Richard Burgess: Music Industry Failing to Monetize Massive Audience Growth and Global Market Opportunities
Richard Burgess, outgoing President and CEO of A2IM, shares key insights about music industry monetization challenges and opportunities during his final year leading the organization. During his decade-long tenure, he successfully expanded A2IM's membership while improving diversity and industry relationships.
Key Achievements at A2IM:
- Significant organizational growth
- Enhanced board and membership diversity
- Improved coordination with industry trade associations
- Introduction of the Protect Working Musicians Act (PWMA)
Current Industry Challenges:
- Revenue down 35-40% compared to 1999 (adjusted for inflation)
- Streaming platforms undervaluing music content
- Music subscription prices significantly lower than video services
- Untapped revenue potential despite massive audience growth
Emerging Opportunities:
- Physical format sales (vinyl, CDs) generate 42% of independent label revenue
- Growing international markets, particularly in developing economies
- Increasing global reach for local artists through streaming
- New technologies and business models for merchandise and physical goods
Regarding emerging markets like India:
- 80% ad-supported subscribers vs 20% paid subscriptions
- Expected growth in gross domestic revenues
- Increasing global visibility for local artists
- Growing consumption of both American and local music
Burgess emphasizes the critical need to properly monetize music to sustain the industry and support musicians, while maintaining that music remains one of life's essential commodities. The key challenge lies not in consumer demand, but in developing effective monetization strategies that reflect music's true value.
The interview was conducted at SXSW 2025 during A2IM's annual brunch networking event.
Man on couch
67th Grammy Awards stage and audience