Here’s a topic that I often write about: the state of the music industry, especially with regard to file sharing. How to Save the World has a good article examining how the entertainment industry can adapt to the wild world of P2P file sharing. Here’s a snippet:
At the same time consumers have become increasingly reluctant to pay $20 for a collection of over-hyped music on a CD that costs fifty cents to make, they have actually been willing to spend more than ever before on the technologies that ‘play’ the content. That’s right, a recent survey shows consumers are moving upscale in their entertainment ‘hardware’ purchases, because they see more value for their dollar there. And while CD sales (at least of mass-marketed titles) are off 50%, the total number of titles issued by the Big 5 (who generate 85% of all music sales) is also down 50%. Cut the supply in half, why is the industry surprised that demand has declined accordingly?
The article goes on to list several solutions to the industry’s problems. I’d actually like to see solution #4, the shake out, occur. 🙂