Moreover, the corporate suits might also consider lowering CD prices

Well, they've been doing that for a couple of years, though, perhaps the author means the prices should be still lower. I seldom see CDs in the range of 17-19 dollars, though that was the standard 3 years ago. 14-16 is far more common anymore, which still isn't as good as the $8 i pay for a used cd returned within a few weeks or months by some fickle buyer. The labels might be able to cut a bit more, but i think the author's next suggestion is far better. That is :

...and while they're at it, [reduce] licensing fees for the subscription services, as well.

Of course, the price the labels may demand for such lowered fees, if they're even smart enough to see the need, may be differential pricing. In my mind the jury is still out on this issue... i see both sides of it and can't quite come to a conclusion. Still, the labels want it, and it's a concession that may be required of the vendors before too long.

The author's statement that the technology is ready to do without the labels is too simple, since he ignores the fact that technology has greatly revolutionized the distribution end, but isn't quite there on the creation and transaction handling aspects. I don't think those problems are far from solutions either, so his general theory, that the majors are in deep shit, is quite true, i think. In fact, we've been saying so for years. Truly, they need to get on board with the new business models emerging, or they *will* die. I don't consider that a negative outcome because i have much love for the labels, but because, in the short and medium term, an abrupt transition in that form will be bad for music. The fallout of those giant corporations crashing will simply demolish much that is good.

[ -k ]

Music Biz Blues