Response to Agent Smith

[God]

Agent smith said:

question...how quickly do you think the major label model is going to change and what is it going to change into.

how long will it even be necessary to utilize label support to sell and promote records

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In order to assess this situation, one must judge this situation dispassionately, with an emphasis on economics rather than artistry. In a producer forum, where artistry is paramount to your musical life, judge what I am to say by taking off your producer hat, and look at the situation through the lens filters of a businessman.

In my opinion, the crux of the situation is based several “pillars” that hold up the situation.

- Legislation
- 360 Deals
- Labels as a promoters

I. LEGISLATION

I believe there will be an effort to bring forth legislation from different industries that thrive on intellectual property (music, cinema) that will attempt to curb the people's ability to share files. This legislation will probably have clauses in it to expand its authority any time a new sort of “illegal sharing” or “illegal playing of files” is created. I am not sure yet, how this affects mp3 search companies like Seeqpod.

This will clamp down sites in the U.S., and I believe many of the developed countries in the world will fall into this through some sort of pact, perhaps through an EU or UN charter. Pirate bay is still up and running-- question is – for how long?

Your ISP will be given more power to utilize their filters and this means it will grow increasingly harder to share files over a legit connection. Don't believe me? There's stuff like this already in the works. The computing community is up-in-arms about this. Google saved the US from a closed bandwith in the 700Mhz range for now, but it might not be so in the future.

This will force you to “buy” that song you just want to listen to through some stupid music service or retailer.

II. 360 DEALS
This is already happening. Bands or groups will be forced by what were record companies and now are promotion/production companies to sign a deal that enables the label to get a cut of every aspect of income regarding an artist. This means music downloads, ticket sales, merchandise, your soul, condoms with logos of your band name on it. EVERY aspect of your career will include some sort of cut for the label, who is just promoting you.

In turn the “label” will probably be allied (just like LiveNation) with some sort of touring enterprise. Your manager will try to sell you coke or meth if you're not on it already, in order to play as many shows as possible in one year so he can take his 15 percent, the label can take its 10 percent, and the agency can take its 10-20 percent. Oh, by the way – the label probably has a kickback deal with your manager.

Yeah, go ahead, do another rail off that supermodel's belly and go pound the shit out of her in the bathroom of Villa. So, if you're living the high-life, screwing supermodels -- why does your ass hurt like its been pummeled by an ox wanker? Because that's your label and manager fucking you while they're pocketing your cut.

That's the future – that's called a 360 deal. Only way you can get out of it is to file for bankruptcy (even if you have money), so the contract will be void (this is not legal advice, hire a lawyer for legal advice.)

III. LABEL LOSES OUT TO LIVE PROMOTERS
The label will become a subsidiary of a radio/live event conglomerate, like LiveNation. LN has the advantage in this field, and other labels are scrambling to adjust. Vertical integration of radio, live events, and distribution of songs increases the chances of an artist's profitability.
The label has seasoned PR units that maintain steady contacts with mainstream media and exercises significant leverage over music blogs. This is the promotions muscle that most artists need. They sign to labels to get promoted.

The label loses its leverage as a manufacturer of music, with CD sales in decline, and becomes a PR arm for the artist. Promotion companies, like LiveNation will gain the upper hand over the labels, because they will bring in more money and profit in such a deal.

III. DO I EVEN NEED A LABEL?
No, you don't. But let me ask you this, if you want some semblance of stardom, who is going to promote you? How many bands are on MySpace – and how many really have a fanbase?

You may not need a label, but you need a PR firm pushing you into the papers, the blogs, TV, and magazines. Now, you're competing with the PR arms of the labels, who generally control the messaging coming out of the music industry. How can you compete with them? They have established relationships with reporters and bloggers who favor THEIR opinion, NOT yours.

That's why the cycle continues. Who puts your music out there? How do you as an independent artist win out in this case?

You have to become your own PR firm. You have to publicize yourself. How do you do this? That's another post...

