"Taking 1999 as my starting point — the year both Napster and Google took off — I plumbed as many data sources as I could to answer this one question: How is today’s creative class faring compared with its predecessor a decade and a half ago? The answer isn’t simple, and the data provides ammunition for conflicting points of view. It turns out that Ulrich was incontrovertibly correct on one point: Napster did pose a grave threat to the economic value that consumers placed on recorded music. And yet the creative apocalypse he warned of has failed to arrive. Writers, performers, directors and even musicians report their economic fortunes to be similar to those of their counterparts 15 years ago, and in many cases they have improved. Against all odds, the voices of the artists seem to be louder than ever."
For instance:
"According to the O.E.S., songwriters and music directors saw their average income rise by nearly 60 percent since 1999. The census version of the story, which includes self-employed musicians, is less stellar: In 2012, musical groups and artists reported only 25 percent more in revenue than they did in 2002, which is basically treading water when you factor in inflation. And yet collectively, the figures seem to suggest that music, the creative field that has been most threatened by technological change, has become more profitable in the post-Napster era — not for the music industry, of course, but for musicians themselves. Somehow the turbulence of the last 15 years seems to have created an economy in which more people than ever are writing and performing songs for a living."
How can this be?
"Part of the answer is that the decline in recorded-music revenue has been accompanied by an increase in revenues from live music. In 1999, when Britney Spears ruled the airwaves, the music business took in around $10 billion in live-music revenue internationally; in 2014, live music generated almost $30 billion in revenue, according to data assembled from multiple sources by the live-music service Songkick. Starting in the early 1980s, average ticket prices for concerts closely followed the rise in overall consumer prices until the mid-1990s, when ticket prices suddenly took off: From 1997 to 2012, average ticket prices rose 150 percent, while consumer prices grew less than 100 percent. It’s elemental economics: As one good — recorded music — becomes ubiquitous, its price plummets, while another good that is by definition scarce (seeing a musician play a live performance) grows in value. Moreover, as file-sharing and iTunes and Spotify have driven down the price of music, they have also made it far easier to envelop your life with a kind of permanent soundtrack, all of which drives awareness of the musicians and encourages fans to check them out in concert. Recorded music, then, becomes a kind of marketing expense for the main event of live shows."
(...)
"It’s true that most of that live-music revenue is captured by superstar acts like Taylor Swift or the Rolling Stones. In 1982, the musical 1-percenters took in only 26 percent of the total revenues generated by live music; in 2003, they captured 56 percent of the market, with the top 5 percent of musicians capturing almost 90 percent of live revenues. But this winner-takes-all trend seems to have preceded the digital revolution; most 1-percenters achieved their gains in the ’80s and early ’90s, as the concert business matured into a promotional machine oriented around marquee world tours. In the post-Napster era, there seems to have been a swing back in a more egalitarian direction. According to one source, the top 100 tours of 2000 captured 90 percent of all revenue, while today the top 100 capture only 43 percent."
"Of the big four creative industries (music, television, movies and books), music turns out to be the business that has seen the most conspicuous turmoil: None of the other three has seen anywhere near the cratering of recorded-music revenues. The O.E.S. numbers show that writers and actors each saw their income increase by about 50 percent, well above the national average. According to the Association of American Publishers, total revenues in the fiction and nonfiction book industry were up 17 percent from 2008 to 2014, following the introduction of the Kindle in late 2007. Global television revenues have been projected to grow by 24 percent from 2012 to 2017. For actors and directors and screenwriters, the explosion of long-form television narratives has created a huge number of job opportunities. (Economic Modeling Specialists International reports that the number of self-employed actors has grown by 45 percent since 2001.) If you were a television actor looking for work on a multiseason drama or comedy in 2001, there were only a handful of potential employers: the big four networks and HBO and Showtime. Today there are Netflix, Amazon, AMC, Syfy, FX and many others."
"This would be even more troubling if independent bookstores — traditional champions of the literary novel and thoughtful nonfiction — were on life support. But contrary to all expectations, these stores have been thriving. After hitting a low in 2007, decimated not only by the Internet but also by the rise of big-box chains like Borders and Barnes & Noble, indie bookstores have been growing at a steady clip, with their number up 35 percent (from 1,651 in 2009 to 2,227 in 2015); by many reports, 2014 was their most financially successful year in recent memory. Indie bookstores account for only about 10 percent of overall book sales, but they have a vastly disproportionate impact on the sale of the creative midlist books that are so vital to the health of the culture."
And why is the culture sector still alive and kicking, despite ubiquitous piracy?
"At the same time, there are now more ways to buy creative work, thanks to the proliferation of content-delivery platforms. Practically every device consumers own is tempting them at all hours with new films or songs or shows to purchase. Virtually no one boughtanything on their computer just 20 years ago; the idea of using a phone to buy and read a 700-page book about a blind girl in occupied France would have sounded like a joke even 10 years ago. But today, our phones sell us every form of media imaginable; our TVs charge us for video-on-demand products; our car stereos urge us to sign up for SiriusXM."
"And just as there are more avenues for consumers to pay for creative work, there are more ways to be compensated for making that work. Think of that signature flourish of 2000s-era television artistry: the exquisitely curated (and usually obscure) song that signals the transition from final shot to the rolling credits. Having a track featured during the credits of ‘‘Girls’’ or ‘‘Breaking Bad’’ or ‘‘True Blood’’ can be worth hundreds of thousands of dollars to a songwriter. (Before that point, the idea of licensing a popular song for the credits of a television series was almost unheard-of.) Video-game budgets pay for actors, composers, writers and song licenses. "
(...)
"The biggest change of all, perhaps, is the ease with which art can be made and distributed. The cost of consuming culture may have declined, though not as much as we feared. But the cost of producing it has dropped far more drastically. "
(...)
"It has never been easier to start making money from creative work, for your passion to undertake that critical leap from pure hobby to part-time income source. Write a novel or record an album, and you can get it online and available for purchase right away, without persuading an editor or an A&R executive that your work is commercially viable. From the consumer’s perspective, blurring the boundaries has an obvious benefit: It widens the pool of potential talent. But it also has an important social merit. Widening the pool means that more people are earning income by doing what they love."
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