital services that are safe, secure and hassle-free.  

To make it easy for people to determine what sites were legal, NARM and the RIAA joined together last year to launch this whymusicmatters.com website, an authoritative online guide to the leading music services in the United States. Here you can learn that there are now more than 60 legitimate U.S. music services (and 500+ worldwide) offering the gamut in terms of different models – free/ad-supported subscriptions like Spotify, on-demand subscriptions like Rhapsody, download-to-own like iTunes, Internet radio like iHeartRadio and Pandora, cable and satellite radio like SiriusXM. 

Popular and authorized music services today aren’t clogging network resources either.  The bandwidth consumed by an individual to stream music from a service such as Spotify (on average <32MB/hour downstream), or Pandora (approximately 28MB/hour downstream) is a fraction of that consumed by other business uses such as a standard video Skype session (>100MB/hour downstream and >100MB/hour upstream).

Of course, there are still illegal sites out there, and that’s why we wholeheartedly encourage administrators to remain vigilant about bandwidth hogging file-sharing sites rife with malware and configured with settings that can expose a company’s top secrets to the world.

But the technological landscape keeps changing, and we encourage business IT leaders to review applicable policies and bring them in line with the times: music can be a powerful, positive tool in the workplace. With resources like this whymusicmatters.com site to guide you, it’s easy to offer lots of options to your team for places to go. It’s time to unblock the rock and welcome music back to the office.

By Jim Donio, President, NARM and Cary Sherman, Chairman & CEO, RIAA

August 12, 2013

]]> 2013-08-12T14:07:12+00:00 Why MusiCares and Why Music Matters http://whymusicmatters.com/blog/entry/musicares-and-why-music-matters http://whymusicmatters.com/blog/entry/musicares-and-why-music-matters In February, Bruce Springsteen was honored by MusiCares as its Person of the Year at a ceremony in Los Angeles. There, other great artists – like Alabama Shakes, Elton John, Faith Hill, Juanes, John Legend, Mumford & Sons, Neil Young and more – performed tributes to Springsteen, while The Boss himself gave a speech about the importance of music.

“We [musicians] want to be great.  We want to be great and important in your life… because you keep us in search of the force that reignites our gifts, our ability to make you want to move, to dance, to love, to make love, to be angry, to act,” he continued before performing for the packed house there to honor him.

Springsteen’s words are a reminder of how much music matters to fans who cherish it and to artists who cherish their fans.  This symbiotic, significant relationship between artists and their fans has withstood the test of time and continues to be at music’s core.  One way that fans can recognize artists for making the music that we love and want to listen to again and again? By choosing legitimate and authorized music services online that compensate them.

That’s one important reason why we developed whymusicmatters.com.  We know that people are enjoying more music online than ever before. According to the NPD Group, 90 percent of Internet users are also active music listeners.  And since you’re reading this, we bet that you like music too.

That’s why we want fans to know about the many legitimate digital music services online today. When you choose from whymusicmatters.com/find-music options, you know that each service listed is authorized and that artists, music labels and the many other individuals involved in the music chain are being compensated.

We can also appreciate that with so many choices for getting music online also come questions about the functionality offered.  This site aims to help answer those questions by categorizing services by functionality (here) such as Music Downloads/MP3s (7digital, Amazon MP3, eMusic, iTunes, Music Hub, more), On-Demand Streaming (MOG, rara, Rdio, Rhapsody, Slacker, Spotify, Turntable.fm, more), Cloud (Google Play, iCloud, Xbox Music Pass, more), Music Videos (Hulu, MTV.com, VEVO, YouTube, more), Ringtones (Cricket, Motime, Muve Music, Sprint, T-Mobile, more), and CDs/Vinyl (Ariama, CD Universe, Hastings, Insound, more).  Additionally, each of the 60 plus authorized services has an informational description page.  See Spotify’s page, by one way of example.

We’ve also included a Statutory Services page for Internet, satellite, and cable radio services like Pandora, Last.fm, Sirius XM, and more that operate under a statutory license.

Think of whymusicmatters.com as a one-stop shopping guide for choosing where to access, listen to, and buy music online.  Like The Boss said, music is made for the fans! Get out there and enjoy it!

]]> 2013-03-04T14:18:25+00:00 Digital Music: How Far We’ve Come http://whymusicmatters.com/blog/entry/digital-music-how-far-weve-come http://whymusicmatters.com/blog/entry/digital-music-how-far-weve-come The last 10 years have been among the most exciting, if challenging, periods for making music.  The depth and breadth of new ways fans can access their favorite music have multiplied to levels inconceivable not that long ago.  The effect has been that music has become an integral and more and more easily accessible part of everyday life.  To put it simply: digital music is ubiquitous in culture and commerce, and we celebrate that.  One metric?  According to NPD Group research, 90% of Internet users are active music listeners.  All that is welcome, but even we would admit that so many options can also prompt so many questions.  So we wanted to create a place where everyone can get reliable information about the many services now available, and choose the ones that best fit their needs.

Perhaps nowhere is the adoption of digital music into the everyday more evident that in the growth of digital music sales.  In 2011, there were more than 2 billion digital songs purchased online.  That’s more than 6 per person for every single person in the United States!  Digital downloads alone made up 37% of the value of U.S. music shipments.  And the numbers continue to grow.  In 2011, 45 million people purchased songs through music download services, with their average spend growing to $49 per year (research here).

But music access isn’t just growing based on sales numbers.  More and more people are accessing music in ways that let them listen as much as they want without paying for songs and albums individually.  Last year, new music subscription services launched in the U.S., providing access to a library of millions of songs that can be listened to for free, or accessed anywhere/anytime for a flat monthly rate.  Today subscription services already have millions of users.  Internet radio services have also gained incredible reach, with more than 50 million active listeners in the United States.  In fact, according to NPD Group research (see here), digital radio listening is the fastest growing format, growing to 43% of Internet users in 2011.

The takeaway is that however fans want to connect with their favorite music and artists, there are more options available to them than ever.  And based on the seemingly endless flow of news and advancements in existing services, the levels of access are only getting greater.  We hope this website will be useful for everyone, from those looking to buy music online for the first time, to the most die-hard music fanatics looking for the next big thing.

For more information about the announcement of this new website, please see the news release from RIAA and NARM here.

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