Slashdot Mirror


The Music Business and the Internet

Lots of people sent in links to stories about the music industry holding a press conference and claiming that people are copying music rather than buying it (see their press release if you like). But there are some alternative points of view too: a study at the University of Buffalo claims that music sharing may cut down on superstars and promote new music. The New Republic has a story about a band that released their album on the Net six months before CDs were available, and is now wondering whether fans will buy more, less, or about the same number of aluminum and plastic circles. And a nice chart I saw a few days ago compares CD sales vs. price over the last several years and suggests that price-fixing by the recording industry may play a part in slowing sales.

44 of 372 comments (clear)

  1. Support local bands by T1girl · · Score: 3, Interesting

    Go to your local pub or club tonight, drop some coins in a busker's guitar case, wrap a piece of waxed paper around a comb to make your own kazoo - whatever you can do to create and support music on your local level has got to be better than supporting the Machine.

    1. Re:Support local bands by DNS-and-BIND · · Score: 3, Funny

      Whatever you do, don't fall for the "$5 bill in the guitar case" trick. Nobody's going to donate a five, the musician isn't fooling anyone.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    2. Re:Support local bands by jedidiah · · Score: 3, Funny

      The "chicks" aren't free. They come straight out of your royalties along with every other possible aspect of production costs. By the time it's all over you will OWE the label x million dollars and you won't even have ownership of your work.

      --
      A Pirate and a Puritan look the same on a balance sheet.
  2. Gee, that's too bad. by NetRanger · · Score: 5, Insightful

    You know, it's hard to have sympathy for an industry which has killed most of the real talent from getting into the popular market (with a few exceptions) ... and then it gouges the consumer with strong-arm tactics at the record stores in order to keep prices up.

    For Pete's sake, CD's are still more expensive than tape cassettes. It's not about cost of manufacturing -- it's about gouging the consumer.

    --
    -- We live in a world where lemonade is artificial and soap has real lemon.
    1. Re:Gee, that's too bad. by osolemirnix · · Score: 4, Insightful
      Hm, let's see. If I buy a computer, I get better performance each year for the same price. Ditto with cars (essentially).

      Translated to Music containers we have:
      - same performance for the last 15 years (CD stereo quality)
      - rising prices (about twice as much as I used to pay for a vinyl album 15 years ago)
      All this while the price for recording/mastering has been constantly dropping (digital equipment becomes cheaper and better), the price for CD manufacturing has been constantly dropping, transportation and storage is less (smaller size and weight) and cheap new flexible distribution mechanisms (Internet,CD burners etc.) have become available.
      (and btw. the quality of the content certainly hasn't improved either)

      Now please tell me, where the fsck does all the extra money go? Video clips? Marketing drones?
      Yeah right...
      Truth is: the music industry's complaining is simply pathetic. Where is the innovation? Why can't I go to a record store, walk up to a big jukebox machine, listen to some songs and mix-n-match my own sampler to have it burned to a Audio CD on the spot, with individual prices for the songs (from different artists)?

      And would I want to pay more for that? Of course not! I expect our world to improve, so I want more quality for a cheaper price. In other business areas companies have no problem delivering both and if the music industry can't deliver that then it's about fscking time they went out of business and were replaced with another business model.

      --

      Idempotent operation: Like MS software, wether you run it once or often, that doesn't make it any better.
  3. supporting the bands by Partisan01 · · Score: 3, Interesting

    While I support buying records of bands I like I know full well that they don't get much of the money I pay. Therefore if I like a band a lot I'll go see them in concert and buy their cds there. They get much more of the money from cd sales at concerts, plus they get your ticket money and support. This works out for the betterment of everyone except the record companies, but who cares about them anyways.

    --
    ahh, the egg in the basket..
  4. The problem is... by D-Cypell · · Score: 3, Interesting

    People download music because CD's are over-priced.

    The record companies lose money so start charging more for CD's

    People download even more music.

    This circle is set to continue unless record companies start pricing CD's realistically. If AOL/Compuserv/Freeserve can give away CD's in shops and with hardware then why do i have to pay £20 for a music CD?

    1. Re:The problem is... by Erasmus+Darwin · · Score: 4, Insightful
      "If AOL/Compuserv/Freeserve can give away CD's in shops and with hardware then why do i have to pay £20 for a music CD?"

      If music CDs were like AOL CDs, music stores would give them away like candy. Then, when you got home, you'd only be able to do anything with it as long as you paid $19.95/month. And since it's online authentication, you wouldn't be able to listen to them in the car. In short, you're really comparing two completely different things here.

      Or to put it another way, if an AOL CD is really equivalent to a music CD, you don't need music CDs. You can just get free AOL CDs instead, and rock on to the groovy sound of "You've got mail!"

      Besides, the price of music CDs has nothing to do with the physical medium. It costs money to produce the information on a music CD. The information on a music CD has value to many people. The physical CD is just a way of getting around the problem of transferring that information. In short, it's the information that has the value -- you'd think that out of everyone, Slashdotters would understand this.

      (And yes, I'm well aware of the "information wants to be free" argument. Without supporting or condemning that philosophy, it doesn't change the facts above -- whether it's a fully GPL'd Linux distribution or a commercial, shrink-wrapped game, it still costs money to produce and has value to the users.)

