Music Profits Climb for First Time Since 1999
That's right! The New York Times just reported that music sales rose for the first time last year in 12 years. 12 YEARS! It's a tiny shift (+0.3%), but we'll take it!
Ready for the real kicker? Sony and the gang are saying that we have digital music sales to thank for the bump in profits. In particular, robust sales of digital albums on iTunes and subscription services like Spotify and Muve. Digital sales accounted for 34% of the music biz's take home profits in 2012: more than any other media format.
"At the beginning of the digital revolution it was common to say that digital was killing music," said Edgar Berger, CEO of Sony's international division. Now, he said, "digital is saving music."
You don't say? Too bad it took 12 years for them to warm up to the idea that we're not all pirates. (Argh...)
"If there is a lesson to take away, it is probably that the earlier you can embrace new business models and services, the better," said Paul Brindley with Music Ally, a consulting firm in London. "Whether this is signaling a turnaround that will lead to inexorable growth, who knows? But it does at least signal a bottoming out, with room for growth."