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Why the RIAA Really Hates Downloads
wtansill recommends the saga of Jeff Price, who traveled from successful small record label owner to successful Internet-era music distributor. His piece describes clearly what the major record labels used to be good for and why they are now good for nothing but getting in the way. "Allowing all music creators 'in' is both exciting and frightening. Some argue that we need subjective gatekeepers as filters. No matter which way you feel about it, there are a few indisputable facts -- control has been taken away from the 'four major labels' and the traditional media outlets. We, the 'masses,' now have access to create, distribute, discover, promote, share and listen to any music. Hopefully access to all of this new music will inspire us, make us think and open doors and minds to new experiences we choose, not what a corporation or media outlet decides we should want."
The control of media means more money for the record company.
When I ran the music department of an independent store, I learned first-hand just how much control they exercise over the music industry. I knew six months in advance what songs were going to make the charts, because those songs were the ones the labels pushed off on radio stations. The line from the salesman would sound something like this:
"This is the next album from Blonde Dance Clone #4. Tracks 5 and 8 are going to be all over the radio before it comes out, and 5 will probably be in the top 10. We plan to have five million copies distributed for release. We've got endcaps, freestanding displays, placards, hanging signs, and posters. Later we'll have a pile of promotional goodies."
What downloads do to that industry even with no impact on sales is they make demand less predictable, which means their margins are reduced. That's what scared them from the start...the loss of their ability to dictate our tastes in music and control the top 40 charts. Napster especially meant that they could no longer shove their choice of music down our throats via radio because radio was no longer a primary source of new music for millions of users.
A record label that sells hundreds of millions of albums a year doesn't care about someone who might move 10,000 or even 50,000. It's not even that an artist wouldn't make money that they don't sign them...it's that the artist wouldn't make *enough*
120 characters for a sig? That's bloody useless.
If course, that's only true if signing a band or musician has zero overhead. If there's a cost to the label for each signing, then they have finite capacity, and will want to pick and choose.
There's also scarcity economics at work at this level as well. If every high school wannabe rock band had a contract with EMI or Sony BMG, then the perceived value of that contract would plummet. Similarly, if every museo you met had a contract, and was nevertheless practically penniless, then no one at all would sign up, since they'd be taking on obligations with no expectation of recompense.
Don't let THEM immanentize the Eschaton!