Jake Smith is a TuneCore Customer Support Representative and Editor of the Weekly Newsletter
To
say it's been a bumpy decade for the music industry is a bit of an
understatement. After Napster's introduction in June of 1999, we've
seen ten years of new formats, declining record sales, lawsuits, and
passionate arguments from all sides (artists, labels, the RIAA, and
consumers) about the pros and cons of these drastic changes. Has suing
music pirates done anything to curb illegal downloads? Has digital
file sharing helped new artists reach more fans faster? Where will the
industry be ten years from now?
iTunes 9 recently came out, and with it a variety of new "bonus" features that come with selected albums. These iTunes LPs as they're called can include album extras like music videos, digital booklets, artist band photos and more (important note: at this time TuneCore is not yet set up to deliver content as iTunes LPs - we will make a HUGE announcement when we are able to, stay tuned). Features like these have got me thinking about the innovative ways in which stores, labels, and artists have worked towards making incentives to pay for, rather than steal music. In my opinion, the music makers and retailers who stick to the list below will be the ones leading this crazy music business into the future.
1. Stop fighting the changes
The digital revolution was and continues to be scary for those who once made the brunt of their money selling round pieces of plastic. In the wake of peer to peer websites that allowed for people to share and receive music files without spending a dime, the first response of the Record Industry Association of American (RIAA) was to sue the peer to peer services themselves. After this proved only to spawn new peer to peer services, the RIAA turned its sites on the people doing the sharing. Suddenly, people of all ages, shapes and sizes found themselves being sued for thousands and sometimes millions of dollars in damages. I don't mean for this to turn into an argument about the pros and cons of file sharing, but I think most people would agree that these giant lawsuits haven't done much of anything to stop the piracy problem. I remember a particularly pathetic attempt by BMG to create an "unrippable" CD on which to print their new releases. One day after the release of the first disc in this format, it was discovered that by using a black sharpie around the edge of the disc, you could burn and import it with no problem at all.
The moral of the last ten years? It's futile to fight changes in how people consume their content. Consider this: once upon a time, the biggest threat to the industry was that people could use cassette tapes to record songs off the radio. Piracy stinks but as long as music is written and recorded, the danger of it exists. This leads me to my next thought:
2. Sell things that can't be stolen
Maybe people will always find ways to crack codes and steal content in our digital age, but there is money to be made by providing consumers with additional ways to connect to the music they love. Some things to consider:
I read this really great interview the other day with the founders of Merge Records (Arcade Fire, Spoon, M. Ward). While other labels, both big and small, have had some really extreme ups and downs over the past 20 years, Merge has remained steady. Instead of pouring hundreds of thousands of dollars into every artist they release then praying for one of them to make it big, they focus on putting out the artists they love. If they don't expect to make a ton on the release, they keep recording and promotional costs low. As a result, Merge have positioned themselves as taste makers. When indie music fans see "Merge" on a new artist, they see it as a mark of quality. The lesson in this? The more good product you provide your fans with, the more they will respect and support you. I would argue that whatever shape the music industry may be in ten years from now, the song will always be king.
iTunes 9 recently came out, and with it a variety of new "bonus" features that come with selected albums. These iTunes LPs as they're called can include album extras like music videos, digital booklets, artist band photos and more (important note: at this time TuneCore is not yet set up to deliver content as iTunes LPs - we will make a HUGE announcement when we are able to, stay tuned). Features like these have got me thinking about the innovative ways in which stores, labels, and artists have worked towards making incentives to pay for, rather than steal music. In my opinion, the music makers and retailers who stick to the list below will be the ones leading this crazy music business into the future.
