|
||
The Democratization of the Music Industry
As I write this, iTunes ranks as the 2nd largest seller of music in the U.S. -- only Wal-Mart's physical stores sell more. Digital revenue is real, and there is a lot of it being earned. Sales from iTunes alone can provide a band enough revenue to achieve true financial success. Don't take my word for it, just look at some of the sales by the following unsigned artists utilizing the Net for both digital distribution and marketing: Kelly sold over 500,000 songs in five months, Eric Hutchinson sold 120,000 songs in three weeks, The Medic Droid sold over 25,000 copies of a single in 45 days, Crank Squad sold over 20,000 songs in 30 days, Secondhand Serenade sold over 225,500 songs in three months, Jason Reeves sold over 20,000 songs in December 2007 and the list goes on and on. Unlike a physical store, digital stores like iTunes have unlimited shelf space allowing everything to be in stock. If the virtual shelves fill up, another hard drive is popped in to make more shelf space. In addition, inventory never runs out; the music simply replicates itself on demand each time it is bought.
After 17 years of running my record label spinART Records, I shut it down. The advent and general adoption of the Internet, digital media and hardware took control of the global music industry away from the record labels and media outlets and handed it to the masses. For the first time in history, through sites like TuneCore, all music creators can choose to be their own record label. There are no longer subjective gatekeepers controlling who gets let "in," promoted and exposed. The choice is ours. Now, anyone can be famous.
In 1991, I asked my high school friend if I could help him release an indie rock band compilation CD called "One Last Kiss," he said "yes" and spinART Records was born. For the next 17 years I co-ran the label and had the privilege of releasing many of the bands on my high school and college mix tapes (The Pixies, Camper Van Beethoven, Roddy Frame (Aztec Camera), Echo & The Bunnymen, The Church, Richard Thompson, and more) as well as a large number of other bands discovered post college (Lilys, Lotion, Clem Snide, Apples In Stereo, The Dears, Poole, etc.).
In 1996, I cold-called Ken Goes, then manager for the Pixies and Frank Black, in an attempt to convince him that our band Lotion should open for Frank Black on his upcoming national tour. While on the phone, Ken put me on hold for about two minutes. When he returned he told me the deal he had been working on with another record label to release the new Frank Black & The Catholics album had just fallen through -- Frank Black would not grant them the digital rights as they had already been assigned to another company called GoodNoise (now called eMusic). I told Ken this would not be a problem for me. spinART went on to release the next seven Frank Black & The Catholic albums, a Pixies album and a double disc called Frank Black Francis.
Soon thereafter I met the founders of eMusic and went on to work with them for the next 3 ½ years. spinART Records became the first label in the history of the music industry to put its available catalog up for paid download as MP3s and the education I received helped set the stage to adapt to the inevitable changes about to impact the music industry. I took to the emerging digital sector the way Bush took to weapons of mass destruction.
Over the ensuing years, spinART had its peaks and valleys. By 2004, there were a lot more valleys than peaks. The label still did what it did very well, identifying bands that it believed people would like and making them famous. But there was one big change, in the "old days" the more famous an artist got, the more money the bands and spinART made by selling the music. Almost suddenly, this correlation seemed to be breaking. Necessity being the mother of invention, it got me thinking, what could I do to remain in the music industry under a model that would not rely on selling music (the exploitation model). And thus the idea for a new model was born, turn distribution into a service for a simple up front, one time flat fee.
For the past century, artists could record, manufacture, market, and, to some degree, promote their own music, but no matter if they were The Beatles, Elvis or Led Zepplin, they could not distribute it and get in placed on the shelves of the stores across the country; the required costs and infrastructure of the physical world were just too massive -- a 500,00 square foot warehouse staffed with 30 people, trucks and inventory systems, insurance, a field staff of 30 people walking to music stores leveraging, begging, pleading and paying to get the CD, album, 8-track, wax spool, etc., on the precious shelves of the retail stores -- and checking up afterwards. Distribution was out of the hands of any one person, no matter how dedicated or wealthy. Without the music available to buy, there was no way for it to sell.
Record labels made artists famous and made money off that fame by selling the music -- without the music available to buy, there was no way for it to sell. The record labels exclusively had the relationships with the distributors (and in the case of the "four major record labels" the same company owns both). Therefore, with only one means to the desired end, the goal for many artists was to get "signed" to a label.
