The Music Industry is a Superstar Economy
According to a report published on March 4 2014 by music analyst and senior research manager Mark Mulligan, who’s been analyzing the digital music market for over a decade, the top 1% account for 77% of all artist recorded music income.
Although there are encouraging signs of digital-driven growth, a very small share of the total artists and works account for a disproportionately large share of all revenues.
This counter intuitive trend is driven by two key factors: a) smaller amount of ‘front end’ display for digital services – especially on mobile devices – and b) by consumers being overwhelmed by a Tyranny of Choice in which excessive choice actual hinders discovery.
Until labels, distributors and artists come to together to fix the issue of digital catalogue pollution – sound alikes and karaoke especially – the Tyranny of Choice will reign supreme, hiding 99% of artists under a pervasive shroud of obscurity and giving the Superstars another free lap of the track.