Sony Music tries New Business Model

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I don’t know if this is a willful shift or merely a serendipitous change in Sony Music’s business model. Either way, they seem to have stumbled onto what we have been discussing for a long time: Breaking free of the mega-hit driven addiction.

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Instead, Sony seems to have developed more midlevel artists (as opposed to expensive superstars) who — get this — make the company actually profitable.

Soon, we may learn that Sony has figured out the P2P filesharing is actually free advertising.

“Sony’s market share has declined since [Sony Music boss and TV news veteran) Andrew Lack took over (see chart, above.), and he is short on hitmakers: The only Sony offering among last year’s top ten U.S. albums was Beyoncé’s Dangerously in Love. Moreover, the industry overall remains difficult at best. Last year worldwide sales dropped 7%, albeit following declines of up to 15% in previous years. ”
Source: Forbes

This shift is something other music cos better take notice of . . .

Source:
Music Lessons
Peter Kafka,
Forbes, 04.26.04

http://www.forbes.com/business/forbes/2004/0426/058.html

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