Marcos Marado wrote this exclusive article about Music Biz. Is the situation really so dramatic as he explains? Leave your comments, this could be our first really important debate on ManuelMarino.com.
Music Biz
I’m, first of all, a passionate for music. My passion for music before I can recall it, and grew with the fact that I had the luck to have older brother and sisters whose music collection was wide enough to feed my music interests. Also since a little kid I was interested in technology, and started programming at the age of four. Being nowadays a music lover and also a musician What Is A Musician? - For some individuals, the role of a musician may be difficult to comprehend. They may struggle to understand: 1 - the nature of a musician's talent or job, 2 - why musicians work around the clock, and 3 - the concept of a fanbase and the boundaries musicians set with fans. Let's delve into each… , and at the same time graduated and working as a Computer Yestel Tablet - Thursday, approaching the End of the Week: Yestel tablet. As the week draws to a close, an unfortunate incident occurred - my son accidentally broke his tablet. In search of a replacement, I turned to Amazon and discovered an exceptional find. Introducing Yestel Tablet: A Remarkable Tablet Brand The tablet I came across was from… Science Engineer, I feel myself lucky to have some ground bases to analyse the state of music business.
The music business is in a chaotic state. The record industry is declining, and is throwing the guilt of it to what they like to call “piracy” – the unauthorised downloading of music. While they blame it, the truth is music market is falling, whos to blame? The fault is from the music industry Marketing and Music: Is Marketing Really So Powerful That Any Song Can Become Famous? Or Does Talent Still Matter? - Today let's dive into a topic that's been buzzing around a lot: the relationship between marketing and music. We all know that marketing plays a massive role in the music industry, but does it actually hold the power to make any track a hit? Or does talent still stand a chance? First off, let's address… itself. Doug Morris, Universal Music CEO, recently admitted he knows nothing about the music industry of nowadays. They decided to sue their customers by suing music fans that do unauthorised downloads instead of suing those who really make money out of copyrighted works, and restricting their clients’ rights with technologies like DRM.
It is surely true that it’s hard to find a completely fair way of compensating musicians while promoting the access to culture, but there are efforts to design Carpet making - Here's a very interesting article on the Art of carpet making, written by Alhan Keser. Alhan is in in charge of communications for Tip Top Design, a company that specializes in interior design with oriental rugs. He has lived in Turkey and France, working as a freelance journalist and documentary maker. Carpet making The story… market models that work – at least better than the actual one. The biggest problem is that the music industry – defined by the four major labels – doesn’t get it. The music market has changed, music, musicians and music lovers adapted themselves to new trends and technologies, but the music industry decided to ignore all the signs, refusing to see the big elephant in the room, and kept doing business in an obsolete way.
The proof that they simply don’t understand what’s going on is right in front of everyone wanting to see it, when we get news that Elton John wants the Internet shut’ed down, or when countries try to impose Internet Services Providers to filter illegal downloads, even if that’s technicly impossible to do and the music industry does political pressure to make the countries change their laws.
They spend tons of money implementing DRM systems, and others sell the rights that were restricted to listeners back, making money from what they first took, even if it’s known that DRM systems cause sales losses, music artists and fans are against such systems and new businesses are arising just by the fact that they don’t adopt DRM technologies, radio stations create petitions against DRM. Now, it’s too late for them – but what’s going to happen to the music market?
Well, we’re also seeing a lot of emergent business models. First of all, we have to realize that while CD sales are decreasing, music consumption is rising twice as fast. Also, if you open your eyes and start considering the music business as everything around music and not just music sales, then you’ll see that, for instance, in North America, the music business will total $26.5 billion in 2011, growing at an average annual rate of 2.8% from $23.1 billion in 2006. Recorded music revenues will still declining as declining CD sales cancel out the sharp gains in digital sales. Music publishing and live music will grow. Norway has a party that wants to free file sharing and sampling, shorten the commercial copyright and ban DRM.
The number of web services for bands is wildly growing. Artists have now the means of making money while giving music for free, for instance. Musicians are finding new ways of doing their work by themselves, even if sometimes things aren’t simple. While there’s no formula on how to create the perfect record label, there are some labels and distributors that understand nowadays music market and know how to do business in it.
The future is smiling at us – we just have to let obsolete formulas and vices die.
Of course, new issues to be solved will appear. New fights have to be fought and won, or we’ll end like citizens of a dystopian world.
But soon enough it is going to be a great time to live – as a musician, a music lover or even a technologist.
