The music industry has undergone some drastic changes over the last decade, and particularly over the last five years. The Internet, the ability to download music for free, and the economy have all dealt a mighty blow to major record labels. So what is the future of the industry, and more importantly the many gifted artists that we are so accustomed to listening to and seeing perform? Well, since I love music so much, I’ve been watching the trends, and it seems that it’s just going to a new place, and will not disappear altogether.
First, as album sales continue to plummet, and online paid downloads of music cannot keep the major labels afloat, there is still a lucrative market in live performances. If there is one significant change from the old days in the music biz, I would say it is this; Artists used to do live shows to promote their albums, and now they do albums to promote their live shows. It’s completely upside down, but it’s true. You cannot stop someone from obtaining an illegal copy of music, but you can certainly confine an artist to a five to ten thousand seat arena and forced people to pay for live performances.
This has many people wondering if the multi-song album, something we have taken for granted over the last century, is a thing of the past. The answer appears to be, to a great degree, yes. Record CDs are not going to be a major part of the business going forward. When you consider the cost of recording, producing, packaging and marketing an album, it’s no longer economically viable. It costs more to make and sell than consumers want to pay.
Out of curiosity, I went into an FYE last week just to see what it looked like. I have not been inside of one in a while. I found the scant collection of the big named artists in the usual spots on the shelf, but as I rounded the corner and looked on the end cap of the aisle, I was amazed to see the number of special and limited edition artist collections by the biggest artists of the twentieth century. So record/CD albums will likely not disappear. It seems these limited edition things are going to last. People still have a passion for the artists they grew up with, and these box sets continue to be popular.
So what happens to the major labels and why do we even need them? First, we do need the larger companies if for no other reason than their distribution networks. The big record labels have the fingers that reach out all over the world and into the places where music is played and sold. For a label to survive, they must contract and resort to distribution of independently produced music through their existing networks. Sadly, it would appear that the days of major labels signing and sticking by incredibly talented artists the way Columbia did Billy Joel are gone. True artistic and musical talent is already giving way to commercial viability. As you will read later in this blog, we the consumer are responsible for this.
As always though, where there is adversity, there is opportunity, and seizing on the changing music business are major department store chains like Target and Wal-Mart. Some artists are even cutting distribution deals directly with major chains. The bottom line is, these companies are accustomed to working off a lower profit margin than the typical record sales stores, and they are able to provide consumers with a cheaper price. The cheaper price comes at a cost though, because it is the executives of these massive companies and not music experts who are deciding what artists will go into wide distribution and which ones will not. My thinking is this will not only hurt truly gifted artists, but the listener as well. Do we really want men in suits deciding what we listen to on the radio or are able to purchase in stores and online? Well, one thing is for certain, if they make the decisions, it will be for the “sure bet” and talent will not be a major factor in their decision making process. If you do not believe this, just turn on the radio as soon as you finish reading this.
Speaking of the radio, has anyone turned one on lately? I’m not going to say that there is no talent on the radio, because that is just not so. However, I grew up in the 1970s, the hay day of the singer songwriter, and I have to tell you, I simply do not turn on contemporary radio stations anymore. The main reason is not just the lack of talent; it’s the lack of originality. If you turn on a country radio station, everyone sounds like Rascal Flats, Hank Williams Junior, Tim McGraw, or Faith Hill. If you turn on Pop stations, you’ll get Britney or Justin, as sung by countless other artists. The radio stations are only playing what they perceive as commercially viable music. If you want to get on the radio, you have to sound like someone who is already successful.
When I was a teenager, I could turn on a single contemporary radio station and if I listened to it for several hours, and I frequently did, I could hear a level of quality and variety that is simply not available today. In as little as a couple of hours and on one channel, I could listen to Aerosmith, The Eagles, The Little River Band, Queen, Lionel Richie, Billy Joel, Elton John, Bruce Springsteen, Karen Carpenter, Eric Carmen and Eric Clapton. There was not only more quality on the radio years ago, but there was more variety. You could actually get that variety on one contemporary channel, and now you’d have to have your radio set to speed dial to listen to multiple genres of music. Large companies like Clear Channel are making decisions on what music is played at very high levels and they are basing it on cost, not quality. Yes, we are back to men in suits again.
I know I sound like my father when I say that the music of today is not as good as when I was younger. However, I am going to qualify that statement and say that we do have artists that are as talented as the artists of the 70s today, it’s just that the industry is not standing by them as they develop their careers, and as a result, radio stations are not playing their music. I cannot even imagine a record label standing by an artist the way Columbia Records did for Billy Joel, who did not really hit pay dirt on his first several albums. It’s not entirely the labels fault either. They are not making enough profits to support artists like they used to. The money simply is not there for the costly recordings and touring and it can take years for a talented artist to develop into a commercial success.
So who is the driving force behind all the upheaval in the music business? Well, look no further than the mirror for the answer to that question. As soon the consumers of music turned their back on the CD in favor of individual downloads and even the stealing of music, they took the money out of the system that supported great artists. In other words, because people stopped supporting the artists they liked, they now have to listen to artists they do not like. So when I hear someone say that they hate where music is going today, I always ask them when the last time they purchased a music CD was. They usually start mumbling some year before their first child was born. Guess who still purchases music and has always been the biggest customer for the music business. That’s right, it’s teenagers, our kids, and in many cases, they are using our money.
So, let’s recap where the music industry is and how we got here. You, the consumer, chose not to pay $18 for a music CD causing record labels to only make the up front investment in producing full albums and paying for costly tours when they have a sure bet. The sure bet in record sales are kids under the age of 18 (Hanna Montana has more money than God!), and remaining artists are forced to imitate the style of commercially viable artists in order to obtain a record deal or airplay. Everyone is running for the center isle, creativity is out the window, and adults want to cry when we turn on the radio so we just don’t do it unless it’s the oldies station.
I bet you think the situation is hopeless now. However, we are not doomed to listen to cookie cutter music for the rest of our days. In a way, this can be a good thing and a cleansing experience if we just make it that way. Oddly, the industry is going more and more towards the independent labels, which are making decisions based on talent more often than commercial viability. In the long run, I believe that talent will win out over the almighty dollar. However, in order for that to happen, consumers have to support gifted artist the way they used to. The next great band or artist is out there waiting to be discovered just as it always has been. We just have to be willing to support them by purchasing their music and buying tickets to their shows. If we do that, the local phenomenon with the independent label can catch fire and that label can turn to the major distribution companies and it will reach around the globe. Does anyone remember Sun Records. It can happen!
What I have always hoped for is that some of the most successful artists of the past thirty or fourty years would cross the aisle and start running the business end of music. I’d love to see people like Diane Warren, Billy Joel, Steve Dorff, Jimmy Webb, Eric Carmen and Paul McCartney all running major labels and investing their money into artists. I think they’d get it right. I can dream can’t I?
Joe Goyette
www.myspace.com/joegoyettesongs1
