Image from WikipediaWhen I blog, I use this little WordPress widget called Zemanta from time to time. It automatically searches the key words for my posts and recommends links, related articles and images to include in the blog. While I don’t always include the suggestions in my posts, I will often read the articles it suggests… which is what lead me an interesting find. Apparently I’m not the only one using the them “Music 2.0″ -It’s not surprising I guess… there’s web 2.0, business 2.0, etc… maybe Music Industry Vista would have been a better wording on my behalf. The “2.0″  naming phenomenon is widely used to describe “new vs. old,” which is why -I guess- it’s no surprise that the search term “music 2.0″ brings up about 35.8 million results in Google.

Though the definitions change a bit, the term is used to basically  state the obvious; The Music Industry is in a Different Place Now

Technology has greatly changed the way people consume media. It seems that the digital trend has caused iTunes to surpass even WalMart’s music sales, leading a lot of “experts” to believe that digital is the way to go. The only problem is that industry-wide sales have actually fallen, despite iTunes’ great success. It appears that, for many, free music has become a right. The attitude is that the only harm that file sharing brings about is taking profits away from greedy big business, since artists get only a penny or two per album sale. well…

The new advent of internet technology, along with the falling prices of personal computers and recording software, has also caused a change in the musician’s side of the industry. It’s easier than ever for no-name artists to do everything from record and promote, to buy and sell audio and merchandise to their fans without ever having set foot in a venue. This is great news for those who dream of having a fulfilling career in music, or at the very least want to be able to recover the costs of their efforts.

Music 2.0 keeps getting touted as a good thing, but my outlook is maybe a tad more skeptical. I see it as a mixed bag of good and not-so-good things happening that will eventually shake out into new standards and practices. On one hand, the masses are breaking the big all-powerful record giants because the industry’s big players have gotten fat and lazy. Their refusal to evolve has rendered themselves increasingly useless. in fact, their brutal battle against piracy has left an even more sour taste in the mouths of fans. True, illegal downloading is… illegal… and maybe it’s remnants of the French Revolution or America’s breaking with Great Britain, but we culturally have it programmed into us that Goliath should never win against David -even if David is stealing from him (see also  Jack and the Beanstalk).

On the other hand, the proliferation of downloading/pirating and widespread internet promotion has caused often unseen problem. It has forced the music industry to become highly fragmented, with tens of millions of tiny players instead of 3 big ones. It seems that in many cases, artists and indie labels are getting the short end of the stick here. The one thing record companies still have is well-established channels of mass distribution and promotion (Best Buy, MTV/VH1, Radio, etc.). What they have lost in record sales, they can still make up by using their infrastructure (if they use a little creativity). Individual musicians, indie labels, community orchestras, etc. are REALLY getting the short end of the stick because their primary method revenue is fast drying up too. It seems that the new technology could be killing the indie musicians as well.

I, however, bring a message of hope too.  Though many find the outlook for musicians and record labels to be grim, I argue it’s a matter of stepping back and looking at the new trends. There seems to be a greater focus on local and independent music. People are looking to find the next big band before they get big. It also seems that since people are expecting/demanding free music, maybe it should occasionally be used as a promotional tool rather than the sole source of income. You make WAY more money playing shows and selling merchandise than you could ever make by selling a serious quantity of CDs.

MY PREDICTION: I think that with the advent of all the indie clothing labels, free music downloading, a proliferation of free advertising and promotional tools, and the relatively low entry costs for musicians… the music industry will be an increasingly localized, lifestyle-based industry that will focus on more than just music. Just the way that big big stars can have clothing lines, shoes, fragrances, etc. I fully believe that so will the little guy. The Key To Your Success is to EVOLVE. The “band” is no longer a music group… it’s a lifestyle company that uses good music and good graphic design to heavily brand itself and uses a host of different media outlets and social networking sites to promote and sell itself.