Record labels were in a very unique position of power due to their exclusive access to distribution, they were not only the singular gatekeepers to a career for an artist by "signing" them to an exclusive contract, but they were also the subjective "deciders" as to what music was pushed out and promoted to the media outlets. With a "signing," the labels acquired exclusive rights to and from the artist. In return, the label advanced money while providing the relationships, expertise and infrastructure to record, manufacture, market, promote, distribute and sell the music. Of all the artists and music creators in the world, far less than 1% got chosen by the labels due to the risks and economics of the "brick and mortar" world. Of all the music created around the globe, even less has had the opportunity to be discovered and heard by the masses.
And then the world changed thanks to the Internet and digital media.......
For administrative reasons, most of the digital stores like iTunes don't deal directly with the artists -- frankly, customer support for millions of bands (or Uncle Larry, who insists he can do the best version of "How Much Is That Doggy In The Window") are not what the digital stores are about. The stores prefer to get the music from music industry middlemen that aggregate music and deal with the administrative headaches (a record label as one example). The way to meaningful distribution has been reduced from "access plus infrastructure" to merely "access."
With the launch of TuneCore (full disclosure here, I am the CEO and founder), for the cost of a six pack and a pizza (around $30), anyone can now literally be their own record label and have the same distribution as any "signed" artist. However, unlike a "signed" artist, this new model allows artists to keep all their rights and receive all the money from the sale of their music via a non-exclusive agreement that can be cancelled at any time, all while having infinite inventory with no up front cost or risk.
This is analogous to telling a band 15 years ago that if they paid $30, every Tower Record store (god bless its now departed soul) around the world would have their album on its shelf and never run out of stock.
Music marketing and promotion is simply giving music to media outlets in hopes that they play it, talk about it or write about it. In the old days, there were three main media outlets that provided the general population a way to discover music en masse: commercial radio, TV (i.e., MTV, VH1, BET) and print magazines like Rolling Stone.
These three media outlets created a second subjective filter as they decided which music videos to show, albums to write about or singles to play on the radio from a limited pool of artists promoted to them via the labels. If an artist was not on a label, the possibility of getting exposure from any of these three outlets was virtually impossible -- MTV in particular.
Just getting pitched to any three of these media outlets also required a label due to the costs (i.e., making a video, greasing the palms of the programming directors at commercial radio stations, hiring a publicist, etc.) and connections.
Once again, enter the digital age. The Internet has created new media outlets and given everyone global access. Commercial radio is being replaced by Internet based recommendation streaming radio stations like LastFM that let all music in for programming, not just music pushed from the labels. MTV (when they actually played music videos and nothing was being pimped out, dated or real world-ed) has been replaced by sites like YouTube. All anyone needs now is a cell phone to make their own video and broadcast to a potential Internet viewing audience of hundreds of millions. Print magazines have been replaced by MP3 blogs like Stereogum, Gorilla Vs. Bear, PitchforkMedia, My Old Kentucky Blog and many others. These, combined with social networking sites like iLike, MySpace and more, have limitless circulation and the ability to allow readers and users to form a community that listens to, shares, rates, comments on and in some cases, even buys music. Everyone can become their own commercial radio station, magazine and/or TV network, reaching tens of millions of people.
With the restrictions of the physical world removed sites like iTunes have new vehicles allowing people to discover and share free music (make sure to snag a copy of 34 Stars, a 34-artist compilation album available for free download on iTunes
Subjectivity and filters have been removed. All music can be discovered, downloaded, shared, promoted, heard and bought directly by the audience itself. It is truly the democratization of an industry.
As far as the other label functions, these are now affordable and accessible for everyone. For the cost of one day at a studio, you can go to a place like Guitar Center (disclosure again -- Guitar Center have an equity position in TuneCore) and get inexpensive high quality gear to record at home along with lots of knowledgeable experts working the floors to educate and advise. With the removal of a physical medium to deliver the music (i.e., a CD), the barriers and expenses created by physical manufacturing have been removed.
Allowing all music creators "in" is both exciting and frightening. Some argue that we need subjective gatekeepers as filters. No matter which way you feel about it, there are a few indisputable facts -- control has been taken away from the "four major labels" and the traditional media outlets. We, the "masses," now have access to create, distribute, discover, promote, share and listen to any music. Hopefully access to all of this new music will inspire us, make us think and open doors and minds to new experiences we choose, not what a corporation or media outlet decides we should want. It is then the public, not a corporation that gets to decide what is bad and good. The revolution (pun intended) has truly begun.
