Lets Give Away The Music

In yesterday’s newsletter music commentator Bob Lefsetz wrote:

"…you’ve got to know where in the food chain to charge. It might be that the record labels are charging at the wrong point. Maybe bands should be self-contained. And maybe only charge for t-shirts. Or give the product away at shows, a la Prince. Unfortunately for them, labels only SELL discs…."

His comment was part of a longer rant on the failures of the music industry and how Steve Jobs and Apple’s products are the new rock stars, but it still deserves some thought. 

What if a band toured and gave it’s music away for free (it be done very cheaply via download) to people that bought tickets to the show or a t-shirt online?  Sure  the music would be on P2P’s in a second , but it’s going to land their anyway. And if the band was any good each download would spread the word and sell more tickets.  Heck touring and merch is where bands make their money anyway in 2006. Why not just turn the paradigm on it’s head and admit that the sale of music is a dead revenue stream. Let’s turn record labels into music marketing companies who share in the revenue from touring and merchandise?

Oh yeah, the major labels have tried to do this.  But no one trusts record labels and their shady accounting practices.  Only the likes of Robbie Williams and Korn, who can command huge advances, benefit from deeper ties with major labels.  Why not have management companies or booking agencies add real marketing departments and promote and develop talent?

Sounds crazy?  Maybe so, but somewhere some smart-ass kid in his basement is saying, "Screw the labels!  Technology has changed everything and I’m going to do it differently." 

If you wait to read about the new paradigms in Billboard; you’re history.