Not A Music Industry Crisis -- It's A CD Crisis
from the indeed dept
I got to spend some time with the organizers of Midem when I went there last week, and beyond doing an incredible job putting together a great event they actually have a really comprehensive view of what's happening to the market. Unlike some of those in the industry they serve, the Midem organizers not only have a really clear understanding of the market changes, but they seem to be working quite hard to adjust to the times -- and they've done it before. Midem actually started (and still functions) as a "marketplace" for buying and selling music rights around the world. So, for example, deals would be made where someone would buy the European rights for a hot new American artist or whatever. Somewhere along the way, the organizers realized that with so many folks from the industry all there together, it made sense to go beyond just a marketplace, and they added a conference on top of it. Then, ten or eleven years ago (well before many other folks) they realized that the internet and digital technologies represented a profound shift in the marketplace -- and they added MidemNet on to the beginning of the event, having two days that are just focused on digital issues.There was one thing that struck me, though, during the event -- which is that separating out the digital part as a stepchild doesn't necessarily make much sense anymore. While they do include some digital/online things during the rest of the event, having the digital part as a "separate" event feels like it's a minor side issue, rather than a core trend changing the market. I had thought of bringing that up to the organizers... but, not surprisingly, it sounds like they're already ahead of me on that. Hal Bringman has a writeup on Midem for Digital Media Wire, where he notes that the director of the event, Dominique Leguern, says that they're considering merging MidemNet into the wider Midem as the industry is evolving into a fully digital domain. Also, Leguern made a key point that plenty of people have been making for a while:
"It's not a music industry crisis, it's a CD crisis."Indeed. It's great that Midem is in such good hands. As an "insider" music industry conference, it wouldn't surprise anyone if the organizers acted like some of the old school execs in the industry -- focusing on the past and creating an echo-chamber of people trying to recapture a lost marketplace. Instead, they've been forward looking for many years, and working to change along with the market -- and even trying to help pull some of those execs along with them.
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Filed Under: business models, midem, music
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I have to disagree. The CD crisis is merely a symptom of the much larger music industry crisis.
As I've stated many times before in these forums, the number one obstacle any musician faces is obscurity. The music industry used to be the sole solution to get. In order to get played on the radio and get your LP/CD in the most stores, you had to sign to a major label.
Those days are basically gone. Nowadays, as you guys point out nearly ever day, musicians can overcome obscurity by using the internet. These same musicians can create new business models that do not involve the traditional music industry. The current music industry is dead.
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i think that you might be confusing the music industry, the business activities that are associated with music, and the institution that is known as The Music Industry(TM). they are two very distinct entities.
it's bad when one thing becomes two.
the general industry is fine, just look at the sales of all things music related. the outlook for music never looked better: new artists are everywhere and there are more channels for promotion and distribution than ever.
the business of selling CDs is doomed, and the institution that was built around those sales is doomed along with those declining sales. people just aren't buying them in the quantities that they used to. the CD is no longer the source of revenue it once was.
as more and more people flee the failing institution (consumers, artists, promoters, etc.) and return to the general industry associated with music, the general industry will eclipse the institution, and we will once again view these distinct entities as one.
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And thanks for proving my point exactly. I could not have put it better myself. It's a simple fact that the labels are no longer needed for either promotion or distribution. Thus, they are dead. If you can think if any other function the current music industry serves I'd love to hear about it.
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Similarly, part of the problem right now is that a Lable is rather meaningless. No one knows what Lable and given artist is signed to, and it wouldn't matter even if they did. A Lable could change this. If a Lable focussed themselves on signing similar artists -- based on genre, attitude, message, whatever -- then knowing that Band X and Band Y are both on The Lable becomes useful, informing you that if you like Band X you might want to check out Band Y.
There's also still a little bit that Lables can do with distribution -- running servers and seeding torrents or what have you -- but it's slim pickings, really. Most of these are things that bands CAN do for themselves, but just like I CAN rewire the lighting in my house, paying someone else to do it for me means I can put my attention elsewhere.
(Of course, The Lables are used to being on top of the pile, and that's definitely not where most electricians stand in the economic food chain...)
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*for certain values of no one -- Trent Reznor apparently made money off selling CDs recently. Hell, he sold vinyl.
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On my artist registration page, I have a small survey that helps me get to know the artist a bit so I know how to promote them. One of the questions is "Do you want to go all digital". 100% all say NO! They all want the CD because of the artwork and the overall experience that the CD brings.
Whenever I have the opportunity to talk to music fans, I'll ask them if they prefer buying music in mp3 format or CD. Most (not all) say they'd rather just download the mp3 version. This is mainly because they only want a song or two, versus the whole record.
There seems to be a disconnect between the artist and the fan, but I agree with the artist. The CD provides a much better experience than the mp3 ever could (I guess I'm showing my age here). This generation has become acustomed to the "instant gratification" and less on the experience.
I think the key is to finding a way to bridge the gap and create a "happy medium" where the "experience" can be had "instantly".
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Our poster-boy, Trent Reznor, gave a midway solution when he released Year Zero, providing a .PDF booklet of the album art and notes with the download. Does it provide the tactile interactivity of a physical CD/case with accompanying art? No, but I did spend time looking at the art, reading the lyrics/notes, etc., and I could have printed everyting out and made a case to go with my burned CD. Interestingly, he even provided a reason to get the physical album, having it printed with a color change ink that revealed a code when it was warmed from playing.
