The Perils of Music Industry Criticism
Wesley Verhoeve of Family Records was kind enough to remind me via Twitter that if you say bad things about the major labels often enough, it's important to balance out your criticism with some solutions. Well, Mr. Verhoeve I'm working on it. For the last couple weekends, I've dedicated my writing and time to figuring out the problems with cloud-based music subscriptions. To me, they are an essential part of the next music business or whatever we call it now.
And I realize that people have been saying that since 1999.
Asking big questions and starting conversations is just the first step. Moving forward, I will work towards intertwining solutions into my various criticisms.
However, the format replacement cycle is over, music piracy is evolving rapidly, the labels lack creative leaders, and the music consumption system is broken.
Only one or two of these problems has a solution and I'm working on it.
Besides, by the time the major labels get around to listening to the suggestions of writers like myself, it's a little too late. Case in point: it's 2011 and the major labels have only now decided to offer singles for sale the same day that they're released to radio. Now, at that rate of progress, there may not even be a major label left to act on the solutions that I offer. Executives are deaf. I'll learn to sign.
Excited to hear more of your ideas and suggestions Kyle, both here and on MTT!
A side note on the whole “format replacement cycle”, which is often cited as a problem or challenge. This industry has one format replacement cycle. From vinyl, to CD. The fact that major got rich off of this by overcharging people (the cd was more expensive to buy but cheaper to make), led to the bloated state of these companies. When the related profits were then used as a base line for profits, rather than planning properly based on product rather than carrier, that’s when they reallllly got in trouble.
Music piracy is a dead horse that we can stop kicking. It’s there, it will not go away by doing anything but making it a better value proposition to legally obtain music than to illegally download it. Illegal downloading dropped dramatically in countries where Spotify or other cloud-streaming solutions were offered.
The crumbling old dinosaur companies may be lacking creative leaders, but then again there are many wonderfully creative leaders operating all over the music industry in growing companies and exciting new segments. If we focus on highlighting the positive, the move away from the status quo, the possibly solutions, rather than the problems in places that are dying and won’t be contributing to the new world, we’ll be contributing a lot more to that movement ourselves too.
I’d rather follow and contribute to the construction of a beautiful, new, green building for us all to live in, then stare at the demolition of the old one across the street.
I hate when people mix up then and than. I just did it at the bottom of this comment. Apologies.
I have to say, this is probably the best comment that I read in awhile. You make a great point about the format replacement cycle. There was only one. Granted, many people have bought music across many formats, but LP to CD is the min one that we're all measuring against now. I'll see about documenting that beautiful green building in the coming months. The carnage is fun though. #leavingtheruinsbehind
Cloud based music subscriptions are probably one of the many solutions to the dying recording industry. The one problem that the industry faces is that once the cat is out of the bag, you will have no chance to put it back in. I am talking greatest hits albums, which are very profitable since there are usually only a few new tracks recorded. The upside is that consumers will have the opportunity to listen over and over again, which makes money with every listen. The world has currently not got that high an internet penetration and with 4G on its way along with smart phones becoming the new standard for phones. I see a great increase in streams and the use of mobile apps (spotify etc.). Smart phones will become cheaper and countries such as India and China will be buying phones before they buy laptops. To sum up: higher Internet penetration + cheaper smart phones = more streams. An added bonus is that control will no longer be an issue. The main fact is that people want accessibility, which will come sooner or later (My predictions are less than 5 years away). Big record labels are securing ownership in start ups and they do not wish to do another Apple. First post and visit on hypebot. Enjoying it (sorry about the rant)