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Why bands are disappearing: "Young people aren’t excited by them"
(www.theguardian.com)
A community to share the music worth sharing.
Technology supporting solo artists hits close to home.
It was certainly a larger factor in my decision to quit playing in bands, that composing/DAW software allowed me to make music in a similar fashion.
In many ways, it's better than playing in a band, because you can make exactly the music you enjoy and play not just one instrument, but a whole orchestra.
Obviously, this is far easier said than done and there's many awesome parts of being in a band, too, but I can definitely see this being the preferred alternative for many people.
Pretty much how Trent Reznor started out. Still used guest members for live shows and touring, but I think he played everything himself in studio with Pretty Hate Machine and The Downward Spiral.