  5. Live Music by richlb · · Score: 4, Interesting

    At some point, the recording industry is going to have to realize that they have things BACKWARDS. Now, artists tour to increase and promote album sales. In the future, it's going to have to be the other way around -- artists will put out albums to promote and support their tours. Go see a band live, then buy a copy of the performance you just saw on your way out.

  6. If the Recording Industry would wake up ... by mgpeter · · Score: 3, Insightful

    If the RIAA would actually use the internet to drive sales, many, many people would put down money for MP3s.

    I would be willing to give about 10 cents per MegaByte for professional, complete MP3s. Barring that there is NO Copy Restrictions.

    If the RIAA would stop worrying about people sharing the MP3s and actually become a supplier for what people want, they would make tons of money. They are in the position to capitalize on this, but they are too busy worrying about losing some sort of "control" they have over music.

    1. Re:If the Recording Industry would wake up ... by rapid+prototype · · Score: 4, Interesting

      it's a similar statistical argument for lowering taxes. there is a curve, and somewhere on that curve, is the 'maximum' income (for record companies in this case, for the government in the other case). if the labels charged $100 for CDs, they would sell hardly any. if the government taxed 100%, hardly anyone would file a second time (everyone would have 0 dollars). if the labels charged $0, they would obviously be out of business. if the government taxed 0% it might find itself with millions of starving, diseased citizens.

      but somewhere on the curve is a bump - probably around $9.99 or so, but that is just a guess of course - where the labels would be selling so MANY damn CDs the money would be pouring in. likewise somewhere on the tax curve - probably around 19% or so, but that's just listening to economists - where income is maximized to the government.

      why doesn't anyone pay any attention to economical fact, statistical fact?

      -rp

      ps - there are lies, damned lies, and statistics.

  7. New Business Model Needed by Archie+Steel · · Score: 4, Insightful

    The record industry doesn't have that many options. The best one seems to me to start giving away the virtual (i.e. the actual songs) and sell the material (i.e. nice hard to break cases, quality booklets or even books). The special edition Kid A from Radiohead is a good example of a CD you want to buy (if you like Radiohead, that is).

    This, combined to other non-downloadable merchandise (t-shirts, posters, etc.) and -- of course -- live performances, should enable musicians to keep making a living while preventing customer alienation (which you'd imagine would be the "prime directive" for the industry -- not so). As for big-time, multi-million producers, well...we have no moral or legal obligation to keep them multi-millionnaires. Just because an industry is well-established doesn't mean it has to be preserved by law -- especially when it alienates customers, infringes on their constitutional rights and goes against technological development.

    --

    Reminder: find a new sig
    1. Re:New Business Model Needed by Nurlman · · Score: 5, Interesting

      The UB study just goes to underline why the RIAA is fighting so hard to prevent P2P sharing. It is well-acknowledged that the current business models of RIAA members is superstar-driven.

      It's an oft-repeated fact that record labels lose money on 90% of their roster of artists, and make it all up and then some on the 10% of artists and records that become blockbusters. Thus, if P2P sharing is primarily undercutting the superstars (as the UB study states), that's the logical attack point for the RIAA.

      There's no question that a new business model is needed, not just because of P2P, but because the idea of an industry where 10% of a company's products underwrite the losses on the other 90% is inherently unsound. The music industry managed to make it work for a while, but the inefficiencies and alternatives have caught up, and the RIAA is going to have to adapt or die.

    2. Re:New Business Model Needed by Arethan · · Score: 5, Insightful

      I have to whole heartedly agree with you on this. The US government is, and never was, charged with the responsibility to ensure that a business model that made money in the past is able to make money in the future.

      If they were, we'd still see horse drawn buggies, since they auto would have been banned. It cuts into buggy sales, and we can't have that.

      Or, if you want to allow products to be replaced (ie tapes were replaced by CDs, so buggies can be replaced by cars) but not allow business models that feed off of others, then I have another argument. How do you explain taxi services and forms of public transportation? You can't tell me that these don't cut into auto sales. Why have a car when you live and work in downtown Chicago? Or even take a bike.

      The government endorses public transportation, but it shuns public music distribution channels? What the fuck is up with that?

      All I can say, is I'm getting sick of these government officials being on the side of large businesses simply because they are large campaign contributers. I have a nice new law for you. If you accept money from a corporation or individual, you may not vote on any issues directly relating to that corporation or individual's well being. In other words, if the RIAA 'donates' $100k toward your campaign, and you accept it, you aren't allowed to vote on any bill, or push any legislation, that has to do with digital rights management, music copyright, or anything else the RIAA gets their fingers into. I guess you better stick to water purification and eco-system issues.

      Damn polititians....

    3. Re:New Business Model Needed by cryptochrome · · Score: 3, Informative
      All I can say, is I'm getting sick of these government officials being on the side of large businesses simply because they are large campaign contributers. I have a nice new law for you. If you accept money from a corporation or individual, you may not vote on any issues directly relating to that corporation or individual's well being. In other words, if the RIAA 'donates' $100k toward your campaign, and you accept it, you aren't allowed to vote on any bill, or push any legislation, that has to do with digital rights management, music copyright, or anything else the RIAA gets their fingers into. I guess you better stick to water purification and eco-system issues.

