One of my favorite blogs to read at the moment is the Lefsetz Letter. Bob Lefsetz is one of those entertaining irreverent writers that takes daily shots at the music industry. His post today is "The World Is Flat" and gives us a very nice concise analysis of the current state of the music world. It is definitely worth reading and digesting. Why? What's happening in the music world is happening in a lot of other industries as well. Pay attention!
Quote:
It’s a changed world. And the world will keep changing. If the old players don’t get up to speed it’s not the worst problem, new entrepreneurs will find a way to create a new business. But the old players are a drag on the system, they’re lumbering giants inhibiting legitimate progress.
The days of dictation are done. The labels and their MTV and terrestrial radio cohorts are no longer all-powerful. If a record sucks, people won’t buy it. They know that it sucks from Web word of mouth, from hearing the tunes online, DOWNLOADING THEM BEFORE THEY’RE FOR SALE! The solution is not to try to inhibit the exchange of information, but to deliver higher quality product that the audience raves about as opposed to decries. Oh, it’s tougher. Then again, it’s tougher being IBM in a changed world.
Update: Bob added another installment on the same theme today, "Where Are We Now"
Quote:
I believe the overall music business pie, the total revenue achieved, can be greater than it’s ever been, if the acquisition of music online is paid for instead of slipping through the fingers of an industry that only wants to sell songs a particular way. Shouldn’t be tough to get everybody to be a music customer, if the buy-in price is low enough, if they can sample and acquire a mass for a reasonable fee. But is everybody going to buy the same limited amount of product? Absolutely not!
We’re living in the era of niche. Broadcasting is dead. Just ask NBC, which reported its worst prime time ratings EVER! People can now get what they want, exactly what they want, and they tune out everything else. So, if you’re trying to assemble a mass, you’re screwed. Hell, just look at the SoundScan numbers. What, there’s one platinum release this year (Norah Jones)?
The major label model is history, except for the few superstars left. Everybody else is going to have to slug it out in the trenches.
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