An Industry Out of Touch: Why the American Music Industry deserves to die.
I’m sure some people long for the “good ‘ol days” of the record industry. I wish I had known those days. All I have seen is confusion, unrestrained greed, the creation of idols, and ultimately, irrelevance.
Confusion: Napster
Some say the word with a sneer of calculated smugness, indicating that yes, they have, in the past, partaken of this heinous bastion of evil. For others who are inside the industry, the word is delivered with loathing, contempt, and many times a quiver of fear.
What was Napster really? A den of evil? A consortium of thieves? Or a streamlined distribution system that had the potential to reduce costs and deliver greater customer satisfaction in a fraction of the time of traditional media outlets?
Bertelsmann AG, a German media company, wagered the latter, when they offered to buy Napster for $85 million in 2002. But before they could take possession of this revolutionary system, an American bankruptcy judge blocked the sale and forced Napster to liquidate it’s assets according to Chapter 7 bankruptcy laws. This was largely due to pressure from the RIAA who was locked in a heated lawsuit against Napster for unauthorized use of its music.
The music industry didn’t understand the very technology that was in a position to grow their business, so they attacked it and shut it down.
Unrestrained Greed
The music industry has shown an incredible desire to sue individual customers of their music, when those customers behave in ways that the RIAA deems unacceptable. 30 year old Jammie Thomas of Brainerd, Minnesota was sued by the RIAA for $222,000 when she shared 24 songs on Kazaa. She is a a single mother with 3 kids and a salary of $36,000 per year.
This unrestrained greed shows that the music industry is willing to destroy individuals in order to (misguidedly) preserve an out of date business model.
Irrelevance
What are the main services that a traditional record label performs? Recording, pressing Cd’s, distribution and promotion. These services are no longer required.
Back in the “good ‘ol days” recording costs were astronomical. Reels of expensive tape, weeks in a professional studio with a highly paid staff, and several levels of production at different facilities. These days, a musician can record a great sounding album with a laptop and a few pieces of outboard gear.
Back in the “good ‘ol days,” a record label would estimate (often badly) how many albums they should manufacture. This could be any number from 100 to 100,000. Now an artist can use a variety of services to manufacture the exact number of physical albums they require for a certain event, or CD Release.
Back in the “good ‘ol days,” record labels either owned or contracted distribution companies to transfer their wares to outlets all across the globe. Services such as iTunes, Pandora, and Last.fm have replaced the need for this physical distribution. And where physical distribution is still needed, it can be easily shipped to the customer’s home via direct order from a website.
Lastly, promotion. Herein lies the golden goose of traditional record companies. For who else has the power, the connections, even the intelligence to assemble a flamboyant marketing scheme that could propel an unknown musician to the heights of stardom? The answer, once again is simple. The fans themselves now have that power. Facebook, MySpace, blogs, and other social networking communities have connected fans to musicians directly, and given them the tools and power to easily share their musical bliss within their own community of friends. Any marketer knows that this word of mouth advertising is more powerful and effective than any mass media shotgun blast could ever be.
Creation of Idols
I saved this one for last because it has probably been under – discussed around the inter web. Or at least discussed less than some of the other points above.
Everyone remembers Brittany Spears’ psychotic flame outs of a few years ago. The oddly shaved head. The neglect of her children. The flashes of nudity.
People may rightly say that she is responsible for her actions and that she made horrible decisions that lead to such odd behavior. These people would be correct.
But I feel sorry for ‘ol used and abused Brittany. She has been sucked into a machine that caused her to become something she never should have been. She never should have been a superstar who inspired millions of rabid teenage fans to worship her.. She never should have sold out her meager talents to the highest bidder so they could share the profits and create this freakish thing.
She was just a girl. Just another human being. Just another Jane Doe, who’s wildest dream came true. But instead of joy, this dream ultimately brought despair. She’s been sucked in, chewed up, and spit out the other side of the American Music Industry.