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ex-CBOT quant) talks about the economics of the music business and how the 'old boss' — the record labels — have been replaced by the new boss — file downloading services, song streaming, and commercial online music stores.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."
Even indie artists have campaigned against these new services. For example, take Spotify, well known European free music service that gained lots of attention.
Many indie artists tried the service for several months and when the payout time came, they found out they only got a few hundreds (if even that) from the service. It was serious degrade from their previous earnings.
At the same time, Spotify shareholders and investors include EMI, Sony BMG and Universal Music Group. Since Spotify only paid small share to artists, the labels profited from increased stock prices. Because of this, they didn't need to pay artists any share but still profited greatly.
So yeah, there you go. Do you really think you're wiser than these guys? Keep trying to get around them, and they will assfuck you even more. Seriously. Do it. If you want to destroy any nice music we have.
Be careful what you wish for. You just might get it.
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
you should me making music for the love of it, anything else and you're greedy
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
But this is what 'we' want, right?
We don't want there to be multimillionaire 'artists', or hundreds of supposedly indie (but really signed with GenericIndieLabelX that's part of IndieGroupY that is a wholly-owned subsidiary of QuirkyMusicZ, a division of SONY Music Entertainment).
'We' want bands to be able to stand on the merit of the quality of their music - be that through being highly popular at the whim of the way the 'popular' wind blows, or through a devout share of followers who will buy merchandise and go to concerts. We want the remaining artists to perform music not for the money but because they want to perform it for their own joy (either out of performing or out of the reactions of the crowd) and any money they get out of that is just a nice little bonus.
'We' don't care if that means most current artists will just have to find something else to do, and others will just have to make it their hobby next to an 'honest' job.
And if that situation is not to particular people's liking, they would be more than welcome to become patrons of the (musical) arts if they have the wealth to do so.
As long as 'we' get to enjoy music for next to nothing or completely nothing, and certainly with as few middlemen as possible - because that is what the process induced by technology has allowed us since the days of the cassette tape, which the internet has merely accelerated.
tl;dr: Something about horse-and-buggies and all that.
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.
.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.
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
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-
If the artists aren't making as much money as they used to, how about they do the logical thing and vertically integrate? With music stores like iTunes now, there's almost no need for a publisher, where before you were completely dependent on one.
Cut out the middle man, sell directly to consumers, keep all the profits, and probably end up making more money.
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-
It's quite simple - in online, you have to handle your marketing yourself. If you just replace old model with new one, but keep old way of doing things, sorry, it won't fly. Online gives posibility to compete a lot more bands than old system. And in result of course you get less money. Don't like it? Then try to stick with old system. Didn't like it too? Do pros and cons then and see what's working for you.
Also sorry, while I recognize that artists should get something about their efforts - but only then if their art is "consumed". There's tons of music out there. Tons of CC (lot of them really good ones). And it's a pitty, but some of artists can crunch really high class stuff without any sweat, but some has to do lot of pushing. So maybe it's not worth then.
user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
Not to be prophetic or philosophical, but it will be in the end like it was in the beginning.
In the beginning, bands formed and recorded music in their garage, with the best equipment and recording technology that they could afford. The collaborated in the best space they could find (someone's garage) and they self published the recording they made. Maybe they made money, maybe they didn't.
Today, musicians can record with (nearly) the same quality in their house as they can in a major studio. Musicians can collaborate over the internet either directly or with the help of a collaboration service that helps musicians find each other and exchange / submit tracks. Musicians can publish their tracks on services where they either get money per track or as a donation model (see http://coryjohnson.bandcamp.com/ for a perfect example of this).
Musicians can self-promote on the internet, and perhaps reach greater audiences than they can through traditional media and distribution channels.
The musicians simply need to embrace these new ways of doing things and be willing to take on these tasks directly instead of having someone else do it (and probably rip them off in the process).
The internet is hurting everybody, by making things cheap. DJs, singers, authors of books..... Correction: Not everybody; it helps the billons of people who are lower and middle incomes to afford buying entertainment and education online.
So it's a matter of choice: Do we choose to help the small 0.1% of singers, artists, authors by protecting their income with ~$15 CDs and ~$25 hardback books. Or do we help the other 99.9% by offering them cheaper $3 albums or $5 books that you can download from the comfort of your chair? (And also a lot of free material like college lectures.)
I choose the 99.9%.
My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
What money did Van Gough make, if you need to make it do so. If you've got a hair cut some jeans and a record label you bore me.
So now you can't do something that both gets you laid *and* makes enough money to live on. I here the waaambulance coming..
Just because what you do is time consumptive and requires skill, doesn't mean that your somehow special and entitled to make large sums of cash. I mean the food that you eat is inherently more important than any music you make, however people slave at near or below minimum wage to produce it for you, and somehow you presume your labor is more important? Because you have the force of government on your side to protect your interests, because you end up lobbying them with massive amounts of money to do so? The idea that you should limit a limitless resource, so that you can extract alot more value out of it, sounds alot like extortion to me. Just because that sort of extortion is propping up our economy doesn't mean that its right, its a form of non productive consumption and people would rightfully so, switch to a form of production that the market finds more valuable and scarce otherwise.
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.
Unfortunately the writer completely ignores is the real reason profits are going down for everybody. Competition. The old model granted exclusivity and control of the distribution channel. That, and a huge degree of social manipulation. They were both able make sure that there were a small number of artists/records and that those got exclusive play all distribution channels.
