Tag Archive for 'Wired Magazine'

Welcome to the Age of the Free Album

Published on December 28, 2007 in Blog. 3 Comments Tags: , , , , , , , , , , , , , .

Spotted on: Techdirt

A new idea has surfaced in the music business this year: giving away tons of free CDs. First Prince did it through UK newspapers, causing quite a stir in the industry. Now Big Head Todd and the Monsters are giving away 500,000 copies of their new album to radio stations and fans, splitting the cost with radio to get the copies out there. The albums will be available as giveaways from radio stations, and on the band’s site. The album is available as a free download for fans, and according to the BHTM site, the physical album is “Available SOON from our merchandise store for just $5 or FREE with any merchandise purchase of $15 or more.”

At first glance this appears to be another groundbreaking model for the industry. BHTM used to be on a major label, and has the industry recognition and viability as a touring outfit (they are preparing for a 60 city US tour as we speak) that comes with major label artist development and promotion.

Looking closer, even at dirt cheap prices (including postage), the investment here would be a minimum of $200,000. Apparently, fans are jumping at the bit to get the free album, a testament to the credibility of BHTM. But what does this action say for the rest of us in the industry? Although not as widely recognized as Prince or Radiohead (and few artists are), BHTM has the credibility and resources to launch this kind of campaign. For the rest of us who have not had major label development, access to create a quarter million in investment, tons of willing radio contacts, and the ability to book a viable 60 date US tour, this tactic may not be fruitful in the short term.

Based on the flopping CD sales over the holiday season, CDs are set to lose major amounts of retail shelf space next year, except in major retail outlets like Wal-Mart and Target. Consider that without retail shelf space, physical distributors will rapidly become obsolete. These days, selling 100,000 copies of a CD gets you high up on the charts. Give the sorry state of CD sales, it appears that musicians will need to have some kind of sure money maker (like touring) to buffer this kind of massive promo giveaway, unless one is willing to invest tens of thousands of dollars and ‘see what happens’.

So what about the horde of mid level musicians that don’t have the clout to give away half a million (or even ten thousand) CDs? It’s a brilliant marketing ploy, but without the ability to book a viable tour with sweet guarantees and juicy crowds or the guarantee of radio play it becomes a major loss leader in an industry that is rapidly losing revenue streams.

Giving away albums to generate buzz has become the modern equivalent of the single. Let the fans hear the music, and give them the opportunity to support the band live, or by buying merch or CDs. This tactic will drastically undercut the Big Four’s ability to set prices and control music distribution over 2008.

Bottom Line: It is beginning to appear that the only way to transform the music business is to devalue music and start again with a whole new model, where art is free and the money comes from something else.

Doug Morris: Music Industry Genius or Bitter Luddite?

Published on November 30, 2007 in Blog. 1 Comment Tags: , , , , , , , , , , , , , , , , , .

Spotted on: Wired.com (and thanks for this awesome article)

In the wake of the announcement that Universal and SonyBMG are uniting to start a new download service to compete with iTunes (which will offer 75% of all music sold in the US), Doug Morris, Universal Music Group’s CEO, was profiled in Wired Magazine the other day.

Let’s start with my favorite quote from the article: “There’s no one in the record company that’s a technologist, That’s a misconception writers make all the time, that the record industry missed this. They didn’t. They just didn’t know what to do. It’s like if you were suddenly asked to operate on your dog to remove his kidney. What would you do?” (quoted from Wired article).

Answer: I would find a veterinarian. The head of the world’s largest record company claims ignorance of the fundamental shift in the entertainment industry over the last decade. I find it interesting that the largest music company on the planet was unable to prepare for the digital revolution. Ignorance may be bliss, but you’re still dead when the falling piano you don’t see hits you.

As if that isn’t ironic enough, Morris goes on to say “We didn’t know who to hire… I wouldn’t be able to recognize a good technology person, anyone with a good bullshit story would have gotten past me.”

Perhaps this is why you have twenty VPs, Mr. Morris. What good is an army of executives if they are incapable of determining who to hire and what to do? Mr. Morris makes it obvious how major labels have destroyed their business model and viability.

For years, Doug Morris has been railing for stringent enforcement of copyrights (the ones his company has been taking form artists for decades), and he was at the source of Universal attacking Yahoo, YouTube, and Myspace for their flippant distribution of corporately owned content. This powerful industry insider has the pull to force companies to give him what he wants: licensing fees, commission on Zune sales; the most powerful man in the music industry calls the shots. And now he’s changing his tune, embracing digital technology. It isn’t for the benefit or convenience of audiences though, it’s an attempt to consolidate the digital realm.

