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Some Bands Still Refuse Music Downloads

Zelbinian writes "Wired News reports there are a number of artists, ranging from The Beatles to Radiohead, that are still holding out on iTunes. Some feel that per-track downloads hurt the artistic integrity of albums as a whole; for others it's simply a matter of negotiation troubles. From the article: 'Since record companies have realized the popularity of iTunes and other sites, many reworked contracts to give artists less money per download. Andrews said while record companies once offered artists about 30 cents for each song sold, now musicians are earning less than a dime.'"

26 of 545 comments (clear)

  1. That's fine. by BigZaphod · · Score: 5, Insightful

    They can hold out as long as they want. If downloaded music sales start to eclipse that of normal CDs, then I suspect those artists will begin singing a different tune.

  2. Man that's a bad summary by QuantumG · · Score: 5, Insightful

    It aint the artists, it's the labels.

    --
    How we know is more important than what we know.
    1. Re:Man that's a bad summary by aapold · · Score: 5, Informative

      It couldn't be because they get less per song than if you buy the CD, despite there being nothing to manufacture, print, burn, store, distribute, stock, or stores to man.

      --
      "Waste not one watt!" - CZ
    2. Re:Man that's a bad summary by Y-Crate · · Score: 5, Informative
      "To be fair, there are costs for servers and maintenance, design and maintaince for the web site, and bandwidth to pay for. But I think that these would be significantly less than the above items."
      The truly depressing aspect of it all is that Apple pays all of the distribution costs out of it's 10-12 cent-ish cut. Servers, bandwidth, payment processing, iTunes maintenance/design, etc. The record companies get the lion-share for simply saying "Yeah, you can use our artist's music" and providing the AAC rips and artwork. On top of this Apple provides them with a nice automated system that apparently makes it borderline effortless for them to convert their tracks and art assets and upload them.
    3. Re:Man that's a bad summary by ben_rh · · Score: 5, Insightful

      You have it backwards.

      Microsoft is a company, and its employees are there to do their job, for the company. They get paid to serve the company.

      (In theory), The recording labels are there for the artists. They get a cut of sales to do things for the artist like promote their work, and press & distribute CDs. They get paid to serve the artist.

      The way you describe things, is as if the whole music world consists of a single entity, the collective recording labels, that employ artists to promote & be a face for their music. It almost sounds as if you're implying the music is being written centrally by the labels, instead of by the artists!

      Oh wait, that's pretty much a functional description of the popular music industry.


      In other creative fields, like books, the author of the content retains the copyright. The current state of the music industry, with so much central ownership and control, is a terrible setup. What you describe is actually closer to the truth than you imply. But that's not a good thing.

    4. Re:Man that's a bad summary by monoqlith · · Score: 5, Insightful

      True. But you can consider the fact that record contracts are exceedingly rare, making a career as an artist is extremely hard, and so the actual "worth" of the contract is much higher than the value of the promised outcome or the amount of money the contract offers. It can launch a lifelong career, after all. Thus, record companies basically coerce bands into signing the first agreement that comes their way, even if it is unfair(which it probably is), basically saying: this is your only chance, take it now, nothing better is going to come along. It is the band's decision to sign the agreement, but that doesn't mean the agreement is fair.

      Now that internet distribution is picked up completely by Apple, and professional recording equipment and production is so common as to be available at relatively low cost to artists who record at home, it is simply absurd that record companies have somehow reduced the share of money given to their artists and are delivering the savings on distribution apparently to themselves all on the basis of inflated prices for "record studio time" and artifically high-valued distribution channels. As far as I can tell, the means by which record companies exploit their artists are corrupt. The artists are the people who are responsible for all of their revenue, after all, and should be proportionately compensated.

      Hollywood at least recognizes that star power primarily drives the consumption of a film. It often pays stars $20 million just to be in a movie, on top of a share of the box office ticket sales. That is, a huge portion of a film's budget is devoted to paying the stars. While labels don't bring in as much money as Hollywood studios, major record companies don't seem to pay the same debt of gratitude to their talent. Executives and label owners whose only real talent is to broker unfair deals end up walking home with the lion's share of the cash.

        It's kind of like how the oil companies could afford to reduce the price of oil artificially, but they know that we are dependent on their oil(purposefully) so that we give them tons and tons of money at unfair prices to get our fix and as a result they become immensely, excessively, profitable. Sounds like a collusion in an oligopoly to me.

