After speaking with an analyst the other day about “movie studios not wanting to go the way of the music industry” I got to thinking about what it was, really, that the music industry taught us. This is especially important because it seems that the music industry (record labels actually) is increasingly used to defend questionable and often desperate practices by newspapers, cable operators, and television and movie studios. Just Bing (I no longer Google) “newspaper” “demise of” and “record labels” and you’ll see what I mean.
But while the music industry has a lot to teach us, the main lesson had to do with the packaging of its products. Basically, they took a bunch of songs, put them in a box, and forced you to buy the box. This despite the fact that you often wanted only one or two songs in the box. (By the way, I also believe CDs were a clever ploy to kill off the weak link in the songs-in-a-box strategy—the 45 (and I know I’m dating myself by saying this)). What killed the traditional music industry business model was not the internet per se, it was the availability of an easy to use system that allowed people to buy individual songs (i.e., Apple’s iTunes/iPod combo). Yes, this combo could not have existed without the internet but until Apple came along MP3 downloads were the domain of poor university students.
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