What is the future of the music industry?
Friday, March 12, 2010 at 11:24AM ;)
In the era of the Internet and digitalization, the music industry faces since the beginning of the 2000’s one of its biggest dilemma. Should it kept the current standard format or not? And furthermore, should it kept the physical format or not?
The music industry already faced this problem with the vinyl disc and succeeded in launching an innovative alternative, the Compact Disc in 1982. Majors tried to launch alternative to the CD (Super-Audio CD as example) to compensate the slow down of sales in the late nineties. However, the lack of innovation of those alternatives never allowed a real substitution. Nowadays the standard format of the music industry market is still the same as almost thirty years!
Thanks to the democratization of Information Technology at the end of the nineties, consumers found a substitute for CDs which offer innovation and convenience, the MP3 file.
Even if the CD format is still the major source of income for the music industry, it won’t be the case for next years.
The music industry has to be prepared toward the new consumer generation!
Indeed this generation who born with the Internet and new technology (Computers, MP3 Players…) does not have the same relation concerning the “physical object” due to the fact that they are used to immaterial products.
