Yet another variation on a theme we’ve heard many times: Forrester predicts that while digital music sales will grow an average of 23% a year, that still won’t help the industry replace the rapidly disappearing CD. The research firm predicts that U.S. revenue will shrivel to $9 billion in 2012, down from a peak of $14.2 billion in 2000.
So what is to be done? Forrester’s suggestions are also familiar: Music companies should embrace DRM-free MP3s. They should distribute their stuff as widely as possible. They should grab a piece of all of their acts’ revenue streams. Etc.
All well and good. But fundamentally, you’re still talking about a shrinking business — and a shrinking job pool. Which means in addition the coming cuts at EMI, the folks at Warner Music Group (UMG), Universal Music Group, and Sony-BMG should be bracing for more pink slips, too.
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