"You've Got My Number (Why Don't You Use It)"*

or Straight Outta MIDEM: Ten Years On, The Music Industry Goes All Napster?

It used to make me cry but now this shit just makes me laugh. Every year music company big wigs from around the world get together to literally save their world. With worldwide music sales plummeting and iTunes sales flat, The NY Times reports from Cannes that "The Industry" pins its hopes on unlimited "free" access to millions of songs to save their sinking ship.

OK, so nothing's "free" here. The cost is added on to yer cell phone or broadband bill. Sounds simple enough. I'm left with any number of unanswered questions:

1. How much is this "free" service?
2. Will consumers embrace any cell/broadband bill increase, for what is in essence a luxury, during the greatest worldwide economic catastrosphe ever?
3. Which record companies are participants?
4. How are the proceeds split amongst participants i.e. a flat rate split for each or split according to percentage of total tunes downloaded or something else?
   
5. What is the projected average cost per song to the consumer?
6. What is the projected revenue per song for the record company?
7. What is the projected total yearly net profit from this service?
8. How much revenue does each record company project receiving?
9. Does this make it easier for us to get more, and more rare, songs for less?
10. Will this kill iTunes for which we still pay a buck a cut?
    

Feargal Sharkey's beaucoup punk rock bona fides aside, I cannot grasp how this gambit will save the day. The music industry has proven time and time again that its stupidity is surpassed only by its greed.

Blah! After a major Blogger crash, it's taken me most of this week to get this far so...
Next up: How we came to be hear here.

-AF
*1979 single by genius No. Irish pop-punkers The Undertones featuring a young Feargal Shockey on vox. Highly recommended. Much loved.

I feel an Uncle Anacher's Punk Rock Tales coming on.

There's Nothing To See Here Folks. Please Move Along.

Oil prices actually drop 5%+. The stated cause for the biggest one-day decrease in 4 years: "dealers turned their focus to rising supply levels and weakening global demand."

Who makes this shit up anyway? Might as well say gas is cheaper this month 'cuz everybody in China (and the rest of the fucking world) stayed at home to watch the Olympics.

Yeah. Right. There's absolutely no connection to newly lowered oil prices and the upcoming US Presidential election. None at all. In spite of OPEC's increasing shrieks about slashing production, the tagger per barrel will continue to dribble south only to shoot back up sometime after 11/04. Fuckers.

And that will be the new Dem. Prez's fault.

Here's my ASIAF exclusive preview of Big Oil's post-election response to renewed allegations that they play politics with oil prices:

"Look! Over there! Behind you! Is that Halley's Comet?"

Mark my words.

-AF

Can The Music Industry Possibly Do Anything Else To Piss Off The Biggest Music Fans?

Oh yes they can. The latest battleground in the music industry's war against consumers is the re-sale of "Promo Only" CDs and vinyl. For decades record companies have maintained that they retain ownership of these promotional items in perpetuity and can demand their return at a moments notice. I've laughed at this for years.

While I can understand the industry's unwillingness to allow the public to profit from selling freebies, it's largely unenforceable. Over the course of my career I've received a gazillion promos both for my personal use (DJing at clubs and on the radio plus "listening copies") and for giveaways. Many, many giveaways. I've signed beaucoup letters requesting product. There's no way in hell that I can be held responsible for what happens after I pass 'em on. It is nearly impossible for record companies to trace where these promos end up.

Now certain extry-special limited edition promos are not normally given away to the general public. Distributed to writers, promoters, DJs, radio programmers and other music industry insiders, these promos are unique compilations featuring special remixes, live tracks and/or otherwise unavailable material. I've designed a few myself. It this type of promo that makes up the largest portion of the most cherished and most valuable part of my vast music collection.

There's a seriously brisk trade in these limited edition items. For years people have been selling these promos at everything from "record shows" to Sotheby's auctions. I've bought and sold a few in my day.

With the advent of eBay this market has exploded. That's where and why the record companies have stepped in. In typical ass-backward fashion, it took them years to do so. Record companies are now suing eBay sellers. eBay's doing their best to obey the record companies' demands.

The BBC has the facts on this whole sordid mess here.

Stupid, stupid, stupid.

-AF

More Songs About Buildings And Greed

The music industry is reminiscent of a B-movie thug bleeding out from a belly wound who refuses medical treatment lest he get thrown in the slammer. The main difference is that the music biz's wounds are entirely self-inflicted. These wounds were caused not only by unprecedented stupidity but also by unprecedented greed. A bold statement given our subject but hear me out. It wasn't enough for the label honchos to fill their coffers to overflowing with found money re-selling their back catalog as music buyers converted their vinyl faves to CD.* They had to overcharge for new releases too.