1. Stop fighting the changes
The digital revolution was and continues to be scary for those who once made the brunt of their money selling round pieces of plastic. In the wake of peer to peer websites that allowed for people to share and receive music files without spending a dime, the first response of the Record Industry Association of American (RIAA) was to sue the peer to peer services themselves. After this proved only to spawn new peer to peer services, the RIAA turned its sites on the people doing the sharing. Suddenly, people of all ages, shapes and sizes found themselves being sued for thousands and sometimes millions of dollars in damages. I don't mean for this to turn into an argument about the pros and cons of file sharing, but I think most people would agree that these giant lawsuits haven't done much of anything to stop the piracy problem. I remember a particularly pathetic attempt by BMG to create an "unrippable" CD on which to print their new releases. One day after the release of the first disc in this format, it was discovered that by using a black sharpie around the edge of the disc, you could burn and import it with no problem at all.
The moral of the last ten years? It's futile to fight changes in how people consume their content. Consider this: once upon a time, the biggest threat to the industry was that people could use cassette tapes to record songs off the radio. Piracy stinks but as long as music is written and recorded, the danger of it exists. This leads me to my next thought:
2. Sell things that can't be stolen
Maybe people will always find ways to crack codes and steal content in our digital age, but there is money to be made by providing consumers with additional ways to connect to the music they love. Some things to consider:
- Classic merchandise is still very big: T-Shirts, Buttons, Stickers, and even less traditional items like USB drives and Snuggies keep many bands in the black.
- Music "powers" other products: Movies, TV Shows, commercials, video games (The Beatles Rock Band, anyone?), even greeting cards have been great, "non-stealable" ways of getting music out there.
- Give consumers bonus "rewards" for buying: iTunes LP definitely practices this idea - now, instead of just getting music for your money, you get cool additional content as well. Other incentives could include bonus tracks for people who pre-order, providing different formats (CDs, digital downloads, vinyl records), offering limited run "premium" items (coffee table books, first 100 copies signed, etc).
- Don't forget live shows: While music sales may have dropped, concert attendance is as high as ever. Give fans a show to remember and they'll keep coming back!
I read this really great interview the other day with the founders of Merge Records (Arcade Fire, Spoon, M. Ward). While other labels, both big and small, have had some really extreme ups and downs over the past 20 years, Merge has remained steady. Instead of pouring hundreds of thousands of dollars into every artist they release then praying for one of them to make it big, they focus on putting out the artists they love. If they don't expect to make a ton on the release, they keep recording and promotional costs low. As a result, Merge have positioned themselves as taste makers. When indie music fans see "Merge" on a new artist, they see it as a mark of quality. The lesson in this? The more good product you provide your fans with, the more they will respect and support you. I would argue that whatever shape the music industry may be in ten years from now, the song will always be king.
Sometimes it seems unclear to people that this is how some of the Artists in the world eat and pay their bills.
It’s a free country and a free world and music fixed in a sound recording is a product that will make all this possible because like beemers and 40's somebody wants it.
Tomorrow lets extend these arguments to houses and cars and food, other things people consume that someone else has to conceptualize, create, spend money to fix it in form, package it, market it , and get it to the public that were calling my intellectual property, because it looks like just property to me, and I could use a free house, car, and food .
Let’s blame me for the one stop that makes out like a bandit, I signed the contract with stars in my eyes trying to quit McDonalds and still feed my family,and didnt even know how labels work.
I didn’t see any of those guys in the studio or the bathroom when the thought came out "yes evacuation can be inspiring", I didnt even know they had a cut, and some of us were innocent of the crimes committed by majors and the like, so why steal our stuff?
Label commits a crime, and you hurt the artist, they probably depend on that huh, you will remain true to support what you love.
The future?
Tomorrow, I want it just like I have it.
If the labels are being too greedy, I want my fans to come to me and we can work out the middle man.
If the Distribution part of the chain is taking too big a chunk, come to me and eliminate the cost.
And if I’m going to play and create anyway, threes music to be heard.
But not if I’m too broke to publish it.
