The current state of the recording industry

Founder Klaus Heymann, founder of the successful NAXOS label, on the current state of the classical music recording industry:

“We can’t live off CD sales anymore,” says the German-born Heymann, 75, speaking by phone from his base in Hong Kong. When Naxos began, Heymann proved that you could make money selling tens of thousands of copies of works nobody had ever heard of; as CD sales gradually declined, the company has variously relied on proceeds from digital downloads, audio books, and other ventures. Today, it looks to YouTube, where a tool called Content ID crawls the site, figures out how many of a given company’s videos are illegally posted, and – rather than removing the videos – calculates that company’s share of advertising revenue. “That’s become an income stream,” says Heymann, estimating that it covers about 75 percent of his recording budget.”

Anne Midgette, “Naxos’s 25 years of reinventing itself”, The Washington Post, 9 November 2012.

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