Music's lost decade: Sales cut in half

[KiwiCoromandel]

If you watched the Grammy Awards Sunday night, it would appear all is well in the recording industry. But at the end of last year, the music business was worth half of what it was ten years ago and the decline doesn't look like it will be slowing anytime soon.

Total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009, according to Forrester Research. In 1999, that revenue figure topped $14.6 billion.

read more

source: CNNMoney.com

<object width="384" height="356" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" id="ep"><param name="allowfullscreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="wmode" value="transparent" /><param name="movie" value="http://i.cdn.turner.com/money/.element/apps/cvp/4.0/swf/cnn_money_384x216_embed.swf?context=embed&videoId=/video/news/2009/12/23/n_cmr_napster_10yrs.cnnmoney" /><param name="bgcolor" value="#000000" /><embed src="http://i.cdn.turner.com/money/.element/apps/cvp/4.0/swf/cnn_money_384x216_embed.swf?context=embed&videoId=/video/news/2009/12/23/n_cmr_napster_10yrs.cnnmoney" type="application/x-shockwave-flash" bgcolor="#000000" allowfullscreen="true" allowscriptaccess="always" width="384" wmode="transparent" height="356"></embed></object>

image: Fair Use/CNN Money/Screengrab: THE DISEASE OF FREE...The battle for paying digital customers may have been lost before it had truly begun. In 1999, Napster, a free online file-sharing service, made its debut. Not only did Napster help change the way most people got music, it also lowered the price point from $14 for a CD to free.

"The digital music business has been a war of attrition that nobody seems to be winning," said David Goldberg, the former head of Yahoo music. "The CD is still disappearing, and nothing is replacing it in entirety as a revenue generator."

[method77]

The rest of the money is in the artist's pocket. They don't need the labels and managers anymore. They can cry all they want

[DudeAsInCool]

Managers are often still part of the equation and useful in guiding an entertainment act's career. Agents still get involved if there are big tours. But yes, the labels are no longer a necessity - more often than not, they never made any money from the label anyway.