With the new model there are many many many more artists, more styles, more availability. I can listen to several albums from a band called "Austrian Death Machine" that makes songs exclusively based on Arnold Schwarzenegger movie quotes. (Not kidding) This band has several albums. This band could not exist in the old model.
Ultimately artists make less because the pool of money has more players to be spread to. Demand is lower because the supply is high, and the price is lower too. Ultimately, the price of a song really is as low as an audio ad every few tracks. (Going off Pandora as a model here)
Personally I welcome this, because 99.5% of what large music companies publish is pure garbage. Statically optimized, designed by committee, autotuned, sensationalized celebrity worship audio filth. The faster we bring these dinosaurs down the better for the human race as a whole.
It took a while to find anything solid but these I considered informative,
Under the new digital model I calculate that most label artists get between 15%- 35% of wholesale. For example the most recent of my recording contracts says I should get a total of 20.5 cents on a 99 cent song (including mechanical royalties). This works out to 29.7% of wholesale. So this part of the new digital paradigm is about the same as the old record label system.
So when you compare share of revenue for artists on record labels under the new digital system to the old system it looks pretty good. At least until you consider the fact that the price of music has dropped. For instance, an artists royalty on an album is now calculated at 6.90 not at a $10.00 wholesale price as it was in the 1980s. . This drop in the price of music was inevitable. But the record labelâ(TM)s expenses fell considerably in the switch from physical to digital products whereas the artistâ(TM)s expenses (the recording budgets) did not. So this had the effect of reducing artists net revenues and shifting revenue towards the record labels. For the new digital distribution model to be as âoefairâ to the artist, the artist share of download revenue should have increased. It stayed the same or increased only marginally.
and
And then there is that iTunes store 30%. Seems kind of high to me. What is their risk? Today in 2012? Do they really deserve more per album than the artist? At least the record labels put up capital to record albums. At least the record labels provide the artist with valuable promotion and publicity. Historically in the music business when someone was taking more than 20% of gross revenues that had some âoeskin in the gameâ. They risked losing a lot of money.
This does show a problem with the economic system that the industry has set up. Consumers ran screaming from one oligopoly to another. Is it this really surprising that artists are still taking the brunt of it when you are still dealing with the same businesses?
The artists were part of the problem in the old system. So long as they are trying to perpetuate the abuses of the current copyright system, they are still a problem. Until the DMCA and CTEA are overturned, we should celebrate the losses of any musicians that rely on these for profit. They are party to the greatest theft from the commons ever. They can work for free until that debt is repaid.
This guy is well reasoned, but he is missing the point:
While services like Spotify give you exposure, they are still a middle man and they have to take a chunk out for their expenditures.
If you truly want to make more money as an artist, you gotta BE the middle man, and cut out the guys who take some of your money.
With Music/Movies/Video/Shows, thanks to digital media you don't NEED distributors. This guy is trying to play the game the new way with the old board.
Amanda Palmer just posted a very long and informative blog about where all the money goes when people donate to her Kickstarter effort to finance her upcoming tour/album. In that post, she references Steve Albini's classic rant against an industry churning through young talent and keeping all the candy for themselves (well, one of his rants on the topic, anyway).
I'm glad to see these issues starting to get major traction and hopefully change can come from without, since it will never come from within.
I like music
The real "problem" is that musicians and record companies con no longer make as much money selling crap as they used to.
Prior to iTunes and other legal methods of downloading music, there was only one way buy music -- you went to a store and bought an album. Whether it was a CD, vinyl LP. 8 track tape or whatever, and it didn't matter if half the songs where crap. That was your only choice. Period. And that was a great deal for both musicians and record companies because it meant that they sold a lot of albums and made a lot of money. And lets be honest. Even the all time greatest "classic" albums have some filler on them. Songs that absolutely nobody cares about. In the past, it didn't matter, you bought the whole album and the musicians'/record companies got the maximum amount of money
But now, that's no longer the case. Only like 3 songs from an album? You just buy those 3 songs. And the math is pretty simple:
-- A million people buy those 3 songs from the album -- the artist royalties from 3 million songs sold on iTunes is a lot less than 3 million albums sold.
-- A million albums sold with 12 songs per album = $1,080,000 in publishing royalties for the songwriter (9 cents per song). But if a million people just buy those 3 songs publishing royalties = $270,000.
In the end, it's really no different than any other technological change. You can't make a living delivering packages by stage-coach anymore either.
Who here read the title and thought they were talking about the background music during a boss fight?
A lot of his criticisms of the current "new" system are valid. But the fundamental problem, as I see it, is that instead of truly "breaking the paradigm", everyone is treating the business the same way it had been.
In short, they know the players have changed, but nobody's realized that the game can be changed. Artists still expect some form of publisher to pay for their studio time, they still go to some publisher to publish their music. And now they complain that the publisher is still taking too much money.
Here's an idea (and it's just that, an idea): Go completely, 100% independent
Use Kickstarter or the like to get the cash to record an album. Having a demo of one or two songs should suffice, if you can market yourself properly, and you can self-fund demos easily enough.
Once you have the album, sell it on your own site instead of iTunes or Amazon. Maybe Humble-Indie-Bundle it with other, *similar* bands, if that can give you more publicity.
Either use the profits from the album, or ticket presales (Kickstarter may work well again), to go on tour. Get merchandise to sell - t-shirts, physical CDs, posters, etc.
