HITS #1: Sales/SPS Updates

[BadMan125]

^ IMHO, the album charts are not that much affected by streaming since sales were low pre-streaming. I think in terms of album sales, it's been quite neutral. This is why sales have dropped significantly but not by big margins. The singles charts on the other hand might be a little affected since sometimes a song can get on the chart solely on video plays on YouTube (which has more of an effect on the U.S. charts than Spotify does).

For example, the lowest albums that went #1 on Soundscan/Billboard: Cake's Showroom of Compassion and Amos Lee's Mission Bell sold 44,000 and 40,000 copies and that was before Spotify was made available in the United States (July 14, 2011).

Illegal downloads, I don't know if they affect them that much anymore. But I won't argue that that has been an issue too even if some folks decided to purchase the album anyway. I would imagine Spotify is a "legal" way for people to listen to an album and then figure out if it's indeed a purchase or not.

I still argue the closing down of mega stores as a reason for this sales decline though albums continue to sell over 400,000 copies in the first week for some albums by major artists.

Maybe the public just doesn't think the music out there is worth paying $10 for.

As of May 2014, there were articles stating that streaming services are actually struggling to make money in the United States, which has led to labels opting out of publishing companies if the laws weren't changed.

Here's such an article here:
http://www.businessweek.com/articles/20 ... ake-money/

[AlphaMale]

But the singles market is better than ever, right?
Artists are selling singles like never before, because they are cheaper than ever before too. I mean, I used to buy physical singles for 10€ and now a track costs 99cents, but nobody is buying albums, so illegal dowloads, high prices and streaming are to blame, right?
Although, there are artists that can still open with 400k or more, like you said.
I wonder, in this day and age, an artist like MAdonna, what are the numbers that she'll open with and how much she can sell?
I mean, is it worth it to still make albums and promote? Or just record an album, release it and go touring?

[BadMan125]

I don't think Madonna has anything to worry about.

She can still sell 300k an album based off front loaded sales by her label and still can go gold and platinum.

I think streaming is nothing more than a bump on the road for album artists but could be troubling for those trying to establish themselves (albeit save for a few like Sam Smith for example).

[AlphaMale]

And that's what I find strange, some artist can still pull in the big numbers.
Maybe it's that, maybe people stream music and the music it's not that good that makes them buy the album.

[BadMan125]

And that's what I find strange, some artist can still pull in the big numbers.
Maybe it's that, maybe people stream music and the music it's not that good that makes them buy the album.

That's often the conclusion for me...

[Timmy94]

Maybe the public just doesn't think the music out there is worth paying $10 for.

I read about this many times before and actually wonder why so many people doubt that a certain album could be worth its price. I consider a good album a better investment compared to many other useless things people love to spend money on.

[Wayne]

I don't think Madonna has anything to worry about.

She can still sell 300k an album based off front loaded sales by her label and still can go gold and platinum.

I completely disagree.

I think she should be worried.

[Timmy94]

I don't think Madonna has anything to worry about.

She can still sell 300k an album based off front loaded sales by her label and still can go gold and platinum.

I completely disagree.

I think she should be worried.

She should, the MDNA era clearly showed that her popularity is massively decreasing.

[AlphaMale]

yep, only selling 2 million, the decay...
She has a very big and loyal fan base, if everything else fails like with MDNA.

[AlphaMale]

Maybe the public just doesn't think the music out there is worth paying $10 for.

I read about this many times before and actually wonder why so many people doubt that a certain album could be worth its price. I consider a good album a better investment compared to many other useless things people love to spend money on.

But if I don't like the music, I won't buy it, that's what we are saying. Not that it's not worth!
In the "old days" records were more expensive and they sold more then now!

[thebigham]

Madonna hasn't had a Platinum album in 9 years.

Her last 3 album releases have gone Gold.

I don't know about this next era...

Depends on the first single and if she actually promotes it...

[thebigham]

Streaming is something new which is affecting the charts this year. Billboard has had numerous articles on it.

