Sustainable Music: Balancing Profit and Environmental Responsibility
How can music be “sustainable”? What does sustainable music even mean? These two questions are increasingly relevant in the context of the growing consumerism that has come to define the modern music industry. As fans eagerly consume music, merchandise, and concert experiences, the environmental footprint of these activities is often overlooked. This article explores the balance between profitability and environmental responsibility in the music industry, examining how consumerism, driven by economic principles like supply and demand and the law of diminish marginal utility, impacts sustainability.
Consumerism (Taylor’s Version)
First, lets discuss an artist that I find deeply compelling, especially following a year of constant successes and growing influence despite being 18 years into her career: Taylor Swift. One of the most compelling examples of consumerism in the music industry is Swift's strategic re-recording of her old albums, branded "Taylor's Version." This move not only allows her to reclaim ownership of her music but also taps into her fanbase's loyalty and nostalgia. From an economic perspective, this is a brilliant utilization of demand elasticity. Swift understands that her fans' demand for her music is relatively inelastic—meaning they are willing to pay a premium for her re-recorded albums despite already owning the original versions. This strategy maximizes revenue while also reinforcing her brand. Swift's re-recordings are a masterclass in stimulating demand. By offering her fans a renewed way to connect with her music, Swift creates multiple revenue opportunities. Her fans are encouraged to purchase the new versions of her albums, often in multiple formats, including vinyl, CD, and digital downloads. This tactic capitalizes on the economic principle of differentiated products, where variations of a product cater to different segments of the market, thereby maximizing overall sales.
A notable trend in the music industry is the release of multiple variants of the same album. This practice, common among top artists like Swift, involves releasing different versions of an album with unique cover art, bonus tracks, or other exclusives. The goal is to entice fans to purchase multiple copies, driving up sales and chart performance. This phenomenon can be analyzed through the lens of supply and demand. The limited availability of certain variants creates a sense of scarcity, driving up demand among dedicated fans. For example, Swift's "Folklore" and "Evermore" albums were released in multiple editions, each with distinct artwork and packaging. Super fans often feel compelled to collect all versions, which increases overall sales. However, this practice raises questions about sustainability. The production of multiple physical variants increases the use of resources and generates more waste, contributing to the environmental impact of the music industry. Tying this into economic principles, the argument of “marginal utility” plays a significant role in the aspect of this form of consumerism. Marginal utility is the added satisfaction a consumer gets from having one more unit of a good or service and goes hand-in-hand with the law of diminishing marginal utility developed by Herman Gossen; Gossen stated “The magnitude of one and the same satisfaction, when we continue to enjoy it without interruption continually decreases until satisfaction is reached”. In the context of buying multiple variants fans may experience high initial satisfaction from acquiring each new edition, but over time, the additional satisfaction (or marginal utility) they gain from each subsequent purchase diminishes.
However, while the marginal utility for consumers decreases, the environmental impact of these practices continues to accumulate. The production and distribution of these physical products consume resources and generate waste, contributing to environmental degradation. Therefore, while the release of multiple album variants is profitable and effective in terms of sales, it poses a significant challenge in terms of sustainability. The music industry must find a balance between satisfying consumer demand and minimizing its environmental footprint to ensure a sustainable future.
The music industry faces a critical challenge: how to balance profitability with environmental sustainability. One potential solution is to adopt more sustainable practices in production and distribution. Artists and record labels can explore eco-friendly materials for merchandise, reduce packaging waste, and opt for carbon-neutral shipping options. Additionally, promoting digital consumption over physical formats can significantly reduce the environmental footprint. Artists like Billie Eilish and Coldplay have already started to embrace sustainability, with Eilish advocating for eco-friendly merch and carbon-neutral tours. This shift not only helps reduce the industry's environmental impact but also resonates with increasingly eco-conscious consumers. By aligning their practices with the values of their fanbase, artists can maintain profitability while contributing to a more sustainable future. Below is an example of the different album variants released by Swift and Eilish.
Merchandise: Rising Prices and Environmental Impact
Merchandise has become a significant revenue stream for artists, but it also contributes to the environmental footprint of the music industry. Over the years, the prices of band merchandise have surged, reflecting both increased demand and the added value of brand association. For example, a simple tour t-shirt can now cost upwards of $50, a price that fans are willing to pay for the perceived value and support of their favorite artist. From an economic standpoint, this is a clear case of supply and demand dynamics at play. However, the production of this merchandise often involves unsustainable practices, such as the use of non-organic cotton, synthetic dyes, and overseas manufacturing, which contribute to pollution and waste.
An interesting article written by Quinn Moreland for Pitchfork details some of the risk factors of the surge in merchandise produced by artists, bands and record labels. As the music industry continues to grapple with consumerism, sustainable practices are becoming increasingly vital. Artists like Lorde and Olivia Rodrigo are leading the way by offering eco-friendly merchandise, even at higher price points, to reduce their carbon footprint. However, the financial constraints and logistical challenges faced by many musicians highlight the complex balance between profitability and environmental responsibility. To achieve true sustainability, the industry must innovate and prioritize eco-friendly practices without compromising artists' economic viability.
Balancing Profit and Environmental Responsibility
The music industry faces a critical challenge: how to balance profitability with environmental sustainability. One potential solution is to adopt more sustainable practices in production and distribution. Artists and record labels can explore eco-friendly materials for merchandise, reduce packaging waste, and opt for carbon-neutral shipping options. Additionally, promoting digital consumption over physical formats can significantly reduce the environmental footprint .Artists like Billie Eilish have already started to embrace sustainability, with Eilish advocating for eco-friendly merch and carbon-neutral tours. This shift not only helps reduce the industry's environmental impact but also resonates with increasingly eco-conscious consumers. By aligning their practices with the values of their fanbase, artists can maintain profitability while contributing to a more sustainable future.
“It’s so wasteful, and it’s irritating to me that we’re still at a point where you care that much about your numbers and you care that much about making money”
A brief history lesson: You've probably seen the traditional packaging that CDs come in—a plastic case known as a "jewel case." These cases can crack easily, the booklets can be difficult to remove, and over time, they can become unattractive if not taken care of. Most importantly, they have a significant negative impact on the environment. Considering the previous example of buying multiple album variants and the associated consumerism, jewel cases are gradually fading out of the music industry. In their place, "softpacks" are becoming the new norm. Made entirely of board instead of using a plastic tray, the disc sits in either a pocket or a slit. Utilizing environmentally friendly boards makes this a clever step in reducing your company's carbon footprint (Sound Performance). The production costs of softpacks are generally lower as they use less expensive materials (paperboard/cardboard) and are less energy-intensive to produce. and typically ranges from $0.05 to $0.20 per unit, depending on the volume and quality. Though soft packs have only recently been made cheaper to buy since advancements in sustainable material technology and increased demand for eco-friendly options have driven down costs, they are an excellent example of how the music industry is evolving. This shift is tied into the broader trend of sustainability and responsible consumerism, reflecting a growing awareness and commitment to environmental responsibility.
