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New Music Boss, Worse Than Old Music Boss

frank_adrian314159 writes "David Lowery, musician (Cracker, Camper Van Beethoven), producer (Sparklehorse, Counting Crows), recording engineer (Archers of Loaf, Lamb of God), and geek (programmer, packet radio operator, ex-CBOT quant) talks about the economics of the music business and how the 'old boss' — the record labels — have been replaced by the new boss — file downloading services, song streaming, and commercial online music stores. His take? Although the old boss was often unfair to artists, artists are making even less money under the new boss. Backed with fairly persuasive data, he shows that, under the new distribution model, artists — even small independent ones — are exposed to more risk while making less money. In addition, the old boss was investing in the creation of new music, while the new boss doesn't. This article is lengthy, but worth the attention of anyone interested in the future of music or music distribution."

9 of 567 comments (clear)

  1. the problem is there is too much music by alen · · Score: 5, Interesting

    the bosses aren't the problem, the problem is the amount of product

    i like most rock from the mid 60s to present day. there are so many good bands to listen to that its impossible to buy it all on CD. too expensive.

    recorded music is your advertising and you should be making money on live performances from the real fans

    just like almost every line of business these days. break even or lose on 90% of your customers and make your profit on the rest. something like 4% of dropboxe's customers pay them, yet they make A LOT of money

  2. Competition? by Zaphod+The+42nd · · Score: 5, Interesting

    There are more music acts than ever, and they are each individually able to reach a FAR greater audience than before. The number of people and the amount of spare money the public has to spend on entertainment has been fairly constant. So, of course, each individual artist is going to make less. There's new genres and new artists every day.

    Futhermore, now we have videogames and other new media competing for our entertainment dollars.

    Its not that artists are making less money. Its that there aren't as few mega "rock stars" as before. You don't have the beatlemania where people are going crazy for a particular one act, who effectively has a monopoly on popular music.

    Finally, they can't force us to buy 12 song albums with 2 hits and 10 crap songs anymore. We've broken their hold on that business model. Now we expect to be able to pay .99 cents to get the 1 song we want. That isn't "unfair" to artists, rather, it was unfair to the consumer before, and now its been made right.

    I'm so sorry you can't afford to drink top shelf champagne on your private jet anymore.

    --
    GCS/MU/P d- s:- a-- C++++$ UL++ P+ L++ E+ W++ N o K- w--- O M+ V- PS+++ PE Y+ PGP t+ 5- X R++ tv+ b++ DI++ D++ G+ e++ h-
  3. Sucks to be in a industry? Change industries! by SmallFurryCreature · · Score: 5, Interesting

    This is rather fundamental to the entire copyright debate when it starts to focus on artists being unable to make a living anymore.

    Well, how is that different from ANY other profession being unable to make a living anymore? In Holland it has been decades since the coal mines closed and not because of lack of coal. How would you, or indeed any artist, support any law dictating the installation of gas networks to keep the demand for goal high?

    It goes further. With printing and the translation of the bible came the possibility for the faithful to get their fairy tales from outside the church and my my did the church hate that and not just try to ban this but committed murder on a massive scale to stop this.

    Tech, changes, the, WORLD. It is not just about you holding a computer in your pocket now more powerful then early spaceships BUT it is about our very society changing because of tech. Anything from the pill, to the automobile and the post office box (before the post office box, women could not post without everyone knowing about it, mail became a great liberator long before the Internet).

    And that change isn't always good for everyone. Modern artists have taken the bread away from many of their predecessors. Recorded music? Took the place of live music. Once every movie theater had a small band playing and of course movies took the place of real life artists on the stage.

    You can't stop tech, well you can, red flag in front of cars and all that but ultimately, tech will prevail because for the majority, the good outweighs the bad. The Internet will continue to be. You can't stop the digital age just because you don't like that bits can be copied at near zero cost and be distributed for only slightly more.

    And if you argue different then why do you care about artist who make millions while ordinary factory workers are unable to feed their families because that same tech has outsourced all their jobs? When those same millionaire artists flee the country to tax heavens and buy foreign goods?

    Oh sure, not all artists are like that, they just dream of being like that one day.

    There is still a normal average salery to be made as an artist, you just got to work hard, just like everyone else and not hope people will just buy your 1 good song with ten crap ones for what amounts to several times minimum wage EVEN if you had to perform it live. 5 minutes 1 dollar == 12 dollars an hour wage. Takes more time to write it? Take me more then 8 hours to keep an 8 hour job to and I know who is in more danger of throwing in his back.

    The world has changed, either change with it or get steamrolled. If the artists cared that much about it all, let them strike. I will happily they get the same treatment as the coal workers around the world.

    And if I sound angry? In Holland we have a recession, so how does the leftist (elitist) green party react? Impose taxes on public transport reimbursement payed by employers so you can make art and antiques have a lower tax rate. FUCK THAT.

    And you might think I am extreme but when I voice this in real life, you see people going... well I don't agree, sure I don't buy any music anymore either and I am totally untouched by any plea from the industry or artists... oh wait... I do sorta agree.

    Once people loved artists and were fans of record labels. Now that is no longer true except for the future burger flipper generation.

    And if you don't believe me... do you have adblocker installed? Yes? So it is okay to steal from websites but not artists?

    See? Once the people have been pushed to far, they can stand by and see a group destroyed with no remorse whatsoever. Human beings ain't nice and the world does not owe you a living.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  4. Re:Fairly well known issue by 0123456 · · Score: 5, Interesting

    They can always go live and get paid for concerts. The days of being paid for a lifetime over a month's worth of work is going the way of the do-do.

