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Recording Deals In The Digital Age
cascadefx writes "There is a really interesting panel wrap-up over at the National Association of Recording Industry Professionals's website. The Incredible Shrinking Profit Margin panel discussion looks like it included some interesting discussion into the deals that are made with performers now that the rules have changed. These notes offer interesting (perhaps hopeful) business predictions about Britney Spears' career as well as answering the (new)-age-old question about just how much an artist makes off of an iTunes download. Check it out."
It isn't Britney Spears I fear, but what comes after her. Seems to me that each iteration of manufactured talent is more sickening than the last. (One reason I don't watch American Idol, which seeks out the next 'talent' that fits the cookie cutter.)
But consider that much of Spears' success was the performance. Sing, dance, strut about the stage, before spending the next few decades going from one failed relationship and addiction to the next until appearing on Good Morning America and announcing she's cleaned up, totally focused on life and ready for a comeback (no, not as a signer, but the next president.) Music downloads don't leave much room for performance, unless you plan to watchs someone frolic about on that miniscule screen on your cellphone. Admittedly, some acts have never had a top-ten song or little chart success anyway, but have enormous cult-like followings (i.e. Jimmy Buffet, are you a parrot head? ;-) and without enough curiousity or word-of-mouth, will people attend shows?
A feeling of having made the same mistake before: Deja Foobar
> Why sell through the system at all anymore?
Because you don't have a huge marketing machine behind you.
Alright, that's only relevant to those artists who NEED a huge marketing machine behind them. There are plenty, PLENTY of good solid music producing people who can succeed on their own merits, given good enough distribution.
Good stuff -- they interview record execs and former/current/hopeful musicians and explain the sorts of problems the industry is facing. While people stealing music online is a factor, lesser-known factors are also discussed including the fact that sales figures may be sinking because people are finished replacing their record collections with CDs.
Try not. Do or do not, there is no try.
-- Dr. Spock, stardate 2822-3.
The music industry is changing, along with the movie industry. Distribution channels are changing, and as such the method of getting your margin is going to change too. The RIAA's job of seeming to try and protect what is soon to be an outdated distribution scheme is pointless for the long term, and irritating for the short. A slimmer profit margin is no big deal, when you consider that it's not a few hundred companies trying to support their insfrastructure, but rather a half dozen online firms supporting theirs. Let's not forget that online distributors will never get caught with extra inventory. It's hard to run out of warehouse space. They have to worry less about shipments. In short, thinner margins that are consistent fit the business model. It's nothing to whine about, though of course the RIAA always has to find some large stick to shove in the wrong place.
"Dave, I stand still--the conclusions jump to me!" - Bill McNeal, NewsRadio
Slightly offtopic since this is not mentioned in the article at all, but since we're talking about recording deals...
;p
Don't buy music from sites like the iTMS or Napster. Ever. According to this article French Apple enthusiast site Mac Bidouille, support personel (eg dancers, clip director, sound techs etc) are not getting their cut from legal online sales.
The reason? Record labels are unwilling to change their contracts, which ties royalties to the sales of physical media, not the song itself. That's outrageous. That's outright theft, pure and simple.
(Article is in French. Grab a translation here.)
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