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    The Music Industry's Dirty Little Secret

    posted @ 6/23/2008 01:58:00 PM by evermore
    I became incensed earlier today when I read a headline from a music industry analyst that proclaimed that digital downloads have "killed music." Believe me, nothing could be farther from the truth.

    Just look at all those people carrying music players around. Ten years ago, before the first MP3 players hit, the only people carrying music around were kids with boomboxes -- and it wasn't likely anything you wanted to listen to.

    There's more music than ever before. But there is something that digital downloads did kill -- and it was the music industry's real cash cow.

    Digital downloads have killed the Greatest Hits album. That's where the music industry made a huge percentage of its money.

    To see this in action, just look at the career of The Doors. During lead singer Jim Morrison's lifetime, the group recorded solely for Elektra Records and created the following albums:

    The Doors

    Strange Days

    Waiting for the Sun

    The Soft Parade

    Morrison Hotel

    Absolutely Live

    L.A. Woman


    Seven albums. That, plus their first Greatest Hits album "13," released in 1970, were it. However, since Jim Morrison's death in 1971, Elektra and its decendents (now Warner Music) have released the following compilations:

    Weird Scenes Inside the Gold Mine (1972)

    The Best of The Doors (1973)

    The Doors Greatest Hits (1980)

    The Best of The Doors (1985)

    The Doors: Original Soundtrack Recording (1991)

    The Doors Greatest Hits (1996)

    Essential Rarities (1999)

    The Best of the Doors (2000)

    The Very Best of the Doors (2001)

    Legacy: The Absolute Best (2003)

    The Very Best of the Doors (2007)

    The Future Starts Here: The Essential Doors (2008)


    The Doors released only six studio albums, but their label has put out a whopping 13 compilations, repackaging the same songs that were on the original six. Note that they put out so many Greatest Hits sets that they ran out of names for them, repeating "The Doors Greatest Hits" and "The Very Best of The Doors" twice and "The Best of The Doors" three times.

    Now, mind you, that's 13 albums created and distributed after The Doors stopped recording with Jim Morrison in 1971.

    And that total doesn't even count the five box sets that have been released, including 1999's "The Complete Studio Recordings," which simply contains the six studio albums in one package.

    Every Greatest Hits album and set mentioned here has sold at least 100,000 copies. The 1980 version of "The Doors Greatest Hits" album alone sold 3 million copies.

    Why was the Greatest Hits album so important to the label? It costs them virtually nothing and brings in money by the truckloads.

    They don't pay the artist anything. The contracts of recording artists and groups usually contain a clause allowing the label to issue unlimited compilation albums of songs the artist did under contract. In fact, if you think you're doing the artist a favor by buying a Greatest Hits album, you're wrong. The artists usually doesn't get credit from the label for the Greatest Hits album sale. Their remuneration is based solely on the original album.

    It's "pre-sold." They don't have to try to get the band on Leno, Letterman or Conan. The songs are already a hit. Everyone knows them already.

    It's a perfect Christmas gift. Don't know what to get Johnny or Julie for a gift? You've seen them wear a Jim Morrison T-shirt -- get them a Doors album. This attitude has paid off like a slot machine for the labels since the LP album was first introduced.

    It's in a new format. The first greatest hits albums came out on vinyl, cassette, 8-track and open reel (you gotta be really old to know what "open reel" was). You needed a vinyl version for home, the 8-track version for your car and the cassette version for your Walkman. Then you threw all that away and got the Compact Disc version.

    The digital download kills all of these cash cows for the music industry. By being able to buy only the tracks you want, you don't need to buy a whole compilation to get the one or two songs you actually like. In fact, there's really no marketing per se for a single track at a label -- they already give away songs on the radio and videos on TV. The marketing department at a music label is there only to sell albums.

    Heck, before The Beatles came along, the only people who bought albums were fans of classical music and Broadway musical soundtracks. Then came the day in March 1964 when The Beatles had all the top 5 songs on the Hot 100 Singles list. It was on that day when it was actually cheaper to buy the top 5 on one album, rather than getting them on separate singles. Three years later, the album became an event with the release of "Sgt. Pepper's Lonely Hearts Club Band" by The Beatles.

    But in the last decade, the album has fallen on hard times. In the 1960s, bands put out two albums a year -- now it's hard to get an album every two years from a band like Coldplay. And sales have plummeted drastically. When it's easier for Neil Diamond to get a No. 1 album in the 21st Century than back in the 1960's, you know something is wrong with the whole system.

    To be honest with you, the best thing you, as a music consumer, could do would be to boycott the purchase of all music produced by the four major record labels. You would be doing the artist a favor. The way their contracts are written, they make virtually nothing from record sales. They make absolutely nothing from digital sales. The few artists who make decent coin from sales of recordings are already rich (Paul McCartney, Metallica, Madonna) or dead (Elvis, John Lennon) or both (Michael Jackson).

    You should feel sorry for those performers on American Idol -- especially the winners. They're locked into the Last Days of the Record Industry Empire, an empire that steals money from almost everybody and tries to throw the rest of us in jail.

    If you want to support musical artists, purchase a ticket to a concert, and buy a T-shirt and a couple of CD's while you're there. All of that money goes to the artist. Encourage your favorite band to write songs for commercials -- don't villify them for it. It's the only way to make money in the music business these days.

    Because the only thing deader than the Greatest Hits album is Jim Morrison.


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    Finish what you start...