Posted by: Mark Starr | November 11, 2009 at 11:57 AM
The sad thing is that the arrogance of the music industry really brought their demise upon themselves. I remember working at a music store back in the eighties when CD first became a media for music. Records and tapes sold for 6.99-8.99 for new releases, but CDs were 15.99-19.99. The RIAA thought "ha, weve got them. no more Tape duping so they have to pay us every penny and cant share". Then folks found out that it actually cost them less money to make a CD, and because the technology was already developed there wasn't even any research or development costs. I remember people complaining constantly about the cost of CDs, particularly when vinyl and cassette tapes no longer could be found in the stores anymore. Then CD burners got cheap, and Napster came, and folks who felt ripped off began to feel justified in ripping off the people who were so willing to gouge them before.
The recording industry at the same time turned to formulaic one hit wonders to become the main staple of their rosters. Bands like Hootie and the Blowfish, Hansen, etc... They weren't acts the the record companies supported and developed over years but were instead wrapped up pieces of candy for people to devour and throw away the wrapper. You don't develop fan bases or loyalty that way, and as such there are few artists that people will by a full album from because they just like the artist. Think about someone like Aerosmith, or U2, or heck even Bon Jovi, who have fans that turn out in droves and buy their record the day it's released without even hearing it and without a #1 song.
But make no mistake about it, the recording industry is largely to blame for DEVALUING music, particularly pop music, as an art form. With no percieved value, nobody wants to pay for it. "Poker Face" while entertaining to some today is not a song that will be listened to over and over again for 30 years like say "Hotel California" or even "Thriller". That is not to say that in 10 years Lada Gaga couldn't develop into a Madonna with a little industry support. But she'll likely only get 5.
Don't get me wrong, I know there are all kinds of artists and I am not downing any of the artists I mentioned because of some hatred or spite. They are all very talented no matter what anyone says, and they sell tons of albums which indicates folks are getting a product they want. I'm just disappointed that they will never get the chance to develop a truly inovative and unique brand to their art as so many in the decades before the CD did. When their sales decline, they are dropped like a bad habit and no one will look back.
Music is an art that has been made into a business with the art stripped out of it. Let's bring the art back into the business and get quality and value back into music. Maybe then you won't have to dress up your art with T-shirts and promotions to keep people from stealing it without an ounce of remorse. I mean, if they're just going to throw it away anyway ... well why not.
Posted by: Michael Jones | October 16, 2009 at 01:25 PM
I read this really great interview the other day with the founders of Merge Records While other labels, both big and small, have had some really extreme ups and downs over the past 20 years
Posted by: passport holder | October 15, 2009 at 11:41 PM
Darryl, I definitely understand where you're coming from. But the whole "intellectual property" definition may have to be re-thought too, in my opinion. We, as artists, do own the intellectual property. However, this becomes a blanket statement that punishes anyone who downloads something, whether or not the artist really cares. I feel things should be placed solely in the artists' hands and let them decide what people do with the music. After some time, it will become apparent if the KISS and Metallica fans out there will really remain loyal to them by looking at their ticket sales, merchandise, etc. I feel like they are demanding trust from consumers by saying, "No, you can't listen to our music before you buy it! You know we're Gods, so just do it!" With the option to at least hear something first, we are able to make the decision as to whether we want to buy it. Also, what about the second-hand stores like CD Warehouse and thousands of others across the country and online retailers like Amazon and eBay? People on there are actually MAKING money off of this so-called intellectual property (as well as the physical property of a CD), and no one has complained about that. That seems like much more of a travesty than downloading something where no funds are being exchanged. Just some food for thought.
Posted by: Agent 11 | October 11, 2009 at 03:26 PM
HI jack. You have a vice thought and i appriciate your work. This is big step in this industry and you are handle it nice way. I like your thoght about stop being a piracy and selling is a biggest matter when you create your own digital media.