    Bingo.

    The situation is similar with e-books. A few people can upload one book and make a million bucks, but the majority will make a few thousand per book, if it's well written and the writer isn't particularly unlucky. Which means they need to actually do a normal work week writing multiple books a year if they want to make a living at it.

    Expectations are hideously skewed by the experiences of the last few decades, which are far from the historical norms. For most of history musicians did actually have to work for a living rather than perform once and go on vacation for a year.

  5. Re:Fairly well known issue by Bootsy+Collins · · Score: 5, Interesting

    Are we going to see millionaire musicians anymore? Absolutely not. Those days are done. But is music dead? Certainly not. But the record labels are no longer needed. An artists can make it on their own. Will they make the same money? No. But this is the point: yes it's less money than before, but it's either that or nothing. The old days are gone and people are going to have to accept it. But it's good because now the artists will own their own creations and can sell directly to the fans and keep all of the profits.

    The problem isn't that we aren't going to see millionaire musicians anymore. The problem is that your statement that "an artist can make it on their own" is, for the most part, not true. Never mind millions -- almost no artists are making a basic living selling music anymore. I am a musician -- only an amateur, but I get around enough to know and meet lots of professional musicians, some of whom are pretty well known; and I nobody that makes enough money to eat and pay their rent/utilities from music sales. And this is pretty pervasive -- I've talked about this with lots of artists that are big enough to sell out venues that range in size between 500-3000 people and they all say the same thing: no artists, except those at the absolute top of the heap, are making a living selling their music anymore. You curse the big labels and champion the independence the modern era has allowed artists to have, and those are worthy sentiments to have, and I agree with them. But it's important to remember that perversely, the practical effect of these changes has been that only a small number of artists are making money from music sales, and by and large they aren't independent artists.

    These days, to the extent that an artist or act is able to make enough money to continue to make music, that money isn't coming from music sales. It's coming from shows: what they make playing shows (including merchandise sold at shows) minus the costs of doing them. It used to be the other way around: shows existed to promote record sales, and record sales were where the money came from. Now, if you like an act and what them to continue to make music, the best thing you can do for them is go see them live and buy their stuff at the merch table. If I go to a show and I really, really like a band, I'll almost always walk out with a CD (even if it's music I already have -- I'll give it to someone as a gift) because I know that that's what will keep them going.

  6. Re:Fairly well known issue by lgw · · Score: 5, Interesting

    that money isn't coming from music sales. It's coming from shows: what they make playing shows (including merchandise sold at shows) minus the costs of doing them. It used to be the other way around: shows existed to promote record sales, and record sales were where the money came from. Now, if you like an act and what them to continue to make music, the best thing you can do for them is go see them live and buy their stuff at the merch table.

    Most musicians made their living from live performance for all but 60 years or so of human history. It's always a pain when technological changes screw over the way you're in the habit of making money, but that comes to just about anyone in any industry - no reason for musicians to be immune. However, I think long term it will work well, and we'll have as many milionaire musicians as we've ever had (a few each generation), as any musician can now reach a vast potential audience, and it doesn't take much when you have 10 million fans.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  7. The bad songs subsidize the good by Anonymous Coward · · Score: 5, Interesting

    You know, with all their creative vision, artists don't necessarily know which songs are going to be crap songs and they certainly don't try to write them. They still had to invest time and money into the songs you don't like: maybe one in five turns out good, and those good songs are what they make their living from. You're subsidizing their efforts to make more good stuff by also paying for the ones they developed but didn't turn out. The artist is assuming a hell of a lot of risk when you come out and say "I don't ever plan to buy most of what you make, and I won't know what I want until you put it on the shelves".

  8. Dear Mr. Lowery by Mathinker · · Score: 5, Interesting

    Dear Mr. Lowery,

    The Internet is so, so sorry if you are having a harder time because it exists. However, in general, it seems that it is easier for many other musicians because it exists.

    Details can be found at the Techdirt article where you prove, in your reply posts, that you're an idiot, in either your business skills, your public relation skills, or both.

    Oh so sincerely,
    The Internet

  9. Re:Fairly well known issue by Creepy · · Score: 5, Interesting

    yeah, but funding was largely a sham. Dave is right that studio time and agents don't get paid a percentage of record sales, but there are numerous errors in that chart he shows as well as his rebuttal of it, and I can see where this bass player was coming from. Fees for agents, studio time, and expenses all come out of the musician's pocket, not the studio's pocket. The chart completely missed the 10-15% songwriter cut, which for my band was a slightly larger share than share the entire band got (admittedly it was a bad contract, but we couldn't afford lawyers), divvied between all of us, but we never saw a cent of it - all those earnings went to pay studio time (primarily). Our singer songwriter made money on the album, the rest of us didn't.

      All in all it wasn't a failure, though - the band actually made a meager living on the road, and I made a decent living by also playing in both a variety band and as a cellist (solo and quartet) at weddings. In the early-to-mid 1990s both of these gigs paid MUCH better than my band, and both were organized by my variety band's business - I was more like an employee, not an owner, unlike with the band (technically I wasn't an owner, but we divvied the profits) - I'm sure the owner took a large %age, but still $2k-5k (I made 5k twice doing both cello solo and variety band) a gig was pretty awesome. Unfortunately, variety bands ceded to DJs in the mid-1990s and I went back to school and finished my degree so I didn't have to live by random and becoming much more sparse income anymore. The band had broken up by then anyway (mostly over the financial dispute with the record label, and then refusing to make another album without renegotiating our contract - if this sounds familiar, it is hardly rare - see the Stone Roses as an example, and they were much bigger than we were).