Whenever someone criticizes the music industry for their stubborn refusal to accept new business models (and the subsequent pressure on governments and ISPs to police the end users because the industry is not making as much money as it used to), the question that inevitably pops up is: what are these new business models?
In fact, we’ve been highlighting them for years. Well-known artists like Radiohead and Nine Inch Nails have paved the way for a new era of music business by trying out innovative new ways to engage the consumer. Letting the consumers choose the price for an album is one model that worked; offering goods that can be infinitely duplicated (music) for free and tying it to scarce goods (vinyl records, t-shirts, collector’s items etc.) is another.
I think this works simply because Radiohead is already a very established superfamous band and that the fans will support them whatever business model they choose. I doubt if this trick will give much difference to the struggling new artists. But the whole point is that, the musicians and the people in the music industry should embrace different kinds of mediums and have the courage to try inventive strategies to market their music. This is a challenge to the artists, and a greater one to the indie musicians.
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