Monetizing Music In The Free World

I just returned from the Musexpo conference . A really great conference in Los Angeles that brings in several industry folks from around the world. It's a small conference...only about 500 or so attendees, but that's what makes it so great. You can get an opportunity to talk with just about everyone there. The panels always include a great line up of industry heavyweights and this year was no different. As I listened to the opinions of folks as diverse as music industry blogger Bob Lefsetz, Manager Andy Gould, American Idol Exec. Producer Nigel Lythgoe, and a host of other music and entertainment CEO's, managers, music supervisors, etc. (for a list of panelists click here) I found a steady question arising about how to monetize the music. in other words... everyone loves music and wants music but it's a pretty big challenge as to how the creators and rights holders are going to get paid. The discussions rolled on about the questionable value of record labels for artists, physical product, the future of delivery, etc. Music Supervisors discussed the possibilities that licensing fees paid would likely decline. I know ... sounds pretty grim. HOWEVER, to overuse a great cliche ... Necessity is the Mother of Invention, the model will evolve.
There were discussions of corporate labels (i.e. being signed to a brand such as Coca Cola, etc.) This is similar to a model used in Japan where music is product driven. There are greater opportunities for licensing albeit lower fees. Physical product isn't dead but there is no question it is being challenged and having Virgin Retail close their brick and mortar stores added to the challenge. So my advice...Don't give up, remember why you do this and in the meantime stick to the plan...build fans, build your brand.