Comment Missing the point... (Score 1) 55
I believe the Upside article substantially misses the point. Although I'm sure I'm not qualified to be the arbitrar of "The Point", here are a few candidates...
1. How many record labels boast 11,000 artists? The fact that the typical artist sees only a few sales per year must be viewed in the context of this larger picture.
2. MP3.com is establishing a brand with a close identification with digital music distribution, and brands have value commensurate with how they are ultimately used. MP3 is still very early stage -- remember when you could only buy about 10 titles on CD? With a large following, there is potential for them to make big $$ (although to satisfy the financial markets they will have to demonstrate some specific capacity). N.B., there is also a danger that with changing technology their brand could quickly become as outdated as Vinyl.com.
3. The model of MP3.com is changing the fundamentals of the music biz, from demand creation to emergent demand. The long-term potential in this change is to make current distribution models obsolete, not to merely take over the role of the record industry. Although it's possible to play out a number of scenarios, I don't think anyone can predict the ultimate impact with any accuracy.
When Oracle (et al) use slogans like "The Internet changes everything", I'm not sure they fully appreciate the scope of the word "everything".
1. How many record labels boast 11,000 artists? The fact that the typical artist sees only a few sales per year must be viewed in the context of this larger picture.
2. MP3.com is establishing a brand with a close identification with digital music distribution, and brands have value commensurate with how they are ultimately used. MP3 is still very early stage -- remember when you could only buy about 10 titles on CD? With a large following, there is potential for them to make big $$ (although to satisfy the financial markets they will have to demonstrate some specific capacity). N.B., there is also a danger that with changing technology their brand could quickly become as outdated as Vinyl.com.
3. The model of MP3.com is changing the fundamentals of the music biz, from demand creation to emergent demand. The long-term potential in this change is to make current distribution models obsolete, not to merely take over the role of the record industry. Although it's possible to play out a number of scenarios, I don't think anyone can predict the ultimate impact with any accuracy.
When Oracle (et al) use slogans like "The Internet changes everything", I'm not sure they fully appreciate the scope of the word "everything".
