All posts tagged michael-jackson

  • The Music Network story: “For The Record: An Album Retrospective Part 3”, August 2009

    In the third piece of a five-part puzzle, Andrew McMillen examines the digitally-inspired shift in consumer habits away from the long-established album format. This week, Andrew ruminates on the death of a pop icon, worldwide grief counselling through iTunes’ figurative cash register, and recent digital sales trends.

    One of the joys of writing on a short schedule is the agility with which weekly publications such as The Music Network can relate to current occurrences. After tracing the history of recorded music in the last two weeks – from technological advances, to the reduced reliance on singular album entities in favour of a more liquid, portable state – a significant event in musical history occurred. Thursday, June 25 2009 found Michael Jackson dead, aged 50.

    The grieving process translated into an outpouring of public reminiscence, which resulted in astounding sales figures for Jackson’s back catalogue. According to Billboard.com, US sales figures put the singer’s album sales for the week ending June 28 at 422,000, of which 225,000 were digital sales. A staggering 2.3 million individual song downloads found Jackson far and away the first act to sell more than a million downloads in a week. Within Australian shores, the disparity between albums and singles was curiously less noticeable: Jackson’s album and single sales were placed at 62,015 and 107,821, respectively, according to Undercover.com.au, while in another strange, archaic turn, only one out of every five Michael Jackson albums sold in Australia last week were digitally downloaded.

    Goodnight, sweet princeRegardless, Jackson’s enormous sales in the US simply couldn’t have eventuated ten years ago. Record stores inventories would’ve been exhausted across the country, and compact disc factories would’ve rushed to press more discs to meet the demand. Both of these outcomes still eventuated, but instead of experiencing weeks-long delays, music consumers have the option of instant online gratification: his 2.3 million download count resulted in six Jackson tracks appearing in the Billboard top ten.

    The Jackson phenomenon highlights several points central to the discussion raised in this column series. First, consumer choices are trending away from the album as the favoured mechanism of music release. Choice is key here: it’s easier to choose to part with around a dollar for a song that you’ll love, rather than parting with $15-20 for an unfamiliar collection. If money is no object to the consumer, then time surely is: as industry analyst Bob Lefsetz phrased it in his July 5th, 2009 Lefsetz.com column, “Who’s got the time to listen to an hour of music that you’re not truly interested in when there are all these other diversions that fascinate you?”

    Second, the popularity of digital music sales continues to snowball the trend away from the album as the industry’s singular organising principle. The modern music consumer can now purchase music from her home, without being subject to an array external factors while travelling to the record store. This operates in a similar manner to the ease with which she can cherry-pick her favourite songs from an online store, and ignore the rest, A simple point to make, but it’s worth reinforcing that digital distribution is the spark that set alight the consumer’s reliance on the album.

    Finally, a startling counter to the arguments that copyright theft is the primary factor crippling record labels’ established business models. In the period between Jackson’s June 25 death and July 1, streaming media analysts at VisibleMeasures.com report that combined views of the “Thriller” music video totalled in excess of 28 million. Considering that his aggregate single-song sales during the same period were 2.3 million – and just 167,000 for that particular track – it’s somewhat surprising that less than 10% of his fans chose to buy his music, and instead opted to stream it for free. But to step back within the boundaries of this discussion, let’s discount Jackson’s untimely demise and instead examine recent digital sales trends.

    The International Federation of the Phonographic Industry (IFPI) – comprising 1400 record companies in around 70 countries – released their annual Digital Music Report in January 2009. This report quickly became infamous within the recording industry, as media hurled themselves upon the IFPI’s estimation that, after collating studies in 16 countries over a three-year period, over 40 billion music files were illegally file-shared in 2008, which resulted in copyright theft rate of around 95%.

    But to focus on the near-past so as to not bore you with figures, here’s five key points garnered from the IFPI’s report on the international digital music business in 2008:

    • The digital music industry saw a sixth year of expansion in 2008, growing by an estimated 25% to US$3.7 billion in trade value
    • Digital platforms now account for around 20% of recorded music sales, up from 15% in 2007
    • Single track downloads, up 24% in 2008 to 1.4 billion units globally, continue to drive the online market, while digital album sales grew 36%
    • Consumer demand for music is higher than ever – NPD research found that total music consumption in the US rose by one third between 2003 and 2007

    The typical music listener, as imagined by marketing execs everywhereAt a national level, ARIA’s 2008 figures revealed that:

    • Physical sales declined from 51,866,917 to 44,438,874 (down 14%)
    • Digital sales overall rose from 47,267,034 to 128,532,126 (up 171%)
    • Digital album sales rose from 788,316 to 2,853,040 (up 261%)
    • Digital track sales rose from 17,647,057 to 23,464,576 (up 32%)

    It’s important to distinguish the disparity between album and track sales. While digital album sales experienced growth in Australia, they were still outsold nearly ten-to-one by single digital tracks. Why? In an era of musical abundance and complete portability, the consumer is spoiled for choice. We live in an age where you can experience “Thriller” for around a dollar, with a minimum of fuss – or you can stream it from YouTube, if you’d prefer. Freed from the constraints of physical products, we’re able to sample sounds before purchasing so as to reduce the rampant buyer’s remorse that we both feel while casting our eyes across our music collections.

    The record industry marketplace has fundamentally changed for content creators and consumers. To pound a cliché into your head: the internet has theoretically afforded any artist the chance reach your iPod earbuds. The barriers to entering the recording industry have been lowered, and the costs of bedroom production and online distribution are trending toward zero. As a result, it’s unreasonable for artists and labels to continue propagating an album-release business model that’s so firmly rooted in the past.

    But what about the present? I’m glad you asked, as part four of this five-piece puzzle will find me removing my hats marked “boring history” and “boring sales figures”. In their place, I’ll hatlessly hammer the thoughts that current musicians feel toward my incessant prodding of the album; that alleged, proverbial dead horse. Expect well-articulated rock-posturing, before part five finds us exploding in an orgy of alternative release models, innovative case studies and an unerring optimism for a recording industry who’ll eventually realise that as music fans, all we really want is our favourite artists to release great music as often as possible.

    Brisbane-based Andrew McMillen writes for several Australian music publications. He can be found on Twitter (@NiteShok) and online at http://andrewmcmillen.com/

    (Note: This is part three of an article series that first appeared in weekly Australian music industry magazine The Music Network issue #746, July 13th 2009. Read the rest of the series: part onepart two, part four, and part five)