This post could be much longer, I just don't have the time to fully answer this question at this point.

NOTHING IN THIS POST CONSTITUTES BUSINESS OR LEGAL ADVICE, SEEK AN ATTORNEY FOR PROPER LEGAL ADVICE

 

[joeburnem]

I tell ya, the music game is looking grim as hell.

 

[afriquedeluxe]

maybe it has always been "grim". The environment is changing and from what I see, the industry is going through evolution. Its adapt or die at this stage.

It seems the PR thing is all that is left to be the meat of the "record label". Anyone can distribute music to millions of people without a major/indie record label ever lifting a finger. Difference as G says, is PR. The advent of the internet has forced the "labels" hand in making a hesitant move. I am sure they would have to loved to maintain control of distribution.

 

[Relic]

wow thats bleak as hell.. lol

 

[2GooD Productions]

As for point 1. Legislation.

I have been browsing the torrent sites the last week. I have noticed that nearly all of them have either closed down or they link to one of 3 "new"(probably fake to get your details)pay per month torrent sites, or they have a very weak selection of titles. I have found only one site that still has a good selection and thats bitjunkie.
The filesharing sites are a shadow of their former self which tells me the legislation has already been passed, and the nails are going into the coffin for filesharing. Games also come under the same "Intellectual property rights" banner and the games market is suffering the same as the music/film industry.
My point being that the same thing described by G, has already happened. I can see its effects now.

As for 2 and 3. The "industry" is desperate to maintain control of the content that is fed to the masses, its a part of social manipulation/guiding that is too valuable an asset to lose, because while they control what is put out, they can also get a cut on everything that does get out thus giving them a monopoly like status.

Unless you are a very well connected person with contacts in all aspects of merchandising, along with tour planning/management and a keen business sense then you will need the labels(pr muscle) to back you. This also gives them creative control(control of what is put out), makes them your boss, puts you into the full time job of getting them paid and performing your ass off. You will also get paid, but Im pretty sure its going to be balanced in their favour. It would be wise to get a reputable music lawyer to read over ANY contract offered, and I would advise trying to barter key issues more in your favour. But this said, you need the connections of a label to acheive good success. but that success comes at the cost of your soul(symbolically).
Independant labels are testament to that not always being true, but them they get bought out and controlled by the same majors in the end anyway.
I think in hiphop the performing artists(mc's) get the rawest deal and always have done. They get the smallest cut of the pie and yet they do all the work. Songwriters get a good deal of the pie as do producers. Hence I chose music production.
The industry is indeed changing, mainly on the distribution front, and destroying the competition of filesharing. But how much will remain the same, I think in the end not much changes. It will just be harder for anything that isnt "with" a label to get any headway in a really "shady" competetive business market.

I think the best way to stay independant is on the live tour/public performance front. You can get good money from performing as long as you can bring in the ticket buyers. Ticket sales=cash in the pocket. So the more performances you can do to filled venues is a sure way to making a living. But it means a life on the road, as do all tours.

 

[Sincock]

^^^R.E. Torrent sites: Aside from Pirate Bay which is still going strong, mininova still seems to have a fair bit too.

 

[Relic]

http://www.news.com/8301-10784_3-9925046-7.html

Sony BMG joins Nokia's unlimited music service:


Comes With Music customers will have total access to the music of Alicia Keys as well as every other Sony BMG artist free for a full year.

(Credit: Sonybmg.com)

The concept behind Nokia's new music service "Comes with Music" is starting to catch on with the major music labels.

Sony BMG, one of the four top recording companies, announced Tuesday that it has partnered with Nokia to make its music catalog available on select Nokia devices. After buying one of the devices, users will get unlimited free access to the music of Alicia Keys, the Foo Fighters or any Sony BMG artist for a full year.

