Posted by Seth Shapiro
… look to the numbers. Re reviving the music business via digital, a recent metric speaks volumes: the year’s mobile revs are approximately $600B. The year’s music revenues are $30B. That’s a 20x differential. And how many handsets are there vs. dedicated music players? That delta is clearly a hell of a lot bigger.
Devices = # Users and # Users = Demand. The record industry has spent decades managing by inflating prices, oligopoly and constricting supply by providing $15 albums instead of $2 singles. As we said before, how’s it working for them? Not so good.
Whoever rides the music horse in the direction that TV and mobile move will have the stronger hand. Watch.