Future Of Music

By Gillian Shaw, Vancouver Sun

“Music CD sales have dropped by half from their peak a decade ago, but unlike the decline of vinyl records and 8-track tapes, the current shift is bringing with it a wholesale transformation in the delivery and distribution of music.

The format change started with MP3 files, but digital music also brings multiple distribution channels — from the free sharing of music, to iTunes and other paid download services, to more futuristic channels that could see us making micro-payments to call up songs on the refrigerator while we cook dinner.

The recording industry, which failed to adapt in the early days and instead sought to hold back the change, is now paying the price. But for artists and consumers, the shift is opening up opportunities in accessibility, and lowering barriers to entry for a music career.

“CDs are being replaced by MP3 files, and the only problem is the record labels never figured out a way to charge for MP3 files until it was too late,” says Dave Kusek.

Kusek is vice-president at Berklee College of Music, a co-developer of the Musical Instrument Digital Interface (MIDI); co-inventor of the first electronic drums at Synare; founder of Passport Designs, the first music software company; and co-author of the book The Future of Music: Manifesto for the Digital Music Revolution.

“It is a format change, and the record industry had its chance when Napster first came out. They had the chance to license Napster for all their music,” he said. “If they had done that, I believe the recorded music industry would be in a much more healthy state than it is today, or ever will be again.”

Instead, the recording industry decided to sue Napster. And while it may have won that battle, it turned out to be just one skirmish in a war that would see the free exchange of music only increase.

In the U.S., the industry took consumers who were sharing music files to court, but it has since abandoned that tactic.

Most recently in B.C., a Vancouver company is taking on the recording industry in a B.C. Supreme Court case, asking the court to confirm that it is not infringing copyright with websites that allow users to search BitTorrent files on the Internet to find movies, music and other content.

Apple cashed in on the digital music craze with its iPods, picking up much of the revenue that CDs would have generated. But paid services such as Apple’s iTunes, Amazon and others still account for only a small portion of the music people listen to on their computers and other devices.

“If you look at the several billion tracks that have been sold on iTunes, that is a couple of months worth of file-sharing traffic in MP3 files,” said Kusek, who runs a consulting business, Digital Cowboys that has clients such as Nokia, Pepsi, BMG, EMI and others. Kusek also blogs at futureofmusicbook.com.

“The entire history of iTunes is [equivalent to] a couple of months of downloaded shared music,” he said.

Kusek sees a future in a type of blanket licence approach, similar to cable television’s.

“I think if it is going to happen, it is going to happen in the mobile space rather than in the computer space, although those two will merge,” he said. “The idea of selling a recording for a dollar-plus per song or $15 to $20 per disk has probably gone, or will be gone in the not-too-distant future.”

While hundreds of millions of CDs are still being purchased, sales are in steep decline. Sales of digital music in the United States grew almost 30 per cent last year, but sales of CDs dropped, with the forecast for 2009 putting them at half the level of their peak during the CD boom in the late 1990s.

According to a report by Forrester Research, U.S. digital music sales — downloads and subscriptions — will grow at a compound annual growth rate of 17 per cent over the next five years, putting digital music on track to make up 41 per cent of the music market in 2013.

The growth in these purhcases won’t compensate for the decline in CD sales, leaving the overall music market shrinking by a compound annual growth rate of 0.8 per cent, to $9.8 billion US in 2013.

“I think it will become more of a utility, a service that you subscribe to that is bundled into your bill, and you get your music that way,” Kusek said.

While CDs can be played in a variety of devices, from a car to a living room stereo to a boom box on the beach, there are far more variations for digital music.

“I have a pair of sunglasses I can play music in,” Kusek points out with a laugh.”

Read more from Vancouver Sun article.

Bob Lefsetz posted in December about Corey Smith, a fantastic artist who is blazing a new trail through the music business using entirely new ways of thinking.

Corey’s whole business model is based on giving away lots of music for free and building relationships with his fans. Last year he grossed $4.2 million with a team of seven people. He does it primarily through touring and developing seriously close relationship with his fans.

Lefsetz said “Corey was a high school teacher. Playing gigs on the weekend. Marty Winsch (now his manager) was booking a venue. Was there any way to make headway, for Corey to support his wife and two kids playing music?

