3 reasons why an artists still needs support of intermediaries

In the age of web 2.0 the music industry value chain is changing. Traditionally, intermediaries like record companies, music publishers, copyright societies and record stores are supporting the author and artist to create, market, distribute and sell their works. Nowadays social networks are providing powerful tools to both artist and consumers. Artist can upload and share their works with consumers. Consumers can find, share and consume this content. Most of the time for free. (or feels like free) The question arises if the artist still needs the intermediaries these days? I will give you 3 reasons why intermediaries are still adding value.

1. An artist needs support on the business side so he or she can focus on the creative process. 

2. Social networks are not paying artists directly for the use of their content. 

3. Creating and selling content are different processes for which you need different skills. 

I don’t say it is impossible to have a value chain without intermediaries. Next post I will give you some reasons why it is possible. 

You Tube and the content of major record companies

The You Tube team announced that music video's of Warner Music are no longer available on You Tube. The Washington post published the statement of Warner Music:

"We are working actively to find a resolution with YouTube that would enable the return of our artists' content to the site. Until then, we simply cannot accept terms that fail to appropriately and fairly compensate recording artists, songwriters, labels and publishers for the value they provide."

On the other hand Cnet reports that YouTube is driving significant revenue for itself and some of the video site's partners. Rio Caraeff, executive vice president of Universal Music Group's eLabs, said in an interview with Cnet that You Tube is bringing in "tens of millions of dollars".

The contrast of these two stories is interesting. Will record companies use You Tube to earn a substantial amount of money for their artists? Or will they turn their back to You Tube? I am curious which alternatives Warner will use to generate more attention to their content. Is this really the end of the 'hit culture'? Or just part of the negotiation between Warner and Google? Will the user of You Tube start listening to other content which is less popular but nevertheless quit interesting?