      Won't work. Bills are passed through the age old tactic of "you scratch my back, I'll scratch yours". Every bill passed is chock-full of riders that have little or nothing to do with the original proposal. Even in states like Texas where the law explicitly states bills should address one issue only, voting favors are exchanged all the time. All any politician would have to do is take the perks from the lobbyists, lean on a few buddies in private to push the bill, and return the favor later. Real reform would rest on eliminating or restricting the money altogether, which is actually much harder than it sounds.

      --

      ---If you can't trust a nerd, who can you trust?

  8. Any other business threatened in the same way by GauteL · · Score: 5, Insightful

    ... would have to change. So should the music industry.
    They should have to become leaner and more focused on quality and price instead of just driving legislation.
    I understand that the music industry wants to keep their stranglehold, where they can charge pretty much what they want.

    There is a strong competition on furniture, electronics, computing etc.. so why not in this industry as well?

    The whole napster/gnutella/whatever issue is just a wakeup-call from the consumers that they are sick of price-fixing and control-freakish behaviour from RIAA and their members.

    Instead of just listening to the industry, legislators should let the music-sharing force the industry onto a new path.

    What the consumers want is pretty clear:
    1. We want to be able to buy a lot more music. Price has to go down.
    2. We want more control over how we get the music and what music we want (no longer having to buy an album with 13 shitty songs, just to have 2 good ones.
    3. We want a much more innovative and competive industry.

    1. Re:Any other business threatened in the same way by Mekanix · · Score: 3, Insightful

      What incentive does the musicindustry have to make massive investmen in chaging habits and modernise their business when politicians are so much cheaper?

    2. Re:Any other business threatened in the same way by dbrutus · · Score: 3, Insightful

      The problem, at heart, is legislative. The solution is to craft legislation that is *not* industry specific but gets at the heart of the promotion of the arts and sciences. The consumer interest is that you can copy everything freely, the producer interest is that they get compensated for their intellectual work. The balance between those interests has always been copyright and patents in order to get the producers to produce and the consumers eventual free access to the older stuff and prevent producers from becoming one hit wonders and just camping on that intellectual property and living on it forever.

      The balance is off, the producers have stopped anything from coming into the public domain for decades, and it's harming the promotion of the arts and sciences. Keep an eye out for the Eldred case where this is being ruled on, probably next year.

    3. Re: Any other business threatened in the same way by Black+Parrot · · Score: 5, Interesting


      > ... would have to change. So should the music industry.

      I said essentially the following about proprietary software in one of my very first posts to Slashdot:

      The music industry is suffering the same phenomenon that got a certain part of the USA labeled "the Rust Belt". Technology changes; sometimes the window of economic exploitation opens, sometimes it closes. There was a time when you could become a zillionaire by covering your continent with railroads, but in much of the world that opportunity has passed, and in some places tracks are being removed. Technology makes things possible; technology makes things obsolete.

      For half a century the music industry was needed by the artists: studios were expensive, pressing masses of vinyl was expensive, shipping stacks of vinyl all over the country/planet was expensive, racking it in stores was expensive. This needed middlemen with lots of money, and it was only right (IMO) that they made a profit off it.

      But times have changed. A band that can afford a drum kit can afford a multi-track digital recorder; the internet can bypass the rest of the infrastructure. Bands don't need middlemen who have turned into fat cats. (At least not to get their music out; they may still need them if they want to be superstars and appear on the cover of magazines.)

      As GauteL says, the music industry should be required to adapt to the changed environment. Instead, they want the USCongress to assure them their profits as an entitlement. Why should they be allowed that? What antiquated industry is it going to be next? Why should voting consumers put up with it?

      This is nothing but trade protectionism, but in this case the USCongress is trying to 'protect' the US music industry from US citizens. Hey, Congress -- whose side are you on?

      --
      Sheesh, evil *and* a jerk. -- Jade
  9. What I want to do with a CD I paid for... by DocSnyder · · Score: 5, Interesting
    • Rip it to high-quality Ogg/Vorbis files for my workstation
    • Rip it to small MP3 files for my PDA
    • Copy it to a CDR for my car player (originals are too valuable to leave them exposed to extreme climatic conditions)
    • 20 or 30 years later dig the original out of a box, listen to it and remember the time when that music popular
    • Pay at most 10 € for an album, of which the artists make at least 2 €.

    If the music industry can't satisfy my wishes but the file sharing networks can, what do you expect me to do?

  10. The brutal truth... by Anonymous Coward · · Score: 4, Insightful
    ...is that no one really knows whether file sharing impacts record sales, or to what extent.

    If you say that compared to a year ago file sharing is up by X% and sales are down by Y%, then that doe not tell you if that X% caused or contributed to that Y%, if Y would have been larger without the grass roots marketing effect of file sharing, or something else entirely. A single data point (or pair of data points in a time series) doesn't provide you with enough information to reach the kinds of conclusions people on both sides of this debate are pushing.

    But then, this isn't science, it's politics and money, so everyone involved has a huge incentive to twist the facts to support their position.

