The Economy and the Recording Industry|Yes, a lot of people may think that the economy would not affect the music industry as much as it does, but in some cases it may be effected by the economy even more than most industries.Why? The music industry relies on people having extra money, now remind you I said, "extra money." When times are tough, people don't buy CD's or go to concerts; the band that spends $4000.00 a year to have their CD recoded can't afford it anymore. And as long as the economy is not doing good or even when it bounces back, if it's still at an unstable state or at least in a rescission state, the cycle will continue and it will be hard to find people who are willing to record their band or their self to make a CD that might only sell a few hundred or even a few thousand copies.
The economy also effects record labels and production companies as well. If they don't have the money to sign on a new artist or band, than a band or an artist is not going to spend money on recordings such as a demo or a live performance in the interest of introducing them self to the music industry. This hurts engineers, if bands don't have the money to spend and companies are not looking to sign, than work is basically non-existent.