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
Great article... I especially liked your insights into the key importance of distribution.
I think the digital music revolution is still very young. And because of the unique and compelling qualities of digital music (for creators AND consumers), I believe we have only seen the beginning of what will be a redefining of every aspect of the music industry.
First came digital recording systems and their plug-ins. Which have all but replaced their Analog counterparts.
Then came digital music players, which capitalized on the MP3 format. Culminating in the amazing success of the iPod and iTunes.
Then came digital music distribution via sites like MP3.com, and iTunes - as well as Internet music broadcasters like Pandora and Last.fm.
I believe the next piece will be a re-definition of what a "Band" is. Internet sites like TheNetStudio.com, Kompoz.com and Indabamusic.com allow geographically disperse musicians to collaborate on multiple music projects. Some really great music is being made by people who have never physically met.
I can foresee a time, when all these pieces will connect songwriters, musicians, producers, and engineers - allowing them to create, record, market, and distribute new music completely in the digital domain - The complete life-cycle of a song - so that no physical media is ever created. The prospects for this are exciting because pure ideas in the form of music can be communicated directly from the artist to the fan without the roadblocks (and cost) that physical media creates.
Seems as though this TuneCore hasn't really distanced itself that much from the ol' Music Industry: no support for Ogg Vorbis!
"Ogg Vorbis is a completely open, patent-free, professional audio encoding and streaming technology with all the benefits of Open Source."
It sounds like Ken gave Lotion the gig. That's not so much a question as a bookmark. I'm looking for a sense of the probable evolution of features and television as all manner of content creators migrate away from network and studios.
Ken did present Lotion to Frank Black - and yes, they ended up getting a small handful of gigs with them in the North East. In regards to your second point/question.... I think YouTube certainly has begun to show how that model is evolving.
Reading between the lines of this post, it is abundantly clear that the music business is no longer about selling music to an audience. The new incarnation of the business regards enabling people to make their own music. With a small four figure investment (perhaps even less), and a little bit of know-how, anyone can make a halfway-decent-sounding recording and have it distributed online. On the one hand, this is greatly empowering to any musician and takes the heartless record labels out of the music production equation. On the other hand, the sheer volume of music produced will proclude the possibility of most of it getting heard by more than a few people, and likely make the odds of being able to earn a living as a musician even longer than ever. Novelty will prevail like never before. In other words, get used to listening to the sounds of governors' call girls and bozos running on treadmills. Sure one could point to Radiohead's success in selling In Rainbows, but it is important to remember that they were well-established years before the file-sharing era.
The ultimate impact on popular music will likely be similar to the influence recording technology had on 'classical music' one hundred years ago. Pop will be increasingly backward-looking and oriented around a canon of established classics. In fact, I'd say its already happening with enormous popularity of American Idol, Guitar Hero and karaoke in general.
What's interesting there has always been an incredible volume of music created that no one has ever heard. In the digital world, it can sit on a shelf or be available to listen to, share etc at no negative consequence. In the physical world, if one album was in stock it literally meant another could not be. This problem no longer exists, therefore what harm or damage occurs by something being available?
In addition, there is an expansion of who is making the money from music sales. It used to be just 5% of the artists were making over 80% of the revenue. I suspect now it has shifted to over 30% of artists making over 80% of the revenue.
It appears as if a new "middle class" of artists is emerging, they are not making millions, but they are making some good money (it's stunning what TuneCore customer's sell and make. ).
I am not so sure it will be harder to make money as an artist, it's easier now than ever to be "famous". The question becomes how to monetize that fame....
What happens with all this digital music that no one wants to listen to? Is it really elitist to want to have "gatekeepers" to sift through the trough? (Oh, and what about those "Editor Picks" on TuneCore?)
Back in the day, a band spent someone else's money - to record, to live on - so yes, nothing was given without a hitch. Nowadays the advances in technology (recording, internet, manufacturing and otherwise) have made it truly possible for anyone to create music, does that give us "better' music? Is "more" really a better option in this case?
