Stretching and Warming Up The Body
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Call me crazy but I'm seeing and hoping for a resurgence in live music.
Granted the pay is terrible but if the scene ever got where live music was playing 5 nights a week at any particular place in town- hey, that's a gig!
It has always went in circles as a trend.
I agree with everything said so far, particularly Peppe's last post.Record sales are down (not just with jazz artists) and that has a trickle down (negative) effect. I wouldn't blame it all on illegal downloads though.I think the internet has changed everything.Less people are watching TV too.Instead of going out, listening to records, watching tv, people are logging on to places like this and arguing about Neil Peart.
I honestly think that the issue with illegal file-sharing will never be solved. There is just no way around it, technology-wise. The big file-sharing sites will offer protection to the users, making it easy for everybody to stay anonymous and eliminating the risk of getting sued by the record companies. To be clear: I don't think that it's right to share copyrighted material, and I do know how much time and money it takes to get records out there. But to try and "correct" the behavior of internet users worldwide (like the record companies are trying to do) is naive and counter-productive. People will only be more opposed to the music industry. They never get to see the struggling musicians, they only see MTV Cribs. On the more positive side, it has never been easier or cheaper to produce records in your own home, and you can do your own marketing on the internet. It will probably not generate a lot of money, but it can help you to sell audio-files and CD's. An impossibility only 10 years ago.
So I think the short answer to your question (too late!) is niche information providers will win with niche audiences. Find your niche and beat that drum loudly.
Add to that musician prices have been driven consistently lower.My peak wage (in whatever band and capacity) was around 1992.Since then all my session fees, tour wages and tv score writing fees have been aggressively negotiated down by employers.I'm sure if you compared early 90's prices (living expenses etc) to 2008, my earnings have taken an even bigger hit.