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THE BUSINESS OF MUSIC
www.musicweek.com
NEWS 03
“This is the UK music industry growing up. We need to reflect that it’s a professional business”
BIG INTERVIEW 15
“Labels should give writers their songs back when they’ve squeezed all the pips out”
12.07.13 £5.15 10 ANALYSIS
“HMV’s troubles must be taken into context when crunching the numbers”
We’re in the money T
RETAIL BY TIM INGHAM
otal album sales may be down in 2013 so far - but the hard cash generated
by recorded music in the period has shown growth for the first time since June 2011. According to Kantar
Worldpanel research exclusively provided to Music Week, in the 24 weeks to June 9, 2013 sales by value of total physical and digital music peeked into hesitant year- on-year growth (+3.2%). The driving force behind this
was the continued strength of digital album sales, whose value grew at 21% in Kantar’s Q2 (12 weeks to June 9) versus the same period in 2012 -a particularly impressive feat considering their unit sales only grew 10.2% according to Official Charts Company data for its Q2.
Some of this growth in digital album value was through increased average price, says Kantar - spurred in part by a greater proportion of sales of compilation albums - though it found that more units are also being purchased per shopper. Digital singles, on the other
hand, have started to flatten after a number of years of growth. Amazon is still the biggest
music retailer in the UK, but only just, after share gains from Apple. However, Amazon has made the greatest gains in music spend from HMV shoppers switching following store closures.
Emeli Sande’s Our Version Of Events is the biggest-selling artist album of 2013 so far
OVERALL MUSIC MARKET IN Q2
12 W/E
AMAZON ITUNES HMV
TESCO 12 W/E
10 JUN 12 09 JUN 13 24.2 25.4 16.2 7
SAINSBURY 2.7 ASDA
5.3
PLAY.COM 3 MORRISONS 1.3 OTHER
29.7 29.2 7.4 5.7 5.1 4.2 2.3 1.5
14.9 14.9 Source: Kantar Worldpanel research Together, iTunes and Amazon
now account for a 59% share of total music, which Fiona Keenan, consumer insight director at Kantar Worldpanel, called “an unprecedented concentration of market value”. HMV’s less positive result reflected Q2 being the first period in which its store closures
% CHANGE
+5.5 +3.8 -8.8 -1.3
+2.4 -1.1 -0.7
+0.2 0
AMAZON TESCO
ITUNES MUSIC
ASDA HMV
OVERALL ENTERTAINMENT MARKET IN Q2 12 W/E
12 W/E
10 JUN 12 09 JUN 13 20.0 11.6
23.4 13.2
8.9 9.4
16.8
SAINSBURY’S 5.8 GAME GROUP 4.8 MORRISONS 3.6 PLAY
3.7 OTHER 15.4
11.3 10.5
8.4 8.2 4.4 3.7 2.6
14.3 % CHANGE
+3.4 +1.6
+2.4 +1.1
-8.4
+2.4 -0.4
+0.1 -1.1 -1.1
hit. A significant proportion of HMV’s share loss also came from its online store having been temporarily out of action. HMV online alone accounted for 3.4% of video spend in Q2 2012 - Kantar expects the website coming back online to lend some strength to HMV.
Bruce and Melrose to head up Epic UK, Example first signing
Sony Music has appointed Dougie Bruce and Steven Melrose as the new joint-MD A&Rs of Epic UK. They will report to Nick Gatfield and oversee a roster of acts that includes the biggest selling male solo artist in the UK, Olly Murs. The duo have already made their first signing to the label, Example - formerly signed to Ministry Of Sound. His fifth studio album will be released on Epic in 2014. Bruce (pictured, right) worked as a scout at Epic Records, before
joining Universal Publishing, where he signed Adele, Lily Allen and MGMT. He joined Simon Fuller’s XIX Entertainment in 2009 then in 2011 he joined Sony Music to head up the Sign Of The Times label. Melrose (left) founded the indie label/management company Leftwing Recordings prior to working as an A&R executive at Island Records. In 2008 he joined Capitol Records in the US as VP of A&R. He then joined Sony Music in a senior A&R role in 2012.
circle for myself starting as a scout for Epic all those years ago. We can’t wait to get going." Former Epic UK MDs Tops Henderson and Paul Lisberg will reprise their roles as joint MDs (with co-founders Steve Kipner and Andrew Frampton) of the Phonogenic label. Nick Gatfield said: “Dougie
Melrose said: “We are
thrilled to be taking the reins at Epic and are hugely excited to work on such an iconic label.”
Dougie Bruce said: "Steve
and I are so excited to have this opportunity to lead Epic into a new era, particularly as it’s full
and Steven each have a great mix of A&R and management skills and they will be a strong force. I’m also delighted that Paul and Tops will take on the task of building the Phonogenic label back up.”
UK MUSIC REVENUES RISE IN Q2 AMAZON AND ITUNES’ MARKET DOMINANCE MUTATES
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