Music industry needs to get creative

Last week I wrote about the struggling music industry in Canada. Today, the top executives in the industry met in New York for Digital Music Forum East where everyone is trying to figure where things are heading.

The music industry has changed a lot in the last 10 years and nobody seems to know where it is going except that Music 1.0 is dead. Sales are down and DRM on purchased music isn’t working so what’s next?

Flat rate pricing might be the way to go but forcing ISPs to tax their customers as The Songwriters Association of Canada suggested is not the way to go. The music industry needs to get “wildly creative with new business models”.

My guess is that whatever solution the industry comes up with, it will probably be used by other digital mediums — television, film and possibly books. The distribution of entertainment has been turned on its head the more digital it becomes. It will be interesting to see how things get resolved. I think that some variant of DRM on purchased music and video is the answer. Time will tell.

Posted in Music at 4:46 PM