The New Music Standard: Apple’s iPod Rules.

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Since change and managing change is important to Apple, the music industry, and any business, look for future changes to take place that may rock the music industry to the core.

For decades, the music industry would find, develop, groom, launch, promote, and “own” recording artists. It’s the labels that have made the money in the music industry. Capitol. RCA, Atlantic, Sony, Virgin, Apple Corp, and many, many others.

Who’s the next music industry “label?“

Apple Computer’s iTunes Music Store: next giant music label.

Think about it. Recording artists used to rely on the labels for everything from production to promotion. With a Mac, Logic (or GarageBand), and the ability to promote via the web, and distribute music via iTunes Music Store, what does a recording artist need with a traditional music label like Sony or Virgin?

Nothing.

Artists can easily create their own music on Macs with all the latest tools and effects. The music can be distributed (and to a lesser extent) promoted via iTunes Music Store.

Is that a great combination, or what? Imagine; Steve Jobs heads the best computer animation movie studio, AND the best online music distribution “label.“ Is that cool, or what?

I’m probably not the first person to recognize what’s happening with Apple and the music labels. Frankly, the labels need iTunes Music Store, so they need Apple. They need a way to curb the losses from peer to peer networking and music theft.

Apple gives them a solution. But Apple becomes the creation (Frankenstein monster) that rules the village (terrorizes?). It wouldn’t take much for a new recording artist to create some hits that are purely non-major-label hits; using a Mac for recording, Mac software for effects and sweetening, a small sound studio, and iTunes Music Store for distribution.

So, the labels need Apple. For now. It may be too late to do anything except go with the flow and watch their lives change. For the major labels, they’ll be able to make a small fortune with the Apple iTunes Music Store juggernaut.

So it’s a good thing they’re starting with a large fortune.

Even if Motorola sets another new standard with a cell phone that embeds all the capability of an iPod, Apple will still rule the roost with the distribution system; iTunes Music Store.

What do you think? Does Apple have enough momentum to become the new music industry standard bearer? Can they manage the change of music eventually flowing from the iPod to a cell phone? What will the record labels do if they start to lose power and influence over artists and distribution?

It’s all about managing change, isn’t it?

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