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Old 03-21-2007, 03:01 PM   #1 (permalink)
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Default where the music industry went wrong...can skateboarding learn...

yet another opinion...

Perspective: Where did the music industry go so wrong?

By Patrick Faucher

Published: March 15, 2007, 4:00 AM PDT



perspective Wasn't it all so gloriously simple back when people listened to top 40 radio and obediently paid $20 for discs at record store chains? Labels set the deal terms for artists. Managers handled the "biz." The touring circuits were maintained by well-mannered warlords that politely divvied up the venues. And everyone had their place in the pond.
So where did it all go wrong with the music business? Somehow, the pond became stagnant over time, mucked up with greed, laziness, contempt and excess. People got bored with music. Then, someone threw a rock into the middle of it called the Internet, and nothing will ever be the same. Today, anyone can hum a tune, mix it with a rhythm track and some samples on their Mac at home, put it up on MySpace.com, and end up with a publishing deal from Moby, which will then sell it to the next Super Bowl sponsor.
Somehow, the pond became stagnant over time, mucked up with greed, laziness, contempt and excess.

The industry has become decentralized. Major labels no longer have the market muscle or control over the distribution channels as they once did. Technology and consumer choice have caused a shift from the traditional music business model of major labels throwing copious amounts of money behind a few big hits to that of a vast collection of individual artists creating pockets of more moderate success among passionate fan bases.
This shift requires a different approach to the development and monetization of music by the producers and promoters--one that more directly resembles that of more traditional venture-backed business. The entrepreneurs (artists) create new intellectual property (music, artistic brand) that has a demonstrated market (fans) that is robust enough to attract investors (for example, a label) that wants to own some equity in that IP and wishes to put money into the asset to enable it to engage in value-building activities (distribution, merchandising, licensing, and so on). Oddly enough, this "new" model is, in fact, not new.
We've all heard of The Grateful Dead, Phish, Ani DiFranco, Aimee Mann and the Barenaked Ladies. These great artists have grassroots beginnings. They all employed clever uses of the technology available to them at the time to find fans and create direct distribution channels (from bootleg cassettes and toll-free phone orders to MP3s and e-mail distributions). Using these methods, these "artist-entrepreneurs" have circumvented the traditional channel gatekeepers and have blazed a trail for the rank-and-file working artists and the weekend warriors to follow.
#textCarousel { width: 140px; border-color: #360; border-width: 1px; border-style: solid; padding: 10px; float: right; margin: 15px 0 15px 15px; background-image: url(/i/ne05/fmwk/greyfadeback.jpg); background-repeat: no-repeat; background-position: -150px top; } #textCarousel li { font-size: 95%; line-height: 1em; margin-bottom: 10px; } #textCarousel h4 { margin: 0 0 5px 0; font-size: 110%; }Now all serious artists need to conduct themselves as entrepreneurs engaged in building a business, not just playing and selling music. There are many tools and services out there that artists can use to help them sell. Still, it's not enough to put up a MySpace page and get a song on iTunes. They need to build a brand that has long-term value. They need to own that brand and their customers outright. There is a need for artist platforms that make this process more efficient so the economics make sense. Those solutions increasingly are becoming available.
Investors--including the major labels--need to understand the intricate partnership role they play in development. It's no longer about throwing money into the ether, marketing to no one in particular, and seeking only mega-hit payouts. It's about patience and commitment and focus. The labels--or their successors--need to get down to sea level, pick up an oar, and help row with the artist into this new ocean of opportunity.
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Old 03-21-2007, 03:04 PM   #2 (permalink)
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Default Re: where the music industry went wrong...can skateboarding learn...

Yes, but even though one can purchase skate goods over the 'net, it's a little difficult to download a complete.

But yes, I get the whole, stagnant-and-monolithic analogy, though.
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Old 03-21-2007, 03:35 PM   #3 (permalink)
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Default Re: where the music industry went wrong...can skateboarding learn...

the music industry went wrong when it started thinking of music listeners as their enemies.

and the skate industry is already doing the same thing right now with this whole blanks vs pros thing IMO

the solution: give the consumer more of what they want for less $$. for the music industry this means i need more than the tracks if im gonna buy an album (give me videos, exclusive podcasts, access to online free tracks or exclusive concerts for people who pay to download, etc) or in the case of the skate industry provide a better board at a price point that can compete.

one thing every industry should learn from the music industry's backasswardness is that declaring war on your consumer base results in a severe backlash and loss of revenue both long and short term. i havent (and refuse to) pay for a major label release until they end their war on consumers. just like im disinclined to buy a muska (or other) pro model until he (or they) stop blaming skaters for their loss of market share.
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Old 03-21-2007, 03:39 PM   #4 (permalink)
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Default Re: where the music industry went wrong...can skateboarding learn...

Quote:
Originally Posted by Mile_High_Mark
Yes, but even though one can purchase skate goods over the 'net, it's a little difficult to download a complete.
Once I complete my P2P gear downloading software, you're going down you draconian old FOGEY!!!
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Old 03-21-2007, 03:40 PM   #5 (permalink)
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Default Re: where the music industry went wrong...can skateboarding learn...

I think he missed a key point in that story. The music industry messed up years before the current downloading problem, when they started charging big bucks for the then "new" technology compact disc, and didn't spread the wealth with the musicians. It was nice being able to buy cassettes, and lp's for under $10.
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