Article Response: State of Music

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Title: Record Companies Missing Point

As major record companies continue to blame their declining sales woes squarely on a download nation, I can’t help but pay especially close attention to a recent Internet column by Umair Haque, titled Music Industry: Stop Shirking.
“Every major label is drooling over the money-making prospects of having its own iTunes or Musicmatch,” he writes. “But they are all, in the immortal words of Johnny Cash, born to lose and destined to fail. Why? The music industry’s problem is fundamental: the implicit contract between music companies and listeners is no longer viable.
“The music industry fails to understand that a primary reason that consumers illegally share music files is that they want insurance against the music industry itself. File-sharing is as much about risk sharing as it is about theft of value. Technology makes file-swapping possible — but the music industry’s business model, which is at odds with the implicit contract it signs with listeners, makes it probable.”
Haque, a London-based entrepreneur, is exactly right. By and large, record companies have not lived up to their end of the deal. They are supposed to be weeding out the crap — not creating it.
There was a time when you could count on the A&R (Artists and Repertoire) departments of the former “big seven” (prior to the mergers which have made them the big six, five, four . . .) to find great talent and develop, grow, promote and nurture that talent for a scenario in which everyone wins.
Artists who began their major-label recording careers post-1995 have very little chance of being “career” artists anymore.
After all, building music careers costs money and this racket has become one of quick-hit, low-cost instant gratification.
The most dangerous place for artists to be is at the top of the singles charts, because unless they have a snappy follow-up, their demise is imminent.
It’s just like a championship sports team: The hardest thing in the world is repeating.
Artist “A” is the biggest band in the world, but six months pass, and then no one cares. No one will buy the next Creed record because they have loyalty to the band, but they might buy it if the talent-free outfit can produce another monster hit single.
Incidentally, one big advantage to this age of disposable music is that groups like Creed, Limp Bizkit or Korn are but a memory long before they have overstayed their welcome.
Awful vehicles such as American Idol and Canadian Idol are great for television, but don’t necessarily translate into record or concert ticket sales. That’s because Ruben, Kelly and Clay were pretty much done by the time the season finale had aired.
In Canada, the Ryan Malcolm record is tanking (rightfully so) and already you can envision a venue-half-full show at The Pump before the end of spring. That record companies might not be able to profit from the Idol brands is simply a case of turnabout being fair play. Disposable television begets disposable music — and the music in this case has even less of a shelf life than the record companies could have predicted.
The year 2003 was a far better one for new music than most fans seem to acknowledge, but, admittedly, you had to dig deeper and search harder than ever before.
If you discovered some great new music by downloading one or two songs and then dutifully went out and bought it, shouldn’t you be considered part of the solution rather than the cause of the problem?
Music fans will continue to buy music, but they will do it smarter in a consumer market where, hopefully, content will one day be king again.

Nobody, Thursday, 8 January 2004 15:45 (twenty-two years ago)

Canada has a venue called The Pump?

Ned Raggett (Ned), Thursday, 8 January 2004 15:56 (twenty-two years ago)

2003 was by far the most fun i've had discovering new sounds. best new stuff in ages .. having to dig deeper to get to the good stuff is the key factor here. personally i think 2004 will be the end of Poop Idol et al... well, we can only hope ..

mark e (mark e), Thursday, 8 January 2004 16:00 (twenty-two years ago)

isn't digging at least as much fun as actually hearing?

Huckleberry Mann (Horace Mann), Thursday, 8 January 2004 16:01 (twenty-two years ago)

Interesting article. Who'd have ever thought that "We're desperate/ Get used to it" would become the justification for a whole industry. (On the other hand, an inexplicable part of me feels like screaming at assiduous non-buyers, "goddammit, LIKE MORE STUFF". For, like, no reason, I just hate endlessly reading about finicky consumers, don't you?)

dave q, Thursday, 8 January 2004 16:01 (twenty-two years ago)

As World Idol is now apparently Boris Becker doing Morten Harket impersonations, I reckon it can only be the end...

Phoebe Dinsmore, Thursday, 8 January 2004 16:01 (twenty-two years ago)

i always thought Master P was terrible. what would be the tracks to change my mind?

stevem (blueski), Thursday, 8 January 2004 16:13 (twenty-two years ago)

It's an interesting article, but a few points about it. First off, didn't Clay's fame skyrocket AFTER the show? I haven't checked the statistics or anything, but I thought his single and album went number one, and had sold quite well. Sadly, I don't think he's "done" just yet.