Absolutely said Marty. But first they had to release the equity in Marty’s recordings. They had to make them free on his site. To everybody.

And it was this giving away of the music that was Corey Smith’s tour support. They didn’t need a nickel from a label or a fat cat. Because once people heard Corey’s music, they had to see him live.

Which they did. In 2007, Corey Smith grossed $1.7 million. This year, not even half a decade into Marty’s management of the act, Corey’s going to gross $4.2 million. Free music built the base. Fan rabidity blew the act up.

You can buy the tracks on iTunes. They’ve sold 420,000 so far. When they experimented last summer, and took the free tracks down from Corey’s site, iTunes sales went DOWN! So, they put the free tracks back up. Actually, people e-mail Marty every day, asking for a track. AND HE JUST E-MAILS THE SONG BACK!

Not everybody’s ready to commit right up front. The free music allows people to try Corey out.

They don’t want radio play. They gave a station in a city sixty tickets to give away, but only on the condition that they DIDN’T play the songs. Marty wants people to experience Corey Smith live. That’s where it happens.

And Marty wants it to be easy. So therefore, he sells FIVE DOLLAR TICKETS! Yes, he rewards fans. Tickets are CHEAPER on the on sale date. And let me ask you, how many people are going to tell their friends they scored such a deal? And maybe drag them along with! That’s your marketing. Your fan base. It isn’t about hiring a PR firm or using Twitter. Actually, Marty pooh-poohs most technology. He says you’ve got be wary that the technology doesn’t get ahead of, doesn’t overwhelm the act. He doesn’t use Google Analytics to find out where each and every fan is. Marty goes on feel. He, and his uber agent Cass Scripps just go into a new territory, and although the first gig might be soft, the one after that never is. Because Corey delivers.

Actually, that’s important. Marty has tried releasing the equity, giving away the music of other acts. But they haven’t succeeded. Because they’re just not good enough.

If you’re truly good, you don’t need anybody else’s money, your recordings can be your tour support, they can put bodies in the seats, you can build a career.

Whenever anybody e-mails Marty and asks if they can meet Corey, Marty always says YES! He tells them when to show up for the meet and greet. This is the new paradigm. Eliminating the gulf between the act and fan. Trusting your audience. That if you’re damn good, they’ll give you all their money.

You don’t have to play by the old rules. You don’t need any money. You just need good music. And good management.”

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Corey recently gave a lecture at a UGA Music Business class and talked about his philosophy and career. He mentioned that he has been influenced by “The Future of Music” book. Yeah Baby!

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Check out Corey’s Website here and be sure to get one of those $5 tickets to see his live show. This is the future of the music business.

Our book is available in various forms.

You can listen to the book on iTunes as a podcast for free. Go to the iTunes store and search “Future of Music” podcasts and subscribe.

You can buy the book on Amazon for $11.53 or less.

You can purchase the audiobook from Audible for $7.49.

Here are a few of the reviews.

Publishers Weekly
Two innovators in music technology take a fascinating look at the impact of the digital revolution on the music business and predict “a future in which music will be like water: ubiquitous and free-flowing.” Kusek and Leonhard foresee the disappearance of CDs and record stores as we know them in the next decade; consumers will have access to more products than ever, though, through a vast range of digital radio channels, person-to-person Internet file sharing and a host of subscription services. The authors are especially good at describing how the way current record companies operate – as both owners and distributors of music, with artists making less than executives – will also drastically change: individual CD sales, for example, will be replaced by “a very potent ‘liquid’ pricing system that incorporates subscriptions, bundles of various media types, multi-access deals, and added-value services.” While the authors often shift from analysts into cheerleaders for the über-wired future they predict – “Let’s replace inefficient content-protection schemes with effective means of sharing-control and superdistribution!” – their clearly written and groundbreaking book is the first major statement of what may be “the new digital reality” of the music business in the future.

