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Wadsworth optimistic that record industry recovery is real
By Chris Cooke | Published on Wednesday 20 March 2013
BPI Chairman and former EMI UK chief Tony Wadsworth has told the Radiodays Europe conference in Berlin that he is very optimistic indeed about the future of the music business.
Predicting that the UK recorded music industry will pass the 50/50 point in terms of digital versus physical revenues this year, he pointed to the growth of the mobile and in-car internet as providing even bigger digital opportunities for music services, and their music right owning partners. Together that means, he reckoned, that the turn in fortune for the global record industry last year, with revenues from recorded music increasing, slightly, for the first time in over a decade, is the start of a new sustainable period of growth.
On the new digital opportunities, he told the radio industry event: “In the UK, the roll out of 4G networks is predicted to grow rapidly. That will make the smartphone an even more crucial device for music consumption. The industry sees this as an opportunity and is engaging with telecoms companies to make that a reality. Networked home audio and video devices are another source of potentially huge increased music consumption that make it simple to integrate all your music listening. And, of course, the car – where many of us listen to most of our music – will be seeing major changes [too]”.
Which means, he continued: “The ten-year market decline that we have experienced will reverse with the industry continuing to embrace new ways of doing business and new technologies, and we will start to enjoy the commercial rewards that come from giving consumers what they want”.
The BPI Chair also outlined and justified the multi-revenue stream arrangements some labels, as the primary investors in new artists and new material, are now striking up, noting that the high profile deal he helped negotiate between EMI and Robbie Williams in 2002 was based on this model. “It was a deal that worked for Robbie Williams and worked for EMI, and became the pattern for many variations on new recording agreements”.
He continued: “There is no longer a one-size-fits-all approach, and while some labels insist on elements of the 360 degree deal in their agreements, other labels will trade that for a lower investment commitment. Some labels have incorporated management, merchandising and live expertise into their companies, which makes it easier to attract this sort of deal if you can be seen to be adding value. Others simply see a slice of live income as being part of the fair return for being the primary investor into an artist’s career”.
