For both the U.S. and the music business, the transition is well underway.  Sometimes hard to see the transition while you are going through it but it’s there.  Question really is what will it all look like when we have righted the ship?  What is the label’s principal role in the brave new world (I’ll let Obama worry about the US for now)?  Is there one?

There is always room for the purveyor of quality goods.  Those who find and develop quality artists and songwriters will always have a business.  An artist or writer on his own can do so much more than they used to be able to but someone who has seen the movie before needs to steer the ship while they play their true position.  Otherwise, opportunities slip by without notice.  Also, with all the noise out there, labels and publishers will become the filter that people rely upon to sift through the crap.  iTunes certainly does not want to play that role.  They accept EVERYTHING!  Do you really want to listen to EVERYTHING??? What about recommendation engines and Genius?  Well, I like that stuff but an algorhythm can only do so much and I still would rather follow someone who’s musical taste I align with than a machine.  They reserve the right to be quirky.

So what is fair compensation for their side of the contribution? Well, I guess it depends upon what the artist brings to the table (so what else is new). What you take away from the venture is a direct result of what you contribute to it.  Things like ownership and splits get determined by contribution…as it should be.  Toss it in the bucket and divvy up accordingly.  Talent only gets you so far.  There is a long line of talented artists and songwriters living in the bowels of iTunes right now.  Is it any better than when you were just in your garage?