5.0 out of 5 stars THE FUTURE OF MUSIC IS NOW
Gian Fiero (Hollywood, California)
This book is so brilliant that it makes the vast majority of music industry books that are being published seem irrelevant. It discusses in detail, the reasons why the future of the music industry is headed into the digital/mobile entertainment era. It also provides statistical information that professionals, marketers, entrepreneurs, and educators can use constructively. Both Dave and Gerd (the books co-author), have their fingers firmly planted on current music industry activities and trends. They also possess and display a clairvoyant eye toward the future that offers beneficial insight and foresight to those who may not be aware of what this whole digital (i.e. independent) revolution is about, and most importantly, what it will entail to prosper in it. The book is easy to read, easy to understand and simply brilliant. If you buy just one industry book this year, this should be THE one. Buy it now!

5.0 out of 5 stars Indispensible
Stephen Hill “Producer, Hearts of Space” (San Rafael, CA USA)
A stunningly candid source of concentrated, up to date insight about the music business and its turbulent transition into the digital era. This book tells it straight and will make the dinosaurs of the music industry very unhappy.

Like Martin Luther’s ‘95 Theses’ nailed to the door of Wittenberg Cathedral, Kusek and Leonard drive nail after nail into the sclerotic heart of the old-fashioned music business. Their rational vision of the future of music rests on the idea of unshackling music from the hardcopy product business in a yet-to-be-realized era of open content licensing, facilitating sharing and communication among users, and growing the business to its full potential.

It provides as clear a vision of the future of the music industry as you will find, from two writers with a rare combination: a solid grounding in the traditional practices of the music business, an up-to-the-minute knowledge of the new technologies that are changing it, and the ability to think through the consequences.

I’ve dreamed about a book like this, but thought it would be impossible in today’s hyperdynamic environment where every week seems to bring a breakthrough technology, device, or service. But by digging out the underlying trends and principles Kusek and Leonard get under the news and illuminate it. Along the way they provide a brilliantly concise history of the evolution of digital media.

I can’t think of any book more important for artists to get the full re-orientation they need to survive and prosper in the digital era. It’s no less critical for members of the music and broadcasting industries who need to consolidate their thinking into a coherent roadmap for the future. In a word: indispensible.

From the Business Innovation Factory Summit, my presentation on the Past, Present and Future of Music.

Here is the story they wrote about me for the Summit.

Back in the seventies, David Kusek walked from his freshman dorm at the University of Connecticut, down a long hill to the music department for classes several times a week. When the routine got a little stale, he began taking other routes. One detour took him past the computer science building where he quickly noted the “hot” cars in the parking lot. Naturally, he began taking computer science courses.

Great ideas are born in such serendipitous ways. When Kusek melded his deep-rooted love of music with his newfound affinity for computers, he opened up unchartered territory in the music world by inventing the electronic drum. His company, Synare, took a relatively unfamiliar technology (computers) and combined it with an indigenous musical tradition that tuned percussion to the key of the song. Kusek also knew how to start a business, develop products, and take them to market. Having the right price point added to the appeal of the electronic drum and attracted the attention of fledgling artist Donna Summers who took a chance on the new sound and propelled her career.

“For better or worse, we had our part in the disco age,” Kusek says. “We helped to define the sound of the era.”

Taking another detour for curiosity’s sake led Kusek to study animal communication in California with noted biologist John Lilly. They were trying to use sound to communicate with dolphins when the Apple II computer came to market.

Kusek was already synthesizing the sounds that dolphins make, so he devised a way to do the same with musical instruments, to “put the Apple II between the instruments.” He explains that his new company, Passport Designs, “broke music down into a language of expression, which we mapped to simple computer code and connected it to the instruments. We created a computer language for music.” Witness the birth of Musical Instrument Digital Interface (MIDI), developed by a group of companies including Passport, which has left an indelible mark on the music industry by becoming the prototype for all music interface software.

If only they had patented it.

Kusek, along with Dave Smith and the other people responsible for creating MIDI could have made millions with MIDI, but he remains philosophical about this missed opportunity. “Maybe the reason why it took off was that it was absolutely free,” he says. “It was a compact way of representing music in a simple and cheap format.”

Kusek has learned to appreciate and even extol the benefits of free and open access to music. He helped create musical notation software and was instrumental in developing enhanced CDs for the commercial market. He supports the creation of a music utility to “monetize” the immense wave of file-sharing that has become standard operating procedure in the industry. He reasons that Internet users already pay for access to a network that supplies the music, so why not add a nominal fee to the ISP bill and allow for legal trading? With approximately 80 million households using the Internet, a monthly music utility fee of $3 would generate almost $3 billion in annual music sales from households alone.