Manuel Marino is a seasoned Senior Producer, Music Composer, and Artist with over a decade of experience. He specializes in branded entertainment across various mediums, including video games, films, and advertising campaigns. With 20+ years as a game music composer, Manuel has worked on numerous platforms, creating diverse orchestral soundtracks. HIRE ME
well said, manny. what the old guard doesn’t realize is that the internet generation has adopted the technology available to them which has caused a major shift. entertainment (among other things) used to be a “push” whereby you turned on the radio/tv and were “pushed” what big business wanted you to consume. with the internet, consumers are in the “pull and push” control now more than ever. music fans can explore, search, and discover more than ever, faster than ever as well as “push and share” with others as they wish (one to one or one to many). this has in turn led to greater customization (i can listen to all the different types of music/artists as i wish now) as well as tell more people faster and farther than ever before. in 1985, i went to Paris for the first time and bought about fifty 45 records, brought them home, invited a friend or two over at a time and played the cool songs we never heard in the US. five years later, a few of those songs finally were a hit on radio in the US. now, i can discover a song by a friend with a band and share it worldwide with 1,000 friends in minutes who can then do the same. this is only disruptive to the old “push” systems finances. what it allows the independent artist to do is make money by following their passion without having to pray for luck that a big label would pick them up for a record deal. i believe that yes, more people are consuming more music (and other arts, knowledge) in a much wider array and again, farther and faster. the only thing that has changed i believe is that big music business is no longer in total control of the customer’s ears (and wallet). we can now choose when and where we wish to spend on what. i don’t think the internet is an “equalizer” for the individual artist so much as it is the unlimited opportunity without all the roadblocks previously put in place by record labels. thanks to the new internet music economy, i spend and consume far more music now across a wider variety of genres, faster and from any corner on the planet and in turn, i push this along to friends who in turn do the same. the world would truly be a better place if only the same could be done for the automobile industry – we could all be driving solar/electric cars in all shapes/sizes when and where we wish while also eliminating our dependency on oil just as we’ve eliminated our dependency on big record labels, commercial filled radio eternally repeating playlists and plastic cased cd’s. digital is saving the independent musician, our artistically starved souls, and the planet!
Hi Manuel,
great article – I really like it.
Keep on posting!
Thanks,
Sebastian
It’s not really the DRM that is so bad but rather the way they do it. I can understand trying to limit piracy by using some DRM to validate that your CD is legitimate but what I don’t get is how they feel right making music so that it can’t work on your ipod but can work on your zune and vice versa. All DRM should be the same. I bought a LG 8300 for $35.00 from Costco and got a $22.00 1 GB micro SD card. Then I stuck it in my phone and let it create the file structure for the videos, pictures, music, and tones. Then I looked at the file format it saved these files in. The video was in .3gp which I hadn’t heard of before and the audio was in .mp3. The problem is that it used VCast and you can only play music and video that Vcast can understand. So I simply imported my videos into Kino in Linux and exported them as .3gp files. Then I put them in the my_flix folder on my phone. It worked like a charm. next I changed my music to .mp3 format and stuck it on my phone. So basically I have a $300.00 iPhone (- the touch screen) that plays all my mp3s and 3gps for only $57.00. Not only that but I can buy additional 2 GB cards and switch them out if I want. And no USB cables. I just put the card in my computer. It’s so cool. The only thing about my particular LG 8300 is that it has a humidity kill switch that kills the phone if it is humid. It’s located on the battery and one under the battery. They are both white and red. You have to put nail polish on them to keep them from tripping. once they trip you have a paperweight. Thats what everyone says. but truly for only $57.00 I enjoy my MP3 / 3GP playing phone. It can even record an hour of video. Also it has something your mp3 player does not. It has stereo speakers in the hinge. So you have two speakers the size of dimes. One in each side of the phone. Sure they drain your battery after one day of continuous playing but oh well. You can use the phone in (non speaker phone mode) normal usage for up to 4 days without a recharge. As more portable Linux devices come out DRM will be a thing of the past. The only problem is that items like the TiVo that have Linux installed only let you keep your recordings for 10 days and limit what you can record. thats because this is a commercial item that does not comply with the GPLv3. We should not buy these items. In fact a LinuxMCE (Media Center Edition) computer is less expensive than a TiVo and records forever and allows you to burn to a DVD. You can get one at a low cost from my site http://www.mindblowignidea.com/ComputerRescue
Hey!…Man i just love your blog, keep the cool posts comin..holy Thursday
Good words. I find that the QUALITY of mainstream music is declining. Can’t find anything like the production and melodic quality of groups like ELO or Wings nowadays. I am sure the independent producers make exciting stuff, but it’s hard to find them in the sea of punkish fluff.
I love the blog! I am all for keeping the arts alive! How about doing a show on blogTV.com talking about your blog live? You could even embedd it here! 🙂
The whole idea of the internet is that it weeds out the inefficient ones. In the case of the music industry, it would be the record labels. When music can pass from the hands of the artists directly to fans, that link will be created very swiftly and the labels better get used to it. They will have to find a place for themselves in the system that makes them necessary, not obtrusive.
There were a lot very good points in the article. Aside from the fact that most major labels are nothing more than what is becoming an obsolete “middleman” that quite frankly, is more concerned with suing the very people that buy their “products” (which in this case, is actually the musician’s work imho) in a sordid attempt to keep profits afloat while their business slowly, but steadily declines into a gurgling, festering pit of fail, deciet, greed, and secretitive self-loathing.
Some may say that last statement is a bit too harsh, but I bring up this pre-emptive counterargument. If that weren’t true, why would they be suing dead grandmothers, children, and even people who have been able to prove beyond a shadow of a doubt in the criminal justice system that they neither own, or even have access to a computer? Lest we forget the supreme court ruling that states in these retarded litigations that using ip addresses as is inadmissable as any sort of concrete evidence in the first place. Yet people still continue to settle out of court. As to why is entirely beyond me. Also, see Apple’s refusal to up their prices, when several major record labels attempted to coerce them into doing so. In fact, Apple’s response to the whole thing was “now you’re just being greedy.”
