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The future of the music industry is a constant subject of debate among many of my peers in Music City USA. Record labels and publishers on Nashville's Music Row are overhauling traditional business strategies to stay competitive in an industry that is changing by the day.

For many years, major labels have had a stranglehold on the industry, and have controlled most of the star-making machinery that propel artists to the top of the charts. They've acted as gatekeepers, allowing only a select few pass through to taste success. A boom of Internet music sales and marketing has permanently affected the business models for the recording industry.

Even the performance rights organizations like BMI and ASCAP have had to adjust their performance royalty formulas to account for Internet airplay, and now collect royalties for ring-tones and other non-traditional uses. Independent artists are now in the predicament of not assigning original songs to their performing rights organizations so that they can sign agreements with Internet radio stations to get much needed airplay.

Affordable recording technology has significantly leveled the playing field, allowing independent artists to produce music that can compete with many major label releases. Frustrated artists that have been rejected by major labels have decided to take matters into their own hands by creating their own recording, publishing and distribution companies. They efficiently utilize the Internet for networking, promotion and direct sales. Artists retaining full ownership of their songs can now keep a much larger share of their mechanical and performance royalties.

The one major cloud on the horizon that effects the entire music industry is the scourge of music piracy and file sharing. This practice has definitely ruined the careers of many promising artists, both signed and unsigned. Copy protection technology has come a long way, but it's still relatively easy to copy digital media and pass it on to others without any fear of facing serious legal consequences. It's heartbreaking to see talented new artists with a couple of major hits fall quickly into obscurity because of poor sales due to illegal file sharing.

I think the future of the music industry is generally bright, and will be accessible to more artists than ever. My vision of the new music industry combines the power and influence of the major labels with the creative entrepreneurial energy of successful independents. The competition will be fierce as usual, but competition can inspire both excellence and quality. Obscure artists can actually make a living being obscure, independents can succeed, and the major labels will continue raking in the bucks like they always have. The big winners will be music fans all over the world, who will enjoy a wider variety of great music during the greatest musical Renaissance in history!

Learn more about this author, John Durant.
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