The music industry is still struggling for the right model in the new digital environment, but there are models available.
In China, the 100 percent level of piracy forced the music industry to build new revenue models to allow rock stars to continue to quaff Champagne and swan about in fancy limos.
Instead of just royalties from record sales, contracts center around overall talent development and involve alternative sources of income, such as paid appearances, sponsorship deals and extended concert tours through the nation’s vast hinterland, people said in an article I reported from China on the topic.
“China is the ultimate example of industrial-scale piracy and its impact,” Berman said. “The business model for the record industry worldwide is moving toward resembling what we see in China today.”