The Great Depression of the Music Industry - A Business in Decline and the Reasons For It

Do you remember the days when you couldn't wait to go to the music store to buy your favorite or most anticipated albums? When I was in my early teens, the majority of my allowance went to buying CDs on a weekly basis. This was the late 80's and early 90's. Music was such a driving force of culture back then. Fast forward to the present and you'd be hard pressed to find a dedicated music store you can physically go to. The level of commitment these days towards music ownership is not what it used to be. Here is why:

1. The way people purchase music has changed (downloading)
2. The quality of music has dropped
3. There is a much greater abundance of media distraction today

Along with these examples, what your average music lover is probably not aware of is this: record companies no longer care about artist development. Artist development is a process where in the past, record labels spent lots of money and time (possibly several years) developing the talent until it was ready to be brought to the market. We've always known that the record companies don't really care about talent, but it has never been more true than it is today. They have completely sold out for the almighty dollar to the point where they are no longer willing to take on any financial risk greater than a few thousand dollars, in almost all cases. What does this mean? It means that the artist has to not only take on that risk, but prove to the big bosses at these labels that they have a successful business model (meaning that they are generating significant revenue). Only then does an act have a chance of acquiring a recording contract.

Now if you are a band or solo artist that has worked tirelessly to build a fan base and have a nice income flow, the record company may want to sign you so long as you are willing to give away a lion's share of your future profits in all areas such as publishing, merchandising, concert ticket revenue. These modern deals are known as "360 deals." So tell me, who in their right mind would want to do that if they are already generating a nice income doing hat they love? The only ones who do are the people who still want to say, "I am signed to Atlantic Records," etc.

I have been involved with artist development for many years, and it's the only way we will ever have great music again. Most talent out there is in some sort of raw form, and needs the right people to come along with proper guidance and direction. My suggestion to all of you aspiring artists is to perfect your craft, record some great songs, and start building that fan base so you can sell your music and other offerings.

The days of a massive wave of great acts are gone, and I don't see any way that they will return. With so many ways for people to distract themselves, music just doesn't have the influence it used to. Ask yourself this question, "do you think if Bob Dylan were to come on the scene today, that he would really make it?" What we've lost in today's culture are the legends.