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Kevin Erickson
Chicago, IL
Entertainment Merger & Acquisition specialist and former Assistant Professor Music Industry at the University of Memphis
Recent Activity
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The new list of music industry power players is out. No surprise as to the number 1 slot: "Lucian Grainge, chairman of Universal Music Group, beat out "X Factor" host Simon Cowell and the manager for teen pop sensation Justin Bieber as the most powerful person in the music industry,... Continue reading
Posted Feb 22, 2013 at Music Industry Analysis
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The bidding war is over and WMG won the contest. For a mere $762 million dollars! Assets include: Catalogs of such artist as "Coldplay, Radiohead, Kate Bush, David Guetta, Daft Punk, Sinead O'Connor, Tina Turner, Tinie Tempah and Jethro Tull, among many others. The Parlophone Group includes Chrysalis and Ensign... Continue reading
Posted Feb 8, 2013 at Music Industry Analysis
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Over a year ago I discussed Sound Exchange and the incredible increase in digital radio royalty payouts from streaming. I have added the recently released figures for 2012 to the original chart. As it stands, the current explosive rate of growth has continued unabated -> great news for the industry... Continue reading
Posted Jan 29, 2013 at Music Industry Analysis
Here is a fast slide show about some music funding ideas I put together -> Just a primer! Music Funding; A Quick Slide Presentation from mianalyst Continue reading
Posted Nov 29, 2012 at Music Industry Analysis
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Apple in the streaming music business could be a game changer for companies such as Pandora, Rhapsody and Spotify. Apple's market power, financial resources and vertical integration pose serious competitive disadvantages to all streaming/download companies. Word is Apple's service will be ad-supported, but more important questions arise. Including, what amount... Continue reading
Posted Oct 25, 2012 at Music Industry Analysis
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With a market share close to 40%, the new UMG/EMI is a powerhouse that will wield industry clout at radio, press, retail -online and brick and mortar-, touring...the list goes on. Truly we will not know the full measure of this merger for several years, but one can only guest... Continue reading
Posted Sep 28, 2012 at Music Industry Analysis
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The UMG/EMI merger deal has been approved by the U.S. as well as the European commission. One concession UMG must make per the approval is to divest 25% of EMI including Parlophone. The following chart reflects the new ownership percentage (less 2.5% = EMI's 25% divested market share required per... Continue reading
Posted Sep 27, 2012 at Music Industry Analysis
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It was good to see Apple CEO Tim Cook include developments within iTunes during the Apple event of Sept 12th. Because of the news swirling around the iPhone 5, it could have been easy to bury iTunes news to a quarterly conference call vs. this weeks Apple event. It proves... Continue reading
Posted Sep 13, 2012 at Music Industry Analysis
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It is not historical precedence that a recording artist feels taken by the contract they signed with a major label. It could have been bad advice from their manager, the wrong type of attorney - an entertainment attorney is a must - or not even using an attorney when signing... Continue reading
Posted Sep 5, 2012 at Music Industry Analysis
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"A 24-year-old who goes by Skrillex made $15 million over the past year on electronic dance music--and has created a new model for the music industry in the process." This according to Forbe's August 1st article entitled DJ's Are The New Rock Stars". This is not a surprise to those... Continue reading
Posted Aug 15, 2012 at Music Industry Analysis
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Statistics culled from Pandora and SiriusXM press releases point to an optimistic growth pattern for the second half of 2012. Also, United Airlines adds a digital media store -> another monetizing outlet for artists/labels. SiriusXM reports second quarter growth of 629,000 subscribers and just launched SiriusXM On Demand allowing subscribers... Continue reading
Posted Aug 9, 2012 at Music Industry Analysis