The next problem that I see with this is the idea that piracy supposedly costs money for these companies that continue to post increasingly large profit margins. This is not speculation, but a statement of fact. Anyone with a search engine and enough time on their hands can easily come across these unvarnished pearls of wisdom. If anything, it’s the record labels that should be punished for such a conflict of interest, not the consumer as we are led to believe. Many times have I downloaded entire albums to see if they were worth purchasing. This very same method of “illegal” activity has saved me the hassle of figuring out that I may indeed be buying an album for just one song. As an example, I bring up the following equation.
Two albums have exactly the same number of tracks, and relatively equal listening time. One of them by a rather well known band is naturally higher in price. We’ll round down and say it’s about $15. The other is by a newer band, and we’ll round up the price to $10. CD #1, with it having a higher price, you expect better music content/quality. However, this turns out not to be the case. The $15 cd turns out to be a $15 coaster, with only one mildly tolerable track. The rest of the content is utter crap. CD #2, which costs less, is much better in quality. From a sheer mathematical standpoint, based on the “illegal” activity that I decided to partake in, I’m going to go with the one that costs less (and ironically, is better), and with the remainder of what I would have spent possibly buying the first one, I will use the remainder to buy a pack of cigarettes to complement the obviously better choice regarding the matter. For the label that complains they “lost” a sale… perhaps they should stop sleeping at the wheel, and make sure that the content they put out could actually be qualified as “music”. Anyone that disagrees with me on this point needs to seriously consider retaking basic math.
Moving right along to the next point of interest… DRM. From a standpoint of security analysis, DRM is nothing more than glorified malware; I like my system as untainted as possible. Anyone who disagrees with this, google “sony rootkit”. I also prefer to be able to transfer the music I enjoy to any medium. Also, being able to actually have full backups of my music is another plus. Despite the fact that any form of DRM can be circumvented with relative ease is inconsequential. The technological blunder simply fails to make the grade on this one.
Which brings us to our next point. Specifically, content filtering. Data can be altered and converted to different formats. Regardless of what kind of hashing or partial digital fingerprinting is performed, it can be literally circumvented within seconds, and sometimes minutes if the data in question is large enough. Whether the data in question is music or video, again, is inconsequential. The content can be passed through various filters, compressed with an almost endless variety of formats, each with their own specifications. In both cases, DRM and content filtering should be taken out back and handled like Old Yeller. The only difference is when this happens, none of the consumers will cry.
This is a very interesting article about music business. I don’t agree shutting down the Internet, though, but want to see it as an opportunity to make business with music. I’m sure there will be a lot of new ways to increase music business in the future even brand new technologies we aren’t aware about now. Meanwhile, let’s make the future real!
So the music industry is like any other big industry/corporation. Why? Because they all don’t want to change themselves, but rather would like to see others change. They are the good guys and the rest are the ‘pirates’. If they continue that position, their share of the market will further decline. They will only think about change when the pain is heavy enough.
On the other hand there are currently some great initiatives happening in the market. And that is good for the music lovers. E.g. I really like We7.com, where I also act as a “Tastemaker”
Like in any other market, there are always winners and loosers.
Great article! As for record labels, I’m about to help my friend (DJ Stereotekk, stereotekk.ru) start a promising one. Hopefully, with the help from Kosmas Epsilon. Future is with music online.
Great!
Much of what is pointed in this article and the responses is quite true. However, while I do not see mainstream music quality declining, I am often frustrated when I purchase a new album and all I really like is one or two tracks. Perhaps this is one reason downloading is gaining in popularity.
I have never understood how the “downloading” sites can remain open, while the content downloaded may be
“illegal.” It reminds me of the “head shops” selling paraphernalia legally but individuals may be arrested for possession of these items.
It seems to me that new approaches need to be taken by the music industry. Many individuals are moving forward but the industry does not want to follow.
I think many of the music sites are a great way to introduce new talent that does not have the financial backing necessary to produce and market a full album. We used to have 45’s and then the short-lived cd singles, but now we have to purchase an entire cd to check out new talents.
Musicians are creative. They will not only survive – they will thrive. The government can cut budgets for the arts, but they cannot destroy the passion musicians have to create and share.
Nice site this one. I´m not big smart at music but i think is the most complete and abstrat art and universal one. In my plastique creations some time are very close and mixed toguether. What would be your world with out music?
Hugs . joao
It’s the fault of a lot of record companies anyway, for using technology to turn out so much dross. How many in pop music these days can actually sing and play? A lot of it is turned out by synthesisers and automated electronic gadgets, making it all so impersonal.
Mainstream music been in major decline for years. It seems fitting the record companies are blaming the very thing they used to push their mediocrity. I prefer to concentrate on classical instrumentalists who use their own playing technique. Quality will come through in the end.
Mark.
Well, good summary of the state of the music buisness. Lots of good things said in the comments, too. I would add a very particular point: the only market segment that knew a sold-growth the last year is the… classical one. Some reasons to this:
1) Classical music is harder to pirate (out of most famous pieces, it becomes hard to find, and even though, you cannot chose your version)
2) Labels like Harmonia Mundi are doing wonderful, beautiful objets, with an incredible quality in the libretto and everything, so you really got something more when you purchase the CD, and the quality difference between MP3/AAC/… and orginal CD is absolutly obvious, even on normal stereo installation.
