You should be wary of things that are said confidently by someone with no expertise, for example, this is a flat out lie:
> There was a huge market around distribution and licensing and technology related to music, and a lot of that went away
As I pointed out, distribution and licensing has not gone away, that segment of the industry has grown.
Likewise, you have to ignore everything but the direct-to-consumer parts of the market to have that comment begin to make any sense. Video games, commercials and movies are all being produced with increasing efficiency as well, and thus, sync placements and licensing are more important than ever.
I actually think I disagree with your premise here as well, which is still more cogent and direct than GP, who said "the market doesn't exist". Yet, I think demand has kept up with the supply, I mean, I think the demand is almost infinite. Yes, people naturally want to produce music, much in the same way that some people want to make delicious meals for their friends, and when their dinner parties become popular enough to warrant pop-up level sizes, they might consider commercializing and commodifying their product because there isn't an option to continue doing it at a loss for most people. The financial incentive, in most cases is—how do I keep creating a thing people enjoy without dying? Likewise, people might want to eat at the same 5 restaurants their whole life, or hear the same 5 artists, but even that latter group are going to be enthusiastic when one of those 5 artists releases new content. Think about the fact that whoever happens to own The Beatles catalog can release a remastered version of any of their albums and have consumers ready to buy, what is to the layperson, a nearly identical product. Now, remember your favorite meal you've had out? Have you ever tried to recreate that experience?
I guess what I'm getting at is, you can't think of music in purely economic terms, because it tends to behave in unexpected and unpredictable ways that don't align cleanly with the dry notions "supply and demand".
> There was a huge market around distribution and licensing and technology related to music, and a lot of that went away
As I pointed out, distribution and licensing has not gone away, that segment of the industry has grown.
Likewise, you have to ignore everything but the direct-to-consumer parts of the market to have that comment begin to make any sense. Video games, commercials and movies are all being produced with increasing efficiency as well, and thus, sync placements and licensing are more important than ever.
I actually think I disagree with your premise here as well, which is still more cogent and direct than GP, who said "the market doesn't exist". Yet, I think demand has kept up with the supply, I mean, I think the demand is almost infinite. Yes, people naturally want to produce music, much in the same way that some people want to make delicious meals for their friends, and when their dinner parties become popular enough to warrant pop-up level sizes, they might consider commercializing and commodifying their product because there isn't an option to continue doing it at a loss for most people. The financial incentive, in most cases is—how do I keep creating a thing people enjoy without dying? Likewise, people might want to eat at the same 5 restaurants their whole life, or hear the same 5 artists, but even that latter group are going to be enthusiastic when one of those 5 artists releases new content. Think about the fact that whoever happens to own The Beatles catalog can release a remastered version of any of their albums and have consumers ready to buy, what is to the layperson, a nearly identical product. Now, remember your favorite meal you've had out? Have you ever tried to recreate that experience?
I guess what I'm getting at is, you can't think of music in purely economic terms, because it tends to behave in unexpected and unpredictable ways that don't align cleanly with the dry notions "supply and demand".