      I think that a paradigm shift is happening with music because of the labels' obviously backwards dealings and the democratization that the internet and digital recording bring. The oil problem, on the other hand, is going to be around for a long time.

  3. Of Course! by Jah-Wren+Ryel · · Score: 5, Funny
    'Since record companies have realized the popularity of iTunes and other sites, many reworked contracts to give artists less money per download. Andrews said while record companies once offered artists about 30 cents for each song sold, now musicians are earning less than a dime.'
    Well, obviously when the record companies underestimated demand they also underestimated the rates of breakage and returns, so of course they would have to modify the artists' cut in order to better compensate the record companies for those costs.
    --
    When information is power, privacy is freedom.
    1. Re:Of Course! by sleeper0 · · Score: 5, Informative

      The better question is if there has been a change at all. While the nature of major label contracts means that it is very, very uncommon for the terms of them to be public, I worked in digital music both pre-ITMS and post launch and am very sure that bands on a major label were never close to averaging thirty cents a sale. There may have been an example or three of this, and probably still are but it was never close to the statement that "record companies once offered artists about 30 cents for each song sold". In fact, any averages that came close to this figure would only have _ever_ been for the situation where some smaller itunes content providers offered consolidation deals where they repped 3rd party or unsigned content to apple for more or less pass through costs. These situations never included things like promotion, development or recording costs on the part of the ITMS supplier.

      Again, due the the nature of the contracts involved it's nearly impossible to cite sources for this, the same reason it is easy for a wired reporter to make up facts in their article. But consider this logical argument: It is well known that ITMS takes thirty five cents on every dollar on sales (3rd hand citation but other sources are common). That leaves about sixty five cents to the content providers. Even if you have limited knowledge of the music industry it should be easy for you to realize that no major label contracts passed on nearly 45% of gross income from their products to the artists. Whether you like that fact or not, wired is plain wrong in saying that "it used to be so much better" - and I'd bet that probably both the reporter and the editor involved knew that was an intentional distortion. From what I know, majors typically pass on between eight and sixteen cents per track to the artists, and that number hasn't changed much since the ITMS launch.

      If anything I believe artist's gross revenue per unbundled song has had slight upward pressure though nothing very dramatic. As I understand this owes the the fact that artists gross revenue per customer with unbundled tracks is understandably down versus typical sales that are bundled (even singles shipped with at least one or two extra songs). Though for all the same reasons I can't cite that so you might as well ignore it.

  4. iTunes already supports albums... by Bender0x7D1 · · Score: 5, Informative

    "It's amazing how many people go there," Andrews said of iTunes. "We're hoping albums work there." Andrews said he wasn't sure if Apple eventually would allow the album to be kept intact.

    I've seen a bunch of tracks that weren't available unless you purchase the entire album. The albums usually have 1 or 2 tracks for sale individually but the rest require you to buy the album. I understand the artistic concerns, but if you would release some of the songs as singles for play on the radio, why not make them available as downloads? Or do artistic concerns end when you want a hit single so the album sells well?

    --
    Reading code is like reading the dictionary - you have to read half of it before you can go back and understand it.
  5. this is more about the money by grapeape · · Score: 5, Insightful

    Can you really blame them? The new contracts take away any monetary incentive that digital formats offered. What I dont get is Itunes delivers the tunes at their cost, the publishers have no packaging, promotion or media costs, so where does the money go? Maybe im a tin-foil hat type here, but it seems to me that the labels are just attempting their best to make sure that digital downloads are no incentive to the "artist" in order to keep their control over the industry. If it isnt cost effective, artists will stick with cd's and big labels as they see that as the only path to success. Too much success in digital format would show the artists that the labels were not needed in the modern age so from the labels perspective thats something best to avoid.

  6. You should get it by XanC · · Score: 5, Funny
    BTW Taco, I want a raise.

    You deserve one; you post here all the time!

  7. Well... by blackmonday · · Score: 5, Informative

    I would recommend that artist negotiate a seperate contract for digital sales. My band is unsigned, but we get 91 percent of the iTunes cash (after Apple takes their cut). What band could be against that deal? iTunes is a potential cash cow for forward-thinking bands.

    1. Re:Well... by Kadin2048 · · Score: 5, Interesting

      My band is unsigned...iTunes is a potential cash cow for forward-thinking bands.

      I think you just answered your own question. The problem here is that too many artists are lured into thinking that the only way to make a living in music is to sign away your soul to record label, for pennies on the dollar.

