This week I want to focus on how CD sales (and lack thereof) affect artist income. There are a few points to make here, the first of which is that playing music professionally is rarely a steady or significant income. While there are some arguable ideas mentioned in this open letter from a mid-level metalcore band, the principle of a minimal income in this industry still exists. I worked at a small artist management firm last summer, and was surprised when I looked at some financial records at how low net income from tours was for relatively successful bands. The fact is that costs are very high and artists rely on whatever revenue streams they can get.
Second, let’s evaluate the general drop in CD sales. I could write forever about this topic (and many have), but let it suffice that they are in fact dropping steadily. This CNN article discusses the drop in CD sales, and regardless of how big a factor piracy is in this drop (digital song sales are another major cause), 20-30% is a scary decrease. Another indicator is Billboard’s popular Top 200 list. Breaking into the top 200 CD sales in a given week is no longer a noteworthy feat, as artists with only a couple thousand sales routinely appear on the prestigious measure. Bands in niche genres with no mainstream exposure are even seen in the top 50 relatively often.
Finally, how are artists affected by CD sales? While they may be biased and have certainly made some pointless moves in their fight against illegal downloading, the Recording Industry Association of America (RIAA) has an entire page devoted to piracy’s negative effects on the music industry. A slightly more fair assessment, based on U.S. Bureau of Labor Statistics employment data and music sales numbers, shows that the two are strongly correlated, indicating unsurprisingly that higher music sales result in a higher number of professional musicians. Just as in any industry, higher demand for a product means more room for producers, as discussed in this Buzzgrinder article.
So what’s the conclusion here? After playing in independent bands myself and having many friends in them as well as researching this topic, I believe that every little bit helps. Next week we’ll look at some of the ethical issues behind illegal downloading. In couple weeks, keep an eye open for interview questions from individuals with different perspective in the music industry.
