If most people stop using and buying records, that's a "dying business model", right? So riddle me this, Batman: are there people who are going to keep using records? If so, it's certainly not for the ability to hear the music -- that problem has been solved better. Is it a lifestyle choice? Is it because they are anti-technology?
So while one definition of the record business shuts down, is there another definition that will take its place? Hey -- the answer might very well be "no". But if it is yes, it's certainly not the same business model that died. It's a whole new market, with new drivers, new players, and new distribution channels. It's also a market where there is going to be lots of talent lying around that isn't being used any more (like how to design good covers, various custom record production techniques, etc)
Continuing on in my example, if you could find 10 million folks all over the world interested in something to do with records -- custom records, records as bird houses, records as the new frisbees, whatever -- and you can market something to them that they want, that's called a business.
Running away from the competition has nothing to do with it. I'm asking a simple leverage question: given two markets of equal size and a limited budget, do you compete with a hundred other small businesses, some of which with a lot of funding? Or do you compete with 4 or 5 business, all of which are figuring it out just like you are?
I'm not taking a position. In fact, my question was "is there a contrarian play to be made?"
If most people stop using and buying records, that's a "dying business model", right? So riddle me this, Batman: are there people who are going to keep using records? If so, it's certainly not for the ability to hear the music -- that problem has been solved better. Is it a lifestyle choice? Is it because they are anti-technology?
So while one definition of the record business shuts down, is there another definition that will take its place? Hey -- the answer might very well be "no". But if it is yes, it's certainly not the same business model that died. It's a whole new market, with new drivers, new players, and new distribution channels. It's also a market where there is going to be lots of talent lying around that isn't being used any more (like how to design good covers, various custom record production techniques, etc)
Continuing on in my example, if you could find 10 million folks all over the world interested in something to do with records -- custom records, records as bird houses, records as the new frisbees, whatever -- and you can market something to them that they want, that's called a business.
Running away from the competition has nothing to do with it. I'm asking a simple leverage question: given two markets of equal size and a limited budget, do you compete with a hundred other small businesses, some of which with a lot of funding? Or do you compete with 4 or 5 business, all of which are figuring it out just like you are?
I'm not taking a position. In fact, my question was "is there a contrarian play to be made?"