Make sure to have some sort of contact for licensing. If Hollywood Director Q wants to use your song in Summer Action Movie Part XIV, you shouldn't make it hard for him. Commercials. Radio play. Anything - if someone wants to pay you to use your music, it needs to be possible. And price yourself lower than the Big Media bands do (since there's no publisher to take a 90% cut, it should be easy).
Between album sales and concerts, it should be possible to make a good living. The era of the multi-millionaire superstar is probably over, but honestly, I won't mourn them.
There are some problems with this. The publisher is normally the one to do all the advertising, so you'd have to do that yourself. It means a band *will* need some sort of marketing person to succeed, from Day 1. Music critics will also have to do a much better job - they can't just look at the list of what Big Media inc. is publishing this month, listen to the CDs mailed to you, and write down 4 stars for all of it.
There's probably a million other problems, too, but we won't find them until someone at least *tries*.
Today, musicians can record with (nearly) the same quality in their house as they can in a major studio.
Just to be clear: they can't. The recording equipment has become much cheaper, but the the cost of making an acoustically designed studio has not. Nor has the cost of hiring an experienced engineer for the recording. I love what can be done with today's PC-based recording equipment, but a real studio is still a real studio and a garage is still a garage, even if the tracks ultimately end up on a Mac either way.
Write songs that are catchy enough to be picked up by ad agencies to be used in TV commercials. Best if they have choruses about freedom, cars, or hair. Niche songs might obscurely allude to feminine pads.
There are 0x40000000 types of people: those who understand 32-bit IEEE 754 floating point, and those who don't.
There is a reason Big Music has to bribe, threaten, buy out and coerce media and sellers: on the whole, 95% pop music has never been any good, requiring brutal tactics to shovel shit into the public consciousness. Therefore, hones marketing and buying of music has to be a smaller business. Also: where is it written in stone by God that musicians have to be wealthy?
The Internet is burning down market models all over the world
You can't pass judgement on the new models, until the smoke and ash from the old ones is gone.
It’s usually after someone like myself suggest that if other people are profiting from distributing an artist’s work (Kim Dotcom, Mediafire, Megavideo, Mp3tunes,) they should share some of their proceeds with the artists.
Maybe I'm not hep to the way you kids are getting music these days because I have to spend time keeping you all off of my lawn, but these services advertise a way for me to access the music that I bought from any device anywhere that I happen to be.
Is he implying that Mp3tunes should be paying him to store my music and make it accessible to me from wherever I am?
Let's see...I have a SanDisk MP3 player. I have a bunch of music on it. Should he be getting paid by SanDisk? After all, SanDisk made a profit selling me a device to listen to their music. Without that music, why would I buy a SanDisk MP3 player? Shouldn't some of that go to the musician? How about that CaseLogic case I have to hold CDs? They made a profit from that. Shouldn't some of that go to the people who make the music that I hold in that case?
You made your money selling me the music. Now go away.
in the future of GOOD music.
I suppose therein lies the crucial difference.
But then again, I am a consumer, not a 'music' 'pusher'.
Have a nice day!
then you're probably in the wrong business.
The arts have always been a 'winner take all' tournament. To then come along and think the world owes you a living because you're a musician is naive and ridiculous.
Obliquity and all that. You're in the music business to make good music, not make money. The best enterprises in the world don't exist to "create shareholder value". They exist to be the best at what they do. Profit is merely a means to keep score.
Here is the problem with his argument. He is ignoring the fact that in a capitalist system there is supply and demand. The demand for recorded music has not decreased, however the supply of recorded music has gone to infinity. When a song can be copied for free with no real world costs then the supply becomes infinite and cost goes down to zero. If the market for recorded music were truly a free market that cost would have gone to zero as soon as Napster was invented. However, we have a protected market in the form of copyright that has artificially propped up the price of recorded music and thus has delayed the inevitable.
To use an example that he uses consumers want other things for free such as cars but can not have them. This is true do to the basic laws that are killing the price of recorded music. However to equalize the analogy, if GM were to somehow produce a trillion cars next year, there would be way too much supply and the price of cars would drop to probably near zero but not zero because a trillion cars is still not infinite as music is.
So how are musicians supposed to make money? They have to innovate and compete with free and it can be done. The greatest example of competing with free is bottled water. I am willing to bet that the vast majority of people reading this can walk a few feet and find a source of fresh, drinkable water for essentially free, yet the bottled water industry has made billions selling what is ultimately the same thing. How did they do this? They provided the product in a convenient manner that consumers wanted and people are willing to pay them for it. Is it hard to do? Yes. But look at how long water was around before someone put it in a bottle and became rich off of it.
This guy does make some reasonable points, but for all that he thinks himself an uber-geek, he is apparently disconnected from the realities of the tech world today.
He thinks that technologists like software patents. Most technologists who are familiar with the issue are strongly against them; the only group consistently in favor of software patents is the patent lawyers.
The downside of his proposed deal, in my view, is not abolishing software patents (which would instead be of tremendous benefit), but abolishing music copyrights. For all that the strength of copyright protection has weakened in the Internet era, it is not zero by any means, and still plays its role of promoting the 'progress of science and the useful arts'.
The big problems come if you attempt to recreate, via stringent and draconian restrictions, the strong copyright regime we had before the Internet. These attempts are doomed to failure, and will create significant collateral damage while failing in their intended goal.
Look at Justin Beiber, no internet, no Justin. Also, the author of the article completely overlooks the fact that the largest downloaders are also the largest purchasers of entertainment. File trading has replaced radio as the medium of choice to find new music. If we eliminate file trading we also eliminate the path to the audience. People won't buy what they can't find or can't hear.
