The present state of the high end commercial music licensing market

According to 2006 Enders analysis and Wall Street research, the commercial music licensing market is about or in excess of $3 billion – Three Billion Dollars! That’s a huge market in need of some serious consolidation. Right now, at the high end of the market, we are seeing companies with premium priced content licensing out top quality, highly produced tracks using traditional sales reps. In addition, we are seeing disparate, wholly owned and traditional content aggregators licensing royalty free tracks and CD’s for middle tier rates. One funny thing to note about these libraries is that they want their artists to send them CD-rom’s (WTF?) containing their music and sound effects portfolios to that they can review them and determine whether or not to accept the content. The artist actually have to burn CD’s and DVD’s and snail mail their portfolios to some snooty editor for review. How is it possible that we are still mailing CD’s and DVD’s with digital content? The rhetorical questions points to the fact that if your distributor wants you to send them a CD, then they are just not on top of what’s happening in the digital world. If they have no web presence, and have no idea what FTP means, then you should run far away from them and disengage yourself from any contractual obligations you may have, because their lack of technological knowledge speaks volumes about the existence of their business (and your ability to get a royalty check – sending hard copy checks is another dumb process to be addresses in a later post). It basically means that any income stream you may presently be obtaining from them, or that you expect to obtain from them in the future, will shrink, and ultimately die. These high end and middle tier royalty-free licensors have no permanent place in the crowd sourced, micro stock world. In the end, they will adapt or be forced to go out of business. A few of the high end libraries will survive, but everything in between high end and micro stock will ultimately perish.

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AudioMicro is a revolutionary collection of user-generated micro stock music, sound effects, production music, production elements and music cues. Finally, high quality audio content is available at unbelievable prices with no hidden costs or fees. AudioMicro is an artist friendly community, paying the highest royalty rate in the micro stock music industry! In addition, customers can purchase AudioMicro content at the most competitive rates available! Sign up and start contributing and licensing content today!

One thought on “The present state of the high end commercial music licensing market

  1. Hello, staff of AudioMicro.

    I do not mean to come off sounding like a smart-ass with this comment entry, and I seriously do not want to seem like I am being negative for negativity's sake. Honestly, I am just here to point it out. Not in a "Gotcha!" way, not in a "I am better than you" way. Please take this in a friendly way despite the fact that no matter how I type it the tone will come across as being smarmy. We all make mistakes, overlook things, and I know I have done worse.

    You made a posting about how technologically unsavvy other companies in your field are, after you posted a web page in which the "About" hyperlink leads one to a page stating "This is an example of a WordPress page, you could edit this to put information about yourself or your site so readers know where you are coming from."

    BTW, if you are hiring for the information technology (non-audio jobs) related areas of your company such as web work, please contact me. I promise to try and catch things like the above. (Apologies if I may miss it though, we are all human after all.) 🙂

    Again, this was not meant to be negative, although I must admit to enjoying the irony of it a little. I honestly wish you good luck with your endeavours.

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