Music Industry Meltdown: Recasting The Mold

The first 10 years of the 21st century may have been the decade in which music went digital, but it was also a truly horrible decade for the music industry. By the end of 2009, US and European recorded music revenues were just 42% of what they had been at the start of the decade — down from €25.6 billion to €10.8 billion. The digital experience of the "noughties" was a rocky one, but the next 10 years will be characterized by the innovation and experimentation that has risen to prominence during the past few years. Brands and product strategists expect to invest more money in digital music in 2010 than they did in 2009. Such investment will bring a welcome impetus to the music industry, but it will also continue the value chain changes that will ultimately reshape the balance of power and recast the mold of the music business.