Monday, June 1, 2009

Music Industry Distribution changes

I've read several articles recently that center on the theme that music labels and online music distributors are coming to more agreeable terms that should ultimately be economically sustainable for both parties and enable them to restructure their business around these revenue streams and market opportunities. Many of the changes are centered in the label's recognition that there's just not a workable online business model out there that will give them as much revenue as they had hoped.

It looks like the model is increasingly moving to lower cost per song - especially for older songs, unprotected mp3 file formats so you can move songs to different devices without worrying about compatibility, even wider selections, and includes monthly purchase plan options to guarantee revenue streams and repeat customer attention.

Here's a story that expresses the changing landscape of the music distribution biz.

2 comments:

Danny said...

The other day I made the bold statement that I dislike downloading (especially illegal downloading).

I like the thrill of anticipating an albums release, going to the local record store, and being part of the community that buys it.

I like leaving the store, giddy like a little kid, fumbling with the cd wrapper. I like liner notes. I like album artwork.

Leave it to music biz execs to take the fun out of something special.

Button Fuzz said...

thanks for the comment

Yeah, gotta love that Heinz anticipation. Sometimes the ketchup's better if you have to wait.

And part of the "fun" is sometimes after you've waited and first play the album you're like "what the heck is that garbage?". I remember being like that with Extreme's "Three Sides to Every Story" album. Nuno Bettencourt was one of my favorite guitarists at the time (still is), and the previous album had some of the best guitarwork I'd ever heard. While some folks liked it alot, to me the Three Sides album was largely forgettable with the exception of maybe one cool tune. I gradually got that feeling about Van Halen albums also and eventually stopped anticipating and buying them.