Majors vs. Indies, Google vs. iTunes: Make No Mistake, the Music Industry is at War
Make no mistake about it: the music industry is in a state of war. The recent split of EMI assets between Universal and Sony reduces the number of major labels down to three, with Warner hanging in the balance. Meanwhile, Google has declared war on iTunes, and the Indie community now has over 400 mp3 upload sites to showcase its music.
There are a number of ways to characterize the current state of the music industry starting with chaos and a Cyber-version of the "Wild, Wild West."
It's a global war made up of smaller wars. In the Indie vs. Majors War, unsigned artists are operating on the belief they can sell music without the support of major labels. Many unsigned artists are not even interested in becoming stars. These little fish in little ponds are perfectly happy recouping recording costs, playing locally, and having a small cadre of fans.
In the CD vs. mp3 War, Billboard Magazine, the be-all and end-all of charts, still clocks CD sales, but clearly fallen CD sales over the past 10-20 years is one of the most significant reasons for the collapse of the industry, along with the shift to Digital. And while current A-list artists like Lady Gaga, Katy Perry and the Black Eyed Peas continue to sell physical product, more money is being earned from product endorsements than tickets and/or recordings.
OK, maybe not a collapse. But if it's not a collapse, then what is it?
In the Google vs. iTunes War, what could be scarier than Google, poised to become the most powerful company in the world if not already, buying out Universal, Sony and Warner, and turning Microsoft into a side venture?
I'm clueless when it comes to the world of Mergers & Acquisitions. But whatever rules and laws there are in place against the dominance of monopolies, I don't see a whole lotta enforcement goin' on.
There are now more than 400 mp3 showcase sites for unsigned artists/bands. While the hype that Indie artists have as much of a chance of selling along side major and megastars becomes the battle cry, exploitation of terribly naive musicians, singers and song creators knows no bounds.
Sure, the majors will continue to exploit their current catalogs, acting more in the role of copyright administrators than performing any role having anything to do with artist development. Many legendary artists will maintain their iconic status regardless of what label they're signed to, but the pickings are few and far between in contrast to the tsunami of new music drowning Cybertown.
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