There are a couple of interesting posts by Kevin Laws concerning the music business on Due Diligence.
Quick, who has a bigger advance for distribution: Britney Spears or Courtney Love? (Courtney Love by far, a multi-million dollar one -- Britney was an unknown when signed by BMG's Jive label).If the music industry is such a monopoly, why aren't music companies wildly profitable? Just for comparison with another information-based industry that has monopoly power, Microsoft's Windows division had 81% net margins last year. One of the music industry's most profitable distributors, Vivendi's Universal Music Group, hovered around 15%. Some of the others have been consistent money losers.
Then again, here's a dissenting point of view from Barry Ritholtz.
I've added Due Diligence to a coveted spot on my blogroll. What is up with me reading VC blogs lately? I never thought of VC's a being the most interesting - they just had all the money ;-).
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