In other words, the model for the future of the music business is Tiger Woods. He essentially gives away the "album" -- his performance in various tournaments. Yes, he wins prize money (a lot of prize money, actually), because he's unusually good at what he does. But that money is a small percentage of his total income. He makes a killing in his partnerships -- with American Express, Nike, Titleist, and others. The company that handles all of those partnerships for Woods also makes a killing. Everyone else is essentially disintermediated from the deal.
It's a good thing that most of the money goes to Woods. He deserves it, just as Bruce Springsteen, Sheryl Crow, and thousands of other musical artists deserve the money that they make. They worked too hard for that money to see it get ripped off by some cheese-ball recording company.
Technology is now conspiring to make it more possible -- and, ultimately, more likely -- that great creative talent, or at least very popular creative talent, will finally be compensated adequately. Companies that enhance that value proposition will prosper. Companies that don't will be deconstructed.
John Ellis (jellis@fastcompany.com) is a writer and consultant based in New York.
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