ProduceYou

How close is the demise of the major players in the music industry?

From ticketing and touring to production and distribution the “powers that be” in the recorded music industry are teetering on implosion.

Music sales continue to drastically decline, and ~40% of internet traffic is P2P.  The most profitable artists market to small niches, have low overhead, and cater to the direct needs of their followers.  This is the antithesis of the methodology of major music industry players.  They do it their way, get a huge marketing engine behind them, and hope to ram it down your throat with shelf space, promotions, and advertising.  Are they really thinking exclusives or better placement in “big box” retail spaces is going to solve the problem?

…The graph says you haven’t moved the dial…. Not this year, and certainly not in the last 5…

Of course, the Titanic can’t turn on a dime and getting the major labels on the same page is about as easy as turning back the hands of time.

As “propped up dinosaurs” and mega country bundles continue to rule the shed’s at $100 a ticket, the industry must prepare for the future… The current average age for concert-goers is approaching 50.  I mean, how many times can we keep rolling these folks out and charging exorbitant prices.  What’s the saturation point?  What happens when they retire?  Who are we cultivating as new major touring artists of the future?  Who is the BREAKOUT artist of 2008?

Could it be that major labels and concert promoters are one big catastrophe away from a financial tailspin from which they can’t pull out?  Multimillion dollar rights deals aren’t yet bonafide, and a few more years of hits to the bottom line of these mammoth companies can’t please investors… these companies aren’t Google of the early 00’s, shareholders need to see returns and a BLACK number at the bottom of financial statements.

I’ll end my rant, perhaps it’s my penchant to fight against authority, or my disdain for the huge organizations, red tape, and aristocracy, but I can’t help but see an opportunity for smaller organizations.

Find the cracks in the mold and exploit them, maximize your piece of the pie by looking where others aren’t.