The following article attempts and explain the recent trends, as well as, some of the pros and cons of entering into a license agreement in today’s entertainment industry.
As the various business models of the entertainment industry continue to reinvent themselves almost on a daily basis, one prevailing trend is the growing use of licensing. More entertainment product is now self-produced by artists than ever before. The “Studio System” and “Major Label” business models are quickly becoming obsolete. Industry professionals continue to ask; are these changes the result of the economy, backlash against the ‘old systems’, or technology changes? The answer probably lies somewhere in the murky gray area known as “a combination of all of the above”. The point is, change is here, and change means an influx in the use of licensing throughout the entrainment industry as the shift continues toward independent production. (more…)