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Record Store Owners Blame RIAA For Destroying Music Industry
techdirt writes "It's not like it hasn't been said many times before, but it's nice to see the NY Times running an opinion piece about the RIAA from a pair of record store owners which basically points out how at every opportunity, the RIAA has made the wrong move and made things worse: 'The major labels wanted to kill the single. Instead they killed the album. The association wanted to kill Napster. Instead it killed the compact disc. And today it's not just record stores that are in trouble, but the labels themselves, now belatedly embracing the Internet revolution without having quite figured out how to make it pay.' It's not every day that you see a NY Times piece use the word 'boneheadedness' to describe the strategy of an organization."
FTA:
"Meanwhile, the recording industry association continues to give the impression that it's doing something by occasionally threatening to sue college students who share their record collections online. But apart from scaring the dickens out of a few dozen kids, that's just an amusing sideshow."
Threatening to sue? Has the NY Times not noticed that they actually ARE suing a bunch of people? I think the amount of time and money that has been spent in courtrooms over actual lawsuits is a little more than "just an amusing sideshow."
I dislike the RIAA as much as the next guy, but I just couldn't help noticing that this article downplays the RIAA lawsuits quite a bit...it's not like they're not doing anything, they're just doing the WRONG things.
Did they actually stock cds that weren't mainstream? Did they try to make that the thrust of their business? Myabe it's just me, but most record stores try to make the process of buying music(or hell, discovering new music) as bland as expensive as possible. If I want a bland environment with tons of mainstream music I can go to Best Buy and get better prices. If record store owners want to survive, they are going to have to move to where iTunes/Best Buy/WalMart doesn't tread because there is no WAY they can compete with them on price. They need to actively encourage local bands and make sure they have plenty of indie artists and staff who actually listen to the music and can talk enthusiastically about them. Otherwise, what is the point of paying the premium for the record store?
Monstar L
I understand why the people who owned the store near your campus were bitter, but I think TFA provides a good counterargument. The downloaders didn't drive them out of business; the sickness in the music industry did, and a good portion of that sickness can be traced directly to the RIAA. If it hadn't been for the RIAA's stupidity, downloaded music and music bought on CD could have found a way to peacefully coexist. Now, it's too late.
A whole hell of a lot of working people with families, throughout the music industry, are going to lose their jobs over the next decade or two until this shakes out. The Recording Industry Association of America could have prevented this. Instead, they've done -- and continue to do -- their best to make it inevitable. Yeah, the store owners' anger is understandable, but it's aimed at the wrong target.
The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
I used to be a music lover - I still am, in a way. But 10 years ago, one of my standard weekend occupations was a trip to Tower Records. There, I would buy 5-6 CDs of classical music. I would listen to them all, return a couple of them or so (I often bought the same piece played by different interpreters / orchestras, returning interpretations I found less interesting), and get 5-6 more CDs, and so on and so forth, a visit every other weekend on average.
Then came mp3's and copying. But I didn't do it. I liked having the albums - for some classical music, the booklet is interesting - and more than that, I didn't have the kind of time required to copy all the CDs I wanted to have. It was beautifully simple - buy, listen, return a few and buy many more. Money was not a problem, as I worked and I didn't have kids at the time. I didn't (and don't) have a TV - what harm there was in spending $40 / week for something I loved? It was below my threshold of attention.
But then Tower started to decline returns. That very day, I stopped buying CDs, and in the intervening years, I must have bought 10 of them in total - mostly folkloristic music I bought while traveling. I simply could not put up with the idea of plunging $18 to try a new interpretation of a Missa by Bach - and not being able to return it if I didn't like it.
So I stopped buying music altogether. I don't copy it either, because I still don't have a lot of time. Rather, other hobbies - digital photography, then kids, then other things still - gradually replaced the space music had in my life.
It is sad, but I am still young, and who knows, perhaps I will live again through an era where I can easily browse through all the interpretations of the Zauberflute, listen to them, and buy them at top quality.
So in my case, the music industry lost a customer, due purely to their fear of piracy.
Fair enough, but the point was that they couldn't get into this business, even if it existed, because piracy (and I doubt that their claim is substantively false) intervened. It doesn't matter what you have for sale - if somebody is giving it away for free and there are no consequences, you will lose. I see nothing wrong with the subway going out of business because somebody invents a faster and more comfortable bus. I do see a giant problem with the subway going out of business because massive numbers of people decide that using fake tokens or jumping the turnstile is morally ok because the subway pollutes, is occasionally late, and is a giant impersonal organization that pays its drivers only a relatively small percentage of its total revenue.
Almost all of the NY Times is an op-ed piece these days. They're just not all labeled as such.
