Universal and Warner within the past few weeks announced that they were making investments in companies that handled artist management or web networking.
The big four labels are not going to turn it around any time soon being a record company. CD sales continue to nose dive.
Warner is spending $110 million to buy more of Front Line Management, an artist management company that represents Jimmy Buffet, Christina Aguilera and others.
Universal bought a position in Loud.com, a hip-hop social networking site that offers cash prizes and recording contracts.
This scares me.
I know you could say, Jerry, you're always saying the record labels have to get with the current trends being driven by the next generation. You would be right to remind me of that. Yet.
Management?
Touring?
Sponsorships and merchandising?
These are not skill sets of the average record executive I've come to know.
So maybe I'm scared because of comments like the ones made by industry analyst Bishop Cheen: "The Big Four have always been predatory and artist management is a very personal kind of business. With the big majors this has not always been their strongest suit, but diversifying is still absolutely the right strategy".
Okay, someone else is scared, too.
Right move.
Wrong people.
Wrong skills.
I guess the record industry can't win for losing and they're doing a lot of losing these days.
If the majors really wanted to see the light, they have to understand the next generation. I contend they do not.
If the major record labels really think buying new age companies with age old thinking will lead to success, save your dough.
The labels want to arrive at the future without having to earn the right which is why you should not be too surprised if the latest epiphanies coming from record labels are not only too little and too late but too misunderstood -- by them.
For those of you who would prefer to get Jerry's daily posts by email for free, please click here. Then check your mail or spam filter to initiate service.
Blog Archive
Popular Posts
-
With the NCAA's March Madness annual collegiate basketball frenzy underway, I see too many parallels to the music media business to not ...
-
I was just blown away when I saw the front page of Inside Radio Friday in which they described the results of their special survey on voice...
-
By Jerry Del Colliano There is a military term for a situation caused by too many inept officers -- clustering -- referring to the insignia ...
-
The U.S. Supreme Court has agreed to hear a case concerning vulgarity on the airwaves -- you know, Bono using the F-word in an unscripted br...
-
It's hard to fathom that a consumer electronic device that is both so cool and so hot may have finally peaked. In my work with college s...
-
The introduction and suspension of media services is becoming a regular occurrence and the combined effects of multiple false starts is crea...
-
Clear Channel went private yesterday at long last. Thomas H. Lee Partners and Bain Capital Partners are in charge now. They are investment ...
-
All too often lately the major broadcast groups have been firing able and talented people to save money. Last week CBS pulled off a double f...
-
The Big Trend: Social Networking Not just Facebook and MySpace. The concept of building a social network around almost anything and having...
-
Well, I guess that settles that. There is no self-censorship in the Fiji news media, according to CFL. At least that’s the conclusion they...