Description: After another year of plunging music sales, record company executives are starting to contemplate the unthinkable: The digital music business, held out as the future of the industry, may already be as big as it is going to get.
In each of the past two years, the rate of increase in digital revenue has approximately halved. If that trend continues, digital sales could top out at less than $5 billion this year, about a third of the overall music market but many billions of dollars short of the amount needed to replace long-gone sales of compact discs.
“Music’s first digital decade is behind us and what do we have?” said Mark Mulligan, an analyst at Forrester Research. “Not a lot of progress.”
“We are at one of the most worrying stages yet for the industry,” he continued. “As things stand now, digital music has failed.”
Music executives disagree, saying there is hope, as long as they can come to grips with piracy, which according to the industry federation accounts for the vast majority of music distributed online Read rest of story
Questions for discussion:
- Is the music industry as big as it is going to grow at this point? Why>? or Why not?
- What is the biggest impediment to this business growing? Are they using the correct business model?
- Where do you see the future of the industry in ten years?