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Record Companies on the Brink of Extinction? (Part 1)

April 1, 2008

records.jpgAs the age of digital music became reality and everybody wants music from all their favorite artists more and more everyday, record companies are trying hard to substantiate their existence in the digital music era. I said trying because of the very reality that they are struggling very hard to remain relevant, at first by opposing the illegal music sharing through P2P sites that are now going legal. Some music sharing sites are beginning to form alliances with them (the record companies themselves) in order to get recognized as legal music sources for the growing list of digital music sharing sources. The advent of cheaper and cheaper digital media players has spurred renewed interest in music which has boomed and online music sites that sell music are on the frontlines of the new frontier in the music business. Since they gave up on DRM due to the total futility of their effort they have been clamoring to find another avenue to capitalize their efforts on to stay an authority in the music scene. In Canada, a bold move by the counterpart of the RIAA, the SOCAN has succeeded in having taxes levied onto music downloads as the previous post discusses. The American music industry might have gotten an idea from them but they are truly in big trouble for artists have started turning on them by signing up with online companies to handle marketing and promotions.

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