I read this article in the New York Times about the changing face of the music industry.
Whenever we think of the internet and the music industry, we think about illegal downloads. In fact, the internet has been the bane of the establishment since its inception. Metallica and Napster anyone?
But now, as CD sales drop and digital music sales increase through stores like I tunes etc, artistes have long realized the significance of this distribution channel. They have moved from selling physical CDs, to touring to finally realizing that the internet could be the next big stopping point for revenue.
But what’s taking place now is the emergence of a whole new business model based on the ease and connectivity of the internet. Bands will essentially become companies of their own. They will raise funds as funds are raised for a business, mostly through venture capital.
They will consult with consultants and outsource operations like tour organizing, publicity etc. and they will have a bigger share in the profits, with increased rights on musical inventory and intellectual property of their own work. Maybe the-Artist-formerly-known-as-Prince picked the wrong decade to get famous in.
If this trend takes hold we will see the emergence of more and more indie bands. They will receive more exposure and the music industry will become more competitive as a result and the influence of big record labels will reduce, bringing on a whole new market and industry through creative destruction.