Don't get me wrong, The Major Record Label is as much a dinosaur as a Tyrannosaurus Rex, or Emerson Lake and Palmer. But the sheer volume of music being produced and now available is the death of Rock-n-Roll. It's not elitist, it's overwhelming. It's incomprehensible, and it won't get heard. Does anyone really think this could go on forever?
Rock is Dead. Long Live Rock!
HuffPost's Pick
Exciting and frightening are both understatements. As a long-time musician convinced of the inequality and preference for junk music displayed by major labels throughout my entire life, and especially since the advent of video music and MTV, I have to agree it's a brave new world. I'm afraid though, that I have to editorialize on Guitar Center here. Every one I've been into (this includes San Diego, San Marcos, Los Angeles and Houston) has had the atmosphere of a car lot. The salespeople are commission-based and behave like sharks. If you look a bit scruffy, you will be ignored, if you look like money you will be mobbed. Sometimes it is the only option merely because it's the only place to find a certain piece of gear, but be warned, what they want to sell you is the most expensive piece of gear they can, not necessarily the one you actually need. Do all of your research online, there are many good websites full of information about gear for recording and performing. Be armed with facts and prices before you walk into GC, or you will be taken advantage of. Oh, BTW, all prices are negotiable, just like on the car lot.
I never liked the big box music shops. I deal with either Mom & Pop type places or sweetwater.com. When I was rebuilding my studio Sweetwater was very helpful and worked with me on pricing.
Interesting post. But you're paying way too much for a six-pack and a pizza.
I live in NY. What can i say, a large pepperoni pizza and a six pack of Heineken runs about $30
I was just explaining the realities of this to my wife the other night. I could not be more pleased with the direction that the music business is going due to exactly that the author has penned here.
It is not perfect, but it is opportunity that anyone can grasp at, the proof of success or not, will be in those artists we both find from this expanded media and for the small portion who have the chops, the ones we become.
Neil Young has called the dawn of the digital music age "The dark ages of music" but I disagree. This likens more to Martin Luther nailing his thesis' to the door of the Church, taking to task the hold that the clergy maintained on their position as intercessary to a higher power, and putting the connection in the hands of the people.
Now I'm going home to put up sheetrock in my new studio. See you on iTunes
RIP Record Labels! Thank God for that! Radiohead may have been the band to prove this in a large scale way with "In Rainbows". The music scene can once again become organic. The age of cheese is hopeful over.
Good or bad? Don't know. What I do know is that Ayn Rand predicted it...the tyranny of the common.
Have you ever actually cruised through the stuff on this website? Do you really believe that universal access has elevated the level of political discourse in this country? Are one-fiftieth of the bands out there one-tenth as innovative as those who branded rock and roll, singer/songwriter, r&b the old fashioned way...honing their craft through the lens of hard times, personal vision and big fat guys with pinky rings like Ahmet Ertegun?
What is the value of an endeavor if everyone can undertake it?
Elitist? Maybe.
You imply that this democratization cheapens music, since one would have to wade through too much crap before finding that one hidden treasure. It was better when there were the impresarios to tell us what was good, is that right? As a former singer/songwriter, I know that "getting signed" had less to do with music than with money. In the 1980s, even before labels noticed you, club bookers wanted to hear your demo to see if you fit the club's vibe, then they wanted to see how many people would pay to see you and buy drinks (unlimited guest lists were cool because it was all about the drinks). Then, if labels saw that you had a large following and got good local press, then they would solicit a demo. Typically you paid your own money to record one in a professional studio. Then more showcases in the better clubs to see who would pay money to see you, plus college radio, etc.
Nearly as important was how well you could hang with the endless party vibe of the biz. If you weren't willing to party on that level, they didn't want you around. I'm not making this up; I lived it.
To me, having the internet to take away the elitism, and to level the playing field, is an awesome change. I just wish I was still writing songs (and was 20 years younger) to really take advantage of it.
Getting to the top in almost any business is a function, perhaps a direct function, of desire and will. Please believe that I mean no criticism of you. Not knowing your circumstances, I have no way to judge. But there is no reason for you to be bemoaning the fact that you no longer sing and play. Odetta, Miriam Makeba, a slew of women...and men...'of a certain age' can still sing up a storm. Why not you? Particularly since, as you say, the playing field is level. The only reason must be that you lack the will. Again, no criticism intended.
