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Whats Wrong with the Music Industry in One Long Sentence (annotated)

Posted By Barry Ritholtz On May 18, 2004 @ 12:04 pm In Music | Comments Disabled

Let’s review our plot so far:

We have an industry that is afraid of technology [1], its senior spokespeople lie to congress [2], they use Enron-like [3] accounting [4], they somehow –WHOOPS! [5]forget [6] to pay [7] their artists [8], they are convicted price fixers [9], at the first sign [10] of any kind of an economic rebound [11] their instinct [12] is to raise prices [13], they have ignored competitive pressures from other forms of entertainment such as DVDs [14], they ignore the devastatingly negative [15] effects of radio ownership consolidation [16] to their business model, they engage in all kinds of anti-competitive protectionism [17], they are unconcerned with the quality of their product [18], their customers are harried for time [19] and distracted by other interests [20], their customers see nothing wrong with downloading music for free [21], some of their biggest stars are hoping the Internet will replace the labels [22], despite all too many signs that their product is over priced [23], they refuse [24] to allow market forces to set competitive prices [25], they have consistently been one of the most mismanaged [26] businesses in history [27], oh, and they somehow think they are immune from the business cycle [28].

How are these guys still in business?

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URL to article: http://www.ritholtz.com/blog/2004/05/whats-wrong-with-the-music-industry-in-one-long-sentence-annotated/

URLs in this post:

[1] afraid of technology: http://energycommerce.house.gov/108/Hearings/05122004hearing1265/Swift1989.htm

[2] lie to congress: http://bigpicture.typepad.com/comments/2004/05/nielsen_ratings.html

[3] Enron-like: http://bigpicture.typepad.com/comments/2004/05/riaa_accounting.html

[4] accounting: http://www.kensei-news.com/bizdev/publish/factoids_us/article_23374.shtml

[5] WHOOPS!: http://bigpicture.typepad.com/comments/2004/05/spitzer_tells_m.html

[6] forget: http://www.forbes.com/markets/newswire/2004/05/04/rtr1358573.html

[7] pay: http://www.rollingstone.com/news/newsarticle.asp?nid=19689

[8] artists: http://1010wins.com/topstories/winstopstories_story_125115404.html

[9] convicted price fixers: http://www.google.com/search?num=100&hl=en&ie=UTF-8&safe=off&q=music+industry+price+fixing+settlement

[10] first sign: http://bigpicture.typepad.com/comments/2004/04/music_industry_.html

[11] economic rebound: http://www.chicagotribune.com/technology/la-fi-universal16apr16,1,4157729.story?coll=chi-technology-hed

[12] instinct: http://www.audiorevolution.com/news/0404/16.universal.html

[13] raise prices: http://online.wsj.com/article/0,,SB108129203279876029,00.html

[14] ignored competitive pressures from other forms of entertainment such as DVDs: http://bigpicture.typepad.com/comments/2004/03/cd_no_dvd.html

[15] devastatingly negative: http://online.wsj.com/article/0,,SB107809808894842347,00.html

[16] radio ownership consolidation: http://bigpicture.typepad.com/comments/2004/02/radio_consolida.html

[17] anti-competitive protectionism: http://bigpicture.typepad.com/comments/2004/02/uk_protectionis.html

[18] quality of their product: http://bigpicture.typepad.com/comments/2004/02/never_mind_the__1.html

[19] harried for time: http://bigpicture.typepad.com/comments/2004/02/time_not_on_the.html

[20] distracted by other interests: http://bigpicture.typepad.com/comments/2004/02/time_not_on_yor.html

[21] downloading music for free: http://bigpicture.typepad.com/comments/2004/02/americans_think.html

[22] Internet will replace the labels: http://bigpicture.typepad.com/comments/2004/01/musicians_looki.html

[23] their product is over priced: http://bigpicture.typepad.com/comments/2003/12/music_sales_ris.html

[24] refuse: http://www.washingtonsquarenews.com/opinion/columnists/7370.html

[25] market forces to set competitive prices: http://bigpicture.typepad.com/comments/2003/12/court_to_riaa_d.html

[26] mismanaged: http://www.denverpost.com/Stories/0,1413,36~78~1626541,00.html

[27] history: http://slate.msn.com/id/2069732/

[28] immune from the business cycle: http://bigpicture.typepad.com/comments/2004/02/cd_sales_rise_b.html

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