What do T.I., Jay-Z, R. Kelly, Diddy, Nas and 50 Cent have in common besides being superstars?
All of their recent albums sold below expectations and some didn't even reach platinum status.
The internet is putting a killing on artists and record labels as the digital age progresses. Due to digital download sites like i-tunes, albums have become obsolete.
Illegal downloading also contributes to low record sales. Blank CD’s continue to outsell music CD’s and Country music has surpassed rap music is sales.
In essence, Rap really is dead.
Rappers like Queen Latifah, LL Cool J, and Tyrese were smart to diversify their talents and pursue acting careers. This will keep them financially afloat.
A few months ago, Def Jam laid off nearly 50 employees due to the sagging music industry and artists like Madonna have signed lucrative merchandise and distribution deals via the internet.
These type of deals allow artists to bypass record labels and maintain more control.
Other artists are expected to follow suit. It’s rumored that record labels are considering taking a percentage of cash generated by artists on tour to offset financial losses.
The music industry is not the only field affected by the internet. Currently, newsstand publications are suffering due to internet competition and only the strong will survive.
Entertainment sites and blogs provide news in real time with constant updates throughout the day and the service is free, they make money on the backend in advertising.
Whereas, newsstand news is considered dated and old by the time it hits the newsstands. The show “Frontline,” predicts that newsstand publications with the exception of Time, O, People, & Newsweek and other magazines along those lines will be obsolete within the next five years.
The movie industry is also affected by the internet. DVD’s come out so quickly, why go to the theaters?
Currently, an overseas site broadcasts new releases in their entirety. They also showcase films that have yet to be released as well as episodes from top TV shows, in their entirety.