Panchgani wrote:
http://articles.chicagotribune.com/2003-07-03/news/0307030110_1_online-piracy-recording-industry-software
"Whether it's a new band hoping for that first big commercial hit, or a start-up software company trying to create a market for the latest personal finance program, for-profit enterprises cannot compete against "free" product giveaways."
What a load of shite - never mind the fact that you chose to reference a 12 year old article.
The average artist on a major label makes less than 3 cents on every dollar of revenue. The business takes in the rest.
The statement is a red herring, as the overwhelming majority of artists today are not interested in pursuing major label deals solely for the reason that they don't want to see someone else making the money from their music. There is no shortage of internet radio stations, festivals and other live music venues for artists to create a fanbase. You do not need a "commercial hit" to do well in the music industry today.
There are literally millions of bands out there who are making a living, compared to a few hundred artists on the radio. The music business is struggling, but those who create music are doing just fine.
Video games have eclipsed the music business in revenues. Why? Because they have figured out how to create games that can ONLY be consumed by purchasing them online. The music business had their chance to create this kind of model about 15 years ago, but the dinosaurs at the record labels resisted the shift to digital. And now they're paying the price.
Millions of people download music without the slightest sense of guilt. And they support the ARTISTS by going to the show and buying the t-shirt.
As for software companies, and countless other business ventures - one of the best ways to make money today is to do a crowd funding campaign BEFORE you release the product. Video games have made hundreds of millions of dollars with this method. In fact, the biggest crowd funding campaign ever (with second place nowhere in sight) was a video game. They have created the example everyone else should be following - evolve your business model with the times and you will do just fine.
