Record sales are tanking, and there's no hope in sight: How it all went wrong

[Bouncing Zabaglione Bros.]

It's written very simplistically but then that's what it reports, a simple situation.

It does lay out things very neatly. Sure it's a simplification, but it's also a very clear and concise description of where we are now. The cartels can cry and moan about piracy, but it all comes down to the loss of their position as middlemen, a fate they've all but sealed by their own (in)action. They've painted themselves into a corner good and properly.

Now, the next step for Apple would be to do without the middlemen and publish artists on its own. Low-cost record production, low budget videos available via podcasts or Youtube likes, internet (or not) radio promoting the track... All the while giving a bigger cut ofthe money to the artists while Apple gets a bigger cut as well.

The digital communication age will be rough for the Majors, that's for sure.

<points at stadard "buggy-whip maker" analogy> Their time is passing. That "loan shark & distribution" business model is already all but dead, but they won't face up to the fact it has no future. The cartels are still looking at where they've been, not where they are going.

 

[Xmas]

Wouldn't they run into some legal troubles in the UK?

The Beatles' own company Apple (records) already sued Apple (Computer) once after iTunes, since they said it breached an agreement that Apple (Computer) could use the Apple (tm) name if it didn't go into music.

I'm unaware if the settlement between the two companies opened the door for Apple (???) to actually become a label.

http://www.apple.com/pr/library/2007/02/05apple.html