  11. BBC News by larien · · Score: 5, Interesting
    On the TV this morning, they reported that:
    1. Internet music sharing was rampant in the UK (probably partly attributable to increased availability of broadband) and
    2. CD sales in the UK rose 4% (NB: vinyl sales rose by even more; go figure), contrary to a downward trend everywhere else
    Hrm, let me see...

    Unfortunately, this information didn't make it through to their web site, as far as I could see...

  12. CD $10 casette $3 by tanveer1979 · · Score: 3, Interesting

    In my country, ie india A blank CD costs approx 30 cents adn a blank casette 1$, however a recored CD of a big band costs 12$ and the casette of the same album costs 3$. It is ridiclous, its like saying "{We want to screw you, so please let us do so with a smile}"

    --
    My Aurora : http://www.youtube.com/watch?v=o91ZsGwJYyg
    FB : https://www.facebook.com/TanveersPhotography
  13. What you'll find in a music shop these days... by Bowie+J.+Poag · · Score: 3, Funny



    The reason I download my music versus buy it is because..

    o The last time I went, I couldn't find the CD I was looking for. However, they did have several hundred copies of a Britney Spears CD and pair of Reebok sneakers in a glass case.

    o Their selection consisted almost entirely of rap, hip-hop, and other sonic diarrhea. My tastes in music extend a little further than incessant warbling up and down the scales and complaining to a drumbeat.

    o They wanted to sell me candy, magazines, coffee, soda, biscotti, bottled water, bumper stickers, incense, candles, videocasettes, and DVDs of movies nobody wanted to see in the theaters to begin with. Not what I came in there for, an album.

    o Even if I were to have found the CD I was looking for, I would have had to shell out nearly twice as much money as I would have 10 years ago FOR THE SAME CD. Apparently, it costs the shop alot of money to keep those Reebok sneakers in a glass case. Probably air-conditioned.

    o The store expected me to give my money to a guy wearing lipstick wearing earrings. In his face.

    o Some marketing bozo decided that putting anything other than rap and "best of" albums on the shelves was a good idea.

    o I cant burn my own CDs at the shop, with the music I want on it, and nothing else.


    Need I go on?

    Cheers,

    --
    Bowie J. Poag

  14. Re:Slow Economy by sallen · · Score: 4, Insightful
    Me: "Miss Rosen, please repeat after me.

    RECESSION! RECESSION! RECESSION! RECESSION!"


    Very true. Interestingly their own stats seem to show it's the impact of the recession, saying that England, one of the few places not impacted by it, saw sales rise. There were earlier statements in other places where they said that CD sales were down for the first time since a drop that had occured 10 yrs ago. Guess what. That was a recession too. It sure goes to prove, anybody can take stats and make them say what they want. I'd guess they'd say the drop in sales 10 yrs ago due to ? (Guess they'd better think up a new excuse.) In my case, my purchases of CD's are down to nil. Not the recession, and I've never had napster or other file sharing on my computers. I simply won't pay obscene prices to buy what I consider crap. (Though someone's study could as easily, and rightfully so, indicate that a small n %age drop in prices would spur a n% increase in sales. Did they ever consider the raping of the customer to be one reason they don't sell as well?

  15. It's been said, but bears repeating by Lxy · · Score: 5, Insightful

    At the time the record companies started squawking, the US was headed into a recession. Things like food, clothes, and rent became priority over Nsync CDs. As unemployement rises (look at Fingerhut!) buying CDs is a rediculous way to spend the money I don't have.

    Since the dawn of Napster, it was obvious that the record companies can't stop file sharing. As bandwidth increases, CDRs get cheaper, and prerecorded CDs get more expensive, new ways of ripping and sharing files will stay far ahead of the record companies and legislation.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
  16. Another factor in slowing sales, Death of the Sing by The+Optimizer · · Score: 5, Insightful

    Another factor, I believe, in the "slowing" (read: anything less than 10% year to year growth) sales of the Music companies has been their deliberate decision to abandon the "Single" in CD format, reducing the choice a person has when they hear a single song that they like to A) Buy the entire CD at $18+ for the known 4 minutes of good music and take a chance on the rest or B) oh wait, there is no other valid 'choice' as defined by the RIAA.

    I wish I had the link to a recent online news story I read which talked with the industry reps who discussed their decision to abandon Singles as they felt it was cutting into their album sales.

    It seems to me that they believe that when a consumer can't get just the muisc they want a la carte, they would be willing to buy a whole lot of extra music to get it. In this situation what they should be selling is the single in downloadable and usable (read MP3) form for a small price. (Memo to Record industry: charging $7.99 for one song when there is no physical cost of goods and encoding it in a format that users can't play on their iPod/Rio/Empeg/Nomad/Archos/Etc isn't going to fool very many consumers).

    I can recall back in the late '80, I used to buy a lot of "45's" .. that is 7-inch records with one song on each side (Memo to 13-year old 'l33t doods': this is where the terms "A-Side" and "B-Side" came from). In fact, I bought about 250 7-inch singles a year. At $1.99 each, I could affort to take a chance on music I wasn't 100% sure about.

    In the early '90's the record companies moved to put out Singles, both 7-inch (2 songs) and 12-inch (3+ songs/Remixes) in CD format. I even bought some of those 3-inch CD-Singles in mini-longboxes (remember those).

