Sunday, November 14, 2004
It's The End Of The Music Industry's World As We Know It
...and I feel fine!
I believe the music industry would have to re-think and re-work its business model in order to survive. Today, their most powerful tool is the ability to market the hell out of any talented or talentless "artist." Profits flow in from sales of CDs. This will change, I believe, because of how resourceful the internet can be for an artist. Artists are already able to manufacture their own music without the help of a label. Furthermore, with CDs on the way out, artists will be less dependent on funding for the production of physical audio media. As far as marketing is concerned, again, I believe the internet provides alternative ways for artists to promote their music independently of having a record label's support.
The most powerful tool the music industry will have for a longer while is the ability to fund an artist's tour. You can't replace a live show. And an artist cannot afford to go on a Statewide or World Tour. The music industry would have to focus more on putting on and promoting live shows. Unfortunately, this will (and already is) driving ticket prices up, but really, if a band is talented to perform, fans will spend what they can for the live experience. This will also filter out all the talentless artists the music industry promotes easily via radio and MTV.
It will take a while, but I envision the complete elimination of the music industry, as we know it.
A new business model for artists could be one where they are paid upfront to make an album or even go on tour. Let's say an artist plays amazing live shows locally. Fans return time and again for the experience. The band gains popularity. Next, the band is sponsored by their fans to record an album. Could this work? Possibly! Next, the band can demand upfront costs paid by the fans for them to go on tour. This would also eliminate the dependency on a record label for a band to tour.
The biggest problem with the music industry is that it has been operating backwards for far too long on the principle of [creating artificial] Demand in order to Supply for it, instead of Supply[ing] for a real Demand.
Video killed the Radio star; Internet is killing the MTV star.
Power to the fans. Power to the artists.
My 2 cents...
p.s. Oh, forgot to mention, the American Music Awards were on tonight. Yawn.
Krassy Can Listen To It: "Stairway to Heaven" by Led Zeppelin
I believe the music industry would have to re-think and re-work its business model in order to survive. Today, their most powerful tool is the ability to market the hell out of any talented or talentless "artist." Profits flow in from sales of CDs. This will change, I believe, because of how resourceful the internet can be for an artist. Artists are already able to manufacture their own music without the help of a label. Furthermore, with CDs on the way out, artists will be less dependent on funding for the production of physical audio media. As far as marketing is concerned, again, I believe the internet provides alternative ways for artists to promote their music independently of having a record label's support.
The most powerful tool the music industry will have for a longer while is the ability to fund an artist's tour. You can't replace a live show. And an artist cannot afford to go on a Statewide or World Tour. The music industry would have to focus more on putting on and promoting live shows. Unfortunately, this will (and already is) driving ticket prices up, but really, if a band is talented to perform, fans will spend what they can for the live experience. This will also filter out all the talentless artists the music industry promotes easily via radio and MTV.
It will take a while, but I envision the complete elimination of the music industry, as we know it.
A new business model for artists could be one where they are paid upfront to make an album or even go on tour. Let's say an artist plays amazing live shows locally. Fans return time and again for the experience. The band gains popularity. Next, the band is sponsored by their fans to record an album. Could this work? Possibly! Next, the band can demand upfront costs paid by the fans for them to go on tour. This would also eliminate the dependency on a record label for a band to tour.
The biggest problem with the music industry is that it has been operating backwards for far too long on the principle of [creating artificial] Demand in order to Supply for it, instead of Supply[ing] for a real Demand.
Video killed the Radio star; Internet is killing the MTV star.
Power to the fans. Power to the artists.
My 2 cents...
p.s. Oh, forgot to mention, the American Music Awards were on tonight. Yawn.
Krassy Can Listen To It: "Stairway to Heaven" by Led Zeppelin
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