That said, this particular piece was excellent. Although a bit sad, it makes me hopeful that the 12 or so great musicians/bands of the last 40 years that were actually pushed by the major labels will still find fans online, and that the thousands of artist who are just as good but I've never heard of will be able to make a living that way too.
And that I'll be able to find them much more easily.
I think the end result will be that this is the best thing that could have happened to popular music. If you're not a 13 year old girl, or a 45 year old girl with the same taste in music that you had since you were 13, the RIAA companies produced very little of value to you anyway.
Good riddance.
If moderation could change anything, it would be illegal.
As another business owner, I think I know one big reason why your business is failing... You also forgot who your customer is... What right do you have to tell that kid what he can and cant do because of a major flaw your industries business model? This kid is only doing what makes sense to most logically minded individuals that just paid >= $15 for an album. If your industry charged $2 for that album, do you honestly think that anyone would bother the pain of burning it?
What your industry should have done is realised that the individual "value" of your product was going down and reduced your prices accordingly to compete. That is what the rest of us do. They didnt, because they (indluding you) forgot that you serve the customer music... You are not the gatekeeper of music.. Those days are over... The internet is not your competitor.
Also, do not pitty me with your "loose the house" crap. As another business owner, I completely understand this risk, and it is part of being a business owner. It is not societies responsability to prop up a failing industry that is committing suicide. It is dieing and either you change with it or go broke. Oh, and I have a little advice for you since you dont seem to have gotten it yet... Get the heck out of selling music CDs... Close the doors, lick your wounds, and move on. No move or lawsuit is going to save you...
Unfortunately it's not illegal downloads that killed that store. My reasons for not going to a music store:
- The prices are too high for what I want. Not much the store can do about that. But whatever the reasons are, whatever the store can or can't do about it, it simply isn't worth it to me to pay the price of a full CD when there's only 1 or 2 tracks on it that I actually like. I want to pay, but given the other demands on my wallet I can't justify paying that much per song.
- What I want isn't on the shelf. I want individual songs. All the store can get are albums. When again exactly was the customer expected to buy what they don't want just because the RIAA doesn't want to sell what the customer wants?
- What I want isn't available. I want my music in digital form, in a format where I can not have to worry about whether or not it'll play on all my equipment, where I won't have to worry about headaches moving it between places I've a legal right to use it.
- I can't take the risks legitimate stuff exposes me to. From incompatible DRM modules to Sony's flat-out rooting my machine and exposing it to every black-hat out there, too many legitimate CDs are an unacceptable risk to the stability and security of my computers for me to be able to risk putting them into my drive. And if I can't play the CD where I most often want to, why bother buying it?
That's more than enough reasons for me to not bother patronizing a music store anymore, and we haven't even gotten to the lack of variety in what many stores carry. Try finding KISS's original albums, let alone albums from the 40s and 50s.Oh, excuse me, I don't seem to have mentioned piracy anywhere. Maybe that ought to be a hint?
They shut their doors a couple years ago.
What you're asking for sounds great -- on the web. The simple truth is it is no longer profitable.
Like it or not, those store owners were being truthful. Piracy is killing the music industry. Not that the RIAA labels don't need to be put down like the lampreys they are, but the days of the giants are waning fast.
The real problem is the industry was entirely constructed on what is no longer a valid premise; that recording and duplicating quality music was expensive. And the labels have tried to make their money in different ways, mostly at the expense of the stupid bands who sign their livelihoods away for half a million dollars up front (you try organizing a nationwide tour for half a million $$ and see what you have left at the end.) The recording industry will soon die, and eventually the only survivors will be the indie bands singing for the love of music. They'll end up as 21st century minstrels wandering from pub to pub, settling for a meager income and drinks on the house, regardless of their talent.
There will be no more profit in the music industry. It will die, and soon. The EMI anti-DRM move is a great attempt to capitalize on the huge anti-industry sentiment, but it's not going to change the behavior of people willing to climb over DRM to copy music anyway. And EMI won't have anything special once the other RIAA members see how profitable it is to not piss off their customer base.
The only question mark remaining is: how far away is the MPAA from this scenario? Movie theaters and HDTV may be their only saviors, in that it takes enormous (by current measure) amounts of bandwidth and storage to copy a quality movie. Music is quite compressible, and too many tin-eared fans are willing to settle for crappy-but-tiny MP3 recordings. But as long as people want to share the experience of a movie on the big screen, and as long as HDTV requires a relative firehose of a network connection for high quality, AND as long as they can convince people that quality matters, they'll be able to keep making money on TV and movies.
John
That's what this whole situation is. It's all about greed.
