Flagging music industry seeks reincarnation as iPod upsell

March 19, 2008

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The once haughty recorded music industry has finally collapsed under the weight of its own greed and inefficiency. We can officially call the industry dead, not when the companies are shuttered (because a number of them will survive), but when their main business model is radically different. According to an article in todays Financial Times the music industry is edging ever closer to signing a deal with Apple Computers which may do just that.

The article discusses a deal the two sides are trying to hammer out to shift the labels economics from collecting money based on the number of songs/CD’s that are sold to collecting money based on the number of iPod’s or iPhone’s thats are sold. Its a complex deal that the article emphasizes may not get done, however for the labels to even consider it highlights how very desperate they’ve become. This deal would certainly spell the end of the traditional record labels as their status as added value intermediaries (ie important middlemen) fades even further. Also read a related article which is a bit of a counter-point to the first article albeit with little new information.


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