Why do record labels still make money today? In fact, why do they even exist? Technically, they are the ‘middle man’ – the man that delivers the artist’s content to the consumer. And technically, this role has become obsolete in the third wave of the tech revolution.
Think about it. The first wave of the tech revolution was PC/desktop internet (1Billion users); the second was mobile (2B); and the third is the Internet of Things, or IoT (IoT refers to the billions of robots making our lives easier…wearables, Nest thermostat, autonomous cars, precision agriculture, etc.).
Industry analysts estimate that ~30B of devices will be wirelessly connected to the IoT by 2020. That’s a lot of devices, especially for a world suffering from mobile addiction, and it will ultimately change how people consume everything.
So let’s discuss why this is this important for music. We’ve previously walked through how streaming (which was and is being facilitated by the second wave of the tech revolution – mobile), has altered the way that consumers listen to music. This has in turn altered the way artists deliver music. Artists no longer have to beg a radio station to play their track, or stand outside of a record label trying to prove their ‘dedication.’ They can simply build a fan base online, that – if it grows big enough – will ultimately get them a record deal.