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Reputation: 6

How can we get record company dinosaurs out of the way and figure out where the tip jar should go?

Not long ago, to get a copy of a musical performance, we had to either convince someone to give us a copy (typically, by trading cash for it) or steal a copy from someone. Note that by "steal" I mean to take something away from someone else without permission, leaving the other person without that which he previously had, not to copy information without first getting permission from someone who has limited legal authority to dictate the circumstances under which that information is copied. In the past, there was significant value in the creation of physical copies of audio because the equipment and knowledge required to do so were scarce, and there was value in the distribution of these physical copies because they were physical objects which required some sort of transportation.

Nowadays, most people who would previously have paid someone to create and deliver a copy of music someone else performed have easy access to all the equipment required to make a perfect replica of a digital audio recording with very little technical knowledge, and the cost of using the network which allows remote replication of all sorts of information, including digitized audio, is negligible. A physical copy of that information is worth about a dime now.

So the creators of recorded music no longer have the ability to dictate what a consumer of that music must pay in order to acquire a copy of it. Those who think they do are drastically misinformed or are in denial. The situation has reversed. Consumers of recorded music now choose what, if anything, to pay the creators of that music. Unfortunately, we've yet to set up a good system to let people kick some money back to artists that doesn't involve sharing that money with some record company executive who was managing widget production before he started managing compact disc production and doesn't give two shits about art.

How can we get past the idea that people owe a record company for shoveling bits around and on to figuring out how to allow artists to make a living creating recorded music? We can't go on pretending that a plastic-encased piece of foil with a bunch of bits stamped on it -- a combination of bits that is already floating around "in the cloud" -- is worth $15, and we can't expect recorded music from anyone but hobbyists if those of us who listen to recorded music don't find some way to chip in on the cost of creating those recordings. It seems that the RIAA, with their campaigns to equate unauthorized copying of information with hijacking on the high seas and to sue their potential customers into submission is slowing this process of transformation down and sustaining an otherwise unsustainable system while it gasps for its last few breaths of air.

Other than refraining from paying for copies of musical performances which are not independently produced and distributed, how can we speed the demise of these obsolete and hopelessly-clueless middlemen? I'm sure there are a few good apples, but the bunch is already spoiled.

6 Answers

  • Righteous_small
    Reputation: 14

    A couple of points in response.

    "A physical copy of that information is worth about a dime now."

    To you, perhaps, but a lot of people still buy CDs and you are completely disregarding LPs. A lot of people buy MP3s on iTunes and elsewhere. There is definitely a class of people who WANT to spend money on music (be it CDs, LPs, MP3s, live music, whatever) and smart record labels are trying to connect with those people specifically. I for one probably spend more money on vinyl than food and shelter -- I am the kind of person that record labels should be trying to market to.

    Record labels have more than "limited legal authority to dictate the circumstances under which that information is copied" -- they have legal authority. Enforcing may be a little trickier but they do own the music, whether you like it or not.

    "How can we get past the idea that people owe a record company for shoveling bits around"
    I think this is a pretty facile way of looking at the situation. Record labels do a lot more than this for their bands (please see earlier posts for more of me arguing on behalf of the label). You very almost point out yourself that without the support of labels (or some other system) artists will be operating as "hobbyists" -- this brings up the very legitimate point that (at their best) a record label serves as a support system (largely this support comes as money for studio time, tour support, etc) for artists which allow them to focus full time on their art.

    Overall, I think that you may be viewing the situation in overly black and white terms. Before advocating for the "demise of these obsolete and hopelessly-clueless middlemen" perhaps a deeper understanding of the system (the positives and negatives) is in order?

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  • N772425112_9204_small
    Reputation: 3

    I remember I used to think a lot like this - that artists didn't need labels and they were for the most part greedy and only cared about the bottom line. However, after being in a band that only has a very minor amount of success (Great Waves), it's clear that being in a label would make things a lot easier.

    Let's paint a picture here, using my band as a case study:

    The four main members of Great Waves all work full time to do two things: pay rent and pay for recording. We could do the home route or go to a cheap studio, but we want professional sounding recordings, something that is indistinguishable from what you'll hear on the radio. This costs A LOT of money (on our last EP - only 3 songs - we spent somewhere around 8k). The money that we've made is nowhere near the money that we've spent, and we don't have any plans to tour considering that when you're first starting out you almost never make money on tour.