3) Even if classical is also a market, you don’t have this feeling of “passing music”. How many CDs you bought five years ago are you still listening now? Some, for sure, but surely not all of them… when you buy a “classical” work you love, it stands thousand and thousand of listenings without being annoying, it’s everytime more and more a wonder. So, when you buy a classical Cd, it’s for your entier life.
There would be lots of other explanation (Brillant classic, for instance), but there are 3 points that, I think, should be the beginning of some reflexion about the actual state of music market…
I’m sorry, but the concept of DRM is defective by design. I understand that copyright holders want to protect their copyright, I reall do. But setting a DRM scheme is discretizing the consumers’ rights, which is, by definition, violating those same rights. For instance, your example of “validating if a CD is legitimate” doesn’t work since in many countries, like Portugal where I’m from, you have the right, as consumer, to make a personal copy. With DRM, you’re taking out that right from consumers.
Mobile devices are surely the next big thing(TM) (in Korea cellphones that are also music players sell 4 times as much as non-cellphone mp3 players…), but your LG works so nicely exactly because it has no DRM scheme to prevent you from uploading/downloading your music or videos… Unfortunately many mobile devices are cripled with obtrusive DRM systems.
Before record labels and artists blame those who download music, “Mainstream Music” has been decline with people either wanting live music or alternative music.
There are two components in the Music Business – there is the business part, and there is the Music. There will be no argument (I hope) that Music came first and because of that I want to just throw a question out there: There was a Bob Dylan documentary the other night and they played his 1964 version of Blowing in the Wind and it still moved me. When can we expect from the Music Business to give us some new tallent that can actually create exciting music? Because if I was an investor I’d love the 2.8% annual growth (indeed a modest growth, but growth nonetheless). But I am just an audeince of one here …
IMHO – It is a sad truth – the behemoth multinational record companies have to face –
If you may recall the whispers when you were young, and someone bought a record, or a casette tape. if you had the nerve to ask for a copy, you would always hear “you can’t make copies” or they will sue us”
The multinational record companies have always had a black ominous cloud over them. They did an excellent job of putting the fear of god into us all if we ever even though about copying anything.
Unfortunately, I believe the new face of the music industry is dynamic and you have to stay in motion to keep up. We as consumers have been doing it for decades, every time a new technology is released. Now it is time for the record companies to loosen up. Listen to the public, find out what they want.
As we all know the cost of pressing a cd is all in the paper and print. The cd itself is pressed from a master, or now from digital audio. The cost has dramatically dropped, and in many cases, disappeared due to downloads and electronic delivery. Forget the fact that many bands don;t have enough hit material to fill a cd. Let us buy the tracks we like. let us try before we buy, and charge appropriately for the tracks we want.
It is a business, and unfortunately, we have come to expect everything on the internet for free. Obviously there has to be a mutual meeting of record company and the buying public.
Hopefully someday soon – we’ll both find a solution.
What annoys me is that I have always purchased music over the internet legally – never downloaded anything illegally – and in return for my honesty I am rewarded by software that restricts the number of MY OWN devices that I can download my purchased music onto! Arghh!
I think “piracy” is the explanation the industry has come up with to explain the huge hole in their marketing reports. The indie scene is booming and 90% of he sales are not on SoundScan.
They can’t believe that thousands of thousands of bands doing DIY can skew the market. A band can sell thousand units out of their trunk after a gig, and they do, making a bigger profit then they would signed with a major label.
Hi Manuel,
I think you are totally right. Those systems are obsolete and more: they are just the expression of arrogance and a miss-handling of power the entrepreneur in the world of music are showing up.
The music industry could easily promote the art and diversity of music instead crowing artists like dinosaurs.
(btw. I did the resume of your opinion to spanish in our noticiasypunto – I hope that’s no problem with it.)
Interesting article. I hear that DRM will be the demise of MS as they are now going to force this down your throat if you use their OS. Vista already has this implemented with copyright management built in. A lot of user in the Video business, from what I hear, are leaving and going with Mac or Linux/Unix.
The Music Industry is extremely greedy and they have reaped what they have sown.
I was reading an article, I cannot remember the artists name but they are main stream, that sold their new album without a label and made it available for download where you can pay what you the buyer thought was fair. The article mentioned they made more than they ever expected. The average price paid was between $8-9. Think about it, no CD to burn, no tangible items, means increased profit margin!
If more artist tell the industry to take a hike I think they will then be forced to lose the greed and offer fair practices to the musicians instead of burring them.
Like it or not the Internet is the future and they better step up to the plate and learn how to work with this new model.
If you want consumers to purchase a product (e.g. recorded music) as opposed to an alternative (e.g. downloaded mp3), you need to:
1) Make the product more attractive. Package the CD in a way that cannot be duplicated via digital download. One of my most recent CD purchases was Tom Waits’s “Orphans”, with its distinctive three-fold case and eye-catching design, photos, liner notes, etc. The object itself is beautiful, and therefore desirable.
2) Make the product convenient. Online mp3 stores do brisk business. If they were less restrictive and more user-friendly, they would do even more.
3) Give the consumer more for their money. Put a folder of mp3 tracks on the CD. Sell me a complete collection of on a customized USB stick or mp3 CD. Or, push the business model of single track sales rather than CD’s, charging considerably less for the single track (this is still getting more for your money….get exactly what you want at a fair price). There’s a reason allofmp3 sold so much. Learn from it.
The gist of it all is…there’s a new business model. Darwin kicks in once again…adapt and survive. Stagnate and die, as consumers and artists find a way around you.
