And they did. The major labels are finally learning. The internet is not your enemy. You just have to find a way to harness it. Even if you kill a few start ups in the process of learning this tale, it’s nice to know that someone somewhere is listening. A whole heap of start ups are renegotiating their licensing terms with the major labels to positive effects. Even though I left Imeem in the wake of LastFM (and will be moving again soon…wait and see on the right nav), it’s good to see that they are not dissolving. And it’s good to see that record labels are trusting start ups to secure a longer term vision of the music landscape and the way we all will interact.
Here’s to new best friends. May they learn to love one another, even if they have occassional cat fights (oh Napster…).
Posts Tagged record labels
Cut Me Some Slack
May 27
The moment we all were waiting for actually happened. Digital music sales at a record label finally surpassed it’s analog older brother. Better yet, baby boomer father. Who says ringtone rappers are not worth it? Certainly not Atlantic.
I will be very curious to see if this trend spreads to other labels and even tips the balance for the Big 4. I can’t say whether I am enthused or not. On one hand, it’s great to see that the viral impact of technology is allowing more artists to get more fans, feedback, and sales at a lower cost. However, is the death of the record label really a blessing for all artists? Are we really supposed to get all of our information from Myspace, friends, commercials, tv placements and blogs? Do we want to spend all of our time this way?
The only time you will see T.I. hanging with white folk.
That big yellow smile is just not as naive as it used to be. More cunning than usual.
So bands are fed up with record labels. One approach is to just screw the system and give you goods away for free online (The Radio-NIN approach). Another emerging approach is to make deals directly with the retailer. And if this retailer happens to be the largest one in the world, you might reach a few people in the process. Wal-Mart has always given the squeeze on the middle man to “pass on the savings to the consumer”. Their latest target is now the record industry as artists are going direct to Bentonville for marketing and distribution.
I can’t say I blame the artist or Wal-Mart on this one. If you want better distribution, why not head to the world’s best logistics expert? You want good marketing without the bloated overhead? Head on down to your local Wal-Mart and see how well they get behind selling a product. It all makes sense. Except it only works if your wares work for the Wal-Mart consumer. I have a tough time seeing Vampire Weekend or Panda Bear finding a new audience in Transylvania County, NC (yep, there really is a Transylvania County). Or any up and coming artist that doesn’t already have a following. We shall see how widespread this selling direct to the retailer goes. This may be good news for my favorite CD store in the world!
The High Cost of a Cheap Journey CD
All the Major Labels (ex artist hemorrhaging EMI) have signed a deal with Myspace to elevate MySpace Music into a joint platform to share their entire catalogs online. Yet again, another attack against Apple’s dominance in the digital music realm (they just surpassed WalMart in total music sales).
Read about MySpace still holding the music discovery title
By Signing Jay Z to a $150Million contract for 10 years. Yet another defect from the major labels (Def Jam). Jigga joins the likes of Madonna and U2 under Live Nations newly signed artist roster. But has the highest payout for a contract to date. I guess it does help to be a CEO of your own label to negotiate better deals.
By far, the best music article I’ve read this year 
I handily thank Samir for forwarding on this lovely gem from Wired. David Byrne not only conducts a monumental interview with Thom Yorke, but dispenses his knowledge on the 6 ways an artist can strike a deal to release music. Dumby proof and pretty objective. For all his craziness, he gives a really good step by step guide on how different artists can make a run for it in the varied and diverse music climate we live in. I’m personally glad that Mr. Byrne is feeling optimistic in 2008. So am I after reading these wonderful articles.
David lays down the 6 laws of labor
The Upside on the Industry
Oct 28
Fast Company has decided to chime in on the changes in technology as they effect the entertainment industry. Instead of the doom and gloom from most other journals, Fast Company actually thinks most of the large companies can pull through if they act fast. The article as a whole is gives a positive spin on the rapid changes in technology. They do acknowledge that many of the institutions we know will not be what they are now – most heading towards the bounds of techno-induced social networking or making their product available for free while using ad revenue or subscriptions to support them. Commercial radio is the only area that they predicted to die off for good with the proliferation of satellite services. I’m a bit uncertain of the formal death of radio with many public radio stations on an upturn in listeners. The freedom to generate original content supported by your fans should still remain fashionable for a while.
I’m glad there is finally a proper business journal that is taking a more positive outlook on the recent changes affecting media conglomerates. There is still a part of me that wants to believe not everyone at a record label, film studio, tv studio, or radio station is turning a blind eye to the shifting consumer purchase behavior and advancements in technology. What do you think?
Now,That’s What I Call Entertainment Technology
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
Music Industry Savior
Sep 5
If there were anyone in the music industry I would want to be right now, Rick Rubin would be it. So respected is his ear for music that Sony wants to take a chance on him running the hallowed Columbia Records. This, after Sony’s famed copyright protection debacle and general lackluster sales skewed towards pushing crap records from unworthy artists. The New York Times makes a great case for why Rubin could be the shaman for a new era in the industry, particularly as a business leader who has no formal training and no technical expertise. Bringing art back into music is a gamble.
I, for one, am thrilled to see that there are a few in the upper echelon of the industry that are willing to take a chance on reverting music from a commodity back to an artform. Sad that it took them this long to do something about it. The executive suite must have been pretty well insulated from the sales declines for the last 10 years to have waited this long. Rick seems ready to take on the task, albeit it in the most unorthodox (no pun intended) and decidedly artist directed manner. He’ll have a ton of artists in support, which he will most likely need. I will be eagerly following Columbia’s progress under his helm.
New York Times article on Rick Rubin
Fader article from 2004 on Rubin
Get Me Bodied by Beyoncé