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Big Music Will Surrender, But Not Until At Least 2011

techcrunch.com

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Re: Big Music Will Surrender, But Not Until At Least 2011

#11
post #7
post #2

Until CD sales really stagnate, all those revenue streams bring in more money than facing reality. Sounds like it's urgent for CD sales to really stagnate. Do a Good Thing today: convince a friend never to pay for recorded music again. On a less snappy note, I sincerely hope that these two-faced bastards will go out of business, along with their "360 plans" and other nonsense. The world doesn't need Big Labels - with…

> Do a Good Thing today: convince a friend never to pay for recorded music again. If you do that, how do you plan on showing support for artists whose works you enjoy?

The article claims that in a few years, recorded music will be free. Unless you plan on paying for free music (which seems difficult,) you will support artists by going to their shows, buying their merch, etc.

Re: Big Music Will Surrender, But Not Until At Least 2011

#12
So their customers will continue to be artists. But what makes them believe artists will continue to need big labels' services in 2011 as they've been needing them in the past?

I am just failing to comprehend where do they add value. Marketing dollars? I don't see anything beyond that. And if that's true, how is it different from VC-startup model then?

Labels appear to be just investors who ask too much in return and the only way they "die" is when more effective "investors in music" appear, and now, suddenly, it appears that their "death" isn't about distribution channels at all.

Re: Big Music Will Surrender, But Not Until At Least 2011

#13
If I understand correctly the businessplan goes like this:

1) Keep alienating consumers and digital music outlets with courtcases and other mafia-like behaviour until CD-sales approach zero. Make a bit of money, and since music is going to be free anyway, who cares if consumers and the future marketing channel hates us.

2) When CD-sales are low enough give the music away. The sites we are now suing will play along once they get our stuff for free. And those guys over at Apple don't know what they're talking about when they tell us that consumers will gladly pay for music if it just works. We don't really believe that they have digital music sales in excess of $1 billion.

3) When we can't make any more money from CD's well change to 360 music deals, and we'll get a cut of merchandise, live events, etc. Of course well have to find out how to do world tours and other stuff we haven't got a clue about, but we'll worry about that later.

4) During the roll-out of the above we will ignore the fact that artists hate us and are fleeing our labels. They'll surely come back once we get our new business model going.

I mean seriously - is this the best they can do?

Re: Big Music Will Surrender, But Not Until At Least 2011

#14
My response on TechCrunch website:

Hmm sounds like they really are waiting for 100% of the artists to be under the 360 contracts first before proceeding to a new business model.

This seems unwise. If they wait 5 years, the patterns of discovering new music will change drastically and they’ll miss out on the power of momentum.

Today, YouTube & social networks are becoming great ways of discover new musicians. If this pattern continues to evolve to become habit, the role of labels will begin to shrink… and so will their ability to negotiate with artists.

It’s likely that there will always be packaged artists like Britney who don’t have a musical fanbase before the labels get a hold of them. They’ll likely be the bread & butter of labels but artists that come with a following of 100,000 subscribers on YouTube will expect different treatment/contracts.

Labels should consider developing partnerships in a way that allows them to add value to both, the distribution partners and the artists… beyond just managing rights and collecting money.

Re: Big Music Will Surrender, But Not Until At Least 2011

#15

So their customers will continue to be artists. But what makes them believe artists will continue to need big labels' services in 2011 as they've been needing them in the past? I am just failing to comprehend where do they add value. Marketing dollars? I don't see anything beyond that. And if that's true, how is it different from VC-startup model then? Labels appear to be just investors who ask too much in return and…

I just went to see a band - I then checked their website, I can buy CDs/download tracks/T-Shirts. There are links to the tickets for their upcoming gigs. there are even press packs to download ready for the lazy journalist to put in their newspapers.

I don't know who their recording company is - and why exactly would they need one?

Re: Big Music Will Surrender, But Not Until At Least 2011

#16
post #3

What their spreadsheets don't consider is that the world could change while they're delaying. These non-technology people don't understand the speed of change or the danger of delay. That was what hosed Terry Semel, apparently. While he was trying to buy Google and Facebook, they were both growing rapidly. He was used to buying stuff whose value didn't change fast, like movie rights. But technology changes fast.