Be careful what you wish for. You just might get it.
If that is the moral then the article author might be in trouble given his stance. His last sentence is:
I’ll make technologists a deal, I’ll give up my song copyrights if you give up your software patents.
So how do we accept? More telling is that I think it shows he really does not understand the digital side of things very well. Outside major corporations or patent trolls I imagine many people would happy see software patents disappear.
Facebook page is filled with angry comments from their followers that seem to all be unsuccessful Canadian hip hop artists who proclaim:
“We are gonna turn you into Lars Ulrich and bitch your band sucks anyway”.
Man I haven't laughed out loud like this in a long time, and it's amusing because the image of the "unsuccessful Canadian hip hop artist" is J-Roc from Trailer Park Boys.
I think the real issue with the "new boss" is you don't have it figured out yet, where the "old boss" was tried true and set in its ways, we are better off with the new boss, fuck the labels.
"If any question why we died, Tell them because our fathers lied."
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".
This is where I buy music today: http://magnatune.com/ I bought their entire list, past present and future, in a lifetime subscription. I listen to everything, whether it's something I think I like or not. I like lots of it, and the rest expands my listening capacity.
Mike O'Donnell http://people.cs.uchicago.edu/~odonnell/
Wouldn't this be wholly dependent on the distribution channel? I mean if you're going through Spotify and they're not paying you but beans, or iTunes isn't exactly working out, couldn't you...you know...use *another* service? The cost of reproducing the songs is nil given that it's already in a digital format, so it doesn't hurt to shop around. I know they don't have a lot of popular support (last time I checked anyway) but what about services like Ubuntu One and Magnatune? Especially on the latter the payout model's pretty simple and straightforward. You could also say, "fuck it," and just put your stuff out on YouTube/ThePirateBay/Facebook/Google+/Wherever for free, with links to your event calendar for shows and something like Magnatune if they want to support you otherwise, maybe even a Cafepress/similar site for swag. I'm not saying it's all the artists' fault mind you, industry execs are some evil filth, but they're not exactly lacking in options.
"Just a fox, a whisper."
It could be argued that making money as a musician has been a short-lived thing. Outside of top-tier composers producing music for nobility no one could earn a living. But over the last century, with the advent of various technologies being a musician became a viable career. Now, because of the commoditization of music and easy access to entertainment the opportunity to make money is evaporating for a lot of people.
Of course, it will never go back to that. Independents will flock to whatever service offers the best deal, or find their own methods of distribution. Music as a big business will always exist. Most consumers, especially youth, are not picky. Their music selections are based on what conforms to their lifestyle identities. And that's all based around conforming to whatever group they've pigeonholed themselves into. So they will continue to lap up whatever garbage the studios produce. Those catering to that demand, supported by the studios, will continue making a lot of money. It's every one else beneath them, who haven't reached that level of celebrity, who will struggle. This is all firmly intrenched in celebrity culture. Complain all we want but that, unfortunately, is not going to change.
In the beginning, bands formed and recorded music in their garage, with the best equipment and recording technology that they could afford.
Did you know? Humans, including musicians, inhabited the planet for a long time before you were born. Its true! Believe it or not, professional musicians existsed long before garages or technology.
The old model of "play for a room full of people in return for dinner and the hope someone will throw me some money" will wark far better now that the whole internet can fit in your room, but this is not exactly a "new" way for a musician to earn a living,
Socialism: a lie told by totalitarians and believed by fools.
He claims to out-geek most people, but he misses the obvious economics. Every year the supply of music grows, every modern band has to compete not only with all the other bands recording today, but with every band that has recorded a song since we started recording music. Most of us aren't going to greatly increase the amount of money we spend on music, so as the music selection grows each individual artist should expect to get less. Add to that that it is now possible to go find public domain or creative commons music and you're trying to compete with 'free', which is hard to do in general. There will probably always be a few bands that can make millions just making music and putting on a show, and there will always be money for the teenage pop junk since that's never really been about the music anyway, but beyond that it will probably only become harder for a band to make a living solely from music.
This loss of control has nothing to do with the internet, it has to do with Labels losing control of prices, i.e. the loss of the price fixing case 10 years ago, and reduction in cost of entry into the market. Fifteen years ago, bands I saw had to work hard to get the money together to press a CD. Now most of the costs is studio time and marketing, which has also fallen Labels can't keep prices high, lower cost of entry means more competition, profit per item falls.
Then, of course, if the ludicrous idea that the new system is worse than the old system because less profit is generated in the new system. No one who creates a product automatically deserves to profit. At least in the US, we are guaranteed the right to pursue profit, but no one is guaranteed profit. With both conservatives and liberal trying to prop up failed models that is hard to remember, but it is the truth. If I put out an album, there is no law that says someone has to buy it, and no law that says some one has to buy it at a price where I can make a profit. That is why Walmart exists, and why so many products are no longer made in the USA.
So the question is can creators keep up with new market realities, not does the market have an obligation to prop up legacy suppliers. If an content creator is still making a profit, then all that matters is if the content creator leaves or stays. If the content creator leaves, is there someone who will be willing to work for prevailing rewards, and if not does it matter? For instance, if the rewards for pop music were so low that no one would want to do, would society fall. Note that for jobs that are critical to society, we often prevent these workers for asking for high wages.