      Now I'll grant you that I don't really know much about the intricacies of the music business, but based on conversations I've had with quite a few people lately, it seems like an artist would perhaps be better served staying unsigned -- if they have any management skills at all, or know where to find someone who does -- than to get on board with a label. What does the label give you? A chance at a very, very small slice of a larger "pie," but really what's the advantage of that over having a much larger slice of a smaller pie?

      If you get 91% back from your music sales, it doesn't take nearly as many sales for you to make a living than it does for a signed band. I'd bet that properly done, the margins on CD sales are similarly large. Sure, you probably won't see an unsigned band's stuff in WalMart, but again: if you can make the same amount of money being a regional band, and have total creative control ... I don't understand the allure.

      The one thing that the labels still seem to have is a pretty tight grip on the music flowing into radio stations, particularly the corporate controlled (*cough*ClearChannel*cough*) ones; but the relevance of that mode of distribution is fading daily. Particularly if your audience is in a younger demographic, it doesn't seem like radio play is necessarily the requirement for sales that it once was.

      I guess maybe I'm not a musician and I don't understand the desire for fame that might lead someone to believe that being nationally recognized is a good thing per se, versus making the same amount of money as a regional band, and not feeling like they're taking it up the ass every day. If someone can explain what the value proposition of the record labels is, in today's economy, where it's widely known that they compensate artists poorly and essentially do nothing but take your music as payment for questionable PR campaigns, I'd be interested.

      --
      "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  8. Change of Heart for the Bands by Quasicorps · · Score: 5, Interesting

    It's strange how Radiohead have chosen to do this, considering they were one of the first major bands to offer MP3 downloads to the public. Kid A was released for free online before in stores, and they found it advantageous. This was at the same time as their refusal to release singles or advertise the album in order to sell it purely on its merits.

    Radiohead made Kid A top the charts, both here (UK) and America, through online publicity.

    Perhaps it is since the culture of iPods is to create playlists and to "shuffle" that they wish to avoid it, and their release on the internet was in the idea that people still listened to music, downloaded or not, as a whole work, as if on CD.

    Often called pretentious, the desire to have your work viewed and heard as a whole appeals to an older perception of music, one that I personally still subscribe to. It holds the idea of an album as a progression, as something that has a beginning and a conclusion, such as one might expect from a traditional symphony.

    It can be very discouraging to an artist when an entire medium is practically devoted to destroying that construction. And if they care more about their artistic integrity than making further sales, I can only applaud them.

    1. Re:Change of Heart for the Bands by today · · Score: 5, Insightful
      It can be very discouraging to an artist when an entire medium is practically devoted to destroying that construction. And if they care more about their artistic integrity than making further sales, I can only applaud them.
      Partial listening has been a problem since opera houses seated people after the first act, since needles on record players could be dropped anywhere, since tape players had a fast-forward feature, and since CDs had a track skip feature.

      The only thing iTunes adds is the ability to partially pay for parts of the music. Before iTunes, you had to pay for the whole thing even if you didn't listen to it all.

      So this obviously has nothing to do with "integrity". It has to do with getting paid for stuff people don't want to buy.
  9. Is this really a big deal? by clontzman · · Score: 5, Insightful

    It's not like Beatles and Radiohead albums are hard to come by, both new and used -- who cares if they're sold on iTunes or not? Is there anyone who wants to buy the Beatles catalog who hasn't already purchased them on CD?

    Online music stores (especially the subscription ones) are great for discovering new or obscure music, and they're ideal for buying a single on an album that's otherwise lousy, but the Beatles and Radiohead -- the most common holdout examples used -- don't fit any of those descriptions.

  10. Re:I can see both sides of this by Anonymous Coward · · Score: 5, Insightful

    I agree. This is especially true of well-established bands. I was listening to a greatest hits album the other day and none of the songs seemed to go together. But when listening to the respective albums in whole they sound much better.

    On the other hand, I think people should be able to buy what they want. How is it a travesty if somebody only wants 2 or 3 songs off of Dark Side of the Moon? They are only hurting themselves. Give people what they want.

  11. Radiohead by Anonymous Coward · · Score: 5, Informative

    All of Radioheads catalogue is available on warchild. It's like iTunes but it all goes to charity.

    Whoever said iTunes needed to get all the goods.

  12. Whole albums? Are you kidding me? by Aqua+OS+X · · Score: 5, Insightful

    I tend to buy whole albums simply because I'm a music pack rat; however, I can't stand musicians who complain about people not appreciating the entirety of their albums.

