What's wrong with the music business?

[gitreel]

Whats Wrong with the Music Industry
Posted by on May 21, 2004 at 9:27 PM (printer friendly)

We have an industry that is afraid of technology, its senior spokespeople lie to congress, they use Enron-like accounting, they somehow --WHOOPS! -- forget to pay their artists, they are convicted price fixers, at the first sign of any kind of an economic rebound their instinct is to raise prices, they have ignored competitive pressures from other forms of entertainment such as DVDs, they ignore the devastatingly negative effects of radio ownership consolidation to their business model, they engage in all kinds of anti-competitive protectionism, they are unconcerned with the quality of their product, their customers are harried for time and distracted by other interests, their customers see nothing wrong with downloading music for free, some of their biggest stars are hoping the Internet will replace the labels, despite all too many signs that their product is over priced, they refuse to allow market forces to set competitive prices, they have consistently been one of the most mismanaged businesses in history, oh, and they somehow think they are immune from the business cycle.

How are these guys still in business?

That is What I want to know.

[Faustus]

Causee where else is the country gonna buy its music from? Surely not independent lables, to hard to find, not enough marketing. Under the wing of the RIAA you can basicly say the music industry has a monoply. But it doesn't count because its a monoply made of of various companies.

Yeah I know that sounds stupid at first, but think about it..

The other problem is, even if you take the labels independantly its still a monopoly, you like what you like. If you want the new Madonna Cd (ick) its not like you can goto label B and buy it if you dont like their polocies and prices, and its not like the artist themselves can leave either if they are under contact. So then the solution becomes if you dont like this label then uhm... stop liking THAT music and Like something else instead. See, it doesn''t work.

Of course one label did lower prices some recently in the US, but most of the people selling the CDs just gobbled up the profit without really passing it onto the consumer..

[Cobra]

Of course one label did lower prices some recently in the US, but most of the people selling the CDs just gobbled up the profit without really passing it onto the consumer.

Why not sell directly then, and cut the middleman out? In fact, why not set up a decent, global online music store where songs are sold for 50p each? I bet sales would go through the roof, and costs would hit the floor...

Let's face facts here, they have us over a barrel and they don't feel like letting up. They're used to doing this, and they're refusing to change in the face of major P2P usage and a consumer base that's more than a little pissed off. I know I am.

Cobra

[SatStorm]

The Modern music indestry, has 2 alternatives / 2 models

The UK / USA model: Made back in the late 60s, it is an update of the late 40s USA system.
This model combines many aspects not related with the music direct. Stuff like lifestyle, fashion, the related and needed technology, etc. Left Eye from TLC once talk this system and how ridiculus end up today.
The benefits of this system are the profits for everyone related one way or the other with it. But also requires short memory from the consumers plus a great deal of adjustment on new treads / music styles, ideas. Also a "determination" must exist always: For example in America, Rock music is "Man's music" and Disco music is "Gay Music". In Europe Rock music is the music of those who like the image of America and Disco music (with different names, I have to agree with Moby about that, he say that all the styles of dance music today are one way or other "euro disco") is "our" music, determined different from country to country. For Germany for example, Techno / Trance is always the music reference of the generation rised after the unification of the country. For many Easter European countries, the 80s Italo Disco and Euro Disco music, is the refference of the "change", that which lead to their idependence, after the collapse of USSR. The 90s Techno and Eurohouse for south Europe, is the music refferance of the good years (Spain, Italy, Turkey and partly Greece at the first quarter of 90s had a good life because of the E.U. money and the turism - those was the days... Before the Euro nightmare we feeling today).
Anyway, the other problem with the UK / USA model, is that works only for those who manage to get "inside". For the others is a huge problem. And some times, lead to ridiculus things: Just ask great UK bands like Cure and Duran Duran, or artists like Prince...

The alternative music indestry model, is the so called "German distribution system". This system give money only to the musicians: The music is not connected to a lifestyle, the record sales are not what feeds it (the life perfomances, events and other things do) and the music has long time shots (just look how the 80s European (non UK) bands are still popular in Europe today, and how all the 80s / 90s UK bands do a second round success in Europe, without UK even know about it... Example: Eric Bardon)
Anyway, this alternative music indestry model, don't support a parallel indestry like the UK/USA model, also the "in betweeners" don't get money (in the UK/USA model, the artists get the less money from all the related in the system people, in the German model, ONLY the artists and the direct to them get money... )

The modern world, push for the alternative German model, but the old order, those who today lead the dissucions, fight back. This is more than 6 years that happens, and it is certain that in less than 5 years, the music indestry gonna die the way we know it today. After all, they don't have to offer something new to support it to the younger generations!
The last "success" of this indestry, was the Hip Hop scene. But this now is 25 years old. All the other experiments, turn local.
Now, they try to push Rock music again (the perfect mobil for this indestry music model). But I'm 30 years old, in the age that I can really buy music (I have money, I have a salary) and now I have to listen again the things I use to listen when I was 10 and my father before me when he was in my age back then (when he was 30 - 35)? Impossible: Generations need different styles of music. Also, this word is not like it use to be in the 60s / 70s or even 80s!
Anyway, in 5 years the music indestry gonna be totally different. For the better...

[gitreel]

I hope you are right SatStorm.

[Cobra]

I think you should be put in charge, SatStorm.