I’m all for using new music delivery systems but not for theft of a musician’s work. People call it file sharing but it’s really old-fashioned stealing. Taking something which a person is trying to sell in order to make a living is wrong, even if it comes from a record shop or a site. I once taped LPs from the library. Eventually, I ended up buying the music because I wanted the packaging and higher quality sound. Now I buy the music I like because it encourages artists to produce more. Whenever possible, I support independent artists who have set up their own businesses. No matter how sophisticated our technology becomes, stealing is still stealing.
I can’t say I know enough to comment on the state of the music business, but I know about my own music buying habits, and I can tell you this: I haven’t set foot in a brick & mortar CD store in years! When I hear a song I like, I go to iTunes and pay 99 cents for it. It’s fast, convenient, and I won’t feel disappointed because I spent $16.99 to buy a CD with only one or two songs that I care to listen to.
The internet and other technological advances provide great opportunities for different types of artists (musicians, painters, etc.) to get their work seen and heard. Artists are using their creativity to adapt and flourish in this new environment. Perhaps it’s time for those using the old music industry business model to get creative and make some consumer-friendly innovations so they can profit from this new environment as well.
I couldn’t understand some parts of this article nnial 2007 – salvatore iaconesi – del.icio.us poetry, but I guess I just need to check some more resources regarding this, because it sounds interesting.
I can agree with some points, but as a consumer, what can I do about it? I am a dinosaur of sorts, I strictly buy vinyl, one to support the artist (and yes, the record company) and because it is my format of choice. I have never downloaded a song in my life, and when my boys (age 24 & 26) say I am missing something, I point to my record collection and say they, too, are missing something as well.
But, digital music is here to stay, and I must argue that, so too is vinyl, a format that has kept going in the face of numerous formats that were supposed to replace it. In my world there should be no such thing as a “free” download, these musicians work for a living, pay them for their product. That said, this is an impossible variable to control, and therefore the music industry needs to adapt to the times and find a managable way so that all parties are happy, the musician, the record label and most importantly, the consumer.
But, I love the new music that is coming out with some “indie” bands who release their own music via CD Baby or some other venue. A band does not have to be signed to a “recording contract” (er the middleman), but it is that middle man who helps to finance the band. Talk to an “indie” band, they will tell you they need financial support, and who gives them that, the record companies. It is an extremely difficult paradox.
So it is not a hopeless dilema, it will all work out for the consumer and musicians and the record companies….if they can all get on the same page. The business model of music is changing, but the record companies have to change with it for it all to work.
Robert
http://www.collectingvinylrecords.com
I have to firstly state that this article is brilliant; it has been a while since I actually enjoyed reading this much about anything. But I have more then what I have wished for on my table at this very moment so unfortunately can’t be sitting here and writing all these thoughts and theories of mine, but it’s definitely very tempting!
As I see the future of the music market; well simply there is none. What is going on is an revolution, now this could just have been an slow reform of some kind but the giant of this business know any changes in the milk sucking business they are running will end up in one thing and that outcome is the only one they are trying to delay, the less profitable one. With the market at their fingertips they still feel like they can stop this but they can’t what makes me to come to the understanding of why they are so ignorant of the real fact; the consumers not only needs a massive change of this colossal imperial old marketing system, we will make sure that our needs gets their 110% attention while we form, rather transform it, rebuild it all for them.
This will not end there thou, the movie business and any other business or fields that has anything to with the modern technology will have to bend in the end. What internet dose in the bigger picture in this party of chess and checkers is simplifying it; I want a track I by it with one click and listened to it whenever I want, however I want. Another would be, I really don’t enjoy going visiting the movies just because there is always someone who has some form of cuffing cancer sitting there behind me and makes it impossible for me to enjoy what I paid for, I invest in whatever equipment I want and buy the movie on-line, download it and watch it. Those two wasn’t really mind-blowing examples, surly we all know that, most downloads what they want and if they really want it (these one aren’t that rare any more), they then and only then go and buy it. But, the why would I go and pay these fantasy amount of cash when I still need food this afternoon? There is the dilemma, what I could do thou is, pay 50% less than the average prize for a CD/DVD, that I could definitely live with, actually that would make me feel better because now, I did sacrifice something, but own something that is physically there, to touch, to see, to feel, something that can become a part of you and is not your very own criminal record. And neither are available in Bites but they will slowly but surly. That been said, we are back in the start of the problem and the questions and the resolutions as we see and want them, those making the most profit of anything; those with capital have the power of control, the control is decreasing thanks to internet and it’s users (like exchanging information and data is only made by one specific group of humans) so they need more in profit to take control in what they didn’t have to.
We did with Newton’s theories refused to accept the package of beliefs and that made us to believe in individualism, now this is the next step, the unavoidable one; I want to pay exactly what I think it’s a fare price not something anyone else fabricate for me and try to feed me with.
Evolution, embrace it, none can escape or control it.
Daniel
Provocative, well-written article.
The corporate music business has one advantage over the independent artist: the power to get the word out about his or her music. Music A&R people used to be talent scouts, people with an ability to find sellable material. Back then, the music industry was more dynamic in a way: that is, musical styles were developing faster. Look at the charts today as compared to 15 years ago and it’s about the same: some teen pop, some gangster hiphop with other varieties, a lot of bland R&B, producer-oriented dance music. Now compare, say, 1985 (Bowie, Peter Gabriel, Michael Jackson, Steve Winwood, Prince) with 1960… You get the point.
