If the U.S. Recorded Music industry made $17.1 Billion, then why all the layoffs?
The difference between what they receive in gross sales and what it cost them to run the business. For example, If it costs them 17.2 billion to run the company that earns 17.1 billion was there any positive net earnings? Doesn’t mean this is the case for them, but that could be the issue.
Great break down Rob. Always follow the money, that's where the answers are. Semi related but when you mentioned the artists' take it reminded me of some of the large-scale catalog transax during the same 2021+ timeframe. Future got some gwop too !!!! Bruce Springsteen: Sold his entire catalog to Sony Music Group in late 2021 for an estimated $550 million (buyer undisclosed due to estimate). Bob Dylan: Sold his catalog of 600+ songs, including classics like "Knockin' on Heaven's Door" to Universal Music Group in 2020 (exact price undisclosed). Sting: Sold his catalog featuring hits like "Every Breath You Take" to Universal Music Group in 2022 (price undisclosed). David Bowie: David Bowie's estate sold the worldwide rights to his music catalog from 1968 (including "Space Oddity") to Warner Music Group in 2021 (price undisclosed). Katy Perry: Sold her entire catalog to Concord Music Group in September 2023 for a record-breaking $225 million for a female artist. Neil Diamond: Universal Music Publishing Group acquired Neil Diamond's entire catalog, including unreleased tracks, in January 2022 (price undisclosed, but estimated in the nine figures). Paul Simon: Sold his songwriting rights to Sony in 2021 for a reported $250 million (buyer and price based on reports). Stevie Nicks: Sold an 80% stake in her music to Primary Wave in late 2020 for a reported $100 million. Justin Timberlake: Sold his entire song catalog to Hipgnosis Songs in May 2022 for $100 million. Jason Aldean: Sold 90% of his catalog to Spirit Music Group in February 2022 for $100 million.
@RobMarkman everyone laid off is eligible for a $layoff airdrop. Have them reach out
100%. This is what happens when companies go public. They have to appease shareholders and it all comes down to profits and expansion. Sometimes you have to take a step back when things are doing well to prepare for what’s next. This is the way businesses attempt to maintain market share. For better or for worse.
@RobMarkman probably 15 ppl that split 80% of net proceeds like any corporation
@RobMarkman I get it but literally every major industry is facing a good amount of layoffs. Or “eliminating positions”. Every one is tightening belts for the election this year and the world affairs being so wacky. Plus AI’s effect. It’s gonna be real interesting.
@RobMarkman Streaming is capping out! It’s all about rebuilding and E-commerce! Fans want a deeper connect with & to the artists! Vinyl & physical sales are up 500 percent.. Fandom is taking over. Direct 2 Fan is gonna take over. Labels are gonna focus on that.