Everyone has acknowledged the burgeoning demise for a few years, but the old music industry is taking some time to transform into something new. Music sales are down, everyone touts, but more music is being created than ever before and many artists are setting out on their own without record companies. So, is the demise a result of illegal downloading, like many claim? Or is the independence of the artist a significant factor? Both have contributed to the transformations in the way we acquire and produce music, and both can show us what might work to keep musicians and others in music related careers thriving in the future.
Tag Archives: digital commodity
Though it may seem that your favorite sites are operating at your whim for free, Chris Anderson can tell you all about where companies and artists alike are really making their profits. According to Anderson’s article, Free! Why $0.00 is the Future of Business, many ventures use the same method developed by King Gillette (of razor fame), giving the public something free to get them to purchase either the accompanying accessories or a higher level of service. Flickr functions this way, starting users off with a free account that can be transferred to a paid account with more options and advantages. Like Flickr, other’s using this business model manage their sites with the profits made from a small percentage of users that are willing to pay for their service, while the others, the great majority, reap the benefit. The free service, in turn acts as a sample, akin to the many bands striking out on their own from record labels offering their albums for free with the option of purchasing cds and merchandise directly from the band. Eventually, from Anderson’s perspective, these services and products are becoming increasingly free, or at least so close to being free that charging for the service would be negligible. Why charge $.01 when you could rope in more prospective customers with the concept of “Free”?