So while i think the paper has some interesting content, the idea that we should pass laws or change society to guarantee a profit is simply silly. We have already critically wounded our democracy by passing laws that allow copyright holders to overwhelm the rights of arbitrary citizens. Let them make a product people value instead of insisting that god have given them the right to be rich.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
I love what can be done with today's PC-based recording equipment, but a real studio is still a real studio and a garage is still a garage, even if the tracks ultimately end up on a Mac either way.
An acquaintance of mine has recorded music tracks for multi-million dollar movies in his garage (not Hollywood level, but not two guys and a camcorder either), so I would suggest you may be wrong.
There are literally thousands of brilliant rock/pop groups in the world - as to why they don't make the money and circulation and distribution they should? It's a complete mystery to me.
P2P is absolutely not helping things though. Way to many casual music fans "check out" lots of music, buy very little and then keep what they've "borrowed" permanently. Most good indie records can be streamed for free in its entirety for a limited time. A perfectly reasonable middle ground to give people the opportunity to hear the album.
I like mog though (it's worth the 5/month to not hear ads on spotify) and then when I like something I buy the physical product (either LP or CD)
JP
One could argue that people can now take the money that they would have spent on buying commodified music and spend it supporting new/local/independent artists. This argument can be applied across any field that is rendered less expensive by technology. However, I think it is more likely that wages will fall, now that people need less money to satisfy their desires, while still feeling just as content. Back in the 30s and 40s, you needed to have a whole community of local artists to sustain any sort of access to culture. Now all you need is a cheap smartphone or laptop. I'm no luddite, but technology is not a one-way road toward a better life.
Since we're telling stories: a friend of mine who is, among other things, a proper audio engineer, recorded the narration for my wife's last film in his office since a studio wasn't available and renting one wasn't in the budget. He used an excellent microphone, an excellent D/A converter, and the result sounds very good. Her narration sounds great, as do the trucks and streetcars going by. Studios do matter.
Of course it did. There's no reason whatsoever to think that basic laws of supply and demand would apply to music any differently than any other product. There's a lot more supply in the form of artists and songs, and relatively constant demand in the form of disposable income, therefore the music is worth less than it was back before the Internet broke the distribution monopoly.
Please stand clear of the doors, por favor mantenganse alejado de las puertas
And that will stop digital distribution how?
"For a successful technology, reality must take precedence over public relations, for nature cannot be fooled." Feynman
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Some of the greatest rock and roll records ever recorded were done in non-studio environments, in live venues or very low end studios where carpeting on the walls was what mattered. Exile on Main Street was recorded in the basement of a 19th century French Estate.
And what percentage of the listening public would even notice when so many are happy with 128k MP3s played back on cheap Skullcandy headphones?
I'm sure there are some kinds of music (acoustic, jazz, classical) that attract the kinds of people who claim they can hear the difference between 3/0 and 4/0 speaker wire or who made the tubes in their amplifiers. For them, the studio location may matter.
But for most forms of popular music, the music is either totally electronic and thus doesn't care what physical space it was created in, or it's likely to be the kind of music that might actually sound better in a more raw setting.
All-in-all, with decent microphones and basic engineering, a band of today in a garage can probably make a basic recording that's as good or better than what many studios could produce in the 1960s.
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
So those companies who tried to find the best artists made no more than those who signed anyone. Perhaps the successful artists are not successful because of any extra talent, but rather because of the support they received. Perhaps the "new boss" just makes this lack of special talent more obvious!
The real "Libtards" are the Libertarians!
Since we were talking about the RECORDING INDUSTRY here, I had hoped you would limit the conversation to the realm of the RECORDING INDUSTRY and RECORDING music.
The thing that is new is that the musician(s) / band no longer absolutely needs the studio executives, the studio marketing people or the studio provided recording facility / engineers to produce a quality product and successfully market it directly to the consumers. The musician also no longer needs the studio to make the connections to those who need music produced, such as filmmakers and TV ad producers.
I haven't seen a single comment here that wasn't rebutted in the original article. Of course, it's always better to mouth platitudes from talking points and say tl;dr than to actually read the thing and... you know... be challenged. It's the geek-arrogant way (also covered nicely in the article, BTW).
That is all.
Just to be clear: they can, but I wholeheartly agree on having good engineer at least and/or recording producer for it. Having acoustically perfect studio is overblown. You can record vocals in it, but for rest lot of interesting tricks can and is used. Radiohead recorded their last LPs in various places, most of them wasn't studios.
But having good engineer at least is a must, because it speeds up things considerably.
user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
My first problem is that you don't have a constitutional right to IP. It isn't in the Bill of Rights. It's in the power of Congress section. That means it is up to congress how to deal with IP. We could get rid of it tomorrow with just a plain old law no amendment needed.
Most importantly is the ignorance of economics. The author doesn't go far enough back in music history. Go back before there were recordings of any kind. How many people made a living being an artist? How many we're wealthy? It was the recording technology that let artists reach a large audience. Coping records was capital intensive so the recording and publishing industry was able to make lots of money.
But now technology advanced to the point where coping is nearly free. The recording cartel can no longer exist. Sure they will try to use laws to keep it alive but it's a losing battle. There will be no money to be made in recording.
The answer? You will have to work. That means playing for audiences, selling merchandise, and figuring out how to get people to pay you for real goods and services.
How many geeks here would live to return to the 90's where all you had to do is make a website and go IPO? Well too bad those days are over.
