:: NEWS COCKTAIL aka BlahBlahBlog ::

:: 5.28.2003 ::

:: Online Music report ::

From CNET News.com:
Online music on verge of revolution
By John Borland, Evan Hansen and Mike Yamamoto
May 28, 2003, 4:00 AM PT

A generation from now, historians may look back at 2003 as a year that redefined popular music.

Although the significance of Apple Computer's recently announced iTunes music service is debatable, it underscores an undeniable trend toward bringing digital music to the masses. This three-day special report examines myriad elements of the music universe that were unthinkable only a few years ago.


Day 1:
State of the art: A medium reborn

Many in the music industry are banking on downloads and other digital services to help rescue a business that has seen a precipitous drop in the sale of albums in recent years. The industry has in part blamed that decline on the huge number of songs downloaded through file-swapping services, but many executives speak candidly about online distribution as the key to a much larger resurgence in profits.

"We all have to recognize that industry is going to get smaller before it gets larger," one senior label executive said. "The game is to take the significant expansion in overall consumption and find a way to win it back...As the industry seeks those new paradigms, it's going to have to do it in a context where it is going to shrink for a while."

How long is anyone's guess. The bitter and protracted fight against free file-swapping services such as Kazaa and Morpheus has led to a backlash against the labels, particularly among young people, and music labels are hoping to rehabilitate the idea of paying for music for the next generation.

"Music is the most important thing in a teenager's life," said Strauss Zelnick, former chief executive of BMG Entertainment. "It defines our society."

postedby me

:: 9:11:00 AM [+] ::
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