“If you tracked what was downloaded,” Kusek says, “you could create a system where the money flows exactly to the people who are listening. It could be a 30 to 40 billion dollar business again, as it was in the nineties.”

Admittedly, this system would spread those billions among a larger base of artists, establishing an unfamiliar sense of parity in the music industry. But Kusek says that the megastar is gone, anyway: “In the last four to five years, new artists coming to market are not making anywhere near what artists like Madonna made. I think that happens because of file-sharing, but also because the music industry was taking its eye off what was important. In the mid-nineties, the record companies thought their customers were WalMart and Target. They had no connection to their audience at all.”

File-sharing may have killed the megastar, but not the art, Kusek insists. “I think it’s a great time to be an artist,” he says. New performers may have smaller audiences, but they also have a more efficient way of finding that audience and staying connected to it through online chats, newsletters, and blogs. And instead of the record industry’s marketing machine pushing music at fans with an $18 plastic CD case and the elaborate promotion attached to it, word of mouth is shaping the musical tastes of the rising generation.

As it should, according to Kusek. He has brought technological innovations to the music industry by accepting such change and using it to open up the possibilities of sound. He envisions music flowing in a clean stream wherever people communicate, allowing artists and fans to express themselves freely.

I recently did a presentation for the Business Innovation Factory on music. When they post the video I will provide a link. In the meantime, here is the presentation:

This is a story about the past, present and future of music.

There is a lot of discussion these days about free music and the decline of the power and influence of the major record labels. However, I would argue that music has always been free in one form or another, throughout history and that the relationship between the artists and their fans – the artists and their patrons is what really matters.

Record labels are a relatively recent phenomenon in the history of music. Perhaps they have seen their useful life as a component of the music business, perhaps not. They have been helpful in injecting capital into the marketplace and promoting artists on a scale never before seen. They have provided a vehicle for artists to go to market that was quite effective in its day.

But music at it’s core is entertainment and a form of creative expression that transcends language and cultural barriers and always will. If we focus on music as a cultural phenomenon, perhaps we can find some answers to the questions about the future.

The Artists

The music business essentially began with the live performance of music at the symphony, opera or chamber ensembles for wealthy patrons of the arts. People experienced music directly with the artists in the room with them.

Music is a social art form, and artists were driven by their passion to make music and connect with people who would enjoy it. It’s a lot of fun to make music, but the greatest joy comes from delivering it to other people who appreciate what you have created.

For many artists, making music is all they know how to do.

But like many aspects of modern life, music has been profoundly impacted by changes in society and by the rise of technology – indeed music has been driven by technology.

Radio

The music industry began back in the early 1900’s with the invention of amplification and radio. With radio people could listen to and enjoy music together in the comfort of their homes. It transformed time and space and made it possible for huge numbers of people to enjoy music that they might never have heard otherwise. Huddled together were our grandparents and parents, listening to music over the airwaves – together, enjoying it all.

And the greatest part about it – IT WAS FREE.

VINYL

In the 1950’s Vinyl LPs were introduced into the marketplace and along with radio – crystalized an industry. Vinyl records changed the very nature of how music was enjoyed. Recordings fixed a musical performance in time and stamped it onto a piece of plastic. They made it possible to shift both time and space for people, so we could now enjoy music anytime and anywhere.

They also fundamentally changed the way music was delivered – no longer was a piece of music played live, with different players and interpretations every night making the music more dynamic. Instead, the songs were played exactly the same – over and over again – turning music into a product instead of an experience.

This was a profound shift in the way people experienced music.

Elvis

Television was the next technology to impact the music scene in the mid 1950’s. In 1956 Elvis appeared on the Dorsey Bros “Stage Show” and became an nationwide sensation. This was the beginning of music marketing to the masses.

The Beatles

In 1964, a new band called the Beatles appeared on the “Ed Sullivan” show – and from then on, the music business would never be the same. Like many kids my age, when I saw the Beatles on TV – I knew that I wanted to be a Rock Star.

The Music Industry

Business structures were formed and expanded to address the booming opportunities in the music industry.

