Stephen Dubner and the rest of the Freakonomics crew have an ongoing blog “quorum” on pressing social issues (much of which can be asked for by the readers) and attempt to assemble a panel to give their assessment. In a recent quorum, they addressed the downfall of the major record label and the future (if there is one) by compiling a 5 guest panel of music industry professionals/theorists. The lead response by all panelists is that the music industry is in shambles (the main culprit – free downloading) and adapting to the changing technology needs to occur if money is still to be made my record labels One lone economist posed a disputing argument against the slide of sales at the hands of rogue downloaders and actually showed some data in support – the first in my knowledge of anyone really trying to get a grasp at the actual behavior behind the consumer purchase shift. However, all panelists failed to give any conclusive insights on what exactly record labels can do to extend their longevity. Surprisingly, most of the salient comments on what needed to happen next were found in the…uh, comments. And in that, a mindblowing nirvana moment – consumers actually know more about what they want than record labels. Even on a distinguished forum of music insiders, they still have no clue as to any ideas to restore the very industry they have dedicated their lives to.
The article had me shocked and appalled – an esteemed panel of “smart people” posed few concrete examples for the current state of the industry and (even worse) provided no solutions to a growing problem that has been affecting the industry for several years now. George Drakoulias, an A&R exec at American Recordings and former member of Def Jam, blatantly stated that he had no clue on how to fix the industry – “Hopefully, someone smarter than I am will come up with the right formula to get music to consumers in the way that they want it, and to collect fees that are distributed accordingly. I hope that person shows up soon.” Really???? Not even a hint at what you THINK needs to be done. This type of thinking has paralyzed major record labels and it will keep it in a free fall for several more years. Who knows what will be left at the bottom of it all. I used to feel some sentiment of victimization for the labels and would make up for it by continuing to purchase good old fashioned CDS to make up for the zillions of college students that simply don’t care about “supporting the artist”. I can’t say I have the same respect as I once did. I still love music, just not gross apathy.
On a positive note, I did find a slew of user posted articles/blogs in the comments that helped me restore some faith that there are people out there that care AND have ideas.
The original posting on the Freakonomics blog – do read the comments as they are much more insightful.
Mediafuturist, Gerd Leonhard – Decent speech on what record labels need to do to survive in Music 2.0 land
A Former Monkee talks about music, the internet, and the new economy