    Selection of CD singles in the USA, at least at the retail level, seemed to peak in mid '90s and has really diminished in the past 5 years.

    However, this situation seems to be confined mostly to US retail. Amazon is good source for CD singles, and in Europe the format is much more popular, so ironically sources like Amazon.uk are great for getting singles to popular songs in the USA.

    So this is where the availability of single song MP3 files, available for download, could be doing damage... entirely because they are filling a nitch and need that consumers have, but the labels have abandoned. A lot of those people who download probably would be good customers to buy a cheap CD single, if it was available and had the content they wanted.

  17. Lies, I tell you. by FurryFeet · · Score: 4, Insightful

    Music sharing does not hurt music. It hurts the music business.
    It does not hurt the artist. It hurts the pop star, the producer and the sleazy lawyers (hi, Hillary!), but not the artist.
    You know, there was a time when artists (and athletes, and scientists and whatnot) did not aspire to earn billions of dollars and live on crack. There was a time (I'm really dating myself here) when they just loved their art (sport, discipline) and considered themselves lucky to just make a living doing it. Not millions of dollars. A living.
    Greed is the bane of our time.

  18. Britain Is Different Because... by Steve+B · · Score: 3, Funny
    British music sales rose by 5% thanks to the success of artists such as Robbie Williams and Dido.
    This can be explained by the fact that....
    1. You can't access the Internet in Great Britain.
    2. Bootlegging music files is Simply Not Done in Britain.
    3. Robbie Williams and Dido (whoever they are) are less crapulent than the "musicians" the recording industry foists off on the American market.
    --
    /. If the government wants us to respect the law, it should set a better example.
  19. Re:Hypocricy in the western world by Tim+C · · Score: 4, Insightful

    This isn't hypocrisy, this is the free market economy in operation.

    Think about it - the whole point of the free market is that the cost of goods and services will reach the level that people are willing to pay for them. If more and more people are downloading, copying or otherwise getting their music for free, it appears that the market is saying that music is overpriced. Thus, the price should fall to a level which people are prepared to pay. (Note that there is no guarantee that this level is not zero)

    By outlawing the methods by which people obtain music for free, you are in effect attempting to artificially keep the price of music higher than the market wants it to be, thus making the market less free.

    Incidently, your comment about free speech is wrong. Freedom of speech guarantees just that - the freedom to say whatever you want. It does not, and should not, guarantee you an audience. In other words, you should have the freedom to speak, and I should have the freedom not to listen. I should also have the freedom to make whatever comments about what you say that I like, including calling it socialist propaganda :-)

    Cheers,

    Tim

  20. Re:Hypocricy in the western world by EastCoastSurfer · · Score: 3, Interesting

    I really see this situation as capitalism at work. With the ~$20 "fixed" price point not all the buyers getting satisfied(you could argue most are not), and a black market of sorts has opened up.

    Downloading mp3's and writing them to cd is not free. It takes hardware, blanks, and TIME. What the record industry should be doing is figuring out ways to get these people to actually buy the cds. I am not sure how much profit is in each cd sold, so I don't know what is the absolute lowest they can go. BUT, if I could buy cds for around $7-$10, I would buy many more to just see if I like them.

  21. Re:Hypocricy in the western world by jilles · · Score: 5, Insightful

    Don't confuse moralism, idealism and economy. You are being moralistic and confusing it with idealism. The irony is that this a simple economic problem of value adding. Any sound business model is based on adding value to something and subsequently charging for the resulting product.

    Most of the cost represented by the price of 20$ for a cd is not related to the music creation process (i.e. the artist's work). Instead it is related to the production, marketing & distribution of plastic discs containing the music. Napster has 'reliefed' the record industry of these tasks so the record industry is no longer adding any value to their products. Given this reality, our capitalistic system is simply functioning properly and the only result can be that either the record company finds a new way of adding value to their product or will simply die.

    The record industry has managed to slow this process by price fixing, seeking legal protection, persuading politicians to adapt the law when that didn't work, trying to persuade hardware manufacturers to adapt their products and many other tricks. However, they have so far failed to add value to their product and have even started to remove value from their products (e.g. the celine dion cd that makes your pc crash).

    It's as simple as this. Because the record industry is no longer adding value they are losing market share.

    Consider the invention of book printing. Before book printing, clerics would spent months or even years manually copying books. The resulting volumes were expensive. Then book printing was invented and greatly reduced the cost of creating a copy. This probably killed the market for hand copied books. Is that bad? Is that evil? No it's a simple case of no longer adding value. Just like hand copying books is no longer a good business model, creating little plastic discs with music on them has also become a waste of time.

    --

    Jilles
  22. I'm buying the Wilco album the day it comes out by JeffL · · Score: 3, Interesting

    I downloaded Yankee Hotel Foxtrot and like it, so I am going to cash in my yahoo points (I buy lots of stuff on yahoo shopping for work) and get the album when it comes out. Of course the mp3s I downloaded are only 96bit, and are full of static :).

    Would I buy the album if the mp3s were 320bit? Probably, but I might just save my money to see Wilco if they come to town. Would I buy the album if I thought it was bad? Probably not.

    While Wilco IS one of the bands that I would buy a new album from without ever having heard it, I would be much more likely today to download some or all of the songs before making a purchasing decision. Occasionaly even bands I like put out crap albums.

