Is investing in the future of digital music a good idea or a band one? From Billboard:
It's ironic that Warner Music Group now gets 25% of its recorded music digital revenue from some of services that were supposedly off limits to venture capital. The company announced in its earnings call it gets a quarter of its digital revenue from subscription services and on-demand video services in addition to webcasters like Pandora.
Streaming (and download) services that require licenses are supposed to be a black hole for venture capital. "You're going to see most of the funding for digital music go away," Venrock partner David Pakman predicted at the Billboard Music and Money Symposium in March 2009. Plenty of other venture capitalists share Pakman's sentiment that digital music just isn't a good investment. Are they right?
Read more here. Thanks to Bobby for pointing this out.