New Music Models - Digital Record Labels
First, Napter emerged and would forever change the way people got their music. Although Napster was forced to shut down, several copycats resurfaced. Since then, iTunes, MySpace, ringtones, and peer-2-peer networks would forever change the music industry as we know it. Record stores became less relevant to the point that they barely exist today and digital downloading seems to be the only way to music profitability. No longer would consumers need to leave the comfort of their homes to buy music and could simply do so online. As a result, the traditional music business model became a thing of the past, and label executives today are scrambling to put their pulse on the beat and monetize in this digital music world.
From MySpace and three of the major record labels unveiling MySpace Music to online streaming music sites like Imeem, the music industry as we know it has completely revamped their music models. This is good news for the artists who now have more control of their music in the way it is marketed and distributed, but it's bad news for the record labels who now see dwindling profits and less control of artists and their music. With the old music models, record labels were practically the only way an artist could break big in the industry, the only way for an artist to get major radio play, and the only way to national retail distribution. Now what the digital music model has done is put control right in the hands of artists. With online channels, artists can get national distribution without the financial burdens once typical of retail distribution. Artists can also increase their promotional outlets using social media and video sites like YouTube and no longer need to solely rely on the record labels for marketing support.
With all of these changes in the music industry, digital record labels are beginning to surface. While still a new concept and yet to be widely adopted, digital record labels represent a new era in music models. Digital record labels offer their music only through digital channels, which means that they are able to get the music to their audience in a matter of minutes. Take T-Pain's digital record label as an example. His Nappy Boy Digital label launched in 2008 allowing him to offer his music in real time with no red tape. RCRD LBL is another great example of the new music model and is an ad-supported music blog that offers free videos and music downloads.
Even record labels today who somewhat still operate in the traditional sense have adopted certain key characteristics of the new music model. It's practically become a requirement to make an artist's music available for online downloading and distribution. However, many artists and record labels have yet to truly understand the dynamics of digital music promotions, search engine optimization, and social media, and until they begin to incorporate these methodologies into their promotional strategies, these artists and labels will continue to
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