Major Labels

Digital Music News’ Resnikoff On The Record Business vs. The Music Business

Experted from his "Parting Shot" column in Digital Music News: "…(Declining) CD sales are only one part of a much larger picture. Sure, tremendous attention is paid to declining major labels, RIAA lawsuits, suffering retail chains, and lackluster IPOs. But that is all part of the record business, with the music business a much larger entity. Smart artists today think beyond the CD, incorporating merchandising, touring, publishing and sponsorships into a more well-rounded picture. Those other aspects of the business are not in a downward spiral, with customers often spending more than $150 in one evening for a concert ticket, parking, and a t-shirt or two. And no one has to ask those consumers twice they are ready and willing to spend big bucks for the artists they love."

Indietvcrowd_3"That larger picture has never been one that major labels have been able to capture. The story is a familiar one: artist signs with label, label invests and makes artist popular, artist reaps benefits of ancillary revenues without the label getting a cut…Meanwhile, movie studios have an entirely different business structure, reaping revenues from theaters, DVDs, television broadcasts, even stuffed animals and airline screenings…In the meantime, artists like Linkin Park and Coldplay could be the first of many flare-ups, with more artists starting to view themselves as small business units and not major label adjuncts."

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