What are the possible futures for the music industry?  A SXSW panel convened to “raise their cards”, literally – Red for no, Yellow for coming soon, and Green for already happening.

1. The death of the record label:  in the age of digital technology and a generation of self-producers (Flickr, YouTube, Blogs) – is the record label doomed?  The Verdict: No. Artists, especially grassroots, still need record labels to help them get places, approach consumers, and manage their business.

2. Music moves to the cloud – not the sky cloud but the technology cloud where play list sharing becomes the norm and more powerful filters exists than radio or podcasts.  The Verdict: Coming Soon. We are in a generation that loves to share and advertise something “cool”. In addition, we are fast becoming a consumer base that requires instant gratification. Music is becoming ever easier to access and download.

3. Resurgence of local ownership in music.  Will there be a resurgence of local record stores and a fall back to traditional access to music?  The Verdict: Mix.  While communities are experiencing an increase in the number of local record stores, it will still not be enough to upset the rise of instant download and immediate access to content.  Still, there is need to provide exposure and interaction to local bands and your local record store may just prove to be a growing niche market.

4. Brands become the main distributor and revenue stream for music.  The Verdict: Mix. With television advertising having a decreasing impact; brands are looking for alternative means to create an emotional experience with their audience.  Brands are teaming up with music artists to help enhance their brand identity, creating a hefty increase in revenue streams for popular music artists.  But such increases from endorsements, still does not outweigh the revenue that comes from sold out concerts and tours.

5. New Forms of consumption and modification take over – example Rock Band.  The Verdict: Already Happening.   The ability to experience music through different avenues like Rock Band is happening today and will only increase.  These avenues create additional revenue streams for artists and only enhance the music industry.  The question is will these new avenues surpass traditional avenues in revenue?  What is your vote?