Just as with cable TV, you’d think there’d be a huge amount of variety, but there isn’t. Sure there’s some electronica and experimental music that sounds “new.” But even most indie bands are aping their favorite musicians – myself included. We aren’t coming up with striking new styles for the most part. Look at how cdbaby sells albums: by the “sounds like” method. I like, say, Ani DiFranco, so, between Ani DiFranco albums I try to find the closest thing to her.
We independent musicians should take more chances now that we no longer need talent scouts to find the “new” sound. And we have to work on innovative ways to get noticed without a big budget. But I guess we all know that. While lots of people say indie music, like blogs such as this one, are giving a new voice to people… Not that many of these people actually get heard enough to make a difference.
I think maybe better coordination, free of corporate sites, is a first step… Or am I just ranting here?
I very seldom buy any music from the majors nowadays. I’m more likely to buy a CD sold by a street musician or someone playing at a local festival or pub.
The beauty of the “new world” of the internet is that musicians that maybe we’ve never heard of…because they didn’t get mainstream radio play or promotion can now find an audience and make a bit of money. They might not make gazillions of dollars, but at least they can make a modest income or at least a modest part-time income…whereas before they wouldn’t earn a cent.
Magnatunes perhaps offers an interesting new model of how to sell online music…no DRM, any format you want etc. Or another model is for musicians to cut out the “middleman” completely and sell directly to the public.
What is clear is that the days of the mega-corp industry biz is over.
Well that’s quite some to read… with all the responses. This proves how alive this discussion is, and will be for some time to come. To be honest, I don’t care about the big companies anyway. Bought all impassionate companies that started in the 60’s and became a medeocre player, artisticly spoken. We have spam, spam and spam… But indeed we have a big problem, talking about airplay, legislation and the incredible amounts to pay before we even actually started to initiate internetradio, a label and so on. This while we only want to be heared… And then there are the mentioned accusations of course, adressed to the real musiclovers. This while analysis point out that those who illegaly download the most, also BUY the most! But we’ll get over this phase indeed! We just have to go on doing our thing. We have to worry, I think, about joining forces in a way that feels good to US. And above all finding a way to be easily found. All those great initiatives (like iTunes seemed to be when it started, like CDbaby and so on) have the problem that you can really get lost in the amount, AND poor (artistic) quality… One DOES need someone that filters for a specific audience, like it or not. In their queste for a large audience, the initiatives often dilute passion and quality. Could go on for ages, but I stop here, have to do some editing…
Have a look at our initiative, the website mentioned. We want to bundle artists ánd technicians. Provoking artistic projects from a wide pool of great people! We work on a fair share basis, everyone included, artists and technicians. Just counting seconds that ones work is present in all functions. Everyone and every function will equally be rewarded. “Ultimate goal, you see, is to reveal the person behind the artist, and to show the origination of things…”
As a matter of fact I don’t recall that, but maybe we’re talking about a diferent timespan or even a different culture – I’m Portuguese, BTW. When I was a kid everyone wanted to have the originals but there wasn’t money to have them all. So, most of the times your circle of friends would have all the albums you (the circle) would want, but only one or two copies of each, and the others just cassette copies. That was good for the music business, since people would spend as much as they could in music anyway, and were allways interested in getting new things since, thanks to the copies, they would know more and more interesting music.
As I wrote in the article, both artists (or copyright holders) want money, and listeners want free music (at least in digital, they don’t think it’s bad to pay for a physical release as long as the price is fair). That is already possible, but the music industry has to realize that recorded music doesn’t give as much money as they want. A mutual solution? Sure, but the music industry must first realize what you already did: that the market is made by both the producers and consumers, not just producers. Listeners also have a word on the issue.
I surely have no problem with that, but my name is “Marcos Marado”, not “Miguel Marado” 🙂
Yep, it was Radiohead.
The unauthorized reproduction and distribution of copyrighted music is illegal because it’s copyright infringement; shoplifting a CD is illigal because it’s robbery. Those are two quite different kinds of infringements, with quite diferent penalties for the infractors. Illegal? Yes. Stealing? No. Stealing implicits taking something away from the owner. If I steal a CD from you, then I have it and you don’t. If I copy a CD from you, you still have it. There’s a difference there, even if it remains immoral.
Too bad that your choice is iTunes, when you have cheaper and better alternatives, like the new Amazon mp3 music store. iTunes files are crippled with DRM, taking you the rights you implicitly would have (like the right to make a personal copy, for instance)…
There’s still a lot you can do, but I guess that you’re already making the best part: just make sure you avoid buying stuff from those companies who are destroying music as art: namedly the majors.
Surely, Vinyl is here to stay, even longer than CD’s.
Thank you.
So, what you’re saying is that you don’t see the future of the music market as an evolution but as a revolution, right? If that’s so, I also agree with you, and it even has a name: creative destruction.
The question here is: who’s going to win? Will they manage to regain control by restricting even more artists and music lovers? Or will artists and music lovers redifine the music business?
Surely not. But those “free of corporate sites” are already spawning here and there – it’s now time to see the adoption of those sites (like ReverbNation or SellABand) by artists and fans…
Surely. Mix Last.fm, SellABand and ReverbNation concepts into one and you might have it… You’ll find the music you think is of quality, while supporting all this new Music 2.0 fair scenario.
