Music Ally published OpenPlay’s Co-Founder and Chief Client Officer, Edward Ginis’ recent op-ed discussing how it’s time for the music industry to move past it’s old distribution models and fully adapt to the modern, digital music industry.
Twenty years ago, when iTunes was first launched, the music industry needed a new digital distribution system, and they built one based on what they knew: the physical distribution “pick, pack, and ship” model. That approach has largely persisted throughout the evolution from downloads to on-demand streaming and everything in between. But throughout these past two decades, there has been little innovation.
– Edward Ginis, Music Ally
Twenty years later, we find ourselves attempting to bring the industry forward while still relying on an outdated model. This model charges the same fee structure for digital transmission that was previously used to support physical distribution, with its attendant costs of manufacturing, warehouses, shipping, and regional sales offices. That infrastructure is gone, but the revenue-sharing fee structure remains. Where’s your digital dividend?