Promoting recording artists of power and distinction since 2003.
Last week A2IM (American Association of Independent Music) celebrated its 5th anniversary which coincided with Indie Week. The function featured a series of breakout discussions, guest speakers and networking opportunities. It was an action-packed week and Motema staffers attended a number of events including Think Tank, Licensing Day, Tech Day and more.
A highlight of the week was hearing about how the entertainment marketplace differs in Europe compared to the US. Europe has made strides in passing legislation to support artist rights and royalty revenues. Most notably the DEA (Digital Economy Act) was passed in the UK on June 12th, and sets in place provisions to protect against piracy, infringement as well as regulations on copyright, tv, radio and more. Read about the DEA in greater detail.
In addition France has set in place government funding in support of the music sector, and has also proposed a Google tax to raise money for creative industries.
What’s clear is that the industry is changing every day, and Europe is taking the lead in actively pushing legislation to stay afloat with the new market and consumer. Methods to generate revenue for artists remains a major issue, as music sales continue to drop. Music sales in 2010 equated to 4.9 million for the whole market as opposed to one individual artist a few years ago.
There are differing strengths and weaknesses in the European and US marketplace. The US has stronger CD sales with a 4 to 1 purchase ratio, however the US lacks legislation protecting performance rights, and royalty collection. In Europe, Producer rights generate $1.2 billion euros/year, equating to %30 of the bottom line.
It is clear that the US needs to fall in line with Europe and implement legislation to protect the rights of musicians, producers and labels. Implementing such provisions will provide warranted revenue to the entertainment industry, in a time where music purchasing continues to dwindle.
Tom Silverman the CEO of Tommy Boy Records spoke on the changing industry in the past year, explaining how radio sales, music downloads and iPod sales are dropping while streaming is exploding. Music videos are at an all time viewing high, however they do not generate revenue. The changing marketplace: in 2009 only 12 albums broke the million sales mark, versus 52 albums in 2000.
During breakout sessions the value of social media was discussed as a powerful tool to connect with customers and fans, and provide exposure for artists. Social media is also changing an artists interaction level with fans. Artists are taking on more promotional responsibilities, however the authenticity of this interaction cannot be overlooked. While artists continue to diversify and seek more opportunities the goal from inception remains the same: gain exposure.
For more information on A2IM visit www.a2im.org
written by Gillian Driscoll