“With CD sales dismal and Internet music sites such as iTunes soaring in popularity, major record labels have been forced to rethink their traditional and once-profitable business plans as they scramble to hold on to a diminishing consumer base and straying A-list artists,” Emily Friedman reports or ABC News.
“‘The sweet spot that the record labels have inhabited for the last 50 years or so has dried up,’ said Aram Sinnreich, media professor at New York University. ‘Making records and distributing them has no business anymore,'” Friedman reports.
“Russ Crupnick, vice president and senior industry analyst of entertainment at NPD Group, which conducts market research on music industry sales, agreed and told ABCNEWS.com that the record companies are going to have to come up with a solution to their profit woes, and fast,” Friedman reports. “‘[Record companies] have got to do more and more different things to make up for the loss CD revenue,’ Crupnick said. ‘A few years ago it was a really easy industry to understand — you had radio and you sold CDs — there was an order to the world.’
“‘Now that order has broken down,’ he said,” Friedman reports.
Full article here.