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Innovation, strategic planning, commitment-> all are necessary elements to move a music career forward. Here are 5 ideas to add to your arsenal. 1. Twitter fan engagement - two sided conversation - Twitter is becoming a must use social media tool for musicians, but if you use it as a... Continue reading
Posted Aug 3, 2012 at Music Industry Analysis
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(Chart by K Erickson, Sales figures from SoundScan/Billboard) Comparing and contrasting the first 6 months of 2012 yields a sales pattern that is relatively flatlining. Not a bad development if we take into account the last ten years of sales attenuation. Albums sold decreased -2.9%, digital tracks sold increased +6.4%,... Continue reading
Posted Jun 26, 2012 at Music Industry Analysis
I discussed in a post back on 11/23/2011 about the various options to crowd fund your project. Since then, crowdfunding has slowly etched itself into the mainstream consciousness and a move toward legitimacy. Clearly, as judged by the press and social media, Kickstarter has moved to the forefront of this... Continue reading
Posted Jun 21, 2012 at Music Industry Analysis
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Continuing on the theme of spinning the numbers for competitive advantage, Chart 1 reflects the percentages based on Billboard's Retail Track's estimates using Soundscan's label market share report. This particular chart is the one A2IM (American Assoc. of Independent Music) has used to claim their rightful market share and the... Continue reading
Posted May 12, 2012 at Music Industry Analysis
How do we actually define market share in the music industry? As it turns out that question can be answered in different ways depending on which side of the negotiating table you are on. A recent example in Billboard magazine deserves further discussion. The music industry is similar to any... Continue reading
Posted May 8, 2012 at Music Industry Analysis
Continuing good news for the music industry; 2012 1st quarter sales levels increased over same period 2011 levels. As I talked about over the last few posts, to include the positive growth numbers out of PRO ASCAP, and the increase in the number of music buyers, we now have three... Continue reading
Posted Apr 1, 2012 at Music Industry Analysis
A recent study by the NPD Group, a market research firm, concludes there was an increase in the number of music buyers in 2011. The NPD's article After Years of Defection, The Number of U.S. Music Buyers Is On The Up Swing offers several compelling figures. (All for 2011) 4%... Continue reading
Posted Mar 22, 2012 at Music Industry Analysis
As we navigate the new music landscape and rightly ruminate about the issues, challenges and opportunities going forward, it is reassuring to hear positive growth news from any and all areas of the business. Good news was delivered by performance rights organization ASCAP. In a recent press release the organization... Continue reading
Posted Mar 15, 2012 at Music Industry Analysis
The app world’s impact on the music industry continues to grow and innovate. The latest iPhone app that excites me is the Ticketmaster app released this past Tuesday February 28th. You can download it at http://m.ticketmaster.com/app . The intriguing aspect of this new app is that you can conveniently move... Continue reading
Posted Mar 1, 2012 at Music Industry Analysis
Back in December I discussed Sound Exchange and the incredible increase in digital radio royalties from streaming. I have added the recently released figures for 2011 to the original chart. As it stands, the current explosive rate of growth has continued unabated -> great news for the industry as a... Continue reading
Posted Feb 15, 2012 at Music Industry Analysis
(Chart: Erickson, 2012) Here is an updated market share chart as of January 2012 statistics. This is before the EMI / UMG merger -> the merger is still in review by the U.S. and European regulatory agencies. Currently the merger ruling is still months away, according to Billboard.biz , "The... Continue reading
Posted Feb 5, 2012 at Music Industry Analysis
Check out a recent Billboard article by Glenn Peoples about the necessity and relevance of the record label (toward the end of his post). This is a topic I have been passionately espousing for the last few years - to some scrutiny since the prevailing opinion du jour is to... Continue reading
Posted Dec 23, 2011 at Music Industry Analysis
If you look at the continued year on year decline in physical music sales, coupled with the greater macroeconomic climate, to most observers it understandably portents the end of an era in music commerce. However, as the paradigm continues to shift, new opportunities will develop to allow artists to fully... Continue reading
Posted Dec 15, 2011 at Music Industry Analysis