The music industry’s fortunes (or lack thereof) are familiar to most. The CD is suffering one of the longest death rattles in consumer product history, and it is becoming painfully clear that digital downloads are no knight in shining armor about to whisk up the fallen music business and ride off into the revenue growth sunset.
So how did we get here? What happened? The answer is simple: You. You shook off the chains of record label control and decided to listen to music on your own. No more waiting until the CD was in the shops or for the song to come on the radio. With the advent of the PC and the Internet, you could download what you wanted when you wanted, and rip and burn to your heart’s content.
This digitization process put you, the audience, in control. It turns out that the consumer’s perceived value of music was dictated by scarcity or availability: Either you paid what the retailer asked or you didn’t get the music. With Napster and CD burning, high quality copies were available to everyone. But what does digital music strategy now need to do to in order to get out of it’s current stall?
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