This quote cracked me up:

"No longer will the labels be tied to revenue limited to sales of master recordings - by then most or all artists will be under 360 music contracts that give the labels a cut of virtually every revenue stream artists can tap into - fan sites, concerts, merchandise, endorsement deals, and everything else."

I'm betting by then such deals won't be entirely necessary or at the very least can be approached via a fee basis.

Re: Big Music Will Surrender, But Not Until At Least 2011

#17
post #7

Earlier quoted context omitted.

> Do a Good Thing today: convince a friend never to pay for recorded music again. If you do that, how do you plan on showing support for artists whose works you enjoy?

Concerts. Merchandise. Tipjoy.

Concerts: so if I understand correctly, paying for concerts is morally justified as opposed to paying for recorded music -- which apparently is wrong -- because... you're confronted with a threatening-looking bouncer if you attempt to jump a fence? Honestly, I admire the chutzpah in the finger-wagging at record labels when the proffered philosophical justification essentially runs: "I can get away with it. Ergo it's ok." That's deep, man!

Merchandise: SRV dolls, anyone? There's no question that money can be made through merchandising. But anyone who thinks this is going to work to the advantage of real acts consisting of real musicians who aren't photogenic and doll-able etc., as opposed to say your next class of X Factor, is living in la-la land. Or, for that matter, that merchandising can act as a substitute for the revenue streams that recorded music sales once provided.

Tipjoy: seriously though; you're kidding, right? Tipjoy is your answer to a 50% fall in revenue for recorded music in less than a decade?

Can I just suggest that all you armchair record execs put your money where your mouth is and create this awesome benevolent no-label label which only pushes, y'know, cool music, and makes lots of money doing it but doesn't do anything nasty like asking you to pay for it?

Is everyone here so arrogant as to think the entire music industry consists solely of fat buffoons who are simply lacking in vision or technical know-how to find these el dorado musicbiz 2.0 revenues?

Recorded music takes huge time and effort on the part of a wide range of individuals, all specialized on different aspects of the production. From songwriting through arranging, recording and mic placement and the myriad expertises that this requires, through mixing, mastering, etc.. You're telling me that all of this has no value? As a singer-songwriter in a band who loves music as much as programming let me just say: you, sir, are cheap.

Re: Big Music Will Surrender, But Not Until At Least 2011

#18
post #2

Until CD sales really stagnate, all those revenue streams bring in more money than facing reality. Sounds like it's urgent for CD sales to really stagnate. Do a Good Thing today: convince a friend never to pay for recorded music again. On a less snappy note, I sincerely hope that these two-faced bastards will go out of business, along with their "360 plans" and other nonsense. The world doesn't need Big Labels - with…

As long as iTunes & the like don't offer full CD-quality, lossless encodes of songs, I'll keep buying CDs.

Re: Big Music Will Surrender, But Not Until At Least 2011

#19
post #6
post #3

What their spreadsheets don't consider is that the world could change while they're delaying. These non-technology people don't understand the speed of change or the danger of delay. That was what hosed Terry Semel, apparently. While he was trying to buy Google and Facebook, they were both growing rapidly. He was used to buying stuff whose value didn't change fast, like movie rights. But technology changes fast.

And I hope it does change. Taking a cue from BSG, "It's not enough just to survive, one has to be worthy of survival." Some industries are blatantly not worthy of survival. I will not shed a tear when the last major record label shuts down.

> I will not shed a tear when the last major record label shuts down.

I'll be positively ecstatic!

Re: Big Music Will Surrender, But Not Until At Least 2011

#20
post #2

Until CD sales really stagnate, all those revenue streams bring in more money than facing reality. Sounds like it's urgent for CD sales to really stagnate. Do a Good Thing today: convince a friend never to pay for recorded music again. On a less snappy note, I sincerely hope that these two-faced bastards will go out of business, along with their "360 plans" and other nonsense. The world doesn't need Big Labels - with…

> Do a Good Thing today: convince a friend never to pay for recorded music again.

I do that already. My argument is that when the record companies are bribing governments into enacting bad laws. This harms others and is therefore immoral. When you buy a CD, you give moeny to the recrod companies, which helps them do this. Therefore buying CDs makes you complicit in immoral behaviour.

So it's not only in your self-interest to fileshare instead of buying CDs, it's the moral thing to do.

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