The global music industry has undergone a dramatic transformation in recent years.
Streaming platforms now dominate how audiences consume music, physical sales have plunged, and revenue structures have shifted significantly.
Yet, there was a time, particularly from the late 1990s through the early 2000s, when physical formats such as DVDs and VCDs (Video Compact Discs) provided a strong financial backbone for the industry.
Ghanaian gospel musician Obaapa Christy believes that period was far more profitable for artistes than today’s digital era.
Speaking on the current state of the music business, she explained that while technology has improved access to music, it has also made the profession more expensive and less rewarding financially.
“A lot of things have changed now. The job is difficult these days because it involves more money compared to before. Promoting a song now requires huge investment, but initially, it wasn’t like that.”
Obaapa Christy
Obaapa Christy noted that during the days of physical CDs and DVDs, artistes could easily recoup their investments through direct sales.
“I think it’s because we’ve stopped using CDs. In the past, people would buy many copies when I released a song. Now, we spend so much on both audio and video, but the only way to make that money back is through performances at shows and events.”
Obaapa Christy
She acknowledged that online platforms have made music more convenient to access but emphasized that they do not offer the same financial benefits as physical sales once did.
“The online era is good, but the DVD era was better. The music industry needs to be saved. When we do our things properly, it will benefit everyone.”
Obaapa Christy
The Golden Era of Physical Formats
The DVD and VCD era offered strong profit margins for musicians and record labels.
Earlier, the CD format had already demonstrated how labels could re-sell existing music catalogues to consumers upgrading to newer formats, boosting profits through “format replacement.”
DVDs took this further by allowing labels to package audio with video content, concerts, behind-the-scenes footage, and enhanced visuals, thereby creating premium products with higher retail prices.
In 2003, global DVD music-video sales were valued at US$1.8 billion, marking a remarkable 67% growth in just one year. Video-based physical products were also less prone to piracy and helped sustain higher per-unit revenues compared to digital streaming.
Decline in the Streaming Era
As streaming took over in the late 2000s, physical format sales declined sharply.
By 2019, streaming accounted for nearly 80% of global music revenue, but the economics had shifted: per-unit profitability fell drastically, and revenues were divided among multiple stakeholders, streaming platforms, record labels, and rights holders.
While streaming has democratized access and expanded audiences, it has also eroded the higher margins musicians once enjoyed from physical formats.
The predictable, premium pricing of DVDs and CDs has been replaced by fractional earnings per stream.
A Call for Industry Reform
Obaapa Christy’s reflections underscore a broader concern about the sustainability of music careers in the digital age.
She urged stakeholders to establish stronger industry structures that ensure artistes are fairly compensated for their work.
In retrospect, the DVD and VCD era represented one of the last periods when the music industry could command strong profits from tangible products.
The combination of premium content, bundled video experiences, and steady physical sales made that era a more lucrative time for artistes—long before streaming changed the economics of music forever.
READ ALSO: Mahama, Steinmeier Deepen Ghana-Germany Partnership, Ghana Set to Receive over €65 million in Development Support
