Stocks that Will Rock Your World

Rick Aristotle Munarriz, from The Motley Fool, wrote an article looking at the downfall of MP3.com and the resurgance of online music.

Yet there's a reason why there isn't a single worthy investing angle when it comes to buying into the trend towards showcasing the unheard. No one is doing it right.

The broadband migration continues. Bandwidth and servers get perpetually cheaper, yet the market seems to think that the only money to be made in digital music is in pitching popular tracks for a buck or less, or coming up with some portable aural smorgasbord solution of commercial tunes. In a word, strategy is primitive.

That's why I believe that, years from now, the major labels won't be the same batch of old-school vinyl pushers you see today. As ludicrous as it may seem, I think that the real power brokers in the music industry will be Google (Nasdaq: GOOG), Yahoo! (Nasdaq: YHOO), and Microsoft (Nasdaq: MSFT).

Oh, they don't even know it yet. It may be years before they even come around to connecting the dots, but they will connect those dots. That's because those three companies are the ones leading the way in localized search.

Even as a search marketer I think it is hard to appreciate what an effect search will have on society.

Published: July 5, 2005 by Aaron Wall in internet

Comments

July 5, 2005 - 11:19pm

Yawn. We wrote about this in 2003. The truth is, it could be Apple. We just don't yet know. What we do know is that there's a good chance that it will be a tech company and not a record label that's leading the way. The only things that record labels having going for them are their catalog and marketing power. Their third leg - distribution - has already changed to the point to where they don't rule that roost anymore.

July 7, 2005 - 11:11pm

I'm sure there are lots of people working on this idea behind the scenes in the major players you cite.

Jim

http://localsearchideas.blogspot.com/

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