The main premise is that investors are having to find new ways to make money in the music business.
I’ll take it a chunk at a time
[quote=“Jonathan, post:7, topic:1135”]
the involvement of the private equity and venture capital guys stepping into this space and re-arranging the system in a way that works. [/quote]
This means a different genera of investors are eyeballing the music business with interest, because due to changes, the resources and knowledge that the new wave of investors have now overlaps sections of the music biz where it may not have before. And they are applying outside experience, with different ways of doing things, they are changing aspects of the industry that have failed to make money, into pathways that do make money. We’re seeing new investors are stepping in from two types of investor categories. They’re taking key concepts from other industries that are making money, and applying them to an industry that is not making money. The obliteration of the traditional label model, allowed for new expectations, standards, and norms. These new guys opted in and were now able to change it on their terms. Money calls the shots. The new industry needed it, the new guys say if you want it, you do it our way. These are examples of those ways:
Coming to the table and buying in with different criteria for loaning the cash, [/quote]
Both AJ and I have established that a label functions like a bank. Where the two of us seem to disagree on is their roll in getting it back.
a different focus on how to monetize the assets, [/quote] Monetize means to make money, and an asset is something that makes money.
different safeguards to hedge against being diluted, [/quote]
A safeguard is something that prevents something bad from happening. I used the term ‘hedge’ outside of its conventional context here so ignore it. Diluted is when your equity (that means your ownership) is decreased because of more owners wanting to play in the same crib. When a company gets dangerously low on cash, they need more money or they stop doing business. One way to get more money was to dilute their assets raise capital (that means raise money). So people are doing things different now to make this not happen. If you look at a financial statement (that’s a document from a company that explains what’s going on with the money inside of a business), there are numbers on the ledger (thats the name of the graph that organizes the information) that deal with this. All of this is important because there has been lot of discussion over the best way to raise capital (again that’s a fancy word for money).
analyzing the financial metrics of the artists cashflow differently [/quote]
Pretend numbers talk to you. Now pretend you and I are listening to the same number to speak to us. There may be a difference on what you hear the number saying, and what I hear the number saying.
Analyze means to examine and draw conclusions from, finance means money related, metrics (business metrics, or metrics of the business) are different factors that affect outcomes in the system, cashflow (oversimplified) is a financial metric.
and different ways of strategizing long term capital growth in light of changes in technology. [/quote]
Sometimes people can agree on how to make quick money, but disagree on how to sustain money over a duration of longer periods of time. It takes a strategy (a plan) for long term (that means future oriented) capital (that means money) growth (that means doing more business and making more money).
I was communicating a main point with some general examples. Those examples WERE the content. They are examples (though non-detailed ones) of things that record labels have changed.