I recall an extremely frustrating and somewhat bizarre conversation with a now former major label president in the mid-90s regarding CD pricing. We were trying to break a completely unknown new artist. The list price was $16.98 with certain stores charging up to $18.98. Competitive artists were selling in the $11.98 to $13.98 range. I asked this prez who ran our distributing label to agree to lower our list by at least $2 and preferably by $4. His verbatim reply: "If they (the consumers) really want it, they'll pay $16.98 for it."** Through persistent lobbying, the list price was eventually lowered. We did break this band after a year-and-a-half single-minded perseverance. No thanks to a certain old school label fat cat their debut sold in excess of 1 million copies.***

Can the music business as we know it survive? Not a chance. There's been decade-long mass exodus of many of the industry's brightest minds. Frustrated by the stupidity, sickened by the greed and tired of jumping from one unstable company to the next, these folks have forsaken their life's passion for relative normalcy. They have rewarding new careers as real estate agents, insurance salesmen, teachers, caterers, software developers, activists, advertising executives, political bloggers, and stock brokers. That's right. Those who could have performed timely surgery necessary to save this wounded beast have long since left it to die on its own.

Some of collateral damage caused as the music industry staggers bleeding into the future has been difficult to swallow. I hate watching old friends and former colleagues lose their jobs. I acutely feel the loss of history and tradition as labels from A&M, Virgin and Polydor (US) to the much maligned, and deservedly so, MCA became mere imprints. (For fuck sake the EMI idiots sold the Capitol Records Tower to be made into condos! Thankfully, the resulting outcry and loss of face forced them to enter into a sale and lease back agreement).

Still I cannot help believe that this may be for the best. We've seen how the music industry historically is highly resistant to change. Their bloated inefficient business model begs to be razed to the ground. Perhaps then and only then will a visionary or three be free to undertake a long overdue industry re-make/remodel.

AF

*Record companies rushed their back catalog CDs out so fast that they didn't bother to master them properly. No worries. A few years later, after much negatively publicity (just two examples here and here) regarding the superior sound of vinyl vs. that of CDs, they re-mastered them and sold them back to us yet again. The re-mastered CDs were then followed by "expanded" or "special anniversary" editions containing B-sides, unreleased tracks, demos, radio spots et al. Those bastards! I can't count how many different CD versions I have of Elvis Costello's This Year's Model alone.

**Music fans' resulting resentment and rejection of this highway robbery were major factors spurring the explosion of "free" MP3 sharing discussed previously.

***For this and our overall unprecedented success, we were rewarded with the equivalent of our long-promised, long-awaited Christmas bonuses...and pink slips. Natch.

Music Biz Still Hemorrhaging From Deadly Self-Inflicted Wound

Former Reprise Records prezzie Howie Klein has a post, How To Destroy A Profitable Industry, over at his wonderful Down With Tyranny. It's his response to this New Yorker piece describing backward Universal Music honcho Doug Morris' ineptitude in dealing with the introduction of MP3 technology almost a decade ago. Howie mentions a key aspect of this equation a key that deserves elaboration. By hemming and hawing (and suing rather than embracing MP3s, record companies alienated an entire generation of young music fans. This is important particularly since teenage consumers traditionally spend a large part of their disposable income on music. At this time they also tend to establish specific buyer behavior that may last at lifetime.

One again the Luddite old school record company presidents foolishly believed that they could bend the marketplace to their will instead of pro-actively responding to the marketplace's demands. The result is a whole generation of music buyers with a deeply ingrained belief that they should always get their music for free. Furthermore, they believe that by not paying for this product, they are striking a blow against the evil, greedy music biz establishment. The same corporate forces that had been suing people just like them.

Once the record companies finally surrendered it was too late. The music industry's belated demand to charge the consumer for mp3s was akin to locking the barn door after the cow was stolen. To make matters worse, they've been spectacularly unsuccessful in convincing these music fans as to why they should pay for music. Just telling people that it's stealing doesn't cut it.

The extent to which this fandango has negatively impacted recording artists has been largely and typically ignored. Without going into mind-numbing specifics, the wholesale distribution of "free" MP3s makes it exponentially harder for musicians to make a living. Any directly related reduction in sales further limits artists' leverage with their record co. as well as the music industry at large. This affects everything from recording budgets, tour plans and radio airplay. These factors may force musicians to compromise their artistic vision in ways hitherto unthought-of of. Thus discouraged an artist could feel compelled to cut their career short before its time.

Wholesale sharing of free downloads can be murder to a developing artist. It can wreak havoc on a new release by an established artist too. A few years back I worked with an artist whose intricate marketing plan was sabotaged by a college kid who somehow got his hands on an advance copy. 125,000 downloads later we were forced to release the album's six weeks earlier than planned. We had to forgo some important set up in the process. This cost us a good third of our projected sales before this album's new street date. Once the album was in stores the lost six weeks of marketing setup cost us dearly too as it's impact was lessened considerably.

AF