Are sales really down? If your base is 2002 - 2005 then the answer is yes. If you look at 1997 - 2002 then the answer is no. Again 1991 -1996 then sales are down.
It's cyclic and always has been.
Complaints CD sales are down and this means ruin ignores the boom in ringtone revenue.
Reports of music's demise are greatly exaggerated.
On the new model; the old companies seem to view themselves as more important than the consumers. They keeping telling customers what to do and the customers are too busy doing what they want to bother listening, indeed why should they listen?
A new model must involve itself with the consumer and give them a sense of belonging, of being a part. The Internet facilitates this wonderfully, the main obstruction is the attitude of the old companies and their "we know what we want you to want" followed by a sigh and "Why don't they want it? I know, it's all illegal downloads fault". Anything but get off their high horse and deliver what the real people really want.
Branding is very important but it's often misunderstood. The brand follows the product, the product doesn't follow the brand.
My idea of a new model would facilitate customer involvement. Let them feel they are part of the brand. Don't advertise at them but promote with them.
Creating a local dimension rather than a monolith in London is important. The old companies are faceless and remote. People now do not relate to that. They want to see the record label as part of their scene, involved with them and responding to them. Not dictating from far away.
Using a website to interact with the real people who buy music is essential, so far record companies produce websites for themselves not for the consumer/visitor. This is not unique to the record industry.
If people don't feel the record label is "theirs" the label will fail.
(PS. Web consultant available for hire... gis a job JK
)
Forums 
