We read an article for The Guardian in the class. Because of digital revolution, sales went down by 7% in the UK and by 10% in USA. Record labels are struggling to bring the the old business models. The winner of this years US Grammy Awards in category 'the album of the year' only sold 1.4m copies worldwide. The music industry is halved in size. The hope was that the digital sales could pick up the growth of CD sales, however it doesn't look like it will happen. The situation seems to get worse and worse, not only small and independent record shops are in trouble, but it seems that even HMV has problems.
Record labels as well as artist try to come up new ideas about how to make people pay for their music. Last year, Ellie Goulding tried working with Nike, and through her Facebook pages she invited small numbers of fans to run with her in seven different countries on her UK tour. Then her record label realised a remixed versions of Lights, aimed at providing a running soundtrack.
Many hope that through Websites Spotify or Pandora can generate new and meaningful forms of selling music. Spotify has more than 500 000 paying costumers.
Artist also try to raise the sale of their music by merchandising, for example Billy Bragg with his T-Shirts sale. "Sometimes I wonder what business I'm in" he says.
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