Wednesday, May 07, 2008

Another possible option for the future of the biz

Interesting...

Verizon makes music on the go | Tech news blog - CNET News.com

A few points. First, I didn't realize that V Cast is the second largest music store (right after iTunes) w/ over 3 million songs. Also the idea of traveling recording studio is unique. Verizon's approach certainly is.

What I don't understand are the somewhat conflicting statements...

"Artists are frustrated with the traditional music-producing model,
which is broken," said Ed Ruth, director of digital music for Verizon.
"They are frustrated that labels aren't innovating."


and

Ruth said Verizon isn't looking to replace the record labels. But he
said he feels the company is in a unique position to bring innovation
to the industry.

"We don't want to disintermediate between the artist and the record
label," he said. "What we're trying to do is help the label save some
money by introducing a more streamlined process. And we can also help
the artist market their songs by offering them in a variety of
different formats."




If the model is broken and the labels aren't innovating, how does saving the labels money help?

Sounds like the creative control could very well shift to the artist/producer and Verizon could become a label (which also controls a low overhead distribution ecosystem), which could eventually morph into a digital beast strangely resembling what we have now with songwriters STILL begging for the royalties they rightly deserve. Just because you cut costs and increase sales doesn't mean more money will make it to those who pour out their souls for a song.

Who knows? It is interesting to watch.

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