The article discusses how iTunes pulled the wool over Morris’ eyes. Since Universal could not find anyone with a technology background to advise them, they (and Morris) never saw the power Apple’s iPod would have to control the industry. Considering how much music is sold on iTunes, that can only be played in iTunes and iPods, this is probably the first time anyone successfully put the Big Four on the defensive. Major labels had free reign to do whatever they wanted and completely controlled the market, one day they woke up and realized out they weren’t in control anymore. It was a conscious choice not to hire anyone who knew about the internet, and not to adapt to a shifting industry. Controlling massive catalogs and marketing muscle isn’t enough. They want every penny, and they don’t care if we know it.

Here’s another great quote: “It was only a couple of years ago that we said…an album that someone worked on for two years, is that worth only $9, $10…?” People never really understand what’s happening to the artists. All the sharing of the music…Is it correct that people…fill up these devices with music they haven’t paid for? If you had Coca-Cola coming through the faucet in your kitchen, how much would you be willing to pay for Coca-Cola? ….That’s what happened to the record business.” (quoted from the Wired article).

While this is a noble sentiment, in reality artists are not making a ton of money off of these deals, at least to compared to what the record companies reap. While we all want to support hard working artists, it’s difficult to find compassion for a seven billion dollar a year company. Sometimes audiences forget that artists are human beings when faced with the behemoth of major labels squeezing us for every penny they can. It’s even more difficult to feel sorry for these companies that own and control the rights to artists like Jimi Hendrix, Bob Marley, Pink Floyd, Miles Davis, and timeless artists that sell with or without marketing.

Doug Morris started out as a producer and a songwriter. Considering his roots, it’s surprising that he has such scorn for the future of music, and the satisfaction of audiences.

If the CEO of the largest record company on the planet is only interested in a fast buck, and is indifferent to the long term future of the music industry, what hope do the Big Four have?

The article concludes with a picture of Doug Morris’ frustration. Hhe considers his job to be developing new talent, not providing convenience for audiences, or adapting his company to the current environment. The CEO of Universal Music Group doesn’t want to be bothered with the transformation of the music industry. And that is the culture of major record labels. They don’t care whether we enjoy the music we have, or that it’s delivered to us in a format that works. They are merely interested in a fiscal bottom line for this quarter, and controlling the media we have access to.

Now that the Big Four can’t even count on multi-platinum talent to stay with them, the end is near. I’m not sure why Doug Morris allowed himself to be profiled. This article is a clear picture of how major labels have destroyed their own credibility, their business model, and their future.

A special thank you is in order to Wired Magazine and Seth Mnookin for this fantastic article. You have allowed us see the man behind the curtain, and he’s everything we’d expect him to be.

Unbundling Albums – The Silent Killer

Published on November 14, 2007 in Blog. 5 Comments Tags: , , , , , , , , , , , , , , , , .

Spotted on: The Register

Capgemini? recently broke down album sales in Britain since 2004.? While the report is still confidential, The Register reported on a few details.? And what is the reported main source of lost revenue in the British recording industry?? Album Unbundling.? (Files sharing came in at 18% of the projection).

The iTunes music store was originally launched with the blessing and backing of the four major record labels, who thought unbundling albums would be a boon to business.? it wasn’t until the major labels unbundled their catalogs that the idea was popularized. In unbundling albums, audiences have lost the incentive to buy a whole musical work.

Considering that the major labels are upset over their falling revenue, it doesn’t seem like a shining moment when they devalued the recordings in their catalogs.

Would you buy part of a painting?? As Jim Griffin pointed out in 2004, would you unbundle books of poetry?

It is valid that many albums only have a couple of good tracks, and are mostly filler.? However, most albums are created and put together as a total piece.? Ciccone Youth released an album quite a while back titled “The Whitey Album”.? The second track is “Silence”, and consisted of a little over a minute of… silence.? Admittedly, this is not the first track of its kind (the band joked that the track was a speeded up version of John Cage’s 4:44).? This track sold for 99 cents on the iTunes store, until stories started popping up in the media.? Artistic visions are undermined through unbundling, and shorter or more experimental tracks are not always as valuable as stand alone.

What do fans lose from unbundled albums?? When I think of some of my favorite albums, I can see that I would miss some gems through album unbundling.? Polyvibe artist Zoltan Dobi has several tracks of under a minute each.? Many Pink Floyd albums are meant to be listened to as a continuous piece.? Primus‘ (Primus’s?) early albums contain many short interludes that I love, but wouldn’t buy as a single.? What about artists that put experimental ramblings or noise tracks in their albums?? Clearly these tracks are intended to be part of those musical experiences.

