I started a couple threads on various forums about where the Music Industry is headed. With all this downloading and Wal-marts domination on the CD market (they now have a 25% stake in the CD market folks...) things are coming to an end. I'd like to know what your thoughts are. Please feel free to use the comments buttongs here on the blog and share with me your ideas for the future of music. Here is one of my latest posts from the small business forum:
"I've been thinking about this a LOT and have posted the same questions on other forums. my thoughts so far, the music industry as we know it is coming to an end. I don't think retail music is over, but I think it will change. I don't think we'll be going to stores to buy music merchandise... I think we'll be going to see more live bands popping up. More live music venues. Maybe the value will go down and abundance will grow?
It's a thought that kind of plays into a number of different ideas, like Chris Anderson's Long Tail (a little different from SEO's long tail). I think a lot of middleman could start to disapear in all industries as more manufacturers find opportunities to go direct. Why sell to Wal-mart at 10% margin when you can make 20% going direct? Digital media is just the beginning, IMO.
Starving artists are always looking for a gig. And if consumers no longer have music stores to get their fix, they will still crave music centered human interaction, IMO. Maybe small venues is a new opportunity... not new, but growing.
Basically, I feel strongly that people will not stick to the confines of the computer room and the loneliness of their iPod headphones. We love music, but we love to rock with other people as well. Why do we go to concerts by the thousands? Why do we crank the stereo at home parties, bars, etc.? When our music stores go away, how will they be replaced? By live performers. The concept isn't exactly new... bars and coffee shops have been playing live bands forever. But I think the growth of small venues centered around starving musicians is inevitable. This idea gives new opportunities for a number of people:
* Bands are going to get local exposure, and perhaps widespread if the venue itself can become acreditied.
* Local merchants will still be able to survive and possibly thrive in the changing music industry. Along with CD's of the newest bands (or possibly thumbstick/iPod download options) They can charge light cover fees (say $5-10?), sell drinks, merchandise, etc.
* Local consumers will get far more than they ever did before from CD's and downloads. No longer lonely in front of their computer, but instead in a hall among two hundred of their closest friends watching the latest group perform live. What was that last song? That was great! He guess what, you brought your ipod... go over to that counter and download it for $.99. Like this one too? Hey download the whole album for $9.99 or just buy a CD!
* Local cities who support this movement early on could seriously gain from the increased tourism potential. These clubs will likely run into the early hours of the next morning, and probably sell alcohol... can you say hotel? The next morning... breakfast, can you say small local restaraunt? Local marketing companies, t-shirt compaines, screen printers, etc. can capitalize off selling the bands merchandise. And for early shows, local teens can find solice in rock (assuming these establishments aren't all 21 and over).
At first when it occured to me that CD stores are dying, I was a bit depressed. But their is always a balancing. The record companies won't steal all the fun by selling their downloads direct. I predict that we are living in the greatest time that music has ever seen. We'll see more live bands playing better quality music than any generation before us. What a time to be alive.
About the Author
Dustin is the blogger for the Daily Music Download. Please feel free to repost this article as long as you link back to my site with an active link and full credit | 