Yep, all that written and no real stance taken.
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You can agree with whomever you want. But as the fans are the ones doing the purchasing, they'll be the ones making the decision.
And if you want to serve the fans/customers as best you can, it might be a smart thing to give them what they want rather to impose what you want.
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Of course many of them are also exploring digital, aren't so lawsuit happy and offer more guidance/service to their bands, making them an asset to the artists.
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For my part, CDs can offer a better experience, but often times don't. One artist (can't remember who) said he didn't want to sell mp3s because he recorded albums not songs and you lost something if you chopped it into pieces. I think that's a valid argument, but it needs to be clear to fans that listening to the album is an important part of your art. That's not what happens on the radio, after all. Also, you really do have to provide what the customer wants -- if you don't, you'll just make your fans upset.
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I also want to be clear that I think digital is great - I myself rarely use CD's anymore, but then again it;s really easy and quick for an artist to email me an mp3.
I don't think mp3's should go away, but I also think we should stop blaming the CD for the problems of the record industry. Greed and being out of touch with reality is the problem, not the mechanism of how the music is distributed.
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Maybe, maybe not. It all depends on what you actually do with the CD after you've bought it. If you take it out of the case, place into a decent spec stereo system and read the liner notes while listening, then yes it does. If all you do is rip it to MP3 so you can listen to it on your iPod, then no.
There are 2 reasons why the CD is failing - convenience and choice. Convenience, because why buy a CD if all you're going to do is rip it to MP3 then leave it in a drawer? Why not but the MP3 to begin with? Choice because instead of buying a CD with 3 songs you really like and 9 you don't, you can buy 12 songs you do like. The latter is the biggest reason why the CD is dying - most albums are only a bunch of songs rather than a coherent collection, usually with a lot of mediocre filler.
There are various different ways of mixing these concepts - from eMusic who claim that they sell more full albums than most other retailers to Beatport, who sell pricey high quality singles aimed at club DJs. The trick is to find out what works for the highest majority of the band's fanbase. Insisting on selling only via CD isn't going to help if all anyone does is rip the CD to MP3, and singles usually don't make anyone a high level of profit.
So, yes, I agree that the "happy medium" is a good aim, but it goes further than that. What works for the 14 year-old boy band fan isn't going to work for the 22 year-old clubber or the mid-40s eclectic guy, nor is what works in Nebraska going to work in central Europe. But, all these people have access to the same content, legally or otherwise. The biggest thing the music industry needs to learn is that in the digital age it cannot dictate how music is to be consumed. Once it works that out, it can started rebuilding its failing models.
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On my artist registration page, I have a small survey that helps me get to know the artist a bit so I know how to promote them. One of the questions is "Do you want to go all digital". 100% all say NO! They all want the CD because of the artwork and the overall experience that the CD brings.
Whenever I have the opportunity to talk to music fans, I'll ask them if they prefer buying music in mp3 format or CD. Most (not all) say they'd rather just download the mp3 version. This is mainly because they only want a song or two, versus the whole record.
There seems to be a disconnect between the artist and the fan, but I agree with the artist. The CD provides a much better experience than the mp3 ever could (I guess I'm showing my age here). This generation has become acustomed to the "instant gratification" and less on the experience.
I think the key is to finding a way to bridge the gap and create a "happy medium" where the "experience" can be had "instantly"."
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I would LOVE for MP3's that I buy at Amazon to come with:
1. Multiple high-quality pictures of the band (maybe a different one on each song of the album), instead of just the album cover itself
2. Full lyrics for each song
3. Comments including all the notes that are typically in the album cover (the thanks and whatnot).
That would be great. Compared to the CD, I find the experience missing a bit as a fan as well. But not to the tune of 9 more dollars.
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Interestingly, a few years ago they started hassling people going to Cannes but not buying a badge. A lot of industry people rent a suite in a hotel or just have their meetings in lobbies or restaurants so they were sending people out to look for "pirates." Why pay €650 for a badge to go to an overpriced city and sit in a depressing tomb of a building when you can hang out at the cafes and do your business there, no?
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I don't find the artwork and cd to be a draw, but for some albums (especially acoustic guitar and piano) I can hear the difference between an mp3 and a flac that I've ripped myself (even if a "richer" sound is very hard to explain). So, until we start seeing lossless downloads as the standard, I won't be abandoning cds entirely.
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Midem videos
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Why do cd's still exist?
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It is an industry crisis, plain and simple
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It is an industry crisis, plain and simple
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Re: It is an industry crisis, plain and simple
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Artwork?
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Artwork?
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MP3
This was great for our fans that only wanted 1 or 2 songs or for people that had never heard us. We would place it on an "enter page" for our website.
We would do this with live recordings, studio recordings, demos, etc. It gave us a real connect with our fans AND boosted our cd sales.
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MP3 does not have to mean 'poor quality' just download a high bit rate.
As for the comment above about 'gapless' if the artist is making what was call at one time a 'concept album' (i.e. Dark Side of the Moon) they should offer to sell it as indavidule tracks and as one large file so you can still enjoy it as the artist dreamed of.
(still looking for Dark Side of the Moon as one long track :))
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