How do you know the financial press is examining the health of the music industry? Yesterday's issue of Financial Times had three articles dedicated to the music industry, its slumping sales and its attempts to overhaul its business models. EMI's recent moves had ratcheted up the debate on the industry. I think it's a good sign that the financial press is taking a greater interest. When investors take a greater interest, major music groups are more likely to pursue innovative strategies in earnest -- not just merge divisions and cut artist rosters, but really re-think how they do things. (I'm pretty much on board with what labels are doing, but over the last year or so they have collectively lost their way. There has been too little experimentation, too little serious transformation and not enough encourage of entrepreneurship.)

One article claims EMI's copyright decision has divided the music industry. Emiko Terazono wrote that "some music executives worry that raising prices could stifle the digital download market which still accounts for only 12 per cent of the whole music market." (Of course, EMI did not exactly raise prices. It chose to offer a DRM-free, higher bit-rate version for a higher price in addition to the existing format and price. Whether or not the two-tiered pricing will work is another issue.)

Such worries are premature. The entire market will be stifled only if (a) the plan backfires, which could happen if (b) the other majors do not join in the plan. If those worried execs want to do their part to sink EMI's hopes, they will not follow EMI's lead. Without the help of its peers, EMI will find that it cannot by itself invigorate music sales. After all, would iTunes be as successful as it has become if it sold only EMI music? Not by a longshot. But should those worried execs want EMI's plan to fail?

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