Is the sky falling on the music industry?
Last week, I had an interesting conversation about how growth in technology is moving our collective focus from our ears to our eyes- from phone conversations to texting- and from radio to video. About 15 years ago, I left law school to pursue a career in music. That was before Napster, just about the time the internet was exploding. Each time we have a major shift in technology, the music industry has feared for it's life- from sheet music to 78's to LP's to 45's to 8-tracks- to cassette tapes to cd's and now mp3's.
Lately, I've heard several established record exec's say whole-heartedly that the music business is dead. It's not just chicken little saying it- it's people who have made a healthy living who are now having to change their careers and lifestyles because of the collapsing music industry. The pie is smaller- and everyone in the biz is feeling the crunch: big studio's are being replaced by home studio's, professional musician's are having to change career's, publishing companies are closing, songwriter's are taking huge cuts in royalties and draws, entertainment attorney's are changing fields, and many artist's are falling by the wayside- unseen and unheard.
No one knows how to get people to pay for music as they once did. Singles used to drive the purchase of a whole album- now singles are sold for $1; thanks to file sharing and Napster like sites- people started to get accustomed to getting music for free, now the thought of buying a whole album is too much of a commitment. Itunes made it easy to cherry pick the songs instead of having to pay for a whole album. In a way, that's not all bad- there was a lot of filler music on albums that people had to buy in order to get one song- now the strong song's survive. We have come full circle- just as it was in the 1950's and 60's- consumers buy one single at a time. It's as if the stock of the single fell by 90%. People knew they might not like every song on the album, but bought it to get the singles. In protest and response, some artist's are making singles unavailable for purchase for a certain time after the single release. Maybe we need to retrace our historical steps to see what led to the album concept after the singles world of the 50's and 60's.
The music business has taken a triple punch: not only the shift to a singles world, but 2) the overall economy has lowered the amount of expendable income used to buy music, and 3) big labels and radio had a firm hold on what music reached people's ears- now people use their computer's to find new music, they go to youtube to watch music for free, or they use sites like Pandora instead of radio.
In one sense, the playing field is leveling- big labels and radio no longer have all the power- they are shrinking everyday as people are launching their careers from their laptops. The record label establishment has a system that will take time to respond to the challenges and opportunities of the internet, digital downloads, and the shift toward video. Today, more than ever, if it has that magic cool factor, if people get the chance to hear it, and if it is tied to a visual experience, it has a stronger chance of making it.
Labels are starting to catch on, but not without some serious downsizing.
Some say that labels had too much power and that things needed to change. So as the housing market corrects and the banking industry corrects and we recover and atone for the rampant greed, I believe the music industry will be humbled and stronger as we find our way in this new world. I'm sad that a number one record does not mean what it used to mean. I'm sad that in the last two years, the music industry has diminished by more than 50% and I'm discouraged that there are so many ways to get free music. I'm sad that last month we had the worst-selling number one album in the last 30 years (Taylor Swift). Now alternative band Cake tops the charts with just 44,000 copies sold.
However, I am encouraged that the consumer has the power to choose the songs they want. I am encouraged that the internet gives us the ability to access the world.
Even with pirating and free downloads- the universal access is very exciting if we can find a way to tap into it. Mostly, I am encouraged that there will always be a supply and demand for music- it's hardwired into the soul of humanity and we will always seek inspiration and entertainment in the form of music. We need to join forces with the technology gurus and find out how to rebuild and re- invent our industry in light of the virtual world. Come on, Sean Parker- if you can bring down the labels via Napster, surely you can try to help save the artists, writers, musicians, and engineers whose livelihood depends on this industry.
