27 September 2007, 01:43
What's the future of the music industry?
Stephen J. Dubner co-author of the Freakonomics book expresses his view as well as asks several experts about the present and future of the music industry.
Koleman Strumpf, professor of business economics at the University of Kansas Business School whose papers include "The Effect of File Sharing on Record Sales" on the present downturn: "there is surprisingly little evidence to support the claim that file sharing has significantly hurt record sales." Instead several other factors are suggested:
- "industry has failed to find genres that capture the interests of consumers;
- much of the reduction in sales is the direct result of industry cost-cutting. The major record labels have cut large numbers of staff and severed ties with many artists;
- recorded music has had trouble competing against other products that vie for consumers’ entertainment spending;
- he rise of paid digital downloads made popular by iTunes".
Fredric Dannen, author of Hit Men: Power Brokers and Fast Money Inside the Music Business:
"You can always count on the record industry to cling to the past, and to fight innovation. (Apart from resisting the LP, the cassette, and the CD, the industry also fought MTV.)"
George Drakoulias, music producer, artists & repertoire executive at American Recordings, and veteran of Def Jam Recordings:
"There are many factors contributing to the industry’s current decline. The biggest ones include the inability of record companies to take advantage of new resources like Napster and American Idol, the continuous churning out of bad music, and, of course, greed, greed, and more greed. I think it is clear how we got here; but where we’re going remains very uncertain."
Peter Rojas, founder of Engadget and co-founder of RCRD LBL, a free, online-only music label launched by Downtown Records.
"The fact of the matter is that the majors thrived in an era of inefficiency, when there was value in physically producing and distributing music. There isn’t any value in that any more (or at least, it’s very quickly declining), and there’s no good way for labels to compete given that the cost structure of the business was designed around physical releases."
Read more:
What’s the Future of the Music Industry? A Freakonomics Quorum, The New York Times
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Comments 73
1. by bluster, 3 October 2007, 01:00
When will the AllOfMP3 return. It was the highest quality music download service...my MP3 player refuses to play anyones else's.
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It returned even before it went away: www.MP3Sparks.com
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