Wednesday, June 20, 2007

Eradication - a pointless rant about the state of the music business.

A whole label just got liquidated. This is the second time I have seen this happen. The difference is that the first time, a small crew was kept around to keep the pilot light on. This time, no one is left, even the name of the label is now nothing but a ghost.

A smaller label, based solely on the internet. A great idea in theory, especially in these "modern" times when no one, besides your parents, is buying Cd's. Obviously, this poor internet label was not executed properly. Their roster was not strong, and it seems even fewer people are buying tracks online than they are buying Cd's. Especially from very obscure bands.

I always felt though, that an all-digital label like the now deceased, would flourish in some strange way if it held on long enough to adapt to this new environment as it chose to fall in place.

That's the thing, no one really knows where the fuck this is all going. Profits are waaaay down, 400 people in my company became "gone" one month ago, entire arms (retail) of label groups are being slashed and burned, and I just saw about 6 of my good work friends get laid off without warning.

I'm not whining, and I am not angry, maybe because I still have my job, maybe because I am barely considered "entry-level", but these were "label people". The types who heard all of the stories, saw the movies, loved the music, and busted every inch of ass to make it "in". Now, they get vomited out unceremoniously under the guise of "preserving" this business. Preservation is not being achieved, what is happening is an almost complete change.

The music business can not be the profit-beast that it once was, at least not now, and I hope label heads have realized that fact. There is no way in hell we can hand over fist over platinum the money like we used to. T.I.'s "Trap Muzik" just went platinum, and it came out something like 2 years ago.

OK, then where is this going? Corporate Communications departments will tell you that "digital" is the next step. It might be, but the "how" is still a bit nearsighted.

Much less myopic are these facts:
1) People want music, and they are willing to use any means necessary to do it. Whether it is just to hear it once, put it on a CD-R for the floor of their car, play it on their phone, own it, love it, hate it, review it, play it in the club, or put it on their SecondFaceSpace profile. The reasons and desires have not changed much, the means to possess music has. Paying for it has become a pretty lame move.

2) The labels own a lot of music, a shit load. Between the four major labels, the amount of music in their vaults is staggering. So what does that mean? Does it mean that the labels should form watch dog groups and run around saying "Mine!" to witch-hunt down every poor college student with "stolen" music on their computer? I don't think so. I don't think destroying the trust and scaring off our last garrison of consumers is a good idea. No one wants to buy music from a whiny tribunal, when they could get it easily from a benign, wide open fruit on the internet. We also cant pretend that once the music is out there, it won't be shared. That is bullshit, short sighted, unrealistic thinking. People will always find ways to get that shit for free, the technology is out there, and it is NOT going away. The music business has always had an element of elasticity, but these times call for a stretch that is near-superhuman (save your Fantastic 4 references for your aunt Tilly) and I don't know if the majors are ready to bend that far. I wouldn't be surprised if we started to see CEO's walking out with their hands up, exasperated, but still rich as fuck.

OK, smart guy, then what is it?

I'm not sure, I never ever pretended to have the answers, I am just learning. Some things I can say now though:

Yes, digital initiatives (ringtones, virtual worlds, social networking, ad-sponsored sites) are cool, but unless the labels can truly find a way to generate even half a visible stack of money (it's possible) from such ventures, there will be no staying power, and the artists will cease to see what the point of a major label even is.

Also, concerts, concerts, concerts. I feel that getting people all in one place to collectively sweat, rock out, and touch each other is always going to be attractive. The kids might not take as many drugs as they used to, but then again, people on drugs don't buy shit at the bar. The concert as of now is a bit under-utilized I feel. Concert goers are down for fucking anything, get them involved, have them video tape shit for free, use the unbelievably interconnected capacity of those little things they hold up now instead of lighters during ballads, provide a truly mind blowing experience, because "kids these days" are bored as fuck, but once you are done providing it, sell them the experience, sell them something, that is, if you want to continue as a "business".

Or, fuck it, just give it all away. Personally, all I want is for the music to stick around, and it will. What I am talking about here is the Music Business (emphasis on 'business') and whether or not it will survive. This and the rant above comes from the fact that there has been a lot of discussion on the fate of this particular institution lately, I hear a lot about it because...well shit, I am part of it. I suppose this is me "weighing in" (a slight quiver on the scale) on the issue or whatever the fuck.

I will probably rant more later. Thoughts?

5 comments:

Anonymous said...

YOU ARE WRONG! ALL OF THIS IS WRONG! WRONG WRONG WRONG!

Clitoris Rex said...

Your mom is wrong.

Anonymous said...

I agree on the concert front one hundred percent. That is the only way for bands without sponsorship deals to hack it these days, and I think it's a perfectly reasonable way for things to go. As you said, the methods of sharing music without paying for it have only become more and more sophisticated. So until we have some kind of Strange Days-esque experience-recording machine, concerts are where it's at.

Either that, or myspace should have to pay bands for the number of plays they get, as their popularity is what fuels a huge amount of that site.

Vince Neilstein said...

I think the "music business" as a whole is pretty healthy. It's the "Record business" that isn't. But that's just semantics, and I generally agree with your points.

The fact of the matter is that the business model major labels use is outdated. That model is: spend a ton of money carpet-bombing the earth by marketing to no one in particular, and make back money on a few huge acts. This doesn't work anymore because the "no one in particular" has REALLY become no one at all -- there are so many niches, so many subgenres, that people can just get whatever they want. All thanks to the Internet. This fragments the market and makes it impossible for the majors to reach the numbers they need to make money. The only way they will adapt is if they adopt a model more similar to smaller labels, but even this is suspect because music sales on the whole are generally dropping.

I think you'll see a shift towards small to medium sized management firms, the reason being that managers participate in all of a band's income (touring, merch, records, etc) instead of just records.

The bottom line is actually what you said at the top of your piece: everyone in the music business needs to get used to making less money. In my opinion this is a good thing; all the riff raff, shitstain fucks who get into the music business because they think it would be cool will be gone.

Clitoris Rex said...

Well said Vince. Definitely.