The MegaNiche, The Long Tail and Some Delicious Pie

Over the last 12 hours or so I've stumbled across some very interesting articles and posts about how our shifting economies are influenced by technology. Well, technically, the economies are often shifting because of technology, but there are some interesting theories that have emerged because of all this, and for some reason, they've all come my way rather unexpectedly.

For my part, I think of record labels, and how the industry is largely being crushed due to peer-to-peer sharing, file leakage and general digital distribution. I worry about people I know who work for small labels, and bands that work their asses off to generate a fanbase; however, I also rail against copyright controls being suggested by the CRTC and other industry players that suggest keeping clocks permanently turned back, so the recording industry's outdated model can survive. While this is a huge Sarlaac pit that I am not willing to wade into, there are others (such as Michael Geist) who seem able to articulate a point and stick to it.

I am torn, of course. If consumers can get albums for free, they probably will. However, models like Chris Anderson's Long Tail theory (suggesting that smaller, niche products are more viable in today's marketplace than mainstream, shelf-reliant products), offers hope for independent labels and non-mainstream businesses. Perhaps for every 5 albums downloaded free, consumers would be inclined to buy 1 or 2 as well if they were more aware of their role in the long tail.

Also worth considering is the idea of the MegaNiche - essentially any niche, spread out over the internet-connected world - which suggests that having access to one-tenth of one percent of internet consumers still equates to a million consumers. It's an updated version of the old indie-rock concept of an audience in New York: it doesn't matter how weird or avant-garde your music is, New York is big enough that there's an audience for anything. The MegaNiche takes this idea globally, and coupled with tastemakers such as bloggers and critics, and taste-shapers such as Pandora.com, makes it possible for anyone, anywhere to fine-tune their consuming habits to the micro / individual level, and support an independent label or artist.

However, the question remains: will they?

I am not completely sure of the answer to this question - it is one I am still struggling with. However, I hope to speak to a few independent label heads in the coming weeks and get a sense of how they see the transformed economics that the internet has brought us. Is it a scourge to artists and their support system as the CRTC suggests, or is it a viable (albeit rapidly changing) marketplace that demands adaptation? I'll endeavor to find out what people have to say.

However, if you have thoughts, please leave a comment. Do you download stuff? Do you also buy stuff? Do you run / work for a label? What do you think the future holds for independent artists and their support network?