John McCann

Crumblling control enables participation

In Music on February 13, 2006 at 5:10 pm

In a recent article from the Scripps Howard News Service, Raul Resnikoff, editor of DigitalMusicNews.com tells us how the record industry is losing control of the business.

“’The record industry has thrived on control for the past five or six decades’ Resnikoff says. ‘It has basically been able to control manufacturing, distribution, artists’ careers, contracts, how you consume music, how it’s playable, where the revenue stream would go, how much you pay for CDs, when the CD came out, when the music was released.’ Suddenly the rug is getting ripped out underneath that. The control component is totally gone. ‘While the music industry’s power wanes, control is going back to the consumer and musical artist. ‘”

This shift in power means that the old gatekeepers no longer can decide who gets to participate in the music business. When the industry structure crumbles in any industry, new players can, and almost always do, enter the game that had been previously controlled by a few entities.

Channels of distribution are examples of structures in which the entrenched leaders are losing control. Whenever you see changes in a channel structures such as we are now seeing in the record business, for example, you will see the participation age sweeping through that industry.

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