Tilted Forum Project Discussion Community - View Single Post - Online sales mean music industry approaching vinyl curtain

Jadey · 10-05-2003, 11:26 PM

Quote:

Originally posted by Mind_Storm
http://www.theinquirer.net/?article=11936

Online sales mean music industry approaching vinyl curtain - As sales drop like a lead Zeppelin

By Charlie Demerjian: Sunday 05 October 2003, 07:58

What exactly am I getting at? Well, the vast majority of artists never see a cent from record sales. Obtuse accounting tactics, one sided contracts, and 'industry norms' make it nearly impossible to figure out that you are being screwed, much less prove it in court. It is a given that a new band will never see dollar 1 from record sales, and it is up to them to make a living from touring and merchandise sales. Most somehow manage to make a decent living this way, so don't pity them too much. The record companies make the big bucks. Look at the gross income for any of the big 5 labels, and you will see that there is a steady stream of cash heading to those companies, and it has a lot of zeros behind it. Where does the money go? Good question, but one they won't answer. There are a lot of big Mercedes in the company parking lots though.

There is a powerful mechanism preventing this from happening now, contracts. Most acts are signed to multi-year, multi-album contracts, basically enslaved to the record companies. Once those contracts expire, they will ask themselves the obvious question, 'why do we need the record companies again?'. The obvious answer is that they don't. Negotiating with 5000 retail outlets, another few hundred distributors and a host of miscellaneous other entities is impossible for any one band, but 10 online retailers is not.

After the infrastructure is in place, a new band can sign up with the service directly, and have their music just as accessible as the latest manufactured boy band. It is easier to negotiate than a one sided, labyrinthine record company contract, and the chance of actually receiving money is millions of times greater. 25% or 1000 sales is a much larger number than 0% of two million. Once they get a greater audience, the bands can negotiate better rates for themselves, but the doors will be open early on, and no strings will be attached.
µ

Where have I heard this before?

If you really want the money from your purchases to go to the artists buy concert tix and then buy merchandise while at the show. That money is much more likely to reach the artists pockets than anything you buy at the local record store. It's disgraceful that many people are led to believe you are stealing fron the artists. WRONG! Most of that music has been signed over to the labels already and they own the rights! The artists are being stolen from, but it's by the record labels moreso than the fans dl'ing online (though I'm not saying that's still OK.)