The Hook: What big changes do you see for the music industry in 2012

05 January 2012

by Lars Brandle

Matthew Capper
Managing Director, Warner/Chappell Music Australia
Aside from the further consolidation of the industry following the acquisition of EMI’s business units – which, strangely enough, I have no comment on at this time, except for a somewhat official: “No comment” – it’s beginning to feel like we might see some meaningful action by ISPs on a response to digital piracy in the near future. If I may lay down my worn and trusty shield of cynicism for a moment, and allow a brief stab of hope, it’s ultimately possible that there will be a return to profitability in the recorded music sphere, and as a flow-on, a dramatic increase in long-term investment in a greater number of artists’ careers. But of course, I’m not so foolish as to expect this to happen overnight. First off in 2012, we’ll have to suffer through the inevitable attempts of the industry to market 20 Adele clones. And, just like everyone else, Warner/Chappell is looking forward to signing at least one of those clones shortly.

Tina Smith-Roberts
CEO, Nightlife Music
We are starting to see more legitimate music services available to the consumer. This is only going to increase through 2012 particularly as the Australian market opens up to some of the new subscription services like Spotify, Songl, JB Hi Fi and Rdio launching locally. We welcome the legitimate services as they compete directly with the illegitimate content users and it’s something that we have been doing for some time in a public performance context in the hospitality, leisure and retail industries. Nightlife is revolutionising the DJ booth by providing licensed and encrypted content that can be tracked and reported on. We already have over 100 venues subscribed. So in 2012 – no more laptops using illegal content. What this means is that if a song gets played in a nightclub then people will get paid. All of this places greater and, arguably, more reasonable pressure on everyone to be more transparent in their accountability of money flow.

Denis Handlin AM
Chairman & CEO Australia and New Zealand, President Asia, Sony Music Entertainment
These are exciting times and we are likely to see more change in the next two years than we have seen in the last ten. The recent changes in marketing will see a continuing shift to online channels and more creative ways to connect with consumers on their turf. Industry growth is achievable with a solution for minimising unauthorised downloads and the content and ISP industry discussions regarding piracy controls need to produce a fair scheme in the very near future. This is significant as it is the key to increasing investment in local artists and employment. Pleasingly, it appears the market will see the entry of a number of new legitimate retail download and subscription services, which can only improve the choices for consumers and make the overall industry stronger.

Chris Johnson
Manager, AMRAP
The proliferation of new music streaming services will change and challenge the music industry in 2012. Spotify, Rdio, JB Hi-Fi Now and some label-specific services will all seek to attract subscribers and revenue whilst generating convenient and competitive alternatives to illegal file sharing. From 2012, it will become even more important for all traditional music media to distinguish themselves from these services, ideally by supporting more local content and new music. But speculation that streaming services will hail the death of radio in 2012 is akin to the claim that no nightclubs would use DJs because all punters would be satisfied with a jukebox. Streaming services will supplement the way people discover music but cannot be compared to a collection of music curated and presented by a trusted broadcaster. 2012 may be the year when speculation around music listening habits intensify and play out.