    What I would like to see is labels and artists put up all of their music that is no longer being printed for download. I would happily pay $4-5 to download mp3s, oggs, etc. of an out of print Alejandro Escovedo album. That is money the label and artist would never see if I spent $25 buying the album from somebody on Ebay.

  23. Re:Another factor in slowing sales, Death of the S by pangur · · Score: 3, Insightful

    Bravo.

    I have many times heard a song I liked on the radio, and gone to good lengths to identify that song and the artist. I live in MA, and I called a "urban" gospel radio station in SC to get a song title when I could only sing a lyric or two of it (Thanks, guys).

    The algorithm for getting a single in the last five years was this.
    1) Hear song on radio. Like it. Get info.
    2) Go to record store. Search for single. Find R&B, hip-hop, ghetto-blastaz; all songs from very recently.
    3) Ask person behind counter for single.
    4) Listen to how they only recieved a handful of the singles, they are sold out, and the companies that release the single only produce a small amount anyway and Never Makes Them Again.
    5) Go to other record store. Rinse. Repeat.

    I can buy singles at Walgreen's (pharmacy), but nothing near what I want. My musical tastes are all over the map (hence the gospel music), but I also listen to top-40 and other popular music.

    Here's an idea. The CD singles, when priced at about $3.99 to $5.99, weren't too attractive compared to a $11-$13 CD, back a few years ago. For double the price, I get five to ten times the songs. So I could see that the singles may not have been very popular.

    Now, CD's go for $15-$20, and I would think that a $1.99-$2.99 CD single would sell well. But the RIAA sees not a customer that bought $2.99, but a sale that they lost of $20. In that perspective, no wonder they only made a few, and then stopped entirely.

    Considering that P2P downloading is about getting the "singles" (How many people have downloaded an entirely album, every song? Be honest.), and that I would download a song and burn it myself at 25 to 50 cents a pop, it just seems like the RIAA has become inflexible.

    Different businesses have different business models. Some businesses adapt to change and make it work. Some create new markets ("Why would someone make a shipping company? Isn't that what the Post Office is for?"), and some change markets.

    The RIAA is trying to stick with what worked in the past. Too bad it has a virtual monopoly on music in the US, otherwise another company could make a new market and make the marketplace better.

  24. Profit Maximization by hndrcks · · Score: 3, Interesting

    Rules of profit maximization in the modern recording industry:

    1. You are what you listen to, just as you are what you drink and what you wear; you are the car you drive and stuff you buy. You must buy what everyone else buys to be accepted. People who choose not to buy are strange and suspicious; marginalize them at all times. Their politics must be repressed.

    2. You must buy this thing NOW. You must subscribe to the illusion that you 'got it first'. Buying things later is not acceptable. You must buy when demand is highest and supply is limited.

    3. You must believe and support the supposed American ideals of 'freedom of choice' and 'rugged individualism'. But then, you must buy what we tell you to buy and you must eat at McDonald's. You must drive a sport-utility vehicle.

    4. We will use modern streamlined methods of industrial manufacturing, production and marketing; but at all times you must refer to our products as 'art', and the manufacturers as 'artists'. Our right to produce these products must always be protected; however, your rights to use the products or criticize them must be limited sharply. We do not wish for you to use the product, or even to enjoy the product - we only want you to buy it.

    --
    Everyone will start to cheer when you put on your sailin' shoes.
  25. Wilco is a fluke by ruebarb · · Score: 3, Insightful

    I don't think Wilco's decision to release the album on the internet is going to be an indicator of an online release's ability to sell well.

    Wilco is a VERY GOOD band that has an almost "Cult" Status to it. The fans will buy it to support them, but anyone who hasn't heard of them probably won't download it or buy it.

    Wilco is virtually the American Radiohead in terms of creativity, direction, and vision. The Woody Guthrie collabrations with Billy Bragg are part of what did this. Reprise is full of morons (look for Neil Young to get the boot next) - and the collective outcry when Wilco was released was hilarious.

    I just wouldn't take this as a sign of how all things will go. Wilco will easily sell in the same category of about 500,000 - but I don't think the online prerelease will have much to do with it.

    RB

    --

    ----------
    ah honey, we're all resplendent - Bill Mallonee
  26. Re: Overpriced? by Black+Parrot · · Score: 3, Informative


    > The recording companies has costs. ... gifts to radiostations and mtv to get their music played ...

    AKA "payola", long illegal in the USA, still done under a pretense of it being something else.

    In addition to being illegal, payola is commonly believed to be the major cause of crap being played on the radio.

    Add in the problem of having one company own nearly every radio station in the USA, and switching stations between formats at the drop of a hat if they think it will earn them a dollar more next year, and you start getting a picture of an industry that's very, very sick.

    --
    Sheesh, evil *and* a jerk. -- Jade
  27. Big band's opinion on all this by ethank · · Score: 3, Interesting

    REM has reportedly the second largest recording contact in the planet with Warner Bros records. They're good friends with Wilco, who were dropped from Warners when Yankee Hotel Foxtrot wasn't "commercial" enough. Some quotes from recent interviews with REM. Only posting because it shows in some ways that one of the biggest bands on the planet (which they, along with U2 are), doesn't give a shit what the RIAA says:

    "MS: Well the industry as we've known it is dead. Gravitational shift, complete upheaval and extinction. It makes way for the stuff I just mentioned, and kind of settles the "art versus commerce" dilemma. Where it will go from here I can't say, but it is certainly exciting to watch." - Michael Stipe

    "MW: What are your thoughts on the Napster issue and free music over the internet, because it really annoys me.

