Site icon Stefan Georgi

Donā€™t be Paul Bunyan with his axe

Remember when Napster was supposed to kill the music industry?šŸŽ¼

Some of you on my list might be too youngā€¦

But most of you know what Iā€™m talking about.

It wasnā€™t that long ago that digital music was seen as this insanely disruptive technology and also a big threat.šŸ‘€

For me, as a kid, I remember using Napster, Limewire, Kazaam, and other P2P file-sharing services to download all kinds of songs.

In fact, I was actually one of the people kicked off Napster for downloading Metallica ā€“ and Iā€™ll never forget trying to open it and seeing that I was banned (I was ~12 at the time).šŸ¤˜

In some respects, those days felt like the wild westā€¦

But the biggest thing I remember was all of the news stories about how this would end the music industry forever.

If artists and labels couldnā€™t make money off their record sales, what motivation would they have to continue creating?!?

ā€‹ā€‹That was their main lineā€¦

And for a time, it kind of looked like some of these doom-laden prophecies may come trueā€¦

As global recorded music revenue dropped from $25.2 BN in 1999 to $14.2BN in 2014.

But then, something interesting happenedā€¦

The revenue numbers started rising again.

In 2019 the global revenue for recorded music was back up to $21.5BNā€¦

And last year, the revenue hit $23.1BN.

So, what ā€œsavedā€ the music industry?

A huge part of it is streaming music revenue, of which $14.2BN was paid out to artists and labels last yearā€¦

But another big part was the $8 BN generated by independent labels and artists.

Thatā€™s WAY more than ā€œIndiesā€ used to make back in the dayā€¦

And it's only been made possible by technology and the proliferation of content distribution platforms. ā€‹ā€‹

Plus, none of this even takes into account multiple other revenue factors like touring, merchandise, and sponsored content/promotions.

Thatā€™s the biggest thing, actually ā€“ most artists make way more money touring than from their recordingsā€¦

And today, those who amass large social media followings have all kinds of opportunities for sponsorships and collaborations too.

So all of this is to say that, SURPRISE! Technology didnā€™t kill the radio star.

Actually, it brought way more economic opportunities to many more artistsā€¦

And this is why I have a pretty low tolerance for protectionist policies in general.

The fact that some New York City taxi drivers started killing themselves once Uber was allowed in the city is tragicā€¦

But if Iā€™m being completely honest, I found it hard not to be irritated that this was their response.

Come f*#(ing on.

Nobody is entitled to a monopolyā€¦

If you own a product or a mode of distribution, and it gets disruptedā€¦

Guess what?

You better figure out how to 1) make your product better, 2) innovate around your distribution, or 3) both.

Otherwise, itā€™s on you.

Same thing with AI and Copywriting.

Weā€™re not really that close to a flippeningā€¦

But when it happens, itā€™ll be fine.

Standing around like Paul Bunyan with his axe is stupidā€¦

If a new steam-powered copy machine comes into the pictureā€¦

The smartest move would be learning how to operate and then leverage it right away.

Ā 

ā€“ SPG

P.S. This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link

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