Back in October, I wrote a post about how the music industry had lost control of the music distribution and retail game to Apple… and how it would probably have little choice but to evolve into a content business funded by advertising. Well, it looks like this transformation may happen at a much faster pace than anticipated.
Recently published numbers have shown the extent of the music industry crisis: record sales fell 15% in 2007 compared to 2006, and even the 45% growth in digital downloads does not seem to be enough to reverse the music industry’s retail fortunes.
Like many other companies, EMI Group was acquired last year by a private equity group and that usually translates rapidly into a dual effort to cut costs and increase revenues. In EMI’s case, what caught my attention are the plans to aggressively seek corporate sponsorship arrangements beyond youth / lifestyle brands like Pepsi and Coca-Cola.
From time.com: “Dreaming up new ways to make money is vital. One solution: teaming willing artists’ albums up with corporate sponsors, as EMI plans to do. That might have some artists turning in their grave — just imagine that, John Lennon — but with music arenas often branded these days, EMI is confident it can sell the idea to some of its talent. Coldplay’s next CD, brought to you by ExxonMobil, anyone?”
Full article here.