from the article:
The traditional business model for the recorded music industry is bust. Has been for years. CD sales are down again this year, by 13%, as online downloads grow, according to the ratings agency Nielsen. The Big Four record companies — Universal, Sony, Warner and the ailing EMI — sell two-thirds fewer albums than they did in 2000. Carey is furious that music-industry executives failed to realise how the internet would change the way fans consume music. And when the penny finally dropped, they let the computer, not the music, industry corner the market. Over time, many more copies of Memoirs of an Imperfect Angel will be downloaded online than bought in stores. Buyers will go to sites such as iTunes or Napster to do so, not to Carey’s own website, nor that of Island Def Jam. The iTunes music store passed six billion sales earlier this year and has also driven sales of Apple’s iPod and iPhone.
“A lot of big powerful music-industry executives made a giant mistake,” she says. “They gave the music business away on the internet. If they had just sat back and said, ‘Maybe let’s figure this internet thing out, it could be something cool,’ we could have found a way to distribute music online on our own terms, not somebody else’s. Prince had already shown them the way. He was so far ahead of the curve, putting out his own records on the web. Everyone else was stupid.”
What we're evidently witnessing is the death of the industry, something the U.S. is seeing now in its once almighty Automotive industry. It may take a generation to rebuild but these seemingly invincible conglomerates, but eventually they will be. Whether we see higher quality singing, songwriting and studio production values emerge from these new enterprises is another matter entirely.
This subject does deserve it's own thread.
Thanks for the link.
Marty In LA