Can the Music Industry Save Itself? – Parts 1 & 2
PART 2 – As I wrote last week in The Top 10 Issues Facing Music 2.0*, the music industry is facing many challenges beyond falling sales. The death of the album, the uncharted waters of new revenue sources and a fractured and shifting media landscape are but a few of the sharks ready to bloody the waters further.
What’s a record label to do? How can the major labels or the entrepreneurs that want to replace them change to compete in this new and still evolving environment?
1. OFF WITH THEIR HEADS – The high salaries that top tier record executives receive for running failing companies must end. The few worth keeping need to lead by following Steve Jobs’ example and base their own compensation on performance.
Replace the others with younger faces who embrace the new realities. If they care more about money than the chance to do great work; don’t hire them.
There are jobs for people from tech and other industries; just not at the top. Most should come from within the music industry, but not just from other record labels. Managers, agents, publishers, producers and artists all understand music and have something to contribute. What a statement it would make to replace Lyor Cohen with Trent Reznor.
2. CUT THE FAT – The days of lavish release parties may be over, but there are still too many private jets, limos and executive perks. Cut them all out, now. Fly coach. Stay at the Hampton Inn. Make a statement that your company is investing in your artists rather than ego and comfort.
Tell us how you think the labels can save themselves and *join the great discussion going on here.
NEXT: 3. BUILD LABEL BRANDS , 4. RELEASE MORE RECORDS