During the 12 months of the offer, users will be able to transfer their Comes With Music library to a PC as well as to a new Nokia handheld, but they won't be able to transfer it to iPods or other non-compatible devices. At the end of the year, Nokia users will have the choice of acquiring new music by either purchasing downloads from the Nokia Music store or joining its subscription service.

Nokia is expected to launch the Comes With Music service in the second half of the year.

What is groundbreaking about these deals--Universal Music Group was first among the labels to join the service--is that Nokia users can download any song from Sony BMG and keep the music for the rest of their lives. There is no ceiling on the number of songs and the music doesn't disappear at the end of the year.

This is believed to be the labels' deepest foray into free music, and is reflective of the industry's attempt to find new business models that can compete with piracy, shrinking CD sales, and iTunes.

"We think this business model will encourage users to sample a wide range of material, expand their musical tastes, and listen to more music than ever before," said Thomas Hesse, Sony BMG's President of Global Digital Business.

Sources told CNET News.com last month that Apple has discussed a similar offer with the music labels, adding that the concept behind Comes With Music is not exclusive to Nokia.

Should the concept of supplying year-long all-you-can-eat music catch on, other device makers wishing to gain access to music may be forced to adopt similar services.


God make it stop!

 

[God]

http://www.news.com/8301-10784_3-9925046-7.html

Sony BMG joins Nokia's unlimited music service:


Comes With Music customers will have total access to the music of Alicia Keys as well as every other Sony BMG artist free for a full year.

(Credit: Sonybmg.com)

The concept behind Nokia's new music service "Comes with Music" is starting to catch on with the major music labels.

Sony BMG, one of the four top recording companies, announced Tuesday that it has partnered with Nokia to make its music catalog available on select Nokia devices. After buying one of the devices, users will get unlimited free access to the music of Alicia Keys, the Foo Fighters or any Sony BMG artist for a full year.

During the 12 months of the offer, users will be able to transfer their Comes With Music library to a PC as well as to a new Nokia handheld, but they won't be able to transfer it to iPods or other non-compatible devices. At the end of the year, Nokia users will have the choice of acquiring new music by either purchasing downloads from the Nokia Music store or joining its subscription service.

Nokia is expected to launch the Comes With Music service in the second half of the year.

What is groundbreaking about these deals--Universal Music Group was first among the labels to join the service--is that Nokia users can download any song from Sony BMG and keep the music for the rest of their lives. There is no ceiling on the number of songs and the music doesn't disappear at the end of the year.

This is believed to be the labels' deepest foray into free music, and is reflective of the industry's attempt to find new business models that can compete with piracy, shrinking CD sales, and iTunes.

"We think this business model will encourage users to sample a wide range of material, expand their musical tastes, and listen to more music than ever before," said Thomas Hesse, Sony BMG's President of Global Digital Business.

Sources told CNET News.com last month that Apple has discussed a similar offer with the music labels, adding that the concept behind Comes With Music is not exclusive to Nokia.

Should the concept of supplying year-long all-you-can-eat music catch on, other device makers wishing to gain access to music may be forced to adopt similar services.


God make it stop!

Expect more PR of this nature. I said it in another post -- expect more shit like this to happen by Q4 so the music biz can cash in on Xmas sales.

What we're seeing here is the labels' loss of real leverage -- manufacturing of music CD's, tapes, records. Since they don't do that anymore, their leverage is legal -- publishing rights, etc. They are trying to milk every last cent out of their catalogues until somebody like Apple comes in and swoops it all up.

Now is a tough time to be in the industry. Consider being a sports agent or a movie agent if you want to get into entertainment. If you're good at math, put down that MIDI book and be a fucking investment banker. That's real money.

 

[Relic]

Investment banking IS where BIG money is at, thats no lie!

 

[afriquedeluxe]

Investment banking IS where BIG money is at, thats no lie!

Tell me about it. Big money, with mad hours lol. I have heard people doing 100 hour weeks as routine.

 

[God]

Powder cocaine and oil is where big money is at.

Anyway, where the fuck is Agent Smith? I answered his fucking question.