Bob Dylan sang it. The times are changing. The music industry tries to adapt.
Changes in society, technology etc can change industries very quickly. One of these is the music industry, that has been facing major shifts and continue to do so. First and foremost in terms of how it is distributed, from LPs to CDs, MP3, downloading to streaming for example. In addition, nobody can predict people’s taste in music and what will be a hit. In other words, the music industry is not just facing huge challenges in terms of making profits, but also when it comes to offering something that will be a success.
Lasse Persson, head of A&R from Copenhagen Records in Denmark, informs that 72 % of their revenues now comes from streaming. They are on constant lookout for how to improve, and are used to turning long term strategies on its head when suddenly having to adjust to changes in the industry. Their solution is to implement a 360 approach, dealing with everything from the creative aspect to distribution and marketing themselves. In this way, they hope to attract artists with the best total package of services.
An important thing for Copenhagen Records is not going into too many new projects at once, so that they can focus on the quality of each of the artists they represent. That sounds logical to me. However, due to the high risks within the industry and often decreasing cash flows, many record labels try to spread this risk by introducing many artists/groups at once, and checking who will “stick to the wall” and who doesn’t. These strategies might not result in long term quality for neither “the makers” or the listeners, but they certainly reflect the short term realities of today’s music industry.
Read more about Copenhagen records
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