# Impact of Loss of Royalties on VI Industry



## tsk (Dec 30, 2019)

This occurred to me today. As in the Discovery Networks discussion thread about how production music as an industry is going to be slowly eroded, especially the middle, surely there will be an impact on the virtual instrument industry?

As an example, I was previously spending something like $3k/year or so on virtual instruments for my writing, but as of the start of this year I have not spent anything and don't intend to spend anything further, since my royalties have been so hard hit already.

I imagine this scenario repeating amongst other composers too.


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## Henu (Dec 30, 2019)

tsk said:


> I was previously spending something like $3k/year or so on virtual instruments



There's also the fact that it's virtually impossible to spend an outrageous amount of money every year due to owning already so much stuff.


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## tsk (Dec 30, 2019)

Henu said:


> There's also the fact that it's virtually impossible to spend an outrageous amount of money every year due to owning already so much stuff.



Full time writer, royalties as sole income. $3k/year may seem high, though for some it is still low. As a business expense for the year it's not unheard of at all.


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## Henu (Dec 30, 2019)

Full time composer here, so I definitely know how to turn business profit into business expenses quite fast. :D Nevertheless- my point is that as I already have so (too) many sample libraries now, I don't have the needs for new ones with the same pace than a couple of years ago when I started to expand my (then very small) collection more seriously. I mean, how many string libraries do I really need?


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## MartinH. (Dec 30, 2019)

Henu said:


> Full time composer here, so I definitely know how to turn business profit into business expenses quite fast. :D Nevertheless- my point is that as I already have so (too) many sample libraries now, I don't have the needs for new ones with the same pace than a couple of years ago when I started to expand my (then very small) collection more seriously. I mean, how many string libraries do I really need?



We'll remind you of that next black friday!




tsk said:


> surely there will be an impact on the virtual instrument industry?



For all we know they are already feeling it and just don't talk about it. To me none of this looks sustainable. I suspect we'll see a big number of devs downsize / close down soon. Imho there just isn't the demand that justifies the amount of products being released and GAS alone only can carry the VI economy so far...


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## jbuhler (Dec 30, 2019)

MartinH. said:


> We'll remind you of that next black friday!
> 
> 
> 
> ...


Didn’t one of the developers on here say the largest market for almost all VIs is hobbyists? If so, that market isn’t much affected by tax write offs. And it would be interesting to know if the hobbyist market is still expanding.


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## Mike Fox (Dec 30, 2019)

Not just hobbyists, but "probbyists" too. That's the camp i fall in, and I'll probably continue to buy sample libraries until i croak.


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## charlieclouser (Dec 30, 2019)

Another knock-on effect will be the (further) proliferation of new sample library developers continuing to flood the zone as people search for new income streams. So we'll see even more "content creators creating creative content for content creators" as they try to leverage their experience in using the tools into being the ones providing the tools. Like the laid-off mechanic getting a gig driving the Snap-On truck.

Which is not a dumb move. The profits at Banjo Center don't track 1:1 with those of the record industry, for instance.

If experienced pros, fat and comfy after decades of beefy BMI checks (and with operating expenses commensurate with those checks), decline to take the buyouts at Discovery and other cheap-o gigs, then that leaves a bit of vacuum which up-and-comers see as opportunity.

So there is a bit of a sucking effect (pun intended and perfect) where the worse things get, the more people get into the game. Instead of scaring them away, they see it more like, "Finally, those old heads are getting out of the way.... now is my time!" As Discovery has to cast a wider net to lure in composers outside of the experienced pros who know better than to take those gigs, it will look to the casual observer as if there is actually more work on offer, despite that work being of lesser value to the composer.

I think that will help keep demand strong for the tool-sellers - to an extent. Because, while the demand may remain strong (or even increase), there will be more and more tool-sellers and this competition, as well as customer fatigue, full hard drives, and "I've got everything-itis" will continue to drive prices down in that sector.

So I am bearish on composers, neutral-to-bullish on sample developers - but I remain as bullish as ever on AAPL.


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## HiEnergy (Jan 29, 2020)

I've completely stopped buying sample libraries when NI axed Kontakt's offline authorization possibilities and more and more new content is published for Kontakt 5.7 and on.
I don't need new sounds libraries at all.


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