    MS: I'm fine with it..

    MW: ...Really (looking surprised)?

    MS: I like anything that shakes up the status quo, and in the entertainment industry, not just music, file sharing has certainly done that. We'll see where it goes from here. I have a few ideas of where it's headed."
    - MS = Michael Stipe, MW = a country singer from Atlanta.

    "Q: How do you feel about people trading R.E.M.'s music for free over the internet?

    A: People that are looking for live & rare tracks online, well, that doesn't bother me at all. People that are too cheap to buy the CD's and decide to get them for free (online), well, I personally would feel bad about doing that. I feel like I would be taking something from someone, and I don't believe in that. When you break it down it's stealing, and there's no other way to look at it."
    - Mike Mills

    And of course the Yogurt man, Peter Buck talking about Wilco and the industry as a whole:

    "ERK: Well, you have to look at the music industry right now. Its not conducive to artists like R.E.M., Wilco or anybody with remote talent (laugh).

    PB: You know, that's the thing. Warners has been in chaos in America for five years and, you know, I just think they might have dropped the ball a bit this year, and not just for us either. That Eric Clapton record sure disappeared pretty quick.

    ERK: Seems like every record they put out disappears...

    PB: Linkin Park is the only thing that sold. You know, there are new people coming into Warners this week and next week, and people will probably get fired. It's a constantly changing company and we feel that, well, we have a commitment to them. They have done great jobs for us outside of the United States, and in America, who knows what went on. I certainly wouldn't point my finger at anyone.

    ERK: The state of the American music industry, I think, is in a huge flux right now. Grant Lee Phillips is getting more promo for Mobilize than you did for Reveal, and you're on Warners and he's on Rounder. There is something not right with Warners.

    PB: Yeah, well, put this into perspective. Aimee Mann sold a quarter of a million of her records out of her apartment with a guy helping her mailing it out. And Warner Bros sold 330,000 of our record in the States, with all the might of Warner Bros behind it. I love the Aimee Mann record, but I don't think there is a huge amount of quality difference between the two. I think her record is really great, she deserved it.

    ERK: I've been following the whole debacle since Grant left WBR.

    PB: Now, with Wilco gone too, what is happening is that these record companies are doing these huge conglomerations and essentially what they then do is drop half their acts. So instead of having what used to be 8 record companies with 60 acts, it's gotten to 3 record companies with 15 acts.

    ERK: Then you have people like Rounder picking up what's left.

    PB: When you consider, it doesn't make business sense to drop someone like Wilco, who makes the record company money. They are recouped, they don't owe Warners any money, they make records inexpensively and tour their asses off. They make critically acclaimed records, and sell half a million world wide. And there is always the chance with those guys that Jeff is going to turn out a Top 20 single that will blow one of their records wide open and sell eight million copies. You know, when I heard that they got dropped, I just thought it was the most insane thing I had ever heard. One of the things we signed with Warners about and we were so excited about was catalog, you know, people like Randy Newman for 25 years. Those records are in print. They held onto some really great artists and that is disappearing, and disappearing everywhere, not just Warner Brothers. There is no such thing as signing someone and they do great work and they back them. Now it's, you get one record and you're out.

    ERK: Do you think there will be a resurgence or upheaval in the music industry like 91?

    PLB: What I think is going to happen is that the major record companies, and they are in this position, where they are run by accountants and promo people who don't know about music. So they're just imitating each other. The promo people go, "We've got to have a boy band" and the accountants go, "We need to sell a few more records."

    ERK: I think that is causing a huge thing for record labels. Websites have eliminated the need for distribution deals for some artists.

    PB: When you're talking about Destiny's Child, where you can sell 10,000,000 more records if you get the right video and promotional push, that is when you need a major label. If you're talking about someone who is playing...a smaller artist, there almost is no need for a record company. Essentially, I think a lot of things are going to go through MP3, the net. You know, the play music I put up for free. Have you downloaded it?

    ERK: Yeah, it was great!

    PB: It was something that I wanted to put out there. It was only 7 minutes long. I trimmed it down to what I liked the best. I wanted it out there and didn't want to press it, choose a cover, a title, charge people. Essentially, I just wanted it out there. I'm into the idea of spreading things in that way. Eventually, I'd love to download whole concerts that way."

  28. Lies, Damned Lies, and Statistics by knuth · · Score: 5, Insightful

    The press release from the IFPI says in part,

    In the US, nearly 70% of people who downloaded music burned the songs on to a CD-R disc, while 35% of people downloading more than 20 songs per month said they now buy less music as a result.

    So, in other words, 65% of the people in the U.S. who download the most music off the 'Net either:

    • buy more music,
    • buy the same amount as before, or
    • don't know how their music buying now compares to their earlier purchases.

