Originally Posted by
Poisoned Youth
Here are some general thoughts:
- eBay, Amazon and others created a robust used CD trading market in the early 2000s, which made it easier to buy something for half the price instead of new.
- Fast forward a few years, the success and acceptance of the MP3 format proved that convenience was a factor in spite of loss of quality
- The iPod revolutionized how MP3s were stored and played
- Internet speeds, CD rippers, and increased storage space helped legitimize the MP3 further as a preferred format
- iTunes and other legit MP3 download sites changed the shifted the purchase dynamic from album to singles. 99 cents is easy to spend and now cheaper than buying a used CD.
- Additionally file sharing sites also grew in popularity and replaced "CD-R trading" as an accelerated form of P2P file sharing.
And in 2010, it was easy to pinpoint a decline of sales on file sharing because it AMPED up the speed and volume at which people could attain something they might have previously purchased.
However, the dynamic has changed significantly since that time.
- Streaming is a way of life, not an option. For the younger crowd, even MP3s seem antiquated by comparison.
- Don't want to pay Spotify? No problem. YouTube legitimized free streaming once Google took it over. Free songs, free albums 24/7. The guilt associated with listening to something without paying for it went away when this happened.
- Streaming service providers like Amazon, Netflix, and Hulu use a subscription model
- Content volume and accessibility from music to tv to movies grows exponentially each year
And where are we in 2018?
- We live in an attention based society. Content providers fight for it. Music is now not only fighting for its own relevance, but fighting everyone else fighting for your attention - TV, streaming services, social media, etc.
- Worse yet, the amount of content out there gets lost in plain sight. Heck, even on PE if some person starts a thread about his new band, it largely gets ignored.
- There is a paralysis effect that occurs when exposed to this much content, studies show people actually go back to what they are familiar with instead of trying something new. The choice is overwhelming.
- Our particular demographic is aging, has already bought a ton of stuff, is less interested in discovering new music, has other financial priorities.
So how does a small indie record label survive/adapt? It's difficult, maybe impossible. I won't presume to give Steve advice. I do think there are ways a label with 35 years of history can leverage that base and possibly find a model that works. But then again, perhaps not.
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