Why Music Industry Is Upbeat About Online Sales

(sub. req.): A detailed story on the music industry, and what it needs to do to capitalize on the online distribution. The fear is that labels will be pushed out. “Even as the online music sales are growing, the music industry cannot be complacent. The technology providers, rather than traditional artists and record labels, are receiving the bulk of the revenues from the latest services.”

One music manager, representing famous bands, says: “The telecoms and cable industries could also move in. Up to now they have been happy just to distribute, but they could line up with artists to break the majors.”

Another producer, who also declined to be named, adds: “The real problem in the record industry is the business model that they are building for themselves. They are overspending on short-term artists.”

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