Music industry chaos the first digital revolution
Categories: Physical vs Online
"The best examples of structural change are those industries that we can already see have been impacted by the digital revolution. Your best examples there come out of the entertainment industries. So music for example, is an industry that just is in chaos at the moment, I mean they don’t know how to make money anymore, they don’t know where their income streams come from. They’re the only industry in the world who are currently suing their own clients, you know it’s crazy. But they really don’t know how to make money at the moment. And we’re going to see a lot more chaos in the music industry because they’re not innovating, they’re not working out new ways of getting income, they’re not working out new ways of connecting with clients. And of course because of how they’ve handled themselves over the last decade or so, most of their customers are very comfortable ripping them off and downloading stuff for free and so on. So it’s a mess. But it’s easy to look at that industry and of course DVDs and the movies industry are following close behind them and close behind them are the newspapers and the magazines. And it’s easy to laugh at them, but every other industry has the potential to be digitised in pretty much the same way. So even the medical profession which you’d think, well, that’s not going to really going to be digitised, it can be done at a digital distance. The type of advice you get from your general practitioner, you can get via Skype from anyone in a call centre anywhere. You might not prefer it that way, but it is accessible that way. And so you think of any industry you like and this digitisation has the potential to disrupt your industry as much as it has disrupted the entertainment industry in the last decade."