Subject: Edupage, 26 July 2000 TECH TALENT TURNS TABLES ON BIG RECORD COMPANIES Internet startups are attracting many of the talented young people who might otherwise seek work in the record industry, and record companies are now struggling to find new employees while they fall further behind the technological curve. Industry analysts blame no one but the record companies themselves. The major labels long resisted embracing innovative new technologies such as MP3 files and file-exchange software, relying instead on traditional methods of marketing and promoting stars. Although most labels now offer some music online, they are hard-pressed to compete with the popu- larity of services such as Napster. The record industry's belief that Napster engages in indefensible copyright violation has fur- ther alienated young, would-be employees who have a passion for music but also want to explore the possibilities of the Internet. Overall, the record industry has entered a period of stagnation; employees have been laid off after the consolidation of several labels, while salaries, especially for new workers, have not increased much over the past four years. By contrast, Internet startups offer young workers much higher salaries and creative freedom. (Los Angeles Times, 24 July 2000)