I love Jesus, except for his foreign policy.
obviously, http://www.kickstarter.com/projects/amandapalmer/amanda-palmer-the-new-record-art-book-and-tour never, ever, never - nope, impossible
AFAIK, there was a time when musicians would earn their living by performing their music.
none
market saturation
you sell 100 albums at 15, or 300 albums at 5. you still make the same amount..however..the scaling might actually be better, allowing you to sell 500 albums at 5.
"Further the new boss through it’s surrogates like Electronic Frontier Foundation seems to be waging a cynical PR campaign that equates the unauthorized use of other people’s property (artist’s songs) with freedom."
The EFF? This guy's a lunatic and his career is completely fucked.
Perhaps Wikipedia's part of the conspiracy to destroy his business too.
http://rocknerd.co.uk
Isolation booths big enough to house a person doing narration can be had for a few thousand dollars. Ones big enough to hold an entire large drum kit, maybe $10k. Sure it's not free, but it fits in a normal residence and pays off quickly when compared to studio time.
How is the Riemann zeta function like Trump rallies? Both have an endless number of trivial zeros.
"Artists For An Ethical Internet". I'm sure the grass there is 100% organic and not artificial in any manner.
http://rocknerd.co.uk
It doesn't cost very much to build a studio, all you need is some plywood and acoustical tiles. It isn't rocket science. Lots of people have built such things in their garages or better yet basements.
Where do you get a good engineer, though? You certainly can't trust the "professionals"; look at how those morons have ruined a whole generation of CDs with their excessive compression.
I use Rdio and Rhapsody for my music because I want to be legal and pay for my music, but I don't know how much I'm helping the artist. I wish there was some kind of scorecard that rated the various music services so it was easy to see which company to use if we wanted to support the artists. This article was convincing but confusing. It doesn't even mention MOG, Rdio and many other of the new streaming music services. We need something like the old Goodhousekeeping seal of approval. Some agency for the artists should rate the various forms of music distribution, maybe A+, A, A-, etc., so fans can easily tell what company to support or avoid.
Quite a simple idea - make yourself one. As I did. I still have lot of learn, but got basic ideas quite right. They are not that difficult.
And learn, learn, learn.
user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
I tried to start an indie label, partnering with a band that was well-liked locally and had some regional fame. We recorded at home with a TT-24 for digital I/O and monitoring and Logic 7 & Profire Lightbridge for getting it onto disk. Were able to do 24-bit 96khz and plenty of plugins. I had more multi-track channels and more processing power/virtual gear than any studio in the early 1990s. Grabbed a set of self-powered studio monitors for under $1000 (which blow away anything that was available for purchase in 1990).
We did the Tunecore digital distribution method, got into the local record shops, and generally tried to take advantage of any avenue we could.
Ultimately we lost money, here are the mistakes we made:
1. We pressed Vinyl. Granted, we got a good deal and it was a quality product (including MP3 download card using software I wrote myself) but the economics make it such that you need to sell at least a couple hundred to break even and there wasn't enough of a market for it. We sold over 100 in the first year, just from a few local shows and two local record stores. Come to find out this was more than almost everyone else - the local record store sold out (and paid us out) several times - the store manager was shocked to actually be paying money out as most of the indie albums don't sell enough to reach the threshold. Lesson: Don't press vinyl. Unless you can sell out a 5,000 seat venue in at least 10 cities you will lose money.
2. We thought CDs were on their way out so we didn't make that many of them. It turns out we should have - we sold through the CD run quickly and it was our biggest money maker, even at $5 each. This was in 2009 but still - people are more likely to buy CDs when out and about because they are small and easy to carry. Vinyl means a trip back to the car or having to lug it around town for the rest of the night.
3. Digital only works if you have access to some channel to get noticed - a friend with a very popular blog, a host of a very popular podcast who likes you, etc. There is too much music in the online catalogs - often good music. It is extremely difficult to stand out in the crowd, no matter how good you are. You should plan on about 1% conversion rate of people at the show to merch sales, so if 1000 people show up 10-20 will buy something.
4. Publicists and marketing don't work unless you can put a huge budget behind them. Thankfully we didn't spend a ton on this but others we know spent their life savings or thousands. Yes, they got local college radio interviews and blog mentions but none of it translated into increased sales of albums. It did bring a few people to shows but not enough to make up for the outlay in merch sales. This seemed to apply regardless of the genera.
5. We spent money on the launch show - it was a huge loser. If I had to do it over again, I wouldn't have bothered. It just takes too much money to put on a good light show so unless you have access to moving lights or projectors that you can borrow for free, or can play to a venue that already has the gear, don't bother. This leads into the next item...
6. Unless you are a well-known act, you will get screwed by the venues (who are often trying to squeak by themselves). Always charge a cover and make sure your deal is for the cover if you can (and have *your* helper work the door!). Local promotion is difficult - people are bombarded with Facebook notices, emails, etc about a ton of shows all the time so most people tune out. If possible, find out where the crowds already show up locally and make a deal to play there. It is much easier to make a new fan by going to where the people already are than trying to convince a bunch of strangers to come see an unknown band.
7. You must take credit cards. Period. Get an iPhone and Square and make sure you have signal. Make each band member get on a different network (VZW, ATT, Sprint) so you can be certain you will have coverage at the venue. Taking cards will often more than double your take vs not taking c
Natural != (nontoxic || beneficial)
The real question is, for the amount of work and creativity invested in an Artist's work, how much should he/she be compensated for his/her creations??
Is it ok to make them millionares over night? Or maybe remain in equal footing like a doctor, lawyer, et. al.?
