Future of the music business
Ian Rogers, CEO of Topspin and former head of Yahoo Music, gave the keynote address recently at the GRAMMY Northwest MusicTech Summit 2008. In his speech, Rogers explains the current state of the music business as he see it.
He explains that the sale of physical product, CDs, continues to decrease, and while digital sales are increasing, they aren’t making up the difference. Further, as the market becomes more single driven than album driven, the value of a unit of music is further decreased.
His response to this situation?
I don’t care.
He’s not just cold hearted toward the business. His reason is that continuing to think about the music business in these terms isn’t helping. He equates it to talking about the death of the cassette tape during the era of the CD.
The difference is that when we moved from cassette to CD the winners were the same (big companies who owned access to cash, distribution, and marketing) and the definition of winning was the same (more units sold for these big companies).
The game has changed though, not just from one physical format to another, but the physics of the media itself has changed. He concludes that the definition of winning cannot remain constant in light of this major shift.
He quotes Chuck D from Public Enemy as saying earlier this year,
There is nothing wrong with the music business, there is a problem with the CD business.






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