    Give me a fucking break. Most top 40 artists already prescribe to a 3-6 minute song model, segment their album for radio play, and don't maintain any overwhelming unity between tracks. Moreover, they've been doing this for DECADES.

    People have grown accustom to picking and pulling individual songs. We been promoting this model long before iTunes came around. If respecting the whole GD album was so damn important everyone would be producing albums like The Wall and releasing them on 8 Tracks.

    --
    "Things are more moderner than before- bigger, and yet smaller- it's computers-- San Dimas High School football RULES!"
  13. Re:These idiots by walnutmon · · Score: 5, Insightful

    First, you are completely wrong, second... What makes them idiots?

    If you listen to albums that are simply a collection of songs made in a certain time span for a certain end date, then those artist will likely not care if it is sold in bits and peices on the internet. However, the bands that will take exception are the more progressive ones that see music as more than easy money. Frank Zappa devoted a large portion of his songs to making fun of people like you.

    I doubt very much that Radiohead really cares about the extra money they lose because a handfull of people like you will not give them your extra 10 cents to listen to Creep. There is a reason for that too. It is because they are the artists, and the really good ones who deliver consistantly good music don't really care about marginal increases in profits, they care about making something that they feel is worth producing. They actually had an idea, and if you only listen to a small portion of their idea, they would rather you not listen at all. May seem like strange reasoning, but I guarantee a large portion of the greatist creative minds throughout history would echo Radioheads sentiments.

    They created the work for us to enjoy, not for themselves to tell us how to enjoy.

    Actually, many good artist are pretty damn narcisistic. They probably would rather someone like you die than enjoy one of their songs, just due to the principle of someone who "doesn't understand art" shouldn't be dancing to their backbeat.

    Basically, what it comes down to, is while I agree that it may be their loss in some ways, they probably don't care about it very much. And that is what makes them different, it doesn't make them idiots.

    --
    You take it, I don't want it...
  14. Re:Missing the point by hackwrench · · Score: 5, Insightful

    That's just it. Whether the work is sold by track or by album, most people are going to miss a great deal of the point of the work as laid out by the artist. Insisting that people buy the entire album instead of a track makes as much sense as making sure that people take a test to ensure they grasp all the artistic points.

  15. Re:Ohh the irony by Draconix · · Score: 5, Funny

    Apple won.

    --
    By reading this you acknowledge that you have read it.
  16. Re:I can see both sides of this by Simon+Garlick · · Score: 5, Interesting

    A friend of mine, a jazz musician, recently released a self-produced album designed to be listened to on Shuffle mode. Each song blends near-seamlessly into the next, regardless of what order they're played in. It's a different album every time it's played.

  17. Hollywood is probably worse by Namarrgon · · Score: 5, Informative

    It's a very rare actor that can demand millions up-front. Most have to settle for a percentage of the profits. However, due to accounting practices "considered odd by any normal business standards", 95% of movies, even box-office hits, somehow fail to make a profit - as defined by the studio, anyway. This article lists many of the ways in which this is managed, including spreading of gross receipts amongst poorer-performing pictures, "distribution fees" far in excess of reality, a 10% "overhead" fee to be applied to all marketing expenses, tax breaks that are kept by the studios & not counted for the picture, and many others.

    Stan Lee got nothing from the Spider-Man movie, because the studio claimed it did not make a profit, at least as defined by his contract. My Big Fat Greek Wedding was produced cheaply and was a huge success, yet somehow "lost $20 million". Even Babylon 5, which took in $500 million in DVD sales alone, is apparently "$80 million in debt". As the creator, J Michael Straczynski said, "Basically, by the terms of my contract, if a set on a WB movie burns down in Botswana, they can charge it against B5's profits."

    Steve Vai says very similar things about the record labels' own standard contracts, not least their various bogus deductions for digital download sales. As the saying goes, the really creative people are the accountants.

    --
    Why would anyone engrave "Elbereth"?
  18. Re:Missing the point by Baki · · Score: 5, Insightful

    So if you buy the complete album, should they forbid you to skip some tracks?

  19. Re:Missing the point by Peter+Mork · · Score: 5, Insightful

    So, each file currently costs about $1 to download. Consumers want to be able to mix-and-match songs across albums. Enter the artists that either want: 1) to sell more songs by bundling them into an album or 2) to maintain artistic integrity. In the latter case, let them bundle the entire album into a single file (to be sold for $1). Call the bluff and we'll see whether it's profit or art that rules.