Rocker David Byrne Making Sense at SXSW Fest

Former Talking Heads frontman David Byrne wants record labels to focus more on marketing than on manufacturing and distribution in the face of increasing digital album sales.

Byrne gave a presentation entitled “Record Companies: Who Needs Them?” at the South by Southwest music conference in Austin, Texas, Thursday. He offered a slide show that predicated digital sales would outstrip CD sales by 2012.

That year will be the “tipping point,” much like the mid-to-late ’80s when CDs overtook cassette sales. Once download sales became the norm, Byrne said, it will allow manufacturing and distribution costs to approach zero. “That is a fact,” he said.

He said at that point, record labels will be faced with a sort of choice — to ramp up marketing services to use music as a loss leader for tours and merchandise revenue, or aim only for international stars of the ilk of Britney Spears.

[NYTimes]

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