On the Death of the Music Industry

Some recent links of interest:

• Rick Rubin is hired to "save" Columbia Records from itself (NY Times article, requires login)
• Bob Lefsetz ain't buying the Rubin mythos (Lefsetz Letter: Part 1, Part 2)
• Hope for the industry? "Home-made, word-of-mouth" youtube mega hit orchestrated entirely by record label (WSJ article)
• KRS-One on the death of rap and the record industry (audio interview on the Megatron Don)
• Performance royalties vs. payola: radio stations and record labels scraping for survival (Washington Post article)
• It's now possible to wirelessly purchase music at Starbuck's using an iPod, yet impossible to stream internet radio on the device (Apple's announcement).
• Come to think of it, Starbuck's is now running a record label. Surely a sign of the apocalypse.

Thanks to Brian, Monica, Trent, and DJ/Rupture!

Comments

[Ace London]

Ok,
I am glad to see these articles. In a way. It is sorta good to see The RIAA dying. They have in my opinion been stealing from the artists more then they have blamed the p2p public. And, the fact that they are also 400 years behind the times has hurt them too. I have said it since they started waging those stupid lawsuits that their days would be numbered. Of course, artists like Madona, Elton John, and others at that time were not really critizing the P2P's because The RIAA takes so much out of record sales. Leaving the artist to make their money on their concert tours. Which, from what I have read from one of your articles the RIAA wants a piece of that to!!!!! Greed is one of the seven deadly sins. And, the RIAA, and its partners are proof of it. Instead of maybe striking up a deal with p2p networks like Kazaa, Morpheous, and Winmx. They chose to take them to court. And, make them pay. You cannot shut out technology today, and with or without those greedy pigs at the RIAA. Technology will continue to run. You have seen lately how many lawsuits they have made so far. Not even Donald Trump could carry out so many lawsuits, and get so much money. So, what makes the RIAA think they ever could? Personally, I hope to see huge record labels fall. Sure, not all of them are greedy, and some of them still play like it is the old days. But, none the less. The business has gotten to be a freaken joke ever since those whining morons at the RIAA started screaming copywrite infringment on everything they could. And, now Youtube is a big debate. HOW??? Has the world gotten so greedy it has forgotten their good friend the radio, and a new gate for artists everywhere Youtube?? I can understand (Maybe not totally agree with) But, understand why Napster was the brunt of such lawsuits. You could download music for free thus not paying for it, thus is it stealing? But, why Youtube? You can't download anything. And, it is a wonderful tool for promoting acts, and new talent. But, no. Some untalented Japanesse artist screams that he deserves money for Youtube putting out one of his tunes, and or video. That maybe only 20 people have seen anyways. I am 32, from the old school. And, perhaps if you remember Gm you where all of their striking got them (I am saying this with the upmost of all due respect. Because, my father himself is a retired Gm man.) But, one day my grandmother was driving home from work. Years ago. She said there wasn't a week that went by where someone wasn't striking. One night she told me she drove home. And, couldn't take it anymore. So, she told them what she thought. And, I think this is so true for those stupid greedy artists, and the Recording Industry. She said "One day. you guys are going to strike out once to many." And, it was true. Gm is hardly anything anymore. And, it is moving overseas. Talk about selling out your country. And another good one. My grandmother used to tell me. I think it was Cruschef(parten my spelling. I am sure it is wrong) Who, sometime in the 40's was at a UN meeting. Took off his shoe, banged it on the table, and said "They are going to hang us, and we will sell them the rope to do it with."But, at anyrate. I am not sure where I have gone with this. LOL I just woke up, and haven't had my coffee yet. You can tell. Thanks again for the posts. It got my blood boiling for the day. LOL

Trent

[steve PMX]

Fuck Starbucks. Fuck Apple. Fuck iPods. Fuck all their obnoxious hipster-niche marketing campaigns. And fuck those bluetooth headset/earpod things. Fuck the American FM Radio situation. Fuck the FCC. Most of all, fuck Mondays.

[bk]

let's not overlook the ringle:

Music industry betting on 'ringle' format

By Ed Christman

NEW YORK (Billboard) - As the recording industry wakes up from its summer slumber and starts thinking about what will motivate the consumer for the holiday selling season, the major labels are getting ready to launch the "ringle," which combines the mostly defunct single format with ringtones.

Each ringle is expected to contain three songs -- one hit and maybe one remix and an older track -- and one ringtone, on a CD with a slip-sleeve cover. The idea is that if consumers in the digital age can download any tracks they want individually, why not let them buy singles in the store as well? It also enables stores to get involved in the ringtone phenomenon.

Sony BMG Music Entertainment, which came up with the ringle idea, and Universal Music Group are going to be the first out of the box with ringles. The former will unleash 50 titles during October and November, while UMG will have anywhere from 10 to 20 titles ready. The Recording Industry Association of America has approved the "ringle" name, and there is an industrywide logo to help brand it. But except for Sony, each major still needs to cut a deal with a digital aggregator to allow consumers to redeem the ringtone.

Meanwhile, label profit margins for the format are considered slim. The majors are gambling that the ringle can instill in consumers the mind-set to connect to the Internet via the CD.

Sources suggest the ringle will carry either a $5.98 or $6.98 list price, while the wholesale cost to retailers will be less than $4. If it's $5.98, ringles will have a 31 percent gross margin, shy of the 35 percent profit margin that CD albums carry nowadays; if it's $6.98, that would give retail a 42.7 percent gross margin, similar to the profit margin cassette and vinyl albums enjoyed back in the day.

On the plus side, big retailers like Wal-Mart, Target, Best Buy and Amazon have agreed to support the configuration, although all of them may not be ready to do so at launch date, sources say.

Reuters/Billboard

[Parq]

This is all like seeing an old friend go out with all the placid grace of King Lear, raging impotently against a new order that he helped put in place, becoming more and more irrational until he's smearing mud on himself and communing with lunatics. The more irrelevant the 20th century model of corporate music becomes, the more angry and desperate the products of that system become. The result is lawsuits against 11-year-olds and goofy, desperate Flint-Michigan style stunts like Ringles. It's only a matter of time before everyone over the mental age of nine gives up on the whole thing. Hell, most of us FMU partisans already have.

[Eric B.]

Say what you will, but in 20 years ringles will have the sort of hip, nostalgic non-cachet that cassingles are enjoying now.

(And I mean that in the "I was a stupid teenager. Why the fuck I buy those? Now they're just rotting in my closet and I can't resell them" way.)

[K]

I had typed up a big ranty post, but thought it better to just direct your attention to the VMA performance of Brittany Spears. I think this perfectly encapsulates the state of modern music and industry, and after viewing it, I am sure you will agree that we should stand foresquare behind the RIAA and SoundExchange in demanding as much royalty money as possible for music. Seriously. I want to see 10000USD per song streamed. I want to see even the mention of a stars name to be followed by lawsuits and demands for compensation. In short, I want to see this thing crash and burn as quickly and as efficiently as possible, and I see no better way to do this than to support the lawyers and business people at the record companies as fully as possible.

I urge all of you to stop buying and listening to this stuff, and pick up an instrument, learn how to play, and start making it. The revolution starts as soon as you play that first note with your fingers.