Thursday, February 22, 2007
The Death Of Mainstream Music
Radio sucks. Labels are worse. Musicians and fans of music are seeking an alternative. It is time to put the music back where it belongs - in the hands of the musicians.
January CD sales were the worst in Soundscan history. Soundscan began tracking sales in 1991. Only 34.1 million records were sold in January 2007, the worst month ever. In fact, this number represents an alarming drop from a decade ago. Mainstream artists, and the four major record labels, are in panic mode. An indication of how bad things have become: The "Dreamgirls" Soundtrack was the number one selling CD last month. A soundtrack. And it sold just 66,000 copies, compared to No Doubt's Tragic Kingdom, which sold 250,842 for the same period in 1997. This represents a 67% decrease.
"The music industry is in a free-fall", says Adam Shore, head of Vice Records, which distributes through Atlantic. "We're having an existential crisis. We have the best release schedule we've ever had but we're less sure than ever that people are going to buy our records."
This on the heels of what may be considered "Class Reunion" year in the industry. The Police, Van Halen, Rage Against The Machine, Smashing Pumpkins and Genesis are all reuniting in 2007. Why is this?
Labels are afraid to give the upstarts and indies a chance, not wanting to commit big dollars to unknown entities in a market that is being swallowed by it's own ignorance and timidity. The safe route is to commit to the bands with proven track records and proven marketability. This comes at no small expense. Tickets to these reunions will easily be in the hundreds of dollars. Phil Collins claims Genesis "is not in it for the money. We're all loaded."
This creates a self-fulfilling prophecy. By attempting to generate revenue through the marketing of tired and stale acts, the industry is essentially turning it's back on two major forms of support. The average fan, who cannot afford a $200 ticket to see Genesis perform "Land Of Conusion" (nice timing by the way, let Disturbed cover your song better than you did and then bankroll your tour on their success), and the very talented indie and unsigned bands who are being told "No matter how good you are, we can't sell your music at a profit, but thanks anyway."
The great thing about this is that the local, unsigned and indie label talent are starting to reap the benefits of having control over their music. Web sites like MySpace Music, CD Baby, SonicJive.com allow these upstarts to sell their music, with or without a label, in digital format. MP3 downloads sell for 99-cents on the average with the artists receiving profits of anywhere between 39 and 91 cents, depending on their distribution and licensing agreements.
CD Baby also warehouses and distributes CD's on behalf of the artists, handling all packaging, shipping and invoicing for a $4 fee per sale. CD Baby is also exploring Digital Download, with agreements with Sno Cap, iTunes and Rhapsody among others. This distribution chain however, takes some of the profits away from the artists, though bands and musicians registered with CD Baby do get a 3 cent rebate from Sno Cap per download.
SonicJive.com has a "you post it - you own it" policy that allows musicians to keep full ownership of posted material. There are no distribution deals with the big players, or the new "labels", that filter profits away from the bands and into the hands of the distributors. And there is no unrestricted licensing. SonicJive.com pays the artists 91 cents per download sale, on average.
"Simply put, if you love the music, buy the music here, " states CEO and SonicJive.com founder Michael Canter. "This way the bands keep what is rightfully theirs - their music, and the profits from their sales. Rhapsody, iTunes and Napster are essentially Digital Record Labels. Our downloads will play on any MP3 player, and the artists get paid for their work." SonicJive charges $100 for an annual membership, with a chance to win $25,000.00 and extensive airplay on profile pages and their streaming audio player, SonicJive Radio.
This innovative approach is sure to set trends in the music business and change the way music is marketed and distributed. MySpace, for example, explicitly assumes licensing in their terms of agreement, which few people take the time to read. When the applicant agrees, licensing is officially surrendered to NewsCorp. Photos, music, demographic information and even their blogs can be used by MySpace for marketing and advertising with no royalties paid to the owner. Bands and musicians are beginning to jump ship, and sign on with the fledgling .com company. To make it "friendly", SonicJive, much like MySpace, allows fans to create user profiles and interact in a social network gathering with their favorite musicians and their friends as well.
Realistically, this changing of the guard could eventually mean the death of mainstream music, with the future of music squarely and firmly entrenched in the hands of it's authors. Music hasn't seen a revolution like this since the 1960's. SonicJive.com, CD Baby and MySpace Music are all trend setters in the evolution of Digital Download Music. Soon, services such as these may be the only places to hear fresh material.
