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Future of music industry
 Source: Mediascrape
Radical voices. In the business of music, not fitting the mould has seldom been a detriment to a musician's career - as long as that act generated great excitement and sales. But as the music industry heads to Cannes for its annual pow wow called MIDEM, it's the emerging and prospective business models that are sounding radical. SOUNDBITE: Ted Cohen, Consultant, Tag Strategic saying (English) "Every year we look back at what occurred the previous year and every year there's been a little bit of change and a little bit of change. Well, the last year has been an amazing amount of change." Ted Cohen is a respected agitator within the music industry. The former EMI digital music chief started a consultancy in 2006 to advise labels on innovative new models. SOUNDBITE: Ted Cohen, Consultant, Tag Strategic saying (English) "The idea of unprotected mp3s being made available was something that was never going to happen. Well it happened. Ad-supported content is something the labels dabbled with at this time. Spiralfrog was supposed to roll out with their ad supported model and all the sudden we get a call at MIDEM last year that nobody's coming from Spiralfrog, they've all been let go except for the founder. A year later we find ourselves with an ad-supported model coming out of last.fm. We have imeem who about a month and a half ago announced their deal with the major labels." SOUNDBITE: Scott Cohen, Founder, The Orchard saying (English): "I don't know what took them so long to wake up." Scott Cohen, founder of the digital distribution company The Orchard argues the industry should be urging governments, internet service providers and mobile operators to institute a levy to cover the cost of music content, as subscription and ad-supported models are failing to replace revenues lost as the result of sliding CD sales. SOUNDBITE: Scott Cohen, Founder, The Orchard saying (English): "It's not that there's not a place for the existing business models around music which is the a la carte model, the subscription model and the ad supported model. The problem is they don't generate enough income and they don't respond to the end consumer of how they interact with media in a connected environment and my belief is we need to charge at the point of connection. Where that person is getting online. Where that person is on their mobile phone trading and if we can add just a dollar a month to everyone's account we would already have something much larger than the existing music industry." SOUNDBITE: Ted Cohen, Consultant, Tag Strategic saying (English) "I really feel it's a soundbite solution. It's a very easy fix at a very top level to a very complex situation." The fact that two respected figures within the music industry who both advocate change do not see eye to eye on what kind of remedy is necessary just underscores how difficult it will be to come to any consensus on the necessary course of action to reinvigorate an industry, which in spite of rising digital revenue streams is still seeing its overall revenues fall. Matt Cowan, Reuters.
Rating: (0 ratings) Views: 117 Added: Jan 26, 2008
Category: Business
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