Tuesday, September 09, 2003

Music Recording Industry has lost its way

The music recording industry seems to have lost track of who makes them rich. From the outset in the 50's, the allowances and paychecks of kids 10 to 24 have been efficiently ending up in pockets of the recording industry. Now that sales are finally rapidly dropping off, they figure there must be a culprit! They are right...but they are wrong about who that culprit is.
Culprit one: Their own greed has keep CD prices artificially high for a very long time. CDs cheaper to make than tapes! Why do tapes cost less? hmmm.
Culprit two: Times are changing. The old brick-and-mortar way of doing business isn't as effective as it use to be. The consumer is looking for an easier and cheaper way of making purchases. From some items, like music, that is over the internet. So why did it take so long for the recording industry to evolve. They did before. 8-Tracks, Records, Tape, air play, etc have all come from their evolution. What's different this time? Truthfully, I can't imagine. Maybe the industry thought it had matured and wasn't going to see anymore major changes? Well, they missed the boat. The vacuum created by their inaction was filled with many individuals seeking to utilize the new medium.
Solution is not to sue 12 year old catholic school honor roll student girls. Instead, the industry needs to create a new business model. One that utilizes the inexpensive nature of the internet to their advantage, and to the benefit of the end user. I do not believe the current business models created for online music are viable in the long term. $1.00 per song, or month charges are too expensive, limiting and cumbersome to the user, especially minors, who cannot use the credit cards needed to make these kinds of transactions work.
So, to the music recording industry: GET A CLUE. Find a new working business model and make your money in new ways!

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