Posted by: Games | October 10, 2009 at 01:57 AM
LOOKING AHEAD INTO THE PAST
THE MUZIC BIZ TODAY IS NOT WHAT IT WILL BE TOMORROW. BY PEERING INTO THE PAST YOU CAN SEE THERE WHERE INDIVIDUALS WITH CREATIVE IDEAS WHO CREATED A PLATFORM FOR THEMSELVES TO GET THEIR MUSIC HEARD BY MUSIC LOVERS AND THEN SELL THEIR MUSIC TO THE PEOPLE WHO LOVED WHAT THEY HEARD. MUSIC MARKETS DID NOT CREATE THEMSELVES, THEY WERE CREATED BY INDEPENDENT ENTREPRENEURS WHO HAD VISION, TENACITY AND PASSION TO BUILD WHAT ARE NOW CALLED MAJOR LABELS.
AS THE ECONOMY SHIFTS AND MUSIC MARKETS ARE NOW HEAVILY SATURATED WITH THOUSANDS OF NEW ARTIST, ONE ONLY HAS TO LOOK BACK AT ITS ROOTS. THE MAJORS ARE CORPORATE ENTITIES, MOST WHO ARE PUBLICLY OWNED WITH HIGH OVERHEADS, WHO'S ONLY INTEREST IS TO THEIR STOCKHOLDERS. LIKE THE BIG THREE AUTOMAKERS THEY HAVE GOTTEN COMFORTABLE, GIVING THE OPPORTUNITY BACK TO THE INDEPENDENT ENTREPRENEUR WHO CAN SEE A NEWER VISION OF WHAT THE FUTURE WILL LOOK LIKE WHEN IT COMES TO SERVICING AND MEETING THE NEEDS AND WANTS OF THE MUSIC LOVERS.
WITH THAT SAID, WE ARE JUST ONE OF THE NEW INDEPENDENTS ON THE BLOCK WHO HOLDS THAT VISION AND ARE CREATING A SITUATION FOR OURSELVES TO MOVE WITH YOU INTO THE FUTURE.
Posted by: Gary Taylor | October 09, 2009 at 01:26 AM
I appreciate all who commented and those who have a concern for the future of the music biz but there is one major issue everyone seemed to have completely missed. This fight and downward turn in the music industry has nothing to do with major labels, changing of formats or wanting things to go back to a so called Utopian state. This issue is soley about one thing: "Intellectual Property" in other words artist rights and what has been law well before the internet, period. Yes we have gone through many changes over the decades from vinyl to tape to CD's and technology has truly advanced beyond our wildest dreams but the fact of the matter still remains artists need to be compensated for their talents, time, efforts, energy, knowlege, skill set and of course their creative minds. Without boundries or regulations you don't have a business market or industry you have the wild wild west and the last time I checked those times are very much in the past. It's not new technology or major labels that ruined the music industry it's the mindset and how new technology is used. We have had the ability to create and generate nuclear energy for years but it doesn't mean that we should use it to destroy something already in place that we don't seem to agree with. Change and evolution are a natural part of life but what changes are made and what we evolve into ultimately decides our fate. Major labels have been around for ever indies have been around for ever the internet has not. Digital distribution needs a serious and very much needed regulated makeover. Yes we are able to distribute to millions if not billions of people but it doesn't give me or anyone else the right to steal and distribute to millions if not billions of people. Times are very exciting for musicians right now and it definitely is a celebrated new sense of freedom, but remember the slaves felt the same way many years ago but it took the Civil Rights movement and many amendments or revised regulatory sanctions to help the reality come to fruition. We have a ways to go and we seem to have cut through most of the mess so far but let's not forget what is truly at stake: The Artist. It's just a matter of time before things start to turn around. Don't Worry be Happy! Yes that is the name of a very popular song so buy it don't steal it. Thank you for listening.
Posted by: www.facebook.com/profile.php?id=1463317254 | October 06, 2009 at 07:00 PM
Music itself will survive though,
I'm not so sure that Music 'Industry' can survive
For next 10 years,
it will be dark age for pro musicians who perform music as their job.
