Earlier this decade, the RIAA shut down Napster in a lawsuit for piracy. Since then, they have tried to go after individuals for illegally downloading music. However, in a recent case, a judge threw away the case stating there’s no proof the defendant was sharing all the files as it’s not illegal to own the files. That was a slap in the face to the RIAA and the record labels.

So what’s the fuss about and why are record labels losing so much money? It’s not because we are stealing music from peer-to-peer networks. It’s for several reasons. One is because of the money loss, record companies are recycling songwriter formulas and shying away from singers wanting to write their own material (research Kelly Clarkson vs. Clive Davis for her album My December to see an example of power the record label has in how successful an album is). No one wants to hear the same song over and over again. Songs are more popular because of

Where will the recording industry be in years to come? Some say they will crumble under great pressure, losing out millions of dollars. Some say they just need to devise a plan for this new technology taking control of their business. Billboard reports record sales weekly in a newsletter online and state the decline in sales compared to the same week in the previous year.

American Idol is a great example of that practice. Only a handful of the contestants have actually gone from TV star to a superstar. Kelly Clarkson, Carrie Underwood, Daughtry and more recently Jordin Sparks have been the most successful. Each one touches a different genre and only Kelly Clarkson has reached international super stardom. Other contestants have put out a song or two and have disappeared from the limelight. But American Idol produces at least 12 potential money makers each year. They merely need to release a song to iTunes, make their money and move on if the artist doesn’t have potential to continue on. It doesn’t matter to the recording industry anymore.

The other reason is because with the digital era, it is no longer necessary to buy a complete album. Consumers have the choice of which song they want to download after purchasing it for usually only $1. Consumers used to have to buy an album with only 2 good songs and the rest were fillers. This has put pressure on the labels to record at least 5 radio friendly formula hits per album. As a result, album sales have been down and single sales have been high. Labels ride high on a handful of songs before moving on to the next, and sometimes the next act.

Nowadays, all it takes is a good song and a website such as CDbaby.com or Tunecore.com, which will post your album to digital retailers such as Napster, AmazonMP3, Rhapsody, and all iTunes around the world for a small fee. The rest is up to the artist. With profile sites such as MySpace (which they have a musicians profile as well) and Facebook, it’s not hard to promote yourself. Find fans of similar artists and request them. Word spreads fast

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