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Industry Chaos a Boon to Song Rights Marketer

Direct Digital Distribution Cuts Out Record Companies

Produced by Hoag Levins
Published: July 16, 2009

Bug Music CEO John Rudolph has found a silver lining in the music industry's digital chaos.

NEW YORK (AdAge.com) -- The digital chaos that has upended the music marketing business appears to be creating dramatic new opportunities for music publishers. In the past, those companies have been tightly focused on owning and licensing song rights, while record companies have controlled the recording and product distribution business. But no more. Los Angeles-based Bug Music, which owns more than 250,000 songs, spent the last three years reorganizing itself as recording studio and music marketer competing directly against those record companies.