an Analysis of Record Industry's Suicide
Any one who’s been paying attention already knows this. But Rolling Stone has published a great analysis of the Record Industry’s suicide.
Music is doing great: more music available; products to listen to music are selling like hotcakes (think iPods, etc.); the publishing business is doing well; and concert revenue continues to grow.
As many people were quick to realize, the pervasive availability of free music made everything else associated with it more valuable, and has expanded the associated businesses. Meanwhile, the record industry didn’t catch on in time, or didn’t want to. The article discusses how it’s really the record industry’s own fault. They passed up opportunities to form alliances with other business models (think Napster), and their aggressive pursuit of legal action against consumers has alienated most of their existing customers.
But, apparently, the record industry still doesn’t get it. The current head of the RIAA, Mitch Bainwol, still insists that piracy is destroying the music industry. The article also quotes his predecessor, Hilary Rosen, who blames everyone else, not mentioning she advocated suing customers and lobbying Congress for anti-consumer laws.
So while there isn’t really anything new in the article, having Rolling Stone acknowedge what really happened is important. Maybe, just maybe, it will lead to more of the industry getting on with the new business of music.