Does it serve artists to have their musical works picked apart?? While the single is still a viable format, it has a specific design.? A track meant to generate interest in an album, and often the best track (sometimes colloquially referred to as the “money track”).? By unbundling albums, all tracks become singles, and fans often miss the gold in favor of a single serving mentality.? Radiohead’s In Rainbows is not available on iTunes for this very reason.? The album can only be obtained the way it was created: as an album.

I’m a proponent of freedom of choice, and I believe that audiences have the right to buy the music they want, and how they want it. I’m a believer that if a song is a hit, don’t withhold the single.? When you buy your tracks in single servings, the overall cost is higher.? It costs between $2,000-$10,000 to fill a 40GB iPod, depending on whether you buy the music as albums or singles.

However, as an artist, I want my vision to be experienced.? When my albums are split apart, listeners do not get the full scope of my musical vision.? As as a lesser-known artist, the incentive for people to buy a single track over the album is apparent.? While it’s an honor to have people tune in at all, is there an incentive in creating a full album if people only buy one or two tracks?

The Bottom Line:? Album unbundling has the potential to eliminate the art of the album entirely, although it does provide an opportunity for fans to expand their musical tastes in low cost increments.

What Do Album Sales Measure?

Published on November 1, 2007 in Blog. 8 Comments Tags: , , , , , , , , , , , .

On the surface, this may appear like an obvious question. Album sales measure the number of people who buy an artist’s music. Let’s look a little deeper at what album and track sales are an actual measure of.

Many artists that experience high volumes of downloads on p2p networks also experience brisk sales. The days of mega-platinum albums are pretty much at an end, so I’m defining brisk sales as between 50,000 to 7 million units sold. This is abroad spectrum, as it includes middle tier artists as well. The future of music will most like include far more middle tier artists, making a decent living, and fewer multi million dollar pop sensations.

The actions of Radiohead, Nine Inch Nails, and Saul Williams are not meant to devalue music to nothing. These artists want people to buy their music. They pay their mortgages, buy their gas, and feed their kids off music sales and gigs. The intention behind these artists’ actions are to move forward a major shift in the music business. The sooner major labels are out of the picture, the sooner our culture can have a conversation about the value of music. It;s great that people can choose how much they want to pay to support artists. At the same time, all of us in the middle or lower tiers of the industry cannot sustain a vibrant career without revenue. Digital music sales are expanding rapidly; obviously people are buying music.

Consider that people can get almost any music they want for free. With a small amount of effort, any album can be found, downloaded, and added to a collection as an MP3. So when people do buy music, what does it measure?

The Love of the Music

Album and track sales measure artist support, and appreciation of the music itself. When major albums are leaked well in advance of release dates and still sell well, it’s clear that the people buying it don’t have to. Why would people buy something they can get for free? It’s not consistent with a capitalist mentality.

Music is in a post capitalist environment, and totally uncharted territory for any commodity. There is no scarcity of music, and the supply outstrips the demand by miles. When people buy an album, they are saying “I like this music or artist enough to support them. I want them to continue to make great music, and I am moved and touched by what they create.”

Sales dynamics and trends for non-major label releases follow a completely different set of rules than mainstream music sales do. Mega-Artists that are joining the ranks of independent musicians aren’t breaking new ground as much as they are creating a public awareness of the way the music business works for most of the artists in it. For those of us in the trenches of our careers, they are putting a spotlight on how we do business.

Free downloads from major artists are simply a proving ground that in the post major label era of music, people will still buy music they support. The only difference between downloading an album for free on an artist site or off Bit Torrent is the amount of effort one has to put in (i.e. clicking a link instead of typing a name into a search prompt).

Although accurate sales totals for In Rainbows won’t be available till the end of the year, it’s clear people are willing to pay for music when they are not forced to. Now that big time acts are involved in the independent music world, there’s no denying that people buy music they love, even if it’s free. The only thing that has changed with In Rainbows is the kind of market analysis we are seeing in major media publications. Major labels can’t whitewash entertainment news about the reality of the business anymore.

When people have access to the music they want for free, and without being treated like criminals, supporting the artist is a natural action to take. it’s when we are treated like criminals, or asked to pay large sums of money for long dead artists, that the public begins to resent buying music.

The Bottom Line: Album sales no longer measure marketing ability or brand placement, they measure people’s love of the music.

What do you think?

What do album sales measure?

Are Radiohead/Saul Williams/NIN breaking new ground, are are they amplifying a message that most of us already hear?

RIAA + Jammie Thomas = The Beginning of the End

Published on October 12, 2007 in Blog. 0 Comments Tags: , , , , , , , , , , , , .

Spotted on: Wired

This fantastic editorial by Tony Long is a powerful and accurate assessment of the fallout of the lawsuit against Jammie Thomas.? His analysis is so good that I have little to add.

Peep it for yourself.

Good show, Tony!