The Hit Factory, one of Rock and Roll's most legendary studios, is the latest victim of the volatile evolution of the music industry. In the wake of innovations in digital recording and major label consolidation, the industry is struggling to adapt to a new economic model. In doing so it is letting go of much of its past. The Hit Factory was known for catering to the needs of each artist including flying equipment across the Atlantic on a day's notice, ripping up a carpet if a singer didn't like the color, and putting 40 bales of hay in a studio to make a country singer feel comfortable. Excesses such as these are no longer possible with the seemingly endless shrinking of recording budgets.

The owners of the Hit Factory are closing down the large studio on West 54th and moving their operations to a smaller location in Miami. During its 37 year run, the studio was graced by the likes of Bruce Springsteen, Eric Clapton, Stevie Wonder, Paul Simon, and David Bowie. In 1980, John Lennon spent his final hours there and was killed while walking home from the studio. In 2000, rapper 50 Cent was stabbed outside of the studio. Audio professionals blame the closing of large studios such as the Hit Factory on the rise of inexpensive digital recording, which allows high quality recording in any location by amateur recordists.