Is it reasonable to think the work, team effort and resources used for making a movie be compensated LESS than the creation for a song?
The Red Hot Chili Peppers recorded one of their albums (can't remember which) in a deserted mansion.
love is just extroverted narcissism
..or he makes some good points, but mostly it's crap.
"the music business, which was once dominated by six large and powerful music conglomerates, MTV, Clear Channel and a handful of other companies, is now dominated by a smaller set of larger even more powerful tech conglomerates. "
Why not name that "smaller set"?
"In fact it is nigh impossible for me to pursue my craft without enriching Apple, Amazon, Facebook and Google. "
When was it possible to keep everything for yourself? Did the record companies let you keep everything in the past?
Don't like sharing with Apple, Amazon, etc., sell it yourself.
"Further the new boss through it’s surrogates like Electronic Frontier Foundation seems to be waging a cynical PR campaign that equates the unauthorized use of other people’s property (artist’s songs) with freedom."
First, the guy obviously doesn't like EFF for some reason. Second, I don't see any sources that would substantiate his claim.
"Everywhere I look artists seem to be working more for less money."
Sources again?
"Touring revenues up since 1999. Because more bands are touring, staying on the road longer and playing for fewer people. Surely you all can see Malthusian trajectory?"
I re-read this several times and still didn't get it. I'd guess more bands touring longer meant playing for _more_ people. Hence the higher touring revenues.
What is the "Malthusian trajectory"? Is he talking about the geometric progression?
"I can out geek most of you."
Definitely a sign of a smart person.
"Musicians are constantly derided by the Digerati. It’s usually after someone like myself suggest that if other people are profiting from distributing an artist’s work (Kim Dotcom, Mediafire, Megavideo, Mp3tunes,) they should share some of their proceeds with the artists."
Are we still talking about the "new boss"? Are the "Digerati" the "new boss"? Who are the "Digerati"?
"I can only surmise that part of their anger seems tied to the hatred of the record companies that rejected them."
First, I can only surmise that their anger might be justified. No record company ever rejected good artists, right?
Second, looks like the point of the article - so far - is just to let the author vent... well... whatever he needed to vent.
"Successful even marginally successful musicians are often viewed as some kind of traitors."
By everyone on the web?
"Despite the tech lobby’s portrayal of musician as luddites or doddering old hippie,..."
Sources again? I can't recall anything like that.“
"“The consumer wants music to be free” they shout as they pound their tiny fists on their Skovby tables."
The author seems to be hallucinating. I'm pretty sure most people don't think so.
"Recording budgets are lower because artists spend dramatically less time recording. They just don’t have the money."
Right, b/c all artists used to have the money before.
A small number of them did. Which they had to pay back to the label later. Most of them never did.
"Sound recordings are very labor intensive. If you want to make good ones you are relying on highly skilled labor. The cost of sound recordings is largely dependent on labor costs. Technological advances have little effect on recording cost."
BS. I doubt anybody needs an explanation.
"But what many of you forget is that IT IS MY CHOICE whether I choose to give away my songs or sell them. IT IS MY CHOICE how and where to distribute my songs. IT IS MY CHOICE to decide which websites get to exploit my songs."
So you wrote this just to say that you don't like that somebody doesn't pay for your music?
"Trying to bully artists into giving up their rights so that companies like MegaUpload or YouTube can make money is the same thing."
Umm... Excuse me? Who bullies "artists into giving up their rights so that companies like MegaUpload or YouTube"?
"The New Boss wants to take ALL of your songs, past pre
If I remember correctly, Sean Connery recorded the voice-over at the beginning of Highlander in his toilet.
Let's see...I have a SanDisk MP3 player. I have a bunch of music on it. Should he be getting paid by SanDisk?
Under the Audio Home Recording Act's royalty requirement, then yes, the label would be getting paid by the manufacturer of the MP3 player or other "digital audio recording device".
The people that "make it" in the industry (and while I know this is true in music, it's probably true in film and other arts as well) aren't necessarily very good at their given craft anyway. Most of the time, it's just a matter of being in the right place at the right time.
First step is realizing that "the industry" is producing records that people will buy. The industry is *NOT* about producing good music. In an industry that produces records people will buy, musicians are rarely qualified for the position of "person who appears on record cover and performs concerts". That position is filled by models/dancers.
And they get paid a lot not because of their musical talent; they get paid a lot in exchange for sacrificing any shred of privacy for the rest of their lives.
paintball
"The fact that artists are spending much less TIME recording can only mean they have less money or expect to make less money.
What??? There are so many things wrong with that blanket statement - which he bases solely on data self-supplied by the large recording studios, no less - that I didn't read any further in the article. There were other statements equally as nonsensical. The summary indicated Lowery had both the experience and the data to back up his rant, but after reading a good chunk of it all I see is another idiot with preconceived ideas, barely coherent logic, cherry-picked data, and multiple straw-man arguments. Seek elsewhere for a reasoned analysis backed up with solid evidence.
Further the new boss through itâ(TM)s surrogates like Electronic Frontier Foundation seems to be waging a cynical PR campaign that equates the unauthorized use of other peopleâ(TM)s property (artistâ(TM)s songs) with freedom. A sort of Cyber â"Bolshevik campaign of mass collectivization for the good of the stateâ¦er .. I mean Internet. I say cynical because when it comes to their intellectual property, software patents for instance, these same companies fight tooth and nail.
Let me get this straight EFF is a surrogate for Apple and Google is making money off your music? By illegal downloading?
