Month: October

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Indie labels are still upset over the MySpace deal. Only the major labels were given equity in the site's overall revenue, and some indie labels did not even have their music catalogs included in the initial launch of the site due to ongoing negotiations. This was a quick change for indies, who are used to having more of a free-range in the digital online marketplace. Only recently have the majors changed their stance on DRM-free downloads and streaming, where before they only allowed 30-second clips or no music at all. The indies are considering the need for more a aggressive stance in negotiations in these new digital deals. They feel the need to press for their rights. Still, it has been shown that indie labels' music is given a boost when major label content is added to a site with indie music available. This increased traffic brings in more revenue.

Month: october

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As the music industry heads more towards distributing through music services on line, new business models are coming to surface. The question is now, how will labels and publishers be compensated? On September 23rd labels, publishers, and digital music services came together and agreed on a mechanical royalty structure connected to ad-supported streaming music and subscription services. This agreement is a step towards supporting a future in music distribution in the digital music market place. In the article, innovative music models that were discussed were Myspace Music, Sandisk’s Slotmusic, Nokia’s comes with music, and Sony’s Playnow Plus. Each business model explains the way in which labels and publishers will be compensated for their involvement in the particular venture. In some cases the labels will receive cuts off generated revenue, and in others publishers will be paid royalties and whatever rate that is set by the CRB judges.

Month: winter

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As time moves forward, record labels are becoming less profitable.Because fo this the record industry is looking into other ways to create profit. One alternative operating model that has been suggested is to apply a non-traditional financial model to the situation. One example is to use private equity funds that would invest into a musician’s intellectual property. Two other areas that are introduced and discussed as non-traditional financial models are hedge funds and insurance.

Month: November

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Vinyl is seeing a comeback. Sales of the old format have skyrocketed within the last two years (2005-2006). This article examines the who, why, and how of the vinyl resurgence, and whether or not it will be a long-term revival.

Month: November

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Record labels try to expand artists' careers by placing them in films. Films are not only a great source of income for artists whose music is used but are a great promotional tool.