Is television heading in the same direction as the record labels?


The online phenomenon has all but ended the need and commercial viability of the record labels, in the music industry. With significant decline in revenue – the transition of the “New Music Economy” is very real. Television is now facing the same dilemma as the music industry, as the advancement of technology has shifted consumers towards readily available information.

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Where did the music industry go wrong?


The varying reasons as to what went wrong with the industry, culminated into large capital investments which had woeful returns. The lack of innovation on not only musical and creativity level, but as well as structured and non-adaptive strategic leadership and below par business acumen had become the overall mode of operations. The retail model where physical copies of albums were carried down the value chain to the final consumer has now become completely discombobulated.

A variety of reasons exist as to why the decline happened within the music industry:

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“SALES, SALES ….SALES”! This was the common underlying theme of all business associated with the music recording industry. The measures of sales units to account for how many album units were sold. This gave a raise to the “1K” (1 000) model which was developed, then was used to determine how many thousands of albums or singles sold became certified as “gold”, “platinum”,”diamond”, all according to the interval levels of volumes sold of respective units.

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