Awesome stuff! I’m highly impressed with this discussion… I just wanted to go ahead and feedback a small note, while not getting into the discussion now since I have a lot of work to do… but two things come to mind as I muse about all this, and I’d like you people think about what the next version of some quasi-system for getting into music (as of now, there’s no ladder anymore, or at least that’s how I translate this blog entry). I think that three services have made me really go back and buy stuff from people:
CD-baby ( http://cdbaby.com/ )
Internet radio (from shoutcast to pandora to lastfm)
MySpace (I never go there or have an account, but google indexes a lot of the stuff from there)
These three have been my new way to look at music. I use itunes as well, since it provides a quick search method for bands that I know are more popular and have music labels… but I only use that as a bridge to the ‘old system’. That’s it. I want to get to where I don’t need to do a search on something like itunes or napster or ruckus or any other sort of business. If they make money from the music being sold, I sort of get a ‘icky’ feeling from it. It means I might only find the stuff that gets them money, or worse.
Anyone else feel that way?
Here’s a great video about some of the realities of the music business:
http://www.youtube.com/watch?v=5JHN5HaUg28
It’s always been that way and always will, because there are so many millions who want the fame and don’t care about the business.
I come from a showbiz family; my parents met on stage and my father did kiddie shows, commercials, movies. I was in a family band as a teenager, which did OK, we went to Hollywood, danced and sang on stage at the Troubadour and were voted one of the twelve best of the year. We met lots of big names in the business, had a good time and I haven’t done anything like it since. My brother played piano in New York City for twenty years, my sisters were in shows, my cousin was in Reba McIntyre’s band. None of us made a great deal of money, except for my cousin who never lived to enjoy it. I know how to play several instruments, though, and when I want to hear music I’ll make it myself.
I never thought of music as something to buy, because the radio station was right next door to the TV station and my father would periodically bring home large free stacks of demo records. I’d tape a few songs off the radio, but I’ve never bought more than a half-dozen albums in my life, usually directly from the artist–though I do have a fairly large collection, left by friends or relatives who were moving or occasionally bought from the bins at the Salvation Army for 25¢ or $1, especially 78’s (I have a hand-cranked antique record player, too).
In general, I don’t support the music business, because I don’t really care. If I want music, I’d much rather pull out my banjo or guitar or clarinet or harmonica and play it myself, which I do most every night for my kids when they go to bed. That’s what music is about, not buying little plastic discs, and it brings me far more pleasure and fulfillment than dancing around on stage ever did.
It is not very difficult to see why music piracy developed. Many consumers have the following perceptions (possible motivating factors for piracy):
1) The recording industry is rich and greedy, over-prices music to a punitive degree, incorporates DRM and rootkits into their media without any concern for the wellbeing of consumers, and punishes consumers suspected of possessing or sharing music for which they have not paid a ransom.
2) Artists are seen riding in limousines, are also viewed as rich with respect to the average consumer and the cause of high music prices. This is in some ways inaccurate if you look at the total *pie* taken in by the recording industry; only a small portion actually goes to the artists who make the music. A very few artists also speak out against consumers who acquire their works without paying, effectively authorizing the poor to be punished by the recording industry (tending to paint an dispassionate picture of artists in general in the public mind).
3) There is no *common ground* perceived between those who make, market, and consume music.
There is a proposed solution to this problem, which addresses the points by 1) incorporating a direct model between artists and consumers, greatly reducing music prices,while increasing the portion of sales received by artists, and (2,3) establishing common ground between artists and consumers by channeling a portion of the money formally absorbed by the recording industry toward a common good: benefiting charities.
Member artists benefit from tax deductions, from increased PR status, and from the increased self esteem that comes from helping those in need.
Consumers benefit from decreased music prices, DRM-free music which they can use on all of their media devices without restriction, from the security of knowing that member artists will never prosecute an individual for possession of music, and from the good feeling of working with artists toward a common goal: helping those in need.
As the above motivating factors are addressed, piracy should be greatly reduced using this model.
Please see http://www.artc3.com for more information and sign the guestbook letting us know if you support this model.
Interesting article…The record labels seem to be feeling the same impact from Web 2.0 as the content/broadcast industry. Some of the other responses have touched on this phenomenon but it is best captured in an article Chris Anderson wrote in the October 2004 12.10 issue of Wired Magazine which later became a book “The Long Tail – Why the Future of Business is Selling Less of More”. The theory of the Long Tail according to Chris Anderson “is that our culture and economy is increasingly shifting away from a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail.”
http://www.wired.com/wired/archive/12.10/tail.html
The long tail is made possible by the internet, our ability to find things ourselves, affordable technology which enables User Generated Music as much as it helps User Generated Video (UGV), and the aggregators and indexers which enables UGM/UGV to be found.
What the record labels and broadcast industry have been doing is deciding which hit’s they should push, they basically either produced the content or in the case of music went out and found it for you. Some of it was genuinely good and some was arguably made popular by throwing lots of money into marketing.
Now these same companies are scrambling to control or profit from UGM and UGV in some way.
I have to admit; the massiveness of information (aspects, facts and ideas) in this post should have its own definition of magnitude.
The question here is: who’s going to win? Will they manage to regain control by restricting even more artists and music lovers? Or will artists and music lovers redifine the music business?
