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iTunes 10 Years Too Late?

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Found an interesting, if slightly depressing, article about how one record label executive sees the industry going.

“The labels fully understand that recorded music, streamed or downloaded, is going to be free in the future…CD sales continue to decline by 20% per year, and the only thing that’ll stop that trend is when those sales reach zero. Nothing will replace those revenues.

They also understand that recorded music will largely be little more than marketing collateral, meaning that the Internet services being sued today for copyright infringement will be embraced in the future as ways to get the word out on hot new music. These services pay for the privilege today (either through high streaming rates or in court), but in the future they’ll be the ones getting paid by labels. Think radio payola at a whole new level, and there won’t be any more talk about social networks giving stock to labels and artists. Money will flow the other way, as it should.”

According to the article, this point of view is from a major label executive. For those too young to know what payola was, heres some info that will shed some light on it.

Read the rest of the article here…

If this is the way things may go, what are your thoughts on this as it does affect you?

One train of thought is that if the industry had embraced the internet as a means of distribution earlier instead of watching it consume their business we wouldn’t be in this position.

Written by Robert

March 12, 2009 at 11:32 am

Posted in Music Business