    As well as rehearsing, playing gigs, and writing, we are also in charge of all our booking and marketing. With this on top of our day jobs we have our hands completely full. It's difficult enough when you're a local band, I can't even imagine the headache that comes with going national.

    To address the underlying assumption that record labels are greedy - Napster did a really good job of addressing that. After profits from record sales plummeted, there aren't many people who are still in the record business for the money (major labels aside). In my limited experience, labels mostly consist of overworked and underpaid music lovers who truly want to help great music get made. There are some fantastic local labels like Sub Pop, Hardly Art and Barsuk who do this every day, and the Seattle music scene would be way worse off without them.

    I do think there is a valid debate as to whether a label is necessary if you have a fan base that has proven they will support you financially and the means and drive to do much of the business side yourself or through independent agents/managers/publicists/publishers, and it's clear that new revenue streams need to be explored to compensate for loss recording profits. However, in my opinion the debate of whether or not record labels are necessary/nothing but evil is mostly done by people who don't have the first clue about what it takes to make it in the music business.

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  • N1099282949_5328_small
    Reputation: 4

    Maybe you have good reasons to be jaded about the music industry infrastructure, but I agree with Megan that the status quo is falling apart on its own. Snark aside, I think this is a very good question, since it touches on the paradigm shifts happening simultaneously in a variety of spheres due to the Internet. How do we get people to pay for the news? What about movies and TV shows? Software programs? These things cost money to produce, and giving them away for free just because they can be transmitted in a digital format doesn't answer the question of how we can sustain these industries financially.

    While no one is buying musical recordings on the scale that they did 10 or 15 years ago, people are still buying, collecting, and enjoying physical albums. I'm a very visual, object-oriented person, so to me, there is an inherent appeal to owning a physical recording if I care about the music at all.

    If you're a band or label trying to sell recordings, I think there's a fairly simple threefold formula to make them more attractive to me and people like me (beyond having good music on them, of course!)

    (1) Analog formats. Vinyl LPs and increasingly cassettes offer an altogether different (many would say superior) audio and visual aesthetic from the ubiquitous digital.

    (2) Packaging and artwork. Even CDs that have handmade packaging elements or dynamic, well-considered artwork can be nice things to have and hold even if we can download the exact same data for free.

    (3) Scarcity. Limited, small press printings will find their way into caring hands much more readily than their mass produced counterparts.

    That said, I think some record companies DO deserve to survive, and they're the ones that see the big picture and are making an effort to market their artists' recordings in a way that capitalizes on the physicality of the recorded album as object.

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  • Happyme_small
    Reputation: 1166
    Moderator

    Well, to answer the question about "how can we speed the demise of these obsolete and hopelessly-clueless middlemen," I think that the trend has already started. More and more bands are using websites like Bandcamp to distribute their music, at least digitally.

    They can post whole albums, single songs, EPs, whatever--and they can control how much to charge for it (or even post it for free). I like getting music that way--it's instant and cheap (when applicable, I always throw the band a few bucks, at least). And I know the money is going directly to the artists.

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  • Skull_pumpkin_small
    Reputation: 1610

    Heh.

    Figure this one out, and everyone involved in making easily-duplicated content--music, digital photography, and writing are three that leap to mind--will be beating your door down to get the answer. Everyone wants content, no one wants to pay much (or anything) for it, and the creators don't want to--can't--work for free. The Web allows you to create a global audience and if you're not there no one's heard of you, but if you are there you lose a lot of control over how your stuff is distributed. Same with performing, since people can record your stuff and distribute without even asking.

    Offhand, the only art form I can think of that doesn't have this problem is stuff like paintings and aculpture, since it's not easily duplicated in its original format. Performance is also good, but for some people can be replaced with recordings.

    The most sustainable models I've seen so far use corporate sponsorship to pay the content creators. The content remains free to the public but the creators get paid. Since the pool of creators is finite, the best/noisiest artists get the sponsorship. It's very hard to get people to pay for content online since so much is free.

    We've returned to the patronage system of the Renaissance.

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  • Avatar_default
    Reputation: 22

    Recorded music never had much value in the marketplace--the money paid by consumers was to pay off the middlemen. Once people didn't have to pay, they decided that "nearly zero" was an appropriate price.

    Live music at the local level serves as a marketing tool for alcohol/coffee vending sites.

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