I worked in music retail and owned my own store during that period of timeā¦I have firsthand knowledge of what happened to the music industryā¦
It was mainly a combination of two factorsā¦.
1) the 5 major labels: WEA (Warner Bros), Sony, Capitol, MCA & PMD (Polygram) were (at the time), run by old time record executives and believed they were the āKings of the industryā, a legal cartel if you will, that were CONVINCED that downloading was a fad, something that would NEVER effect their businessā¦they were too big to failā¦(SOUND FAMILIAR, DISNEY?). As events unfolded, they learned QUICKLY, they failed to prepare for the future.
The second catastrophe for the music business was Napster. My store was a full service store, but specialized in dance music. I sold 12ā singles, domestic and import and supplied every club and DJ at the Jersey shore and had DJās from as far away as DE, PA,& NY.
My good DJ customers would meet the UPS driver and as fast as I unpacked the vinyl, they would buy it. Within 3 months, my business slowed to a crawl. WHY? DJās weāre downloading the music from Napster. They went from carrying milk crates out of my store to spinning music from a laptop. On top of that, 9/11 happened and we were in the midst of a recession. 1 hurdle I couldāve weatheredā¦3 hurdles, impossible. After 7 years, I had no other alternative but to close my store and try to sell my inventory.
The major labels learned that computers were the new way to deliver music. We, as an industry couldnāt compete with free and the majors had to scramble to make money off downloading. They never thought twice about the major chains that were their outlets, Record Town, Record World, Sam Goody, Tower, the Wiz and more plus the independents. In 2001, there was no Apple Music.
This is the example I always use when people talk about UNI creeping up on Disney. They too think theyāre the kings of the hillā¦when youāre on top, thereās only one way to goā¦and it aināt up.