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December 27, 2005

NY Times: The Net Is a Boon for Indie Labels.

Even as the recording industry staggers through another year of declining sales over all, there are new signs that a democratization of music made possible by the Internet is shifting the industry's balance of power.

Exploiting online message boards, music blogs and social networks, independent music companies are making big advances at the expense of the four global music conglomerates, whose established business model of blockbuster hits promoted through radio airplay now looks increasingly outdated.

ut looks. It's about the new realities of the marketplace.

On the Rhapsody subscription music service, for example, the 100 most popular artists account for only about 24 percent of the music that consumers chose to play from its catalog last month, said Tim Quirk, Rhapsody's executive editor. In the brick-and-mortar world, he estimates, the 100 most popular acts might account for more than 48 percent of a mass retailer's sales.

bout a big behemoth beaming something at a mass audience," Mr. Quirk said. "It's about a mass of niche audiences picking and selecting what they want at any given time."


Originally posted by JD Lasica from New Media Musings, remediated by yatta on Dec 27, 2005 at 11:29 AM