The winner is hard to just calculate; the problem here is the popular music will have its audience, (this group made of a bunch of children) it wasn’t that long time ago I did bought list-pop music, Aqua’s first and Second album or the Various Artist – something something (got it from my parents because that was on my wish-list)) and that unfortunately will always sell, but is this just a question of time? I wasn’t aware of internet in my childhood, but dose this apply for the 5-15 years old girl who is dancing to Britney in the living room, in front of MTV and runs to the parents, smiles and wants a stereo that can play Britney’s music meanwhile her own voice is getting recorded? How many of you parents here, actually will actually download the music? Few kids will just forget asking why the cover isn’t just as pretty as it is on TV.
The outcome of the situation however it will change into by the costumers force or not, or simply transform to, will leave (actually allow) any form of the musically-talented to step forward in this could of icons for the industry of music as it is (shampoo bottles alike, production wise) and create their own market. That is at least my theory at this very moment.
I think that the independents have already won. Look at CDBaby – tons and tons of people recording their CD’s in their living rooms and putting it up for sale on the web. For the first time, the musicians are in control of the means of distribution. The record companies are realizing this, and panicking.
The article has some good points, but it is ultimately wishful thinking to thing that DRM and internet filtering won’t work. DRM and internet filtering on a massive scale is coming — count on it. There is too much money involved here. And there is is nothing “technically impossible” about the concepts, either; the technology only needs to be installed in the right places.
And to do that, you simply need the right people in certain key positions of power to be properly motivated. Look at China: they filter the internet on a mind-boggling scale, both from a technical level and by strong-arming content providers. In one great example, China recently forced Google to voluntarily restrict the content of search results. Since all the other search providers had already capitulated, Google finally gave in as well, lest tbey blocked from the hugely lucrative Chinese market.
In western countries, such motivation is simply a matter of greasing the right palms.
Back in the dawn of the radio age, radio was like the internet is now. It wasn’t a one way medium — ANYONE could broadcast, all you needed was a simple transmitter. Once someone realized how money could made by delivering content and advertisements over the airwaves, then the bigger broadcasters began to slowly buy out the smaller ones. Eventually, the biggest broadcasters banded together, and lobbied Congress for restrict who could broadcast, thereby shutting out the remaining little guys.
Money changes everything.
The article is right about how the record industry wasn’t at all prepared, and is currently in upheaval. That is true, but the television and film industry is next up, and they are much better prepared. Already, you are seeing the results of their efforts: try searching youTube for old episodes of Saturday Night Live, Colbert Report, or any moderately famous TV show. I’m not saying it’s impossible to get this stuff; I am saying that it is no longer trivial.
And they are just getting started.
And even if the television and film industry isn’t successful, next in line to take up the fight will be the massive book publishing industry, when eBooks take off.
Don’t think eBooks will ever take off? Heard of Amazon’s Kindle?
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Yes, it is wishful thinking to think that DRM will fail, but this kind of articles aim partially at telling people about DRM – because ultimately it is the mass consumers who will decide to adopt or reject DRM and such kind of restrictions.
You can put the tech in any place you want, you can’t stop “piracy traffic” since there’s no way or method, nor is it feasable, to differenciate legal from illegal traffic. Yes, you can have an ISP block all .mp3 files, for instance, but it would block both legal and illegal sharing of mp3 files, it would piss off consumers and it wouldn’t stop piracy.
Yet, to block “copyrighted work” you would have to block the Internet.
You’re kidding me? Search for “saturday night live” + torrent on google…
Yes, this is a fight that will take a big number of years, and yes, things will get harder on the consumer side. That’s why this kind of alert must be written and this issues talked about. How many of your friends know or care about DRM? When someone you know stumbled against DRM restricting them, how many of them weren’t pissed off? Consumers getting pissed usually means that consumers fight against it – or simply not buying it. All those industries will attack their own consumers, yes, but all of them will suffer from it. Who will win? It really only depends on one side… Will you admit defeat and accept the loss?
[…] The State of Music Business The technology behind why RIAA and others behave that way and why it is all their fault. […]
I do agree with Robert’s vintage approach on vinyl records ! 🙂
Another approach is the ability of a single human brain to record some memories, for instance songs, once or several times heard on TV or on the radio. Which means I have never ever bought (nor of course pirated / copied / owned) a single record copy from Queen’s Freddie Mercury, while I really love his music !
To Larisa M. : some people sing in the shower, and they do not even record themselves, nor put the stuff on sale on the web either. 🙂
To wild shovel
There are still some radio amateurs. http://en.wikipedia.org/wiki/Radio_amateur
PS If you want me to follow up the discussion, please send me a private email at my email : [email protected]
Ralph
Wow, nice blog.
Who knows more about the state of the biz than this guy? (Personal hero of mine, however uncool that may be.)
http://www.youtube.com/lindseybuckingham
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The best thing I ever did in my life was learned to separate the music business from the act of making music itself. Grab yourself some <a href="pianomusicinfo.com"
<piano sheet music and jam away!
I was reading the comments to this article, I can say that there’s a lot to think about.
I listen to music since I was able to just put a cd and press play, and I bought and still buy cds regularly.
Today there’s much more music choice than in the past, more bands, more artists, more independents and also more choices from the big labels.
I just think we are in a gold age for music, we should not think about it too much and just enjoy the music. And buy more cds!