Showing posts with label industry. Show all posts
Showing posts with label industry. Show all posts

Wednesday, June 27, 2007

Why is the music business in this position

It is interesting what has happened in the music business on one side you have iTunes with 10% of the market on the other you have "big box retailers" with about 28% of the market and in the middle you have the artist/label.

You may ask, "So what?", well the issue is almost 40% of the music in the US is now sold through retailers that use music to sell hardware (iTune) or create foot traffic (Best Buy/Wal-Mart). On the surface this seems like a "So What?" well the issue is that all three of these retailers have reduced the value of music (iTune to $9.99/.99 the other two as low as $6.99 to increase traffic).

All this is happening as we "suggest" our indie retail partners sell the very same title for $13-$18 - this is the partner that helped really break an artist - create a local following. We need to create a balance between the two types of retailers . . . but how? Well maybe we should give our mom and pop partners an incentive in the form of touching the artist - exclusive content - well anything they want to help break our artists.