Analysis related to the industry/market of the music business size and profit margin

From about, the early fifties rock and roll stars started to become the new pop culture. Their fictional lifestyle became a major interest in the young target audience. Interestingly enough music distribution was the replacing books with pop culture. At one time, this trend showed promise with large profits and a list of mega stars that seemed would never end. However, lately the landscape has changed placing most of these big names at best on the C list of top acts.” Where before you'd be happy only at gold and platinum levels, soon you'll be grateful if you have a release that sells up to 40,000 units (www.nymag.com).”

The author point out this is a business of persistence that you have to stay focused and driven to achieve success. Being tenacious and grinding for every music sale for a dollar. If you market your product right and utilize the internet to your benefit then you should be able to reach some level of independent status.

Secondly, as radio has controlled the airways for some time with the Clear Channel team delivering the majority of content. The music now watered down following certain corporate guidelines is composed of intermediaries, promoters, brokers all rallying with some form of payola to have their music aired. What we were once selling is now very much so free the business has spiraled out of control. “The Internet is music consumerism run amok, resulting not only in billions of dollars of lost sales but in an endless bifurcation of taste. The universe fragmented into sub-universes, and then sub-sub-universes (www.nymag.com).”

Making the distribution of these products (music) free has created a marketing entity that is selling something else. The major labels are worried and do not know what is next. From losing the process of distribution, manufacturing, promotion and now the quality control of the business model. Technology is the wave of the future, “It just happens that the next stage of technological development in the music business has largely excluded the music business itself (www.nymag.com).”

References

Wolff , M. (n.d., n.d.). Facing the Music. Retrieved May 7, 2010, from http://nymag.com/nymetro/news/media/columns/medialife/6099/

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