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!

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

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.

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.

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!

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.

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.

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.

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.

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.

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.

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.

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 …

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!

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.)

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 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 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

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?

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…”

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?

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.

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.

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?

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.

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.

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.

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.

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.

Yet, to block “copyrighted work” you would have to block the Internet.

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.

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?

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]

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

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!