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LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY

In pitch with new technology

By BILL BOWEN

Special Contributor businessnews@dallasnews.com

The Texas music industry employs almost 150,000 people, counting musicians, nightclubs, record companies, recording studios, touring companies and others. The Lone Star music industry has grown in recent decades with the rise of the South by Southwest music and technology festival as a national draw and the continued growth of Austin as a music capital. But new technology has brought change and the industry is adapting.

A digital dirge for U.S. album sales

Nationally, album sales rose in 2011 for the first time since 2003. Otherwise, over the past 10 years, unit sales have declined rather dramatically as file sharing and digital downloads have cut into record company profits. Album sales Include both physical compact disc or vinyl sales and digital equivalents of 10 individual song files.

(In millions of units sold) 800 700 600 500 330.6 million 400 300 200 100 0
(In millions of units sold)
800
700
600
500
330.6 million
400
300
200
100
0
’00
’01
’02
’03
’04
’05
’06
’07
’08
’09
’10
’11

The Texas industry

Revenue declines

The declines in unit sales have been echoed in revenue.

1999: $14.6 billion

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

2009: $6.3 billion

Note: Apple introduced iTunes in 2003.

The decline in record sales and the push toward online digital file distribution has hit publishing companies, production, distribution and the number of record labels, themselves. But recording and touring services continue to grow, as does the number of radio stations.

Nightclubs, dancehalls and other venues

2,000

1,500

1,000

500

0

1,901

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

962

1,171

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Publishing companies

2,000

1,500

1,000

500

0

257

309

295

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Record labels

2000

1500

1000

500

0

569

597

555

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Touring services

2,000

1,500

1,000

500

0

975

1,056

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

1,138

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Record production, distribution and sales services

1,500

1,000

500

0

1,492

1,399

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special
LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

1,132

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Radio stations

2,000

1,500

1,000

500

0

946

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

758

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

806

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Texas recording studios

2,000

1,500

1,000

500

0

654

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

781

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

793

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

’00

’05

’12

Working musicians

40,000

30,000

20,000

10,000

0

31,110

NA

NA

’00

’05

’12

SOURCES: Recording Industry Association of America; Texas Music Office, Office of the Governor

The bottom line

“The music industry was a test case for how the Internet would affect business … [It] has empowered a singer-songwriter in Wichita Falls to get a worldwide following.”

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

Casey Monahan, director of the Texas Music Office

“Anyone who can find a blog has more access to more bands and more music than ever before. So people know about the bands that we bring through, and we can sell out small venues easy.”

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

Nathan Binford, a founder and co-owner of Tactics Productions.com in Dallas

“The recording industry has shrunk by about 50 percent in the past 20 years, and recording and distribution companies hope that it has bottomed out.”

LOCAL ECONOMIC SNAPSHOT | TEXAS MUSIC INDUSTRY In pitch with new technology By BILL BOWEN Special

Bill Bowen, special contributor, The Dallas Morning News