The State of the Music Industry

We recently found out that SoundScan had the lowest numbers in history! SoundScan, for those of you who don't know, was created by Nielsen Media in order to track the number of record sales. This is how the Billboard Charts gathers the statistics they use to create their famous music charts. It is also how record labels keep track of the records they are pushing. You may be asking yourself how does this affect the artists, the fans and the record labels.

The way the record industry works has changed drastically since the Digital Music era took over in the late 90's. Before the Digital era, people were forced to buy music, and people would listen to the radio or watch MTV to find about new artists. People would also go to a record store to buy some music. You would also give music to others through music vouchers. And going to a concert was always a big deal. What happened to all of this?

When Compact Disc technology was introduced in the 80's it was seen as a huge step up, since it meant that more data could be stored in a smaller device. The technology also gave the user the power to browse through the tracks of a CD in a quick and efficient manner. This was all very positive until the technology got ahead of itself and all of a sudden you could burn your own CD's. Exchanging music is a great way to find new artists, and many of us would create mix tapes for our friends in order to teach team about new artists. The problem with CD burning is that people started abusing the technology, specially once the file sharing websites like Napster became the way most people got their music. In other words, the need to purchase music or to listen to the radio or watch MTV, became irrelevant.

Around the end of the 90's the record industry saw a big decline in sales, but were still able to keep record sales at a decent level. Mainly because the generation of the 90's was used to buying music and going to concerts. So even though free music was available, people were still investing money in the music industry. Then it all went downhill at the turn of the century with the introduction of MP3 players, since it became very easy to store a lot of music in a small device. At that time the record industry took a Mike Tyson punch to the stomach and hasn't been able to recover.


You may be wondering what happened to Tower Records, Virgin Megastore and all the big record stores that helped the music industry prevail for so long. They all had to close down because people were not buying music. Before Virgin Megastore closed in Union Square here in New York City, you would see people wandering the store, looking at music and rarely would you see people buying records. Part of it has to do with the economic crisis, the other part has to do with file sharing, but the key factor is that record prices had to go up in order for the music industry to stay afloat. So what now?

The record labels are on a bind because if people don't support the artists they need to push, then the record sales are low and they have no money to break new bands. This is why record labels nowadays have to compromise when signing new talent. Roadrunner Records for example has been signing established acts such as Kenny Wayne Shepherd and The Steve Miller Band in order to prevail. As we all know Roadrunner Records had a huge influence on the Heavy Music scene in the 90's and signed bands such as Slipknot, Fear Factory, Sepultura and Machine Head. While they would like to sign new bands, the market place is closing the doors to new bands. Why?

Thanks to the Digital era it became too easy to create a record with Pro Tools and to distribute it to the world through websites like My Space. As a result, there are way too many mediocre bands and people are getting used to it. This is sad because people are not caring about the quality of the music as much as they should. So when a new record comes out, people have either heard it already thanks to the internet or they simply shut it off since they expect another mediocre record. So why won't mainstream radio and TV stations help the music industry like they did in the 90's? Well, since there is no demand from the public for new artists, they can't afford to play new artists. What can be done?

It is imperative for people to become more aware of the consequences that getting music for free has and not attending concerts have on the entire music industry. The artists who are looking for a break need to apply the old school philosophy of getting on the road and playing anywhere they can, specially when labels are looking for a band that will bring in revenue from the get go. The fans need to buy music and merchandise, and also attend concerts. Otherwise, the big labels will have to shut down and the concert tickets will get more expensive since there will be less bands around. And with the economic crisis in effect, then the labels will have to drop bands or simply shut down. It is a domino effect and it is killing the music industry. And really hurting the underground Heavy Music scene.

Related links:
Billboard Charts