We’ve suggested in the past that the recording industry was fooling itself in betting on digital music sales as a serious way to replace its revenue stream. As we’ve pointed out just selling music is not a very good business, but still there’s been some fool’s gold in the fact that digital music sales have been growing. We warned a year and a half ago not to get too excited about this, and now Nielsen is reporting that digital music sales have stalled out and will be flat this year, rather than growing. None of this means that there isn’t money to be made or smart business models. In fact, we’re seeing that musicians are making more money than ever. It’s just that they’re doing it by relying on other business models beyond just selling music.

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