"The law suits are hitting the headlines, but the real issue
is whether music should be controlled by the existing large
publishers or whether new models will dominate."
"The traditional music industry grew up around difficult and
expensive technology. Creating records and compact discs used to
require complex equipment that few could afford. The companies have
created a model in which they control most aspects of production
and distribution. The musicians received a royalty from sales, but
most of the price to the consumer disappeared somewhere in the
supply chain. This system worked well for musicians who could
command vast sales but less well for others."
"Internet distribution opens up new opportunities. A popular
model using the Internet is for the musician to create a web site
that provides for free download of recorded music. The web site
forms a special interest group and derives revenues from
advertisers and from the sale of complementary goods and services.
For many musicians, this approach generates at least as good a
revenue stream as royalties from a traditional music company."
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