[This article by Dave Allen (Director, Interactive Strategy, North, Inc. Lecturer in Digital Strategy at University of Oregon and a professional musician), takes a look at where things might be headed. It originally appeared on LinkedIn, so you may have to log in to see the rest of it. – AC]
With the news from Billboard that investors put $2.3 billion dollars into music services in 2013 it is worth noting that on demand streaming audio and video services, music discovery, music creation and internet radio companies received the most of those dollars in the aggregate. Given the way young people want to access their music these days (I have written before about the concept of a societal shift to a “renting not owning” preference) I would say the money is well invested as the future of the recorded music industry is in flux; the opportunity to grow the recorded music market is within plain sight.At MIDEM this year, in his Keynote speech Marc Geiger, WME’s global head of music had this to say: “If you still think [the future] is about owning files I will talk to you again in 24 months and you will deny that you ever said it to me,” Geiger stated during a slick 25-minute presentation, which was entitled “20 Years of Pain. No More Fooling Around: The Definitive Future of the Music Business.”
He also believes that the recorded music industry can grow to a $100 billion-plus business within the next 15 years as long as it abandons pushing music ownership and fully embraces the streaming subscription model.
Read on here.