In the past, value in the music industry* was measured by the acquisition and exploitation of rights. Per unit selling of songs is easy to understand and for many years was the basis of a successful business. The bonus was that it didn't require a direct relationship with music fans.
Artists and songs were almost interchangeable commodities – if an artist failed to deliver hits they could be dropped because there were always others to take their place.
However, the value of recorded music is in decline and we have a generation who don't see why they should pay for music at all. So is this thinking sustainable for the future?
What if we built a business that placed all its value on relationships instead, truly treating artists as assets, to be nurtured and grown and leveraged over time to deliver profitable returns whatever the 'art' being sold?
Valuing relationships helps create empathy with the ultimate customers – music fans.
These are two fundamentally different views. I don't think they are compatible. They are as radically opposed as the views of the Flat Earth Society compared to those who live in the real world.
The key question in 2010 is which one works best?
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*for purists, by music industry I mean specifically record industry.
