A Leap Of Faith Can Save The Music Industry (This also applies to your start-up).
The Music Industry was the first sector to be hit by the current recession. In other words, their business model became obsolete. There are striking similarities between the Music Industry and the U.S. Motor Industry. However, the biggest failing of both sectors has been the failure to change.
Sometimes you just gotta surf the wave. You gotta go where the wind takes you. You see, in the long term, the current will always win. What the Music Industry has been doing is swimming against the current. The danger of doing this is that they will get tired and drown. As far as the Music Industry is concerned their business model has been turned on it’s head. Live is where it’s at. People will pay inflated prices to see their favorite artists perform live. Albums are now secondary to the live gig. For many music purists that’s how it should be.
It’s summer festival season, and you can see people checking out artists that they have become fans of by downloading their album for free. Bands and artists can get more exposure and more fans over the duration of their career through the new model. I understand that many record deals pre the “digital age” did not include a cut in the live revenue for labels. However, Live Nation who has notable stars such as U2 and Madonna have built a new business model around this reality. But there is scope for more to be done.
Instead of spending huge amounts on legal fees and stacking up large amounts of bad PR. Why don’t labels redefine their role. Everybody knows that the value perception in this entire industry has changed.
What if the Labels were to try and make the experience of being a fan better. Don’t you think that is a sustainable business model? It’s a big leap of faith but it could pay off big style. After all, if they do this they will have the current behind them. Easy swimming huh?
As for your start-up. Well you just have to go with the flow.
