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Seems like all I am doing today is citing the NYT. Maybe they hope that by actually covering the internet they can remain a relevant media outlet…
Anyhow, they have another piece about the challenges facing the major music labels in the digital age. This has been discussed ad nauseum but they do highlight one fascinating fact that ArsTech also picked up on: Atlantic Records became the first big record label to make more money via digital sales than via CD sales.
The interesting thing to note is how this was accomplished:
“In making that transition to a digital business, the music business has become immeasurably more complicated. Replacing compact disc sales are small bits of revenue from many sources: Atlantic Records’ digital sales include ring tones, ringbacks, satellite radio, iTunes sales and subscription services.”
It used to be much easier to be a record label – just sell records. Well those days are long gone and for the labels that refuse to accept that fact it’s going to be a fast trip to backruptcy.
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