Is Music no longer the “End Product”?

[guscave]

I’ve been involved in the music industry in one form or another for over 25 years now. As long as I can remember music had always been the end product to all the marketing, promotion and distribution, etc. Hundreds of thousands of dollars would go into getting you & I (the consumers) to buy the final product weather it was through vinyl, tape, CD or mp3. The end result was always the consumer buying the “Music”. But in the last few years I’ve seen a 180 degree turn-around on that whole business model.Independent artists will gladly give away their music in order to sell more tickets, t-shirts, DVD’s and other goodies which actually produce revenues for Artists. After-all record royalties have always been a hard way for an Artist to make money because they were always the last guy on the totem pole when the money was distributed. Even today with the online purchases, Artists are still getting the short end of the stick. The quick and sure money comes from performances and merchandise, and if you happened to own your own publishing, well you‘re doing better than most.I think that with playing field now leveled off to a point where an independent Artist can release a record and have it sold on iTunes next to Beyonce and Justin Timberlake, music is no longer the final product, but rather part of the marketing and promotion for the Artist. With the entire entertainment industry changing before our eyes it does make you wonder where it’s all going. What do you think?

[booker]

I think that's absolutley correct. That's why the major labels are trying out how to stay alive. Online sales and other avenues of getting your name out there and going "indie" puts a lot more dollars in the artists pocket. They still pretty much rule the airwaves, but that is changing too.Happy Birthday, BTW.

[guscave]

Thanks Rock.. One reason I started this post was because of a recent survey which showed how online purchases have increased by 19% http://www.podcastingnews.com/2007/01/0 ... -sales/The thing is that last year around this time there was a similar survey with similar results, however it also showed that illegal downloads had increase 4 times those numbers. I haven't seen this years numbers yet on illegal downloads, but I'm sure it hasn't gone down (unfortunately). Another survey last year showed that 72% of the folks buying music legally thru online services like iTune, and others were also downloading music illegally thru free P2P sites, like Lime Wire, Morpheus, etc. So the question arises, are these just folks that are uninformed, immoral, or maybe they just don't feel that music holds a monetary value anymore.With free music becoming increasingly more available from indie Artists (and some majors) as promotional tools, aren't we maybe encouraging that devaluation? Just a thought...

[arkjack]

I'll be anxious to see the results of the Michael Laskow survey of TAXI members making it on indie CD sales etc. My perception of it is that even if your myspace page is getting 1000 visits per day, the sales tend to be a trickle if not non-existent... and I'm wondering about how the sales are for say a broadjam top ten artist.... or the top artists on CD baby, soundclick, etc..... plus the fact that anyone with a computer and protools can produce a high quality set of tracks.....and press it at diskmakers for $.90 a copy.... if they set their mind to it.... I'll say personally I've had a lot of anxiety over it because it seems the field is saturated on supply.... supply including the ability to acquire illegally without payment.... I have no doubt that some execs at the majors are having the same anxiety of trying to figure out the sustainable business model....ArkJack

[neuphoria]

heard years ago (5+) that even the Stones more or less break even on ticket sales but make their money on merch.let's hope for their sake you can never download a t-shirt...talk to anyone under that age of 21 about their music acquistion habits-- they will have a huge library of songs (10k+) but will have never bought a single one. and worse, not feel anything immoral has been done. they believe music is like air. they should have it for free. of coure, they would easily drop $40 on a t-shirt or $300 on shoes...

[pogodog]

Quote:I'll be anxious to see the results of the Michael Laskow survey of TAXI members making it on indie CD sales etc. My perception of it is that even if your myspace page is getting 1000 visits per day, the sales tend to be a trickle if not non-existent... and I'm wondering about how the sales are for say a broadjam top ten artist.... or the top artists on CD baby, soundclick, etc..... plus the fact that anyone with a computer and protools can produce a high quality set of tracks.....and press it at diskmakers for $.90 a copy.... if they set their mind to it.... I'll say personally I've had a lot of anxiety over it because it seems the field is saturated on supply.... supply including the ability to acquire illegally without payment.... I have no doubt that some execs at the majors are having the same anxiety of trying to figure out the sustainable business model....ArkJackQuote:Thats what I like about this business....music not accounting....the math really works.....All it takes is a handfull of songs that appeal to the masses ....ArkJackWhich came first, Arkjack the Statistician , Arkjack the Anti-accountant or John Kerry ?

[guscave]

Quote:talk to anyone under that age of 21 about their music acquistion habits-- they will have a huge library of songs (10k+) but will have never bought a single one. and worse, not feel anything immoral has been done. .This is why I ask "Is giving away music in order to sell more tickets, and t-shirt contributing to the devaluation of music?"

[arkjack]

The accounting business model works pretty good.... but you usually get paid by the hour with no resideuals....(ArkJack Certified Public Accountant, Certified Six Sigma Greenbelt, 25 year member of the Republican Legion of Merit) and stuggling performing artist musician.....

[booker]

Guscave, I think it depends on how you view "music". Kids hear music all day long on the radio for free, so, to them... it is free in a way. If you were playing at a local park, and "ABC news wanted to film you, would you ask them for payment to air it first? Or, would you take the free publicity of airing your music in hopes it might draw`a bigger crowd next time? I don't know if that really "devalues" music because it depends on what value we place on it to begin with. As a Christian songwriter in the Christian market, I would love to get paid for every song and CD I produce, but on the other hand, I want to share my ideas in song with every person willing to hear it. It's kind of self defeating in a way, but then again, very satisfying.

[guscave]

Hi Rock, good point, but let me clarify. By devaluation, I'm talking about monetary value not commercial, spiritual, or emotional value that we all get from writing or performing songs.Your example of the ABC news crew at the park can be compared to the thousands of promo copies that are sent out to radio stations and promoters to promote a new record. The idea was to give the music for free to the media and industry to get the "general public" to buy the music ("the end product"). But what's happening now is that the free music is not just being offered to the industry but to the actual "general public" itself. And we're not just talking about unknown indie Artists either. I produce a weekly podcast in which I get all my music from the podsafe music network. I can find music on there for free from everyone from Panic at the Disco and Fall Out Boys to my next door neighbor's kid. You need to be a podcaster to get it, but anyone can be a podcaster. Not to mention the thousands of songs that are offered for free from the Artist's own sites.Also, just to clearify. I'm not against this new form of promotion because I feel the old business model doesn't work anymore. It's a bit sad to see it go because I grew up in it, but I understand that the change is very neccessary.