Record Labels – brought recorded music to market and became the engine that drove the entire music industry.

Publishing Companies – found ways to exploit the “song” through licensing.

Radio Stations were finally forced by congress to pay a Performance royalty to the publishers for playing the songs over the airwaves –

The songwriters got paid, but not the labels. The legislature argued that radio airplay was in effect massive free promotion for the record.

Music started to become a very big business for the companies involved. Music was marketed to young people and the growth was fueled by new artists and new songs.

Technology continued to march on.

The Audio Cassette made music more portable. The Sony Walkman became the best selling consumer electronics products of its time.

Synthesizers changed the way music was produced, adding a lot of new sounds to the palette. At the same time synthesizers put a lot of traditional orchestral instrument players out of work.

And then the Personal Computer raged into the marketplace.

I can tell you that Apple had its eyes on the music industry from the very start because I was there. They were actually forced to stay out of the music business for a while, by the Beatles record label “Apple Records” – over a conflict with the name “Apple”. This was a healthy foreshadowing of things to come.

Compact Disc

In 1982 Sony and Phillips introduced the Compact Disc. The CD was the first digital format to hit the marketplace. CDs were intended to deliver pure digital sound quality. CDs were originally marketed as “Perfect Sound Forever”. The labels wanted the public to go out and repurchase their vinyl music collections all over again on CDs and make billions more dollars in the process. It worked. Sales soared for over a decade.

However the record companies failed to realize that they had digitized their entire catalog and put perfect digital copies into the hands of the public – at $18.95 a disc. Before long the computer companies were offering devices that could copy CDs in seconds. This failure to understand technology would come back to haunt the labels in a big way.

MIDI

In the early 80’s I got involved in a project with Dave Smith and others to encode music in a compact digital form. The idea was to make music easier to store and edit, and network instruments together. We worked with a bunch of different companies including Sequential Circuits, Yamaha, Roland, Korg, Casio and Passport Designs to create something called MIDI – the Musical Instrument Digital Interface. We created an open and free standard that anyone could use – royalty free.

As a result of MIDI many new music companies were formed, thrived and exploded in the 1980’s. There was a profound transformation in the way music was produced, mixed and distributed – and millions of people got involved in recording and creating music at a very high level. MIDI was a revolution in music making.

Ironically, MIDI is in every cell phone you have – and the reason we have ring tones.

World Wide Web

Here is something that I want you to think about for a minute.

The World Wide Web came to market in 1990 – just 18 years ago. The web made it possible for anyone to create a home page for whatever they wanted to say or market. If you are under 25 years old in the US, it is hard to imagine life without a digital network. And this just happens to be the target age group of the record companies.

In 1998, MP3 files were developed to send music over a telephone line. MP3s made it possible to compress the digital music files on a CD into a small file that could be easily copied. The Internet made it possible to transmit these files around the world in seconds.

Technology made taking music even easier that making music.

Napster and the iPod

It was the combination of the Internet and the MP3 file that sparked a young college student named Shawn Fanning to invent the first Napster software that allowed people to trade and share song files. Almost overnight, kids around the world were tapping into Napster and trading songs and discovering new music using the Net. A huge community formed.

This was followed shortly by the invention of the MP3 player and the iPod in 2001 by Apple – which would soon dwarf the sales of the Sony Walkman and become a multi-billion dollar business.

Trading files online became an instant success and the MP3 became the new format for music delivery – mandated by the consumer.

Something very different began to happen to the music industry. The power began to shift from the record companies to the tech companies and the music fans.

Record Companies – Orgy of Success

The record labels enjoyed an orgy of success with the CD.

But they really missed the ball in identifying their customers. They thought their customers were Wal-Mart and Target and other record retailers. Instead, their customers were people like you and me who actually buy music.

When the labels realized people were trading MP3 files online, actual customers interested in music – they decided to sue them. This was not and is not a great business strategy, to sue your own customers. What were they thinking? Or maybe they weren’t thinking at all.

Future of Music Book

In 2004, I wrote a book on The Future of Music with my friend Gerd Leonhard. Unfortunately a lot of what we predicted to occur has become true. Sales of recorded music have fallen some 50% already from their peak in 2000. Thousands of bands have been dumped from their recording contracts by the labels. New artist signings have fallen to an all time low and labels are no longer investing in artist development.

