By Elsa Butler and Katya Soldak

Although it is too early to say that the record industry has found its way out of decline, experts agree that labels, major or independent, are not going away. However, the only hope record industry employees have is themselves if they want the business to flourish again.

“In the beginning, it was one of the few industries that actually fought the wave of the Internet,” said Nina Webb, product manager at Sony BMG’s Columbia Records. “I think we were just in denial. We thought it was going to go away. Obviously that’s not going to happen.” Read the full story
     
LIFE AFTER NAPSTER
The number-one reason that musicians and labels alike cite as the cause of the upheaval in the record business is the Internet and the advent of digital music. Now that file sharing is a cultural norm, the CD has become obsolete. Finally, record labels are experimenting with digital downloads.

Although CD sales dropped 12.9 percent in 2006, sales of digital music content rose 73 percent according to the Recording Industry Association of America’s annual report. Universal Music Group reported a 51 percent digital sales growth in January 2008. Click for more

GOING SOLO
Besides the digital downloads, labels are also battling inexpensive recording software and even cheaper online promotion used by artists. Musicians can record and mix their music on laptops with software that costs $500, then easily distribute it on social media sites like MySpace. Artists know that the traditional path—making a hit record with a big-name label—is not the only ticket to stardom and success. 

“MySpace is making a big impact,” said Touré. “It’s a massive portal that millions of teenagers pay close attention to. Lots of bands are using it to put out new music and they are rising up through MySpace.” Click for more