    So overall it appears as though downloads might not be to blame for cutting into sales. One would want to know, for example, how much more and how much less these subgroups bought, and whether they were heavy music buyers before.

    This is a rather clumsy blunder in a press release intended (apparently) to scare the music industry and raise sympathy for their plight among their friends in government. A minority of the heaviest users of a new technology are buying less. Hard to feel sorry for the industry.

  29. They are losing control by techstar25 · · Score: 3, Insightful

    In the past, artists needed the promotion power of major labels in order to make money peforming live and/touring. Now, with the internet, any kid in his garage can set up a website for his band, record his band directly to mp3 to his computer and distribute it. There are plenty of music websites to review the material and spread the word about a great band. Then with the demand grows, the band can tour and make money *on their own*. Most people know that artists never made much money on CD sales anyway. I know it's true because my band is doing it right now. We recorded an album with our own cash and have sold several hundred copies via the internet(despite the fact that our MP3s are freely available). That has created the demand and now we tour the southeast US regularly. It's not great money but it's enough and it's fun. Another good example is the band Dredg. Their indie album sold thousands of copies on the internet(MP3s also freely available). They have a real cool indie alt-rock sound, comparitive to Radiohead(for lack of a better comparison)but they are in no way a radio band. The record labels don't like that a band can make it on their own these days, and many bands are making it on their own. I love it. Sure I don't buy major label CDs anymore. It's because the artists suck. I buy plenty of independent artist CD's, and I spend lots of money going to see these local bands. It's the way it's going to work from now on.
    If you wanted to buy a painting, would you want it straight from Picasso's hands, or would you rather have Picasso paint it, give it to a producer who messes it all up, and packages it, and then sells it to you for a huge markup? Duh! Get it straight from the artist.

  30. From the Article... by inc0gnito · · Score: 3, Insightful

    This made me laugh:
    "We have the right to protect our exisitng business, and we have a moral duty to protect our artists and songwriters," said Mr Larsen."

    Talk about hypocritical/double standard/load of horsecrap. Don't most artists make something ludicrous like a fraction of a penny per disc sold unless they have a renegotiated contract (after some success on previous albums which they got paid jack for)?

    My take is that as long as the RIAA doesn't give a shit about the artists, I won't give a shit about the RIAA.

  31. The heart of the problem by mcrbids · · Score: 3, Interesting
    The music industry has three major functions:

    1) Weed out the lousy artists - find something that people will like.

    2) Record the music, with the fancy mixers and recording studios so it sounds "right".

    3) Distribute the music. With this could be considered promotion.

    The real problem here is that the RIAA perform all three functions, but only gets paid at the 3rd step, while the Internet obviates the need for the 3rd step!

    Via Gnutella, KaZaA, etc. the method of distribution has largely shifted to the consumer, and people frequently won't pay for something they can do themselves for much cheaper.

    Find a way that RIAA, inc. can get paid for 1 and 2 above, and I think we can move on.

    And, if you don't think that RIAA is important, and should be disbanded, go to mp3.com and listen to something BESIDES Britney, Nsync, and Pink Floyd. Otherwise, shut up and help figure this out...

    --
    I have no problem with your religion until you decide it's reason to deprive others of the truth.
  32. arrogant young pricks by maxpublic · · Score: 3, Funny

    Any time a mention is made of the RIAA we always get the young, incredibly arrogant dillweeds - no doubt still in college and therefore infallible - who blithely go about condemning pop as 'crap' music and telling everyone that if they had any taste at all they'd listen to 'alternative bands'. These same little boys also wear baseball caps backwards and think that this somehow makes them look cool (rather than just too damned stupid to figure out which way the cap actually goes).

    Something you little egomaniacs need to know before you pull your dicks out of shorts and start playing with yourselves here:

    - music is a matter of taste. As in, I've got mine and you've got yours. It isn't an "I've got taste and you don't affair", no matter how bloated your ego is. If you think otherwise you need meds, and lots of them.

    - consider the possibility that alternative bands aren't popular is because *most people think they suck*. This is a more likely explanation than the idea that you have better taste than everyone else, or that you're smarter. Odds are that half of the people out there have better taste than you, and are smarter than you.

    - the music you listen to says little about your character, abilities, mores, or ideals. Listening to alternative bands doesn't make you any more enlightened than believing in crystal power does. Claiming otherwise just makes you look dumb, although this is probably an accurate assessment of your intellect if you do so.

    - popular music isn't popular because the RIAA brainwashes people into liking it. This is just another ego argument (i.e., "i'm superior and therefore immune to brainwashing, while the rest of you are a bunch of sheep"). Popular music is popular because *alot of people like it*. Deal with it.

    I'm probably too late here but man am I sick of those little college boys blathering on with their stock lines "popular music sucks anyways!" or "support local bands and stop buying cds!". Enough already. Try acting like an asshole in a novel way for once; your lines are tired and old and rapidly becoming pathetic.

    My rant for the day.

    Max

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  33. Huh? by gnovos · · Score: 3, Insightful

    Pay at most 10 for an album, of which the artists make at least 2 .

    Um, why should the artist, who does 99% of the work, get less per album than the distributor who simply puts it on trucks and ships it out the door? Switch those numbers around and I'll join you!

    --
    "Your superior intellect is no match for our puny weapons!"