Blog Post

The Vagaries Of Digital Music Business

It’s hard out here for digital music service providers…just read Loudeye’s latest annual report to get an idea of how unstable the business is. No one’s really earning any money in digital music, except maybe Apple.

The list of hurdles and issues are long: Apple’s dominance; labels’ insistence on increasing wholesale prices; deferred payment from online music stores; patent issues; royalty issues, especially cross-border; piracy; and it goes on and on…

For now, if you looking to invest in digital music, especially on anything other than the front end, think hard…and read this 10-K closely.