So much is happening with the music industry. Distribution channels are changing, digital rights are changing, and society is changing what they consider is important, and most critically, how they will pay for content. Napster, mp3,and iPods have roots in this change. The music industry can no longer depend on CD sales for profit. The use of physical resources to distribute and the price inflation to the many hands involved with the distribution mechanism is already too expensive and is only getting worse due to rising costs of energy. These costs and the ability to pay for only the songs someone wants is driving the music industry to a new model. RIAA has proven how desperate the music industry has become. Now FINALLY the music industry understands they are doing the equivalent of trying to force sales of “horse whips” when the automobile has become mainstream. Pure genius!
Welcome to the dawn of Music 2.0! What is Music 2.0? We’re still finding out, but it’s not physical media anymore. It’s music that is distributed, filtered, and decided by the public that are listening via Myspace, Podcasts, iTunes etc.
A panel of music businesses gathered yesterday, Feb 26, 2008 to discuss:
“Consider the statements that were made today without controversy:
- DRM on purchased music is dead
- A utility pricing model or flat-rate fee for music might be the way to go
- Ad-supported streaming music sites like iMeem are legitimate players
- Indie music accounts for upwards of 30 percent of music sales
- Napster isn’t losing $70 million per quarter (and is breaking even)
- The music business is a bastion of creativity and experimentation “