• HobbitFoot @thelemmy.club
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    4 hours ago

    Right before MP3’s, record labels treated a lot of their albums as products to sell. This required a marketing budget to go along with it including a lot of promotional material like music videos and concert tours for promotional purposes. The drop in revenue due to MP3’s killed that model and it never returned.

    Concert tickets are so expensive because record labels took control of that part of the revenue stream to find their promotion/marketing business. And promotion is no longer a small activity run by a band’s groupies. The reason that Trent Reznor signed with a new label after he went independent was because he wasn’t able to compete with the marketing arms of these companies.