You have the RIAA releasing TERRIBLE full length albums while abandoning the single. You have radio operators like Clear Channel only providing space for 2 or 3 new songs on their national playlists, and demanding that those 2 or 3 new songs be songs that appeal to the target advertiser's say are the most important (13-25 year olds.) 13-25 year olds, not having a lot of money, opt to pirate the ONE song they like rather than pay $20 for a CD full of terrible music. And the circle is complete!
And let's not even get to how the music, radio, and retailers are failing people over the age of 25. When the hell is the RIAA going to realize that if 13-25 year olds aren't going to BUY the music, they should start making music for the people who will shell out the money (ie, people over 25.)????
The Generation
I'd say something witty here, but I'm not that bright.
This is a lot more true than a lot of people who want to blame piracy realize.
Every time I go into the local record store, there's some really crappy music playing. The CDs cost $18-19, sometimes $21 or so if it's a double CD.
The selection sucks. The RIAA is putting out a ton of the same. I'm sure this is a hit with certain people, but I don't need five different CDs by five different dyed-blond pop starlets, or five CDs from the newest country hit guy with a mullet, or the black guy with a ten pound gold chain, or the Aryan looking guy who wants to be that black guy and hates his wife, or all the clones of all of these people. Sometimes some of them have a good song or three, but usually, not so much. The goth/punk/emo clone bands are the same.
I can go to a store like Walmart, or Target, or Best buy, and get these same CDs for $14-16. Or I can get them at Amazon.com for a similar price (and if I get two, it's over $25, and I can get free shipping). Or there's iTunes. Which now offers some tracks without DRM.
And the local record store? It isn't local. It's a chain of overpriced music. This isn't a family owned business, and I'm sure there are tons of places where the record store isn't the "two working people with families..."
The RIAA pisses people off. DRM and Sony's rootkit actually did get the attention of non-techie people, at least some that I know. The atmosphere kind of sucks, and the prices definitely suck.
Further: Book stores that aren't chains are also taking a beating because there are cheaper offerings elsewhere. As far as I'm aware, there isn't a huge problem with book piracy.
When I was a teenager, almost all of the radio stations in my area were independently owned. They didn't have playlists, didn't subscribe to programming services and didn't play the same music. In fact, you were actually pretty lucky to hear your favorite songs more than once a day. The DJ played what they liked or what they felt like playing. Which made for some very interesting listening, especially at night. I swear some of 'em put on Innagadadavida just so they could slip out for twenty minutes...
I guess radio stations figured out that they were supposed to make money 'cause they started playing just the top 10, subscribing to programming services or sold out to big media companies. Things went downhill from there.
That is, the model under which a designer spends a year coming up with a new model of Ferrari, and later hopes to get paid for it by taking a cut of every Ferrari sold, will be superseded by one in which the designer advertises his services to Ferrari enthusiasts, collects a few bucks each (held in escrow) from thousands of individuals, and then releases his new design once he's collected enough money.
A business model like that one cannot be undercut by new technology. Information can be copied, but labor and talent cannot. The artists' human effort is where the value in music ultimately comes from, and as long as there's demand for new music, there will be demand for musical talent. All they have to do is break themselves of the habit of thinking their job is to sell plastic discs, and realize that if they have talent, people will be willing to pay them directly for the time they spend writing and recording.
It sounds like a big change, but really it's just bringing the music industry up to parity with, well, pretty much every other industry in the world, where if you want to make twice as much money, you either find someone to agree to pay you twice as much (before you do the work), or you do twice as much work. People in the music industry have gotten used to the idea that they can perform a finite amount of work, but keep extracting more and more money from it indefinitely - which is cushy, but not sustainable. There is no argument for it being a "human right" except in the most perverse, materialistic, greedy sort of way. Well, I suppose that's one way to look at it. But if you're looking at it that way, there's also no argument for any "human right" to use calculus, or the speed of light, or to include the word "perverse" in your post. You didn't invent that word, did you? Someone else did, and doesn't he deserve to get paid if you're deriving benefit from it? Quick, go find the heirs of the guy who first uttered that word, and cut him a fat royalty check!
Get real. We as sentient beings do have the right to share information with each other, to use our minds, and to use technology to do what our minds cannot do alone. If you sing a song for me, I have the right to remember it, write it down, and sing it for someone else. You don't own those sound waves once they leave your mouth and enter my ears. You can't own a song any more than you can own a number. If you don't like the fact that people can share your songs once you sing them, then don't go around singing songs for free before anyone has agreed to pay you.
Visual IRC: Fast. Powerful. Free.
I disagree. The market changed. There's no guarantee that says people with middleman jobs (persons who try to add value by standing between the producer of a good or service and the consumer of that good or service) will have a job forever and a day, even if it seems likely to them. Markets change. People change. For many reasons, some of them you may be in sympathy with, some of them not.
