Who needs record labels when you've got car adverts? DOG's manager opens the debate.

Not since the 50s, when record companies wrenched power from the music publishers of Tin Pan Alley by replacing sheet music with vinyl, has the British music industry faced such an uncertain future.

The invention of the CD changed the industry beyond recognition, with record companies getting rich from incredible mark-ups on a commodity that actually costs less to manufacture than a vinyl record. But while busy counting their money, few labels could have predicted the sting in the tail… the Internet.

Not only has the Internet provided a universal window for new artists, it’s also provided a means for stealing music digitally. Although the CD has proved an incredible success as a format, it has also enabled digital copying of master quality. No more tape hiss or vinyl scratches, just pure aural perfection. This copying is killing record companies and their days are numbered if they don’t radically change.

It’s not implausible that in the future artists will sign directly to advertising agencies and film companies, by-passing record labels by using TV, cinema and product tie-ins to promote their music to an audience. Negating the need for radio stations that monopolise and control musical output, and possibly removing the need for an end format. Music from adverts and film could easily be downloaded from Audi or PlayStation websites.

A writer could sell his or her music direct to a brand from a bedroom anywhere in the world, without losing the 83 per cent royalty record companies currently deduct. Indeed, many acts are actively pursuing commercials as a means of promoting singles due to the lottery which is daytime Radio 1, the only medium for selling records in this country. Managers are desperately trying to find outlets for their bands’ music, other than the traditional record company routes, and advertisers always need music. The likely scenario is that the big record companies will merge with film and advertising agencies forming multimedia conglomerates, with the record company acting as the distribution company.

The challenge for the future is to move out of the traditional avenues and creatively market new talent via all the new media available. One thing won’t change, though - great music is, and always will be, being made in this country. Andy Ross 07 March 03

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