And Apple has become one of the most powerful companies in the music business.

New Artist Model

The record business has never really been good for the vast majority of musicians. A dirty little secret of the music business is that 95% of artists never recouped their royalty advances. Labels have been notoriously unfair to their artists.

Artists have always had to make their money some other way – through touring and performing – from songwriting – or selling t-shirts, hats to make a living in music. Or working at Mickey D’s.

But everything is changing. Today artists and their managers sit in the middle of a musician enterprise and can make things happen on their own. This is redefining the music business.

Technology has shifted the power base from the record labels to the artists and mangers, and the music fans. Performer and patron are meeting again with direct relationships between artists and their fans enabled by technology.

Mobile Music

The Universal Mobile Device (UMD) that we wrote about in the book has already hit the market. It is called the iPhone. – providing communication, sharing, maps, music, pix, video, games, phone, text, email, web, the internet, hundreds of other applications, and connectivity. Nokia has similar devices and there are lots more coming. Digital media is invading our lives. Imagine what these devices will be like a few years from now.

Soon you are going to be wearing eyeglasses and jewelry that provide digital media to you anytime and anywhere.

Here are some MP3 sunglasses from Oakley

Artists as Brands

Artists today are more likely to get promoted by major brands than record companies. Their managers are setting this up for them.

Brands like Pepsi, Red Bull, Tag, Bacardi, and Nike are breaking new bands, and TV shows like Grey’s Anatomy, CSI, and House showcase new artists each episode. Getting on a show like this can be like winning the lottery for new artists, not unlike the old record deal.

Many new structures are forming that will help artists develop their fan bases and enable a career in music for smart people.

The New Music Business

At the center of the Future of Music are the creative people, the artists and songwriters along with their business managers. A middle class of musicians is forming where people can make a living or part of a living in music more predictably. They are pursuing a business model that puts them in the center of the equation and gives them more choice about their career path.

And as in the past, It is the New music that will fuel growth in the future. And it is the direct connection between artist and patron, that once again comes around into play in the music equation.

Music Like Water

Music is starting to flow all around us. It is available on the internet, on mobile networks, wifi, 3G and your home. Here are some examples of new ideas in music that are helping to redefine what the future will hold.

Music is going mobile
- hear a song anywhere and get it – can already do this on iphone
- personalized digital radio – just for you – pandora
- social filtering – what’s everyone else listening to?

You will have more chances to interact with artists and writers
- audience picks the set list collectively
- lyrics and songs streamed to your phone during the song
- the entire concert recording available to you after the show

Personalized Interactions
- Digital Living Room – intimate shows beamed into your home
- Interact with the artists and writers, help write a song
- Watch rehearsals and develop your relationship – MTV

Conclusion

It has never been a better time to be a musician or songwriter than it is today. You have a lot more control over your career than you ever did. The future is extremely bright and capital is starting to flow to the creative tech and new artist management companies.

So I am very positive about what is going to happen in music in the Future. We are coming full circle with free music and more intimate fan connection and participation. The patrons are coming back into play.

British Music Rights survey on music consumption of people aged 14-24. The average age of respondents was 22. This is the largest UK academic survey of its kind.

* 14-24 year olds love music – arguably more than any previous generation.

Well I am not quite sure about this one, but lets move on.

* But their consumption of music is changing significantly – the perceived value of sharing, recommendation and copying have all increased.

The world has changed for the digital kids.

* The upshot? Emotional importance does not correlate with spending – especially compared to other entertainment sectors.

* Around 90% of respondents now own an MP3 player. They contain an average of 1770 tracks – half of which have not been paid for.

IMPORTANT TO NOTE – the MP3 player is only about 8 years old.

* 58% have copied music from a friend’s hard drive to their own, and 95% copy music in some way.

* 63% download music using P2P file-sharing networks.

* 42% have allowed P2P users to upload music from their computer. Much of this behaviour is viewed as altruistic.

* 80% of current P2P users would be interested in a legal file-sharing
service – and they would pay for it too.

* The CD is not dead. Even if a legal file-sharing service existed, over 60% say they would continue to buy CDs.

* Money spent on live music exceeds that spent on recorded music

This is all very good news for the music industry.

