"Music is thriving, but the business is dying. Who can make it pay again?"
Despite all the hype about the 'digital revolution', the music industry business is in serious financial trouble!
Sales were down 7% last year in the UK! Two of the four music majors, Sony and Warner Music, both admitted their pre-christmas sales were down 10% and 14%!
It has been a decade since piracy and the arrival of iTunes and yet the music business has yet to find ways of repairing lost CD sales.
THE MUSIC INDUSTRY HAS HALVED IN SIZE!
AND...
With hope that 'Digital Sales' would rescue the industry...
Download sales posted just 1% growth throughout all of 2010!
"...in a business where over a quarter of sales are digital, we need a much broader combination of ways to make money"
THEREFORE!
--->NEW STRATEGIES!<---
- Radiohead - Sold their first album using the "Honesty Box" method, which people could donate whatever they thought the album was worth or a special edition worth £33.
- Ellie Goulding - Sponsored by Nike to get runners to listen to her song.
- Spotify - Hopes that 'Spotify' with their music subscriptions service could generate meaningful forms of revenue, however there are doubts that this method would not work.
- Billy Bragg - Recorded half a dozen songs and gave them all away on his website, has also shifted his merchandise to make money.
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