It means that if high risk is required and/or the world in which they operate is about to turn upside down, the structure of major companies doesn't put them in the best position to take those steps.
BTW, it's not just execs that aren't holding stock for 100 years, its shareholders too. At least those that influence stock price.
But I don't think it's impossible to change course completely. IBM famously turned things around. But they had some things going for them. The industry grew around them so they could go from being 50% of the industry to being 6% of the industry (made up stats) and still grow in absolute terms.
But recording Companies are recording companies. Even if you buy the claim that you can the industry can shift to selling t shirts, concerts tickets & personalised albums & still make the same amount (I don't), you can't walk away from that simple fact. Their whole world depends on a reality that no longer exists.
1.It's expensive to produce a recording. (they'll fund you)
2.You must have economies of scale. (Gotta cut at least 100k)
3.You have physical control over distribution via limited channels (copyright exists, physical objects are worth money)
The current world simulates that reality to keep record companies in bread. Why the hell do you need a record company if you can record an album for a couple of grand, promote it on user generated radio where things are spread virally out of the control of record companies & distribute it in the same way the Rolling Stones do? The Wal Mart model has room for record companies (if your not one of the top 50 or top 100 your not there. The itunes one does not.
Even if the execs were to take longer term positions, they would have incentive to keep this up. The future doesn't include them. Keep it away.
BTW, it's not just execs that aren't holding stock for 100 years, its shareholders too. At least those that influence stock price.
But I don't think it's impossible to change course completely. IBM famously turned things around. But they had some things going for them. The industry grew around them so they could go from being 50% of the industry to being 6% of the industry (made up stats) and still grow in absolute terms.
But recording Companies are recording companies. Even if you buy the claim that you can the industry can shift to selling t shirts, concerts tickets & personalised albums & still make the same amount (I don't), you can't walk away from that simple fact. Their whole world depends on a reality that no longer exists.
1.It's expensive to produce a recording. (they'll fund you)
2.You must have economies of scale. (Gotta cut at least 100k)
3.You have physical control over distribution via limited channels (copyright exists, physical objects are worth money)
The current world simulates that reality to keep record companies in bread. Why the hell do you need a record company if you can record an album for a couple of grand, promote it on user generated radio where things are spread virally out of the control of record companies & distribute it in the same way the Rolling Stones do? The Wal Mart model has room for record companies (if your not one of the top 50 or top 100 your not there. The itunes one does not.
Even if the execs were to take longer term positions, they would have incentive to keep this up. The future doesn't include them. Keep it away.