Will Music Become A 'Modest Niche Business'?


Earlier this week Silicon Alley Insider reviewed a survey showing distrust of record labels, took a quick look at the state of the industry and declared that music was fast becoming a "modest niche business".

Even if SVI is right, there is still money to be made in the niches. (Remember the Long Tail?) So they asked readers what opportunities they saw to make a buck on music.

"….the artists will win…There's only one party that has any coherent vision, and it's the artists. Radiohead may be the first, but they won't be the last."

"label-type entities, unburdened with legacy cost structures, that can increase the likelihood of scoring popular acts by signing multiple acts – but without large advances and perhaps sharing a bit more of the upside"

Looking at the ideas, two venture capitalist said most ideas designed to make real money in music are D.O.A. Music's inability to deliver the 3X return that VC's look for as well as legal battles that haunt many music startups are to blame. (Music discovery was one bright spot where VC's see potential according to Digital Music News.)


  • Who cares? One of the great things about 2.0 is that you don't need VC cash to start a business or to create, distribute and market content?
  • What's so bad about a bigger and broader artistic middle class alongside entrepreneurs to service and support it?

    WHAT DO YOU THINK? Is there money to be made in Music 2.0? Or do you even care about the money?