[by Mark Frieser] The MIDEM music confab was held last week in Cannes…and a series of posts from there on the mobile music side of the conference.
While the takeaway from day one of MIDEMNET was that digital marketing, distribution and development is becoming an important area of growth and revenue in the business, day two concentrated on the promise and practical revenue streams from mobile. These revenue streams, while growing by 500%-1000% on a per label basis from 2004-2005, still represent a very small part of the music business’ total revenue. Using Eric Nicoli’s numbers from his keynote, we can make the following general assumption. Ninety-four percent of EMI’s total business is physical, and six percent digital. Of the six percent representing digital, 40% is derived from ringtone sales, which means that 2.4% of EMI’s total revenue is derived from mobile.
Of course, this is just a rough guide, as there are other products that make up part of the total revenue pie from mobile, and the figure will differ from label to label, but it does give a realistic indication of where the money in the music business actually is versus where we all hope it is going to come from in the future. Six percent of the business from digital, whether or not it is growing, is not making up for the industry seven percent year on year loss just yetâ
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