Friday, July 06, 2007
How To Fix the Music Industry
Labels...if you want margins again, stop screwing artists, develop better ones, hire lots of new people, learn where and when not to subsidize music, listen to Steve Jobs, and share the love with prosumers.
It's pretty simple.
Of course, like almost every other media market, you can't do any of this new stuff until you stop obsessing about stuff like royalty rates to microscopic net radio stations. The assumptions behind that obsession, put another way, have a steep opportunity cost - strategic reinvention.
Yes, hiking royalty rates might boost profits for another year or two, given the massive growth in online listeners...but what happens then?