Despite changing preferences, the value added by experienced technicians will drive growth
Los Angeles, CA (PRWEB) August 19, 2013
The advent of the internet sparked a massive structural change in how media is consumed, distributed and recorded, drastically affecting the Audio Production Studios industry. “Alongside new mediums for distribution, technological improvements in recording equipment allows musicians and artists to take more control over their content than ever before,” according to IBISWorld industry analyst James Crompton. In the five years to 2013, the Audio Production Studios industry has performed relatively well considering these headwinds. IBISWorld estimates that industry revenue has grown at an annualized rate of 0.3% in this period to total $887.4 million, despite a 1.0% drop in 2013. The industry maintains a low level of market share concentration. The industry has historically been comprised of small companies, but over the past five years, there has been a significant shift away from larger enterprises towards private home studios. Improvements in recording technology reduce the need for large, fully equipped studios, allowing individuals to conduct recordings and small postproduction operations to enter the industry.
One of the greatest challenges facing the Audio Production Studio industry is the widespread availability of distribution channels on the internet and readily accessible recording equipment. Online mediums enable musicians to release music that they record in their own home studios. Furthermore, recording equipment has been improving consistently in both price and quality. “There is still great value added to productions made in a professional studio, however, as these studios have equipment that is typically out of the price range for an average amateur artist,” says Crompton. Additionally, postproduction work undertaken at audio production studios is invaluable; the skill required to master and edit recorded content takes years of experience to develop, and there is no substitute available for this expertise.
Moving forward, the industry will continue to provide valuable services to a variety of media producers. While the availability of recording equipment has been increasing, this is no substitute for the expertise that audio production studios provide to clients. Record labels still depend on this expertise to aid their catalog of artists in the recording and production process. Demand from major label music production has fallen at an annualized rate of 2.8% in the five years to 2013, largely due to the recession and the shifts in the music industry. Album sales have plummeted at an annualized rate of 7.0% over the same time period; IBISWorld expects album sales to continue decreasing in the five years to 2018. Despite this precipitous decline in album sales, IBISWorld estimates that audio production studio revenue will grow in the five years to 2018.
For more information, visit IBISWorld’s Audio Production Studios in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry provide facilities and technical expertise for sound recording in a studio. Industry firms provide audio production or postproduction services for producing master recordings and may provide audio services for film, television and video productions. After the recording has taken place, studios often perform postproduction services to fine-tune music recordings.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.