It would be the best chance
for Personal Musicians and Digital Distributors
(who gathers Personal Hobby-like musics and sells them
ex. Itunes, Napster, CDBaby, Tunecore)
In my opinion, Live performance would be the only chance to save the music 'Industry'
Recorded Music will be free contents,
for Good Live Concert(or Show)
to gather fans who are full of loyalty....
Posted by: Chang Lee | October 05, 2009 at 03:25 AM
We can't be very mad. We were put in this world to constantly create and that is just what the world has been doing since the beginning of time.
The time there is nothing to create; then the world would be perfect. We know what that means then.
If there is a way to create it, there is a way to improve it, and there is a way to stop it all together. It is just a matter of someone creating that too.
More alternative 'RapSpiration' at www.rapspire.com
Posted by: Soulja Soulja | October 03, 2009 at 07:25 PM
It's the same as it always is. In the 80's people were copying tapes, in the 90's they burned cds, now they're sharing files. The record companies are still bloated from the resale of tapes and cds (which they gave no kickback to the artists.) That's billions of dollars grossed by just changing format, no overhead. So, if they are suffering a little now, GOOD, thus is the natural order of things. The power is finally in the artists hands. ANYONE, can write, record, and distribute a song. It's the way it should be and I hope it stays that way. Screw the major labels, if you like music, buy it from the artist directly. If that artist is good, and puts in work, they are gonna make more money than they ever would under a label. FAIR IS FAIR!!!!
*Pick up Fire With Fire's debut album "Broken Hearts & Bruised Egos" available thru Tunecore on iTunes, Amazon, Napster, Rhapsody, and anywhere else digital music is sold!
Posted by: Matt Podolski | October 03, 2009 at 10:57 AM
How about putting company logo's or advertisements in Cover Art and into id tags to offset downloading loses .
I get around 100,000 hits in a day and that would be a lot of "impressions" to sell.
We need someone to sell the space and more artists to do it , look at the sample idea
www.myspace.com/tomslyrics
Each tune has a space for rent and I make a few $ but could make more with someone selling this to national advertisers
chimneysidebroadcasting@yahoo.ca
Posted by: Thomas Dowswell | October 02, 2009 at 05:16 PM
The only people to blame are the ones in the music industry that have robbed, cheated, miss managed, shelved and exploited good and great artist that came their way. Instead of their true job, securing the path for music and money to be made. They allowed GIANTS into our arena that do not share none or our good and true core artistic values. Because of this, many of these Major labels will die and new business minded artist will independently grow and reap the benefits they should have always received. In my 20 years in this musical drama I am experiencing the best time of my life as an independent label. All I can Say is "WHAT GOES AROUND COMES AROUND".
Posted by: Deez Beatz | October 02, 2009 at 03:55 PM
Don't take it so seriously everyone. In 10 years the music biz will find its way through this quagmire. For me, right now I'm just gonna take it one day at a time and do what I can to make music now! Don't worry about tomorrow.
Posted by: Charles Marlowe | October 02, 2009 at 12:49 PM
It's not like making music is equivalent to building cars or growing food. We make music because we love doing it. We write songs because we want the world to hear our voice. Should we get paid for that? It's always been an incredible luxury of a particularly short moment in our culture that musicians could be rewarded like industrialists. I think it's simply awesome right now that I or my kid could create a recording and anyone in the world can have access to it. 25 years ago I wished that could be true, instead of having to beg a label and/or distributor to make that same thing potentially occur. Wishes can come true!
Posted by: Andre Kuzniarek | October 02, 2009 at 12:07 PM
Hello,I'm Ron from Soaring Thoughts waiting for our CD to go live on Amazon on demand. TuneCore will get it done!
working on CD #2 a solo CD by Ron McAdaragh!
Posted by: Ron McAdaragh | October 02, 2009 at 10:51 AM