    Record Stores Going Away? Good Riddance

    posted @ 4/03/2008 11:16:00 AM by evermore
    Word came out yesterday that the Apple Store has passed Wal-Mart as the top music retailer in the U.S. And it wasn't even close. In January, the Apple Store sold 19 percent, compared with Wal-Mart's 15 percent.

    As I see it, this ends the dominance of the physical music format. From Edison's cylinders to 78 RPM wax platters to vinyl to 8 tracks to cassettes to compact discs, music got successively more portable until the physical media went away. Now the physical stores are going away as well.

    And I couldn't be happier.

    Sure, I used to love record stores. As a kid, I had always shopped the record bins in supermarkets, drug stores and dime stores. But when I went to college in the mid-1970s, I discovered standalone record stores. My favorite was a place called Discount Records, a narrow store that had long aisles of U.S. and import records, along with free copies of music and humor magazines they couldn't sell.

    The great part about Discount Records was, of course, the discounts. At the time, vinyl albums went for $5.99 apiece, but at Discount Records, new releases went for only $3.99. It was like hitting a treasure trove.

    A few years later, the megastore came along. The first one in my city was Peaches, an Atlanta-based retailer. They opened an unbelievably large place, with giant hand-painted album covers displayed on the walls outside (if you've ever seen the movie Xanadu, you'll know what I mean).

    Peaches had everything -- in huge quantity. The classical music room was separate, with its own door to keep rock from mixing with Rachmaninoff. One day they installed a big-screen projection TV and I saw my first music video: Meatloaf's "Paradise by the Dashboard Light." Unfortunately, Peaches put the little guys at Discount Records out of business.

    The mall stores hung on by moving quickly to CDs after the format was introduced in the early '80s. Since they didn't have much space (certainly not as much as Peaches), the CD format was a godsend.

    I wasn't a big fan of the CD, however. I stuck with vinyl until it gave out in 1989, and after that, moved to cassettes until the artists I was interested in moved completely to CD.

    The record companies cleaned up on CDs. They were perceived as a "superior" format and priced accordingly. The problem was that the prices never really went down. Music that I purchased at Discount Records for $3.99 in 1975 was getting $19.99 in CD format. That's a 5X increase within about 15 years. I no longer had the cash reserves necessary to replenish my vinyl/cassette collection with the new-fangled CDs, so, as did most people of my generation, I just gave up on buying music.

    The record stores didn't notice I was MIA. In fact, they seemed glad to get rid of me. Buying music at a record store was a terrible experience. The joke at the time was that the record store employees thought they were the rock stars.

    I learned not to ask questions in a record store. They always seemed miffed that someone my age could actually require assistance. I wasn't someone they could try to impress. And they didn't have a clue as to why I could be interested in someone named Jethro Tull.

    Actual conversation:

    Salesboy: "I don't know who he is."

    Me: "Who?"

    Salesboy: "Jethro Tull."

    Me: "He's not a he, he's an it."

    Salesboy: "Who?"

    Me: "Jethro Tull. It's a band, not a person."

    Salesboy: "Like Van Halen?"

    Me: "No. Van Halen's a he and an it."

    Salesboy: "Huh?"

    Me: "Van Halen's the last name of a couple of guys in the band and the name of the band."

    Salesboy: "Like Camper Van Beethoven?"

    Me: "Oh, forget it."

    They were too busy selling CDs to the kiddies. So when the kids got on their computers and discovered Napster, the record labels lost them, too.

    Now the record stores in the malls -- if you can still find an FYE, that is -- are all empty. Maybe there's someone looking at a DVD in the bargain rack, but nobody's there poring over the music. The CD aisles at Best Buy are barren. Same at Target and Borders and Barnes & Noble. At Circuit City... well, does anybody shop at Circuit City anymore?

    At Wal-Mart, people still go in, finding sanitized versions of music they heard on a commercial or something. And even Wal-Mart's tiring of that business. For years Wal-Mart has directed the record labels to reduce the price of their CDs. And if the labels don't comply? Well, Wal-Mart infers that one of these days it just might go out of the CD-selling business entirely.

    And if Wal-Mart goes, there goes the whole business of selling physical discs. The music labels surely can see the writing on the wall. It would be in their best interests to convert to companies similar in nature to BMI and ASCAP. Those companies control the publishing rights to music. The four music labels should convert to companies that control the performance rights to recorded music.

    When that happens, there will be no need to keep the RIAA in business, so the lawsuits against stay-at-home-moms and college students will end. The giant corporations will spin off the record labels into tiny holding companies who will likely make deals with content amalgamators like Apple, the phone companies, the cable companies and the networks to distribute large chunks of their music catalogs for a fee.

    And in 20 years, some kid will be asking why you have a closet full of little silver Frisbees.


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    Finish what you start...

    Bully II: When You Lose, You Really Lose

    posted @ 10/10/2007 09:56:00 AM by evermore
    Rockstar Games has announced its follow-up to last year's Bully, called Bully II: RIAA Edition. Unlike the original, the new game has a single bad guy: the Record Industry Association of America.

    In the game, the player portrays one of many real-life victims of the RIAA: a single mother, an 83-year-old grandmother and an 11-year-old grade school student, among others.

    The player must fight against self-serving politicians, befuddled judges and vicious lawyers as they travel from level to level up the chain, until they face the most devasting adversary of all, the mammoth, snarling, four-headed RIAA Monster.

    The Deluxe version of the game comes with a first-generation Microsoft Zune with 24 tracks of low bitrate versions of songs obtained from Kazaa and other music sharing websites.

    The game itself is free, but you will be charged $222,000 if you lose the final battle with the RIAA.


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