DISQUS

Its all unravelling fast and it looks like EMI are about to blow up now!

Downloads have changed the market dynamics for the music industry. What used to make commercial sense,(i.e CD Sales) no longer works.
Peoples spending patterns have moved on and there is little if any perceived value left in the CD format. Music is now instant and disposable.
When the dynamics change so radically, everyone needs to adapt or die.

EMI as a business is doing all it can to ensure its own survival. But by asking Artists to adapt to their survival model, the artists will be putting all their fate in the hands of the label as it navigates uncharted waters.

Should anyone trust that a Record Label run by a Venture Capitalist would have the Artists commercial interests at heart??

For once the Artists have the upper hand and they are right to vote with their feet.

The future of the music industry has to be be very different form where it has been up till now.
For me its very simple.
There is money in the Live events, ticket sales, Merchandise, Sponsorship, Brand extensions (fashion labels etc).
Record Lables who only distribute music will fail as revenues diminish.

Livenation.com (a live events company) signed Madonna in a $120m unified rights deal that makes sense for all parties.
If EMI want a piece of the artists other revenue streams, then they will have to prove they can add value and throw their weight behind and embrace the new dynamic in the same way.
Right now few Labels can do what livenation.com can.

In some respects this reminds me of 1978 and the commercial birth of Punk and I think something good will eventually come out of all this.

I’ve been watch these guys at www.ebtm.com, & www.atticusclothing.com, – These kind of ventures could offer Artists the kind of Brand Extensions to pay the bills in the future. I expect more of innovative stuff like these sites springing up.
The Tequilla Man