Your problem isn't any of the players you're citing. It's that computers are gigantic copy machines that make perfect copies. That's what all this is about. The new business models that can leverage this new fact about reality aren't here as far as I know. They will come in time. It's a new thing , this gigantic distributed copy machine, and some people are going to get screwed.
FWIW I would buy an album I liked directly from the artist for 5.99 US dollars. More than that and I am either looking for a used copy (for less than 5.99 or just waiting until such becomes available and listening to / reading something else until then.
I think with no real evidence there are a lot of people like me.
Anyways EFF is your friend and Goggle is your friend. Your missive is a study in how many different (really different) ways people can slice and dice innocent parts of reality into a conspiracy theory so long as no evidence is required to support said conspiracy.
The book Freakanomics went over a case something like the beggarware involving bagels and it turns out if other people see whether or not you paid, nearly everyone pays. Otherwise, nearly no one pays.. it was in the single digits.
Is this a thing culture can overcome? Obviously the impulse to get free stuff is genetically based, but so are a lot of bad impulses.
It's not morally wrong, it's temporarily technically and socially not possible. That's just a reality of today's world. I am not anxious to spend time money and resources on defeating this ubiquitous fact. In the future, something either the product or the business model or whatever will change and all will be well again. When will that be? ...mmmm some of us are trying to make the future happen ;
I am glad to see someone finally write this. I worked for one of the major labels for nearly a decade, largely on the business side. Frankly, I am fed up with hearing how "evil" the records companies were, and how exploited the artists were under the old system. When it comes right down to it, we invested in people. The vast majority of those investments never paid off. We made a lot of guesses about which bands and artists would be "commercially" marketable. As a front employee, I spent tremendous amounts of time and effort evaluating up and coming artists, made the pitches to my bosses that we should invest in specific acts because they had talent and marketability. We spent money trying to help them create an image, and try to give them an edge to compete in the marketplace. Occasionally, it would pay off. Personally, I never saw what I was doing with quite the cynicism, and malice people usually ascribed to record label "fat cats." Our company executives, were like any company executives. They were reliant on all the hard work of their front line employees. To me, the interesting part left out of all this is the fact that you could make a living in the music business. You could be skilled as a producer, engineer, session musician, manager, etc and make a living at it. Most of that money is just gone because artists do not get the venture capital to find their business anymore. Interestingly, I make my living at one of the big tech companies now. (and I really like my job and make a good living).
David Lowery makes excellent points. Yes, Google looks like a major ass playing the Chilling Effects card. However, although the EFF, et al look from Lowery's POV to be asshats fighting for free-everything, the copyright and patent issue is a lot bigger than musicians trying to earn a living. The old & new bosses are trying and thus far succeeding at a new enclosure movement, to preemptively and proactively put all IP under lock and key, and rented out. If not rented out, then quashed if the material appears to be bad PR for whichever powers that be.
Where we're headed is an environment where creative expression becomes almost impossible to market/share/use unless you're party to one of the patent cross licensing schemes, or corporate copyright back catalogs. Yes, the musicians are getting fucked, as are many small players in creative endeavors, and as most labor in general continues to be devalued.
The horse is long out of the barn. Making money at playing music is going to revert to the pre-Edison model. We are going to get less new music, and it'll be harder to find, web search or no. The model of the future is the Chinese music scene, and I'm not going to pretend that it's a good thing.
Luke, help me take this mask off
How dare anyone suggest that the record ndustry isn't 100% evil!
To have a right to do a thing is not at all the same as to be right in doing it
Qualifying for a car loan does not mean an artist can qualify for a business loan.
Banks do loans, which means they have a small upside if you pay back a loan (interest) and a large downside if you default. One of the ways the offset the downside risk is by the use of collateral - the car. Can't pay the loan, they take the car and sell it at auction. Fast and quick. So they do a lot of low risk loans.
Business is riskier then a car loan. Having a solid business plan can offset that risk. And it's not because they bad business people (I know a lot, some are, most are not). It because you can put out a great product and 1/2 the time it fails. And a bank is not set up to quickly sell a 2nd rate album in the secondary market. On the other hand, when an artist succeeds, it big. Just the opposite of bank. Few big upsides, lots of big downsides.
It's one of the reasons why I mentioned Risk Capital. The risk profile of artists suggest that investors want to invested in the equity side instead of the debt side - which is where the music labels come in. Their business plan is to lose 9 times out of 10.
For most artist the only bank loan they can get is to max out their credit cards. This can work - See Spike Lee's She's Gotta Have It. But taking on personal credit card debit is different then a business loan.
True, you don't need a studio. There are lots of interesting spaces to record in, as Radiohead (among many others) have proven since the early days of recording.
However, most of those interesting spaces are not your average 2-3br suburban ranch home.
You don't need an acoustically perfect space to record. But you also don't want and acoustically awful place to record. You record your vocals in a closet? They're gunna sound like they're recorded in a closet. I recently had to remote record an ensemble in someone's living room (it was the only space they could get in the timeframe) and despite my use of baffles, reflexion filters, tight-pattern mics, etc and then a crapton of post-processing you can still tell it was done in a living room.
*mixing* too...doesn't need to be perfect, but if you want a good mix, you'd better have a pretty frickin controlled space. You can get close in a home, with a decent room, a lot of rockwool and some know-how, but it requires time and effort (and a room you can pretty much dedicate to the purpose).
(And good monitors. And good converters. And good processors. And someone who knows how to use it all).
----
"I used to listen to Null Device before they sold out."
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