In what way?
People listen to the music online and don't buy it?
What about illegal downloads and streaming?

People pay to stream. $10+ a month.

They can listen to thousands of singles/albums via streaming.

[revel8]

Madonna has a Billion in the bank. I doubt she is releasing albums anymore in order to feed the kids. In her case it is because she just loves making music and performing. Why would she need to be worried? Does she need anymore Gold or Platinum discs? I doubt she is losing sleep about it.

Album sales are down because it is easy to pirate them, and it is hard for artists to create a good album without filler tracks. These days people can cherry pick tracks to purchase and so won't buy the album if it is full of filler tracks. Obviously the definition of filler tracks is purely subjective.

It used to be a lot more difficult to listen to an entire album prior to purchasing it. I got burned a lot by buying albums based on liking a single and then realising I disliked most of the rest of the album.

Plus there are a lot more things to do than listen to music these days. Computer Games and the Internet have added extra distractions to attract your time and money.

[BadMan125]

But if I don't like the music, I won't buy it, that's what we are saying. Not that it's not worth!
In the "old days" records were more expensive and they sold more then now!

Labels shipped a lot of albums to various retail stores. That explains why some albums shipped a million in a few days in the U.S. for example. These days, it seems like the people definitely are deciding whether or not paying for the actual disc is worth it whereas here they can pay $10 for an album to stream and then delete the contents if they don't like it.

[AlphaMale]

Streaming and ilegal downloads... I wonder if it still worth it to release an entire álbum.

[AlphaMale]

BTW great posts people, thanks for the insight!

[JimJim]

Streaming and ilegal downloads... I wonder if it still worth it to release an entire álbum.

The album format is dying, albums will likely always exist, but as a mainstream product, their shelf-life is going downhill. I think we will see major labels transitioning artists to EP releases within the next 2 years, with albums being a thing of the past by around 2020... I think I might make a thread about this.

[AlphaMale]

Streaming and ilegal downloads... I wonder if it still worth it to release an entire álbum.

The album format is dying, albums will likely always exist, but as a mainstream product, their shelf-life is going downhill. I think we will see major labels transitioning artists to EP releases within the next 2 years, with albums being a thing of the past by around 2020... I think I might make a thread about this.

That's a good idea
I love this subject!

[floria]

INTENSE HEAT IN THE FORECAST: We’re just hours from 5 Seconds of Summer—specifically, the release of the Aussie power-pop heartthrobs’ self-titled full-length debut. At 9pm PDT, the forward-thinking fans will begin turning their pre-orders into digital albums, while tens of thousands more will start snapping up hard-copy souvenirs at their neighborhood retailers. How did the excitement reach such a fever pitch? The answers can be found in our setup story, wherein we detail Capitol’s multifaceted marketing plan, whose precisely calibrated elements were put in place to maximize 5SOS’ undeniable appeal. Then, at some point tomorrow, we’ll hazard a guess as to whether the album will hit or surpass 200k in its first week, and if so, by how much. Watching hit records develop is so much fun. (7/21a)

Here’s your summer forecast: Hot.

Capitol’s 5 Seconds of Summer at last rolls out its full-length debut next week, following up the Aussie pop-rock heartthrobs’ well-received EP, She Looks So Perfect (which bowed at #2 in April with 143k; it’s now at 365k with TEA) with a multimedia barrage in the midst of their massive arena tour with One Direction.

When the EP streeted, Capitol chief Steve Barnett told us he saw it as "just the first chapter in what’s going to be a long run for us," and the label is clearly putting its money where its mouth is.The album has already achieved the biggest preorder in UMGD history, we’re told, at about 125k, and has thus far hit #1 at iTunes in six territories and Top 5 in five others. At this point it’s expected to bow in the neighborhood of 200k+.

The self-titled album features songs written and/or produced by busbee (Christina Aguilera, Jason Aldean), The Madden Brothers, John Feldmann (Panic! At the Disco, The Used), Biffco (1D, Ellie Goulding), Steve Robson (1D, James Blunt) and Lindy Robbins (Demi Lovato, Selena Gomez, MKTO) among others. There’s a greater edge in the band’s sound this time out, which melds soaring romantic hooks with seriously crunchy guitar.

