Abstract

The music industry is one of the most dynamic and fascinating business sectors today. Its business model has had to adapt and react to changing technologies that have impacted at every level from distribution to artist management. The Economics of Music provides a concise and rigorous presentation of the economics of the music business. It highlights the economic principles that govern a business that is an economic good protected by copyright law. The core sectors of the industry – publishing, recording, live music – are examined and how they operate together through a myriad of licencing arrangements. The revenue streams for recording companies are analysed alongside the income stream of musicians to show how particular formats and platforms affect profit margins and how live performance now outstrips music sales as the primary source of income for today’s artists. The book shows how a combination of established publishers (Universal, Sony/ATV, Warner/Chappell), new promoters (LiveNation) and a new generation of music providers (Apple, Google, Amazon) has created a heady mix of competing and collaborative economic models. Add to this a growing DIY culture among musicians and the ever-changing behaviour of consumers and, as the author shows, we have one of the most challenging economic landscapes but one nevertheless capable of generating huge returns.