I used to run a web store, "The Martial Arts Bookstore." Very specialized. I added value by carefully categorizing the books, inventing a "virtual shelves" mechanism that fit the needs of the shoppers. I also did capsule reviews of each book (I'm a martial artist with dan ranking across several disciplines and a scholarly interest in all of them.) I wouldn't even carry the low quality books that plague martial arts; there are plenty that were very high quality indeed. Initially, it did very well. Then Amazon opened; they not only had oodles more purchasing power than I did, they were able to run at a loss for years; I couldn't possibly do that. So I ran a last fire sale (which didn't sell much either) and then closed the site. I wasn't angry, I didn't write a whiny letter to anyone, and in fact, I became a very good customer of Amazon. I moved on to something else that was more appropriate to the times, and I have no complaints at all. It was fun, it was interesting, and it wasn't permanent. I see nothing to bitch about in any of that.
Things change. Accept it, move on, STFU.
Music isn't dead, and it isn't going to die. Let's face it - as musicians, as listeners - the producers and consumers - we're going to be fine. As musicians, maybe we'll have to move to a different distribution model, and maybe it'll be different as to how one becomes top of the heap. It'll still depend on your music to some degree, though; maybe moreso. As consumers, maybe we'll have to use different skills to find stuff we like. Surely the radio hasn't been a good source for anything but the crassest pop and bottomfeeder "repeat it until it sucks" marketing mechanisms for years - personally, I look forward to changes in the landscape. As for the middlemen, things change. Maybe I'll have to close my music studio. No sign of that yet in terms of my customers, but OTOH, you can buy mixing and recording equipment for a fraction of what it used to cost, a rack-mount mastering unit that can really do a very good job... there are no guarantees, anywhere for middle people. Not in music, not in written material, and not in video. If you find a niche and you can make it work, my hat is off to you. If it stops working, though, it is you that needs to change - sniveling about how you thought you'd be able to "spend your life" doing something is just despicable.
So that's why I'm not very impressed with the article.
I've fallen off your lawn, and I can't get up.
Or it could be that the people who say "adapt or die" and those who say "outsourcing is wrong!" could be different people. And that the Slashdot community is not a hive-mind. Just a thought, you know.
Those who can, do. Those who can't, sue.
The RIAA is really off base about piracy, when a major part of their decline is due to the demographic shift of the US population. The baby boomers are older, and have a disproportionate share of disposable income for entertainment. They tend to be less interested in video games, and not as interested in the fare which tends to dominate the movie theatres. In short, a wealthy group of people who grew up listening to music on the radio when there were fewer choices for their entertainment doller and inclined to choose it over most other forms of entertainment.
So, what does the music industry offer this huge group of potential consumers?
1) Music acts who have been marketed and chosen based on their appearance on videos rather than musical talent.
2) Music acts consisting of people who are 18 to 24 years old. 30 year old musicians? Hell, they don't even play those on VH-1 any more. Oddly enough, musicians like Joan Baez, Ry Cooder, and others who were big in the 60s, when these baby boomers first started listening to the radio, can't even get arrested in the music industry.
3) Music acts who are rehashing the same music baby boomers bought 30 years ago. Music trends are cyclical, and I've already got music from 3 discrete generations of bands that sound like the Stones.
4) An opportunity to re-buy our record collections yet again. It's bad enough that the RIAA complained when we wanted to tape our vinyl LPs so we could listen on portable devices and our cars. No, they wanted to sell us cassettes. Then CDs.
5) Reduced choice in an ever-expanding universe of choices. Catalogs are clogged with mediocre music, and the labels are simultaneously taking lots of things out of print. In the meantime, the digital world and business models like Amazon.com are trending towards the infinitely deep catalog, and the RIAA just doesn't get it. I understand that there isn't enough potential business to justify a CD re-pressing of the Fabulous Poodles record from 1980, that's probably at least $2000 in costs, plus the distribution, etc. However, encoding that record from the CD and distributing it digitally is probably less than $2 of labor. I guarantee they'd get a much higher return on investment than they get from letting it die.
One of the quiet successes of iTunes is its deep catalog of jazz, classical and baby-boomer-friendly acts. For someone like me who is technically quite capable of encoding music from my old collection, but far too busy to bother, 99 cents is a very fair deal for the one song I recall from an old album. I buy new music, too, but so much of what is pushed by the major labels is just not even aimed at me.
If the RIAA was actually courting customers rather than suing them, they would be much healthier. As it is, their pursuit of the shallow teen dollar is biting them in the ass as their audience continues to skew older. Meanwhile, the teens they are actively pursuing have a completely different outlook about their entertainment choices. Hell, who ever thought that a whole genre of music would ever appear based on cheesy videogame soundtracks from the 80s?