British Rights Survey

These days there are hundreds of options for acquiring music from free legal download and streaming services. Many of these sites offer streaming and/or downloading options. Some are up there for the love of music, some are driven by advertising and some are building business models behind the scenes. They are alternatives to paid services like iTunes, Rhapsody and Napster.

There are an ever expanding number of these services that offer great music from both established and emerging artists. Free Geekery has compiled an interesting list of 100 of these sources for your music enjoyment. Happy listening.

I heard this song again and had to post about it one more time.

This is a blast from the past (2006) written and performed by MC Lars and inspired by the “Future of Music” book. It is interesting that the point of view represented in the song seems almost like a mainstream idea at this point. Not to say that the financial side of things is working yet, but a lot has happened in the past two years. The future is becoming clearer.

Download this Song – MC Lars

It’s 2006, the consumer’s still pissed
Won’t take it anymore so I’m writing a list
Don’t try to resist this paradigm shift
The music revolution cannot be dismissed
$18.98 Iggy Pop CD?
What if I can get it from my sister for free?
It’s all about marketing Clive Davis, see?
If fans buy the shirt then they get the mp3
Music was a product now it is a service
Major record labels why are you trying to hurt us?
Epic’s up in my face like, “Don’t steal our songs Lars,”
While Sony sells the burners that are burning CD-R’s
So Warner, EMI, hear me clearly
Universal Music, update your circuitry
They sue little kids downloading hit songs
They think that makes sense
When they know that it’s wrong!
CHORUS
Hey Mr. Record Man
The joke’s on you
Running your label
Like it was 1992
Hey Mr. Record Man,
Your system can’t compete
It’s the New Artist Model
File transfer complete
Download this song!
Download this song!
Download this song!
I know I’m rhyming fast, but the message is clear
You don’t need a million dollars to launch a career
If your style is unique and you practice what you preach
Minor Threat and Jello both have things to teach!
I’ve got G5 production, concept videos
Touring with a laptop, rocking packed shows
The old-school major deal? It makes no sense
Indentured servitude, the costs are too immense!
Their finger’s in the dam but the crack keeps on growing
Can’t sell bottled water when it’s freely flowing
Record sales slipping, down 8 percent
Increased download sales, you can’t prevent
Satellite radio and video games
Changed the terrain, it will never be same
Did you know in ten years labels won’t exist?
Goodbye DVD’s, and compact disks!
REPEAT CHORUS
You know, we just wanted a level playing field.
You’ve overcharged us for music for years, and now we’re
Just trying to find a fair balance. I hate to say it, but…
Welcome to the future.
REPEAT CHORUS

Here is what I wrote in ‘06.

Check out Lars site.

Do you think Edgar Allan Poe could have made money if he sold The Raven separately from 30 other poems?

This is a question posed in the U.K. Register article examining the “value gap”, or the amount that sound recording revenue has fallen since 2004. The report suggests that Apple (and others) should take the blame for the woes of the music industry (British) for unbundling the song from the album format.

“The Value Recognition Strategy working group was created last summer – largely at the impetus of the indie labels and collection societies, but backed by all sectors of the industry – to examine alternative revenue opportunities for digital music. The growth of MP3 has seen large hardware manufacturers such as Apple and media companies such as News Corp’s MySpace prosper from music, but returning little or nothing to composers, songwriters, and sound recordings owners.

It’s what economist Will Page, of the MCPS-PRS Alliance, calls a “broken supply chain”. Revenues from telecoms companies and service providers dwarf the revenues from the beleaguered music business.

The conclusion that unbundling is the chief factor is richly ironic. When Apple launched the iTunes Music Store in 2003, it did so with the backing of all four major labels. The labels had failed to see digital music as an opportunity, and launched only small scale and piecemeal commercial offerings. At iTunes, consumers chose one or two songs from a performer’s repetoire for 99 cents a song, rather than pay $9.99 for the CD.”

Since that time Apple has reaped tens of billions in sales of iPods, while the labels have lost tens of billion in sales of CDs. It has almost been a complete one-to-one swap of revenue from the label’s, writer’s and artist’s pockets – into Apple’s. See an analysis I did of this a while back here.

Read the whole Register article here.