"I think that people will come to realize with this album that this is very much a rock band," says Capitol EVP Greg Thompson. "Of course, they also play gentler songs. But I think there’s hunger out there for more guitar."

Each of the album’s "instant grat" tracks on iTunes—"Don’t Stop," "Good Girls," and "Kiss Me Kiss Me"—has gone to #1 at the download store. New track "Amnesia" (co-written by The Madden Brothers) impacts Pop and Hot AC at presstime; its lyric video has earned 5m+ views (the official clip is due 7/31). With the addition of Hot AC, Thompson emphasizes, "We’re getting not only the soccer players but the soccer moms."

Release week will see the band hitting The Today Show and Jimmy Kimmel’s Outdoor Stage, a Ryan Seacrest interview, iHeartRadio and MTV live streams and a Spotify drop (they’ve already been streamed about 21m times). On 8/24 they’ll perform on the VMAs. "They’ve committed to spending a ton of time in the U.S," Thompson points out. "They’ll be here through Christmas, playing holiday shows."

Though the lion’s share of retail on release week will be digital, a Target-exclusive deluxe CD package offers four different covers, four extra tracks and other value-added content that Capitol believes will up the physical-sales quotient over time. A standard edition will go to all physical retailers. "I believe fans will buy the digital version and go buy this Target version," says Capitol SVP Marketing Kirdis Postelle.

Postelle has emphasized the importance of social media in the band’s growth, with "fan-facing" initiatives that constantly reinforce the idea of a 5SOS family. "They control everything," she adds. The Aussies currently enjoy about 3.7m Twitter followers and 5.5m Facebook likes. Their VEVO channel has 1.2m subscribers.

"All of the exciting things happening for 5 Seconds Of Summer is a testament, first off, to the talent and drive of this great young band," Barnett enthuses.?"The fan response is phenomenal, and sold-out arenas and record-setting pre-orders are not something that can be faked or manufactured.? What is happening is all very real and bodes well for a long and promising future for 5SOS.?

"But all successful international campaigns have a team of motivated professionals at the helm and behind the scenes," he continues, "and we are all benefiting from incredible management, led by my longtime friends Richard Griffiths and Harry Magee.? Then, of course, there’s the great teamwork between Capitol in the U.S.—led by Greg Thompson and Kirdis Postelle—and Capitol in the UK, led by my friend and colleague Nick Raphael.? They are all doing a remarkable job."

Raphael described the project to us earlier this year as "more than 20 years of relationships coming together on one project," reflecting the long-term professional and personal ties between Barnett, Griffiths and Raphael.

The band, consisting of frontman-guitarist Luke Hemmings, guitarist Michael Clifford, bassist Calum Hood and drummer Ashton Irwin, formed in Sydney in 2011 and first made an impression on YouTube.

The band came to the attention of Modest Management’s Griffiths and McGhee in 2012, courtesy of Matt Emsell, then of Wonder Management, who came aboard with the band. One Direction, of course, were Modest roster-mates, but 1D’s Louis and Niall were already admirers and invited 5SOS on tour. Griffiths notes that 1D fans’ response to the Aussie boys was "insane."

The veteran manager took the band to Capitol U.K. head Raphael and SVP Jo Charrington, who were enthralled by the lads’ live presentation and jumped on the project.

"By the time the 5 Seconds of Summer album comes out in the U.S.," Raphael insists, "it will be the result of over 3 1/2 years of work by the guys since Luke first started posting covers on YouTube on his own to the band's formation to touring with Hot Chelle Rae in Australia to signing to Wonder Management then in turn Modest then Capitol U.K. to recording and writing their record. For anyone thinking they are an overnight success, think again—this is the hardest-working band I've met in 20 years of being a record executive!"

[JimJim]

No surprises there, I was predicting 250k.