Revisiting The New Rules Of Engagement

In August 2007 MusicRow released a special report entitled Embracing Change: The New Rules of Engagement. Its content was the result of a series of think-tank sessions with Jim Beavers, David Gales, Scott Heuerman, Todd Cassetty and David Ross—tech devotees with group experience in virtually all aspects of the music industry. Now, two years later, the report’s business model predictions have become reality.

1. Redistribution of Risk and Reward
2. Artist Development Costs Must Be Flexible and Scaleable
3. Balance of Power Will Be Redefined
4. The Artist Is A Brand
5. Profitability—the new No. 1 Party. In Nashville people are obsessed with getting a No. 1 radio hit, when good business demands profits be the goal.

A copy of the full 2007 report can be downloaded here.

In this model labels create value for many revenue streams, but only benefit from record sales.

The new model demands a redistribution of risk, reward and roles. Revenue from all streams is aggregated and divided accordingly.