Labels Forced to Adapt to Album Decline
The rise of the single is one of the pillars of the digital transformation of the music industry. Last year a landmark point was reached – more singles were sold than albums. That presents a painful dilemma for the major labels. Where will the money come from when the income from singles is a fraction of that from the much larger album?
The New York Time reviews a few ways the labels are adapting to declining CD sales.
SMALLER DEALS. Instead of a six figure contract to create an album, artists are getting paid much less to create ringtones or a few songs for digital downloads. If those catch on, only then do they get a larger deal for the full CD.
BUY ONCE. PERIOD. A top consumer complaint is being forced to buy the same song twice (or more) when acquired in a new format. The labels are showing signs of flexibility. They are consenting to an Apple plan that would give a credit to iTunes buyers credit for downloads if they buy the album
ARTIST SUBSCRIPTIONS. A few labels are considering plans for artist subscription services. Subscribe to your favorite artists and you'll receive songs, videos, and other products and discounts over time.
March 26th, 2007 at 4:51 pm
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March 30th, 2007 at 4:02 am
It’s just so irritating that it takes the record labels ages to catch up with what consumers want. I do understand the need to protect profit (since these corporations have to answer to their shareholders), but I’m sure there are ways to stay profitable while giving people what they want. They’re not mutually exclusive.