November 26, 2008 5:25 AM PST

Digital sales surpass CDs at Atlantic

Record label reaches a milestone that no other major competitor has hit: more than half of its music sales in the U.S. are now from digital products.
(From The New York Times)

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"The real question," Rose said, "is how does the record industry change its rights structure so it captures a fairer percent of the value it creates in funding, marketing, and managing the launch of artists?"

Firstly the record industry does not care about how much the artist gets.

Secondly digital distribution comes at a much reduced production cost, no need to produce or ship CD's. Also they have cut out the middle man, i.e. the shop and their mark up, and replaced it with a much cheaper micro-payment to the digital distribution company.

This along with the fact that still some of the most popular music (The Beatles) are not available online and a lot of music is only available on a small selection of music services.

The record industry needs to streamline it's operations for the new distribution service, drop DRM and make all it's songs freely available worldwide, then the money will start coming in. Oh and making a point of giving more money to the artist and making it known will help too, people are much more likely to buy music if they think the artist is getting a fair share and all the money is not just going to prop up the music industry.
Posted by aMUSICsite (676 comments )
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It's just that people have a choice now of what music to buy. If you have a large collection of CDs, especially from a favorite artist, you probably have 5 copies of the same song. Is there anyone who buys 5 copies of a book, or a news paper, or a concert ticket for just yourself?

So that eliminates some wasted money right there. And just looking at what's being bought, or traded online, are people really trading entire albums at a time, or just the songs they like? For most albums there are some crap songs that no one really know why they are there. Now, the public doesn't have to pay for crap they don't want.

So after removing the duplicate songs, and the extra crap that no one wants, there will be a smaller overall number of songs being bought.
Posted by mikeburek (418 comments )
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