David Byrne sounds off on what is really happening to the music industry

The music industry has been blaming technology (most recently broadband enabled file sharing) for all of its woes. The RIAA has become a relentless litigator for its big music company members, now even suing individuals for copying content from CD’s they own onto other devices for personal use.

They may be correct in assigning blame to digital technology. It has changed the landscape in which they have controlled and distributed content. Until broadband enabled new channels, distribution had remained much the same as it was in the time of lacquer discs and the Victorola. Now, with increasing frequency, artists are retaining the rights to their their material and doing their own distribution. This has all been enabled by technology, and more significantly broadband. Musicians and consumers suddenly gained control of distribution as well as how and where content could be used.
David Byrne recently wrote the best overview of the changes in the music industry I have read to date. Mr. Byrne writes with great authority:

I used to own a record label. That label, Luaka Bop, still exists, though I’m no longer involved in running it. My last record came out through Nonesuch, a subsidiary of the Warner Music Group empire. I have also released music through indie labels like Thrill Jockey, and I have pressed up CDs and sold them on tour. I tour every few years, and I don’t see it as simply a loss leader for CD sales. So I have seen this business from both sides. I’ve made money, and I’ve been ripped off. I’ve had creative freedom, and I’ve been pressured to make hits. I have dealt with diva behavior from crazy musicians, and I have seen genius records by wonderful artists get completely ignored. I love music. I always will. It saved my life, and I bet I’m not the only one who can say that.

What is called the music business today, however, is not the business of producing music. At some point it became the business of selling CDs in plastic cases, and that business will soon be over. But that’s not bad news for music, and it’s certainly not bad news for musicians. Indeed, with all the ways to reach an audience, there have never been more opportunities for artists. (from Wired)

David knows what he speaks and he believes the industry is growing, but in a segmented and horizontal fashion which is incompatible with the big music industry’s business model. Will they change? Probably not, and the world will leave them behind as a relic of a more unenlighted time if they don’t.
Again, Mr. Byrnes article is a very worthy read for any musician or music lover, so here’s the link again.