Jason Feinberg of MediaShift reports: “Record Labels Are Losing Power To Fans, Artists”
Over the past month, I received a significant amount of feedback on my recent MediaShift article, What Will Record Labels Look Like in the Future?. People from all areas of the music industry reached out and shared their feelings on future business models, and strategies for moving forward.
Regardless of their background, practically every person I spoke with agreed on a core set of truths about the future of record labels (and the industry as a whole). The consensus is that:
- Financially, the current situation most record labels find themselves in is not sustainable, especially for companies whose main source of revenue is selling music as their primary product.
- Sales of digital music have not come close to replacing the revenue lost from the decline of physical sales. Overcoming this requires a significant shift in label expenditures, and revenue sources.
- Investors are finding it very difficult to find opportunities that have an acceptable chance of return on investment. This applies to releasing music, as well as ancillary services and products around music.
- Power is shifting away from labels and back to the artist and management. Labels still provide valuable services, but, for the first time in decades, they are no longer the center of the industry.
- The ultimate power now rests with the fan. The dollars they spend are being fought for harder than ever before. At the same time, fans are demanding more content than ever before.
Here’s what the experts had to say… ( continue reading at the article source, MediaShift on pbs.org)