But that's a good thing, because it puts the artist back in control.
January CD sales were the worst in Soundscan history. Soundscan began tracking sales in 1991. Only 34.1 million records were sold in January 2007, the worst month ever. In fact, this number represents an alarming drop from a decade ago. Mainstream artists, and the four major record labels, are in panic mode. An indication of how bad things have become: The "Dreamgirls" Soundtrack was the number one selling CD last month. A soundtrack. And it sold just 66,000 copies, compared to No Doubt's Tragic Kingdom, which sold 250,842 for the same period in 1997. This represents a 67% decrease.
"The music industry is in a free-fall", says Adam Shore, head of Vice Records, which distributes through Atlantic. "We're having an existential crisis. We have the best release schedule we've ever had but we're less sure than ever that people are going to buy our records."
This on the heels of what may be considered "Class Reunion" year in the industry. The Police, Van Halen, Rage Against The Machine, Smashing Pumpkins and Genesis are all reuniting in 2007. Why is this?
Labels are afraid to give the upstarts and indies a chance, not wanting to commit big dollars to unknown entities in a market that is being swallowed by it's own ignorance and timidity. The safe route is to commit to the bands with proven track records and proven marketability. This comes at no small expense. Tickets to these reunions will easily be in the hundreds of dollars. Phil Collins claims Genesis "is not in it for the money. We're all loaded."
This creates a self-fulfilling prophecy. By attempting to generate revenue through the marketing of tired and stale acts, the industry is essentially turning it's back on two major forms of support. The average fan, who cannot afford a $200 ticket to see Genesis perform "Land Of Conusion" (nice timing by the way, let Disturbed cover your song better than you did and then bankroll your tour on their success), and the very talented indie and unsigned bands who are being told "No matter how good you are, we can't sell your music at a profit, but thanks anyway."
The great thing about this is that the local, unsigned and indie label talent are starting to reap the benefits of having control over their music. Web sites like MySpace Music, CD Baby, SonicJive.com allow these upstarts to sell their music, with or without a label, in digital format. MP3 downloads sell for 99-cents on the average with the artists receiving profits of anywhere between 39 and 91 cents, depending on their distribution and licensing agreements.
CD Baby also warehouses and distributes CD's on behalf of the artists, handling all packaging, shipping and invoicing for a $4 fee per sale. CD Baby is also exploring Digital Download, with agreements with Sno Cap, iTunes and Rhapsody among others. This distribution chain however, takes some of the profits away from the artists, though bands and musicians registered with CD Baby do get a 3 cent rebate from Sno Cap per download.
SonicJive.com has a "you post it - you own it" policy that allows musicians to keep full ownership of posted material. There are no distribution deals with the big players, or the new "labels", that filter profits away from the bands and into the hands of the distributors. And there is no unrestricted licensing. SonicJive.com pays the artists 91 cents per download sale, on average.
"Simply put, if you love the music, buy the music here, " states CEO and SonicJive.com founder Michael Canter. "This way the bands keep what is rightfully theirs - their music, and the profits from their sales. Rhapsody, iTunes and Napster are essentially Digital Record Labels. Our downloads will play on any MP3 player, and the artists get paid for their work." SonicJive charges $100 for an annual membership, with a chance to win $25,000.00 and extensive airplay on profile pages and their streaming audio player, SonicJive Radio.
This innovative approach is sure to set trends in the music business and change the way music is marketed and distributed. MySpace, for example, explicitly assumes licensing in their terms of agreement, which few people take the time to read. When the applicant agrees, licensing is officially surrendered to NewsCorp. Photos, music, demographic information and even their blogs can be used by MySpace for marketing and advertising with no royalties paid to the owner. Bands and musicians are beginning to jump ship, and sign on with the fledgling .com company. To make it "friendly", SonicJive, much like MySpace, allows fans to create user profiles and interact in a social network gathering with their favorite musicians and their friends as well.
Realistically, this changing of the guard could eventually mean the death of mainstream music, with the future of music squarely and firmly entrenched in the hands of it's authors. Music hasn't seen a revolution like this since the 1960's. SonicJive.com, CD Baby and MySpace Music are all trend setters in the evolution of Digital Download Music. Soon, services such as these may be the only places to hear fresh material.
But that's a good thing, because it puts the artist back in control.
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