The other thing is that I am one of the many who, thanks to downloading music, will dutifully go out and buy more albums (and believe me, I have). But the question is, do I make up the majority? How many people have actually turned their computers into their music boxes, hooking up high quality speakers to the computer, and don't see the need to ever buy cds again? Or how many people have collections filled with burned cds? For a long time I've argued with friends that downloading has led to me buying more music, but I also noticed that downloading led to many others have more burned cds. So while I can see the point of this article, I'm just not sure that the majority is dutifully going out and buying more music that they've heard and liked, or if they're just burning it.

Jonathan (Jonathan), Thursday, 8 January 2004 16:13 (twenty-two years ago)

shit, wrong thread

stevem (blueski), Thursday, 8 January 2004 16:13 (twenty-two years ago)

"The stuff I like isn't popular anymore but it's still being made I just have to dig deeper, that way I get a self-satisfied glow AS WELL AS a steady musical diet!"

Tico Tico (Tico Tico), Thursday, 8 January 2004 16:16 (twenty-two years ago)

downloading has led to me doing a lot less buying AND burning

stevem (blueski), Thursday, 8 January 2004 16:16 (twenty-two years ago)

I always thought that the problem with all major labels (and many minor ones ) was that they create and sell personalities first, and "good" music second. I thought this because in comparison to most people I know, I'm REALLY into music whereas most people aren't. (Though most would say that they're "into" music as well, but really its so much more a secondary interest. No value judgements here...I mean I'm not into quilting, some others are.) So, instead of selling your wares to a minority of music geeks, why not try to expand your market by selling more than just music. How about lifestyle, mythology, style, etc.

peepee (peepee), Thursday, 8 January 2004 18:52 (twenty-two years ago)

I agree completely with Jonathan.
Pretty much all of my friends have stopped buying cds since they started downloading. That's not a bad thing however since they have become much more adventureous(?) in their music listening.

I too believe we are witnessing the end of the profit making music industry (all the minor labels included).
Why is that?

1) As has been said above, the industry has to a great extent not fullfilled it's contract with the consumers (ie. they promote bands that should never ever have seen the daylight).

2) They have not credibility left. I am now especially thinking of the lame attempts to clame that 192k mp3s have a noticable worse sound quality than cds (it's true - if you've got a 10.000USD stereo).

3) 90% of all computer games installed on hds worldwide are illegal copies, there is no reason the music industry shouldn't suffer the same fate.

4) The capital needed to promote a new record has increased steadily over the years due to a lot of factors.

5) It might sound a bit rough to a music lovers ear, but records are actually competing with movies, books etc. over the consumers money, ie. as has been said in 4) they need to compete on a marketing level with these industries.

6) Young people today (including myself) have grown up with internet (or even BBS) downloading and consider it to be the superior mean of finding what you want without the hassle of going to a record store (this applies especially if you live on the countryside)

7) What will happen the day the global conglomerats make more money out of selling storage media than cds?

Feel free to add, these are not definite.

Jim Janse, Thursday, 8 January 2004 20:11 (twenty-two years ago)

One thing I've guessed is that the more omnipresent an artist is via free media -- particularly thrice-daily radio play, street team carpet bombing, TRL-hustled videos, soundtrack tie-ins and TV commercial appearances -- the less likely the casual buyer feels as though they need to "purchase" another facet of the artist that is already inescapable to even the nonconsumer.

nate detritus (natedetritus), Friday, 9 January 2004 00:17 (twenty-two years ago)

i always wondered why on call-in request shows on the radio people request the songs they are already playing 18 times a day.

keith m (keithmcl), Friday, 9 January 2004 02:34 (twenty-two years ago)

"i always wondered why on call-in request shows on the radio people request the songs they are already playing 18 times a day."
Most of the time they can only request songs from a list of, say 10 songs. This (I think) only applies to more commercial stations though.

Jim Janse, Friday, 9 January 2004 08:14 (twenty-two years ago)

The music industry needs to shift its locus of profit to providing high end personal services to the premium end of the market. In other words they need to sell the artists for sex. I mean, how much could they get for a night with Timberlake? For Skye whatsername's virginity?

Problem solved, I say.

Jacob (Jacob), Friday, 9 January 2004 08:43 (twenty-two years ago)


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