Those that had the will perservered. You know as well as I that just about every major recording artist was rejected at some point or another. I recently read on Yahoo, I think, a discussion of The Ten Greatest Rock and Roll Mistakes. The guy who failed to sign The Beatles had fallen to number two. I forget what the new number one was. In any event, my point is that, exactly as you describe, there were hurdles...some BS, some less so. To be noticed, an artist had to leap...or perservere around...those hurdlles.
When there are no tests to take, we all pass the test. Does that bring out the best in us? As George Carlin says, " If all children are special, why aren't all adults special? We're either lousy parents or our little rugrats aren't as special as we thought."
I believe the rules of the old world will still apply - the sort of "invisible hand" of surfacing what collectively "we" like. That is, it might all be available, but we still get to decide what is popular.
Yup seems to be true but how dya explain 'American Idol' on 'old media' anyway.
And how many artists actually can make money and give up their 'day' job? (yet anyway?)
As Radiohead proved, selling the songs isn't where one really makes money. The royalty income isn't what it used to be. Getting songs on TV shows and in movies pays very well, but the real money is in touring. The artist above who sold 500,000 copies in five months has to have a big buzz already despite not being signed. Maybe it was on YouTube or some other way. But when that artist hits the road and plays dates in good venues, the share of the ticket price, plus merchandising can make him/her millions.
My cousin was a fairly successful producer/songwriter who had some good credits to his name. He just shut down his home-based recording studio because no one was booking it anymore. Anyone can go down to a decent music retailer (or go online) and buy good digital recording gear and a high-end Mac. He's now working as a foley recordist for the film industry. Interesting work, but about as boring as one can get if your real love is making music.
I can't say how much I love the control that the digital age gives me. I hear what I want to hear when I want to hear it, no exceptions. I don't watch MTV anymore, I download the videos I want to see instead of waiting for them to show it. I can listen to an album before I buy it, and buy only the songs I think are good. If the record labels can't adapt, then they'll go under.
Well said Jeff, this is exactly the speech I've been giving artists for quite some time. Some have listened and we're working together - others are trying to get "signed" the old fashioned way. I say good luck to them - they're gonna need it!
It's really a confusing time out there in the world. For decades, it has been one way to get reach "rock-stardom", and all of a sudden it can be reached in new ways. Like it or not, there is still something "sexy" about being signed. I think its going to take a few more years for the changes to resonate.
I think it goes far beyond the music industry and is really a demonstration of the adjustment of the internet in general. As opposed to it's first incarnation, it's not specifically a marketplace where retailers directly target consumers. Instead it's far more of a wider society where the "consumers" are an integral part of the content and value. That makes it far more difficult to apply traditional selling techniques and practices to the internet.
The ability of internet users, even those lacking in much technical savvy, to develop content that genuinely provides value is I think part of the oft-used term 'Web 2.0'. That's usually related to the likes of social networking sites such as Facebook, but I think it's particularly relevant to the music industry where it very much has instilled the democratisation that Jeff is talking about.
No surprise here, I agree. The internet is about niches - and digital media can be created by just about anyone. Like Celtic Heavy Metal Covers, there is a forum talking about it and now consumers can discover exactly what they are interested, and artistic creators know where to go to reach them
GREAT article. i switched over to an all-digital music collection a few years ago and never looked back. i just downloaded this 34 song sampler, and am already in hot pursuit of some of these artists. THIS is how the music industry SHOULD work.
i am also probably going to buy that bass starter kit and other stuff from the guitar place, LOL i am SURE i have a few good songs in me!
Not sure if you heard the Marcia Brady song - oh it's in there, with The Dandy Warhols, Public Enemy, Steve Vai and moew. It really is a cool sampler!
YES! Hooray!
A fine article, and I hope the big conglomos are shaking in their boots!
Finally, it's been long in coming but the independent musician/artist/writer/dancer/painter/poet...will have their day without the by your leave of the powers that think they be.
NO more gatekeepers or payola or the corruption of an industry that presumes to tell people what they WILL Enjoy or else. Or all hoopla to push cloned manufactured crap (and they dare call it "art"??)at the expense of real talented and yes, struggling artists.
BRING. IT. ON!
I get really excited by these changes! The concept of mass distribution, sharing and discover of all forms of art - from graphics to music to essays and books - lord knows what we have been missing out on.
You must be logged in to comment. Log in or connect with
