Hip Hop Invented Modern Music Economics
(The Atlantic) — Perhaps no entertainment industry has been challenged by the Internet like music. Consider this statistic: At the end of the 1990s, artists made $15 million a year from record sales. In the digital decade that followed, music sales fell 60 percent. What’s an artist to do? Diversify, diversify, diversify. These are boom times if, like the Dave Matthews Band, you’re a popular group with affluent middle-aged fans who are willing to shell out $50 – $100 for a concert ticket. That’s one reason why DMB made $500 million in the last ten years from touring alone, as Annie Lowrey writes.