Re: Try again, Radiohead article


news:1191427929.735266.120430@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Oct 3, 11:47 am, "c...@xxxxxxxxxxxxx" <c...@xxxxxxxxxxxxx> wrote:
Hey all,

I thought I posted this two days ago but it's not showing up. Some of
you may have already seen this article in Time about Radiohead's
recent decision to go all digital download from their own website for
their new album. If not, here's the
link:http://www.time.com/time/arts/article/0,8599,1666973,00.html

I'm curious what everyone thinks about this.

Clay


Established artists like Radiohead and Prince have correctly determined that
CD or label download sales are not where they are going to make the big
money - well planned concert tours, efficient management and publishing
deals are where the money is - with the way labels report sales, pay
royalties and charge back for everything it is becoming increasingly
attractive to bypass the whole system, but only if you're established.

All that said, Prince and Radiohead would be nowhere without early record
company support so to discount the potential value a label still has would
be a mistake, but these days a CD is a glorified business card, worth very
little as perceived value in any market anymore while the download has yet
to prove it's a viable income generator for artists - how can it be with the
deals these companies offer.

For small independent artists, having physical product for sale at a gig is
a necessity but imho the price has to reflect the value - guys astound me
when they sell their wares for $15 considering the competitive
alternatives - I don't care how much it cost someone to record, press
product, etc. The value of basically "giving away" CDs to potentially
attract other avenues of income is something most musicians miss - but it's
time we all realized that selling CDs (or even downloads currently) is not a
viable business model anymore.

I think the biggest potential for physical CDs for established acts is the
idea of selling a concert-goer the show he/she just heard upon leaving a
venue which over time will trickle down to more outlets - for that, I
believe the CD can still be a lucrative income generator if the mechanical
royalty issues can be addressed amicably.

As for the legal download, the jury is still out as what that will all mean
financially for artists when you consider the same label/distributor model
applies, albeit without physical inventory/holdback costs which currently
are substantial with physical media.

The only model that works imho is a potential scenario where globally the
world's music vaults are offered for unlimited restriction downloads for an
additional token fee for all internet, satellite or cable subscribers (once
TVs become full entertainment and control centers).

This model provides more money for everybody without the white noise, legal
wrangling and "beat the system" mentality that exists today - less middlemen
on the take, no greedy uncooperative label heads, etc. Although not perfect
(how does the little guy out there get in on this?) it's sure better than
what goes on now, with the money pool already larger than it is now and
growing exponentially as more and more people go online, with more avenues
to collect (hand held devices, etc).

The price of CDs needs to be adjusted downward significantly with major
label restructuring to accomodate the new model (and for late adopters to
digital) while there's still a market for physical product (and there is,
it's not going away anytime soon).

The fact is, when Prince gives away 2 million CDs or Radiohead announces a
"pay what you want" strategy, what they are really doing is hyping their
next concert tour, stimulating back catalog sales in any format and/or
establishing the fact that they are still alive and kicking, grabbing a few
headlines here and there while corporations plug the next computer game,
Harry Potter release or new format Playstation.

Sacrificing a bit of potential immediate income in the form of recupable
advances etc by not going with a major label to achieve this (considering an
artist's final take after label/distribution/etc fees) is well worth it.


.

Relevant Pages
Loading