The changing environment.
In every sense, the music industry seems to me to be a horrible inefficient business. I have absolutely no commerce/business/economics knowledge at all, at times I even forget how to spell business, that’s how often I use the word in writing. But from an outsiders perspective, the music industry seems to be persisting that it is something it is not. In my opinion major labels are essentially promotional companies, basically ad men, if you want to be blunt. With increasing technology and the internet becoming the primary form of distribution (e-books have overtaken their paper companions in number of sales), major labels have lost a lot of their need.
The interesting thing that I took out of the reading was the mention of Netflix as one of the frontrunners in this phenomenon and also the mention that they are becoming a major player in DVD’s. The film and tv industry is going through the same problems (or reshaping) as the music industry, there has been massive developments in the last few weeks that would essentially make this article change it’s tone. Here’s why.
Netflix just announced that they are commissioning a TV series, it’s no small show either, Kevin Spacey apparently heading the cast and David Fincher working on the project as well. Netflix outbid HBO in fact, what this shows is that these internet companies are going to become frontrunners in all aspects of the industry, and companies like Netflix may be the norm in the future.
What this means for the music industry basically hinges on what the major labels do, many independent labels are moving for a web presence and seem to be more willing to do so. What I think is possibly an exciting possibility, but also at the same time a quite scary possibility is that a company like Apple expands it’s iTunes store to become a producer of music and act as a major label would. In theory this seems fine, a more streamlined business that also allows for more creativity in music as bands would be able to get their music out there, for a far less amount of money. But in reality, I think it opens the door for a company like Apple to shut the door on other services, and create a monopoly.
For good or bad, the music industry and in general the entertainment industry needs to change.