Why the music industry no longer calls the tune

Top of the Pops is no more, downloads are the norm and budding stars launch their careers on MySpace. As traditional music firms struggle to adapt, is the industry still worth investing in?

Top of the Pops has been axed, track downloading and cheap CDs are the norm and record company merger and acquisition is rife. Just what is happening in the music business?

The demise of the BBC's flagship pop show sums up most of the problems the industry is facing. The first-ever episode of Top of the Pops aired on 1 January 1964 featured bands such as the Beatles and the Rolling Stones and over the succeeding years the audience reached a peak of 15 million. Now, however, with music videos available just about anywhere from laptops to mobiles, there's no need to wait for next week's show. Videos and downloads can be accessed right now. And it's not only the BBC that is suffering: times are tough for traditional music firms too, leading to a rash of consolidation in the sector.

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