Thursday, 17 November 2011

I found this in an article about a talk given by Sean Parker, co founder of Napster. The author boiled down the conversation to what thinks were "five interesting things Parker said Yesterday". The talk was mainly about the future of the music industry, the future of web company's. Point number 3 absolutely sums up our presentation.

3. He thinks the music industry is harming itself by resisting Spotify (Parker's an investor) and other new music models.

"I've watched in the last ten years as the four, soon to be three, major record labels have failed to embrace any new models," said Parker. "They have maintained a storefront mentality, a unit sales approach. You walk into a [virtual] store and buy music as you always did, with a limited ability to sample. You can't listen to what you're friends are listing to, you have to buy it...The record business is in a slump due to the lack of distribution models that encourage more consumption. Now we have it with Spotify, with Pandora. I think that iTunes will eventually adopt licenses something like what we have at Spotify. We've presided over the largest destruction of value ever in the music industry over the last ten years. If we can get them back to where they were ten years ago we will have presided over the largest increase in value."

I agree with all of what Parker said.
As Mark commented, the music industry now only has 3 major players; really 2. If each competitor continues with old models they will end up left out in the cold while many smaller labels capitalize of new trends. They will be left in competition with merely each other and will ultimately loose due to the death of the old market.

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