« Good Job: Multiplatform Producer | Main | If I Were President »
Wednesday, February 15, 2006
Quiet Desperation
I am finally convinced that the RIAA is simply insane and/or pure evil...
From an article on MTV.com about the emerging legal controversy of selling used-iPods with preloaded content:
"When you buy a CD, you have it for personal use on your computer or iPod, but you can't give it away and keep it for yourself," said RIAA president Cary Sherman. "That's having your cake and eating it too. If everyone did that, [record labels] would only sell one CD."
So the game is selling CDs rather than promoting artists?
Forbes had an article recently about the Rolling Stones and music's other top earners for 2005:
In the Stones' case, as with many of the acts that made this year's top ten, the fact that the group doesn't sell much music is irrelevant--their big money came almost entirely from touring. That's because even one of the year's top albums--say, the Black Eyed Peas' Monkey Business, which sold 3 million copies in the U.S.--generates an average of $13 per CD sold. But the average ticket price for a top act can easily dwarf $100 a pop--an evening with the Eagles cost an average of $108 a ticket last year--and this lets the biggest touring acts gross millions per night.
That's also why there's not much crossover between the 2005 top earners and the nominees for the 48th annual Grammy Awards. Though Mariah Carey, who is nominated for Song of the Year and Album of the Year, sold some 5 million CDs last year, she didn't hit the road, limiting her potential revenue. But Green Day, which is up for a Record of the Year nomination, sold both CDs and concert tickets, earning the group a fourth-place slot on the top earner list.
I guess like any other product in business, true success comes when you have a decent product as well as a solid distribution system based on the product's reputation. Entities like RIAA are far too shortsighted to see the efficacy of sharing music as a means to eventually selling music.
09:00 AM in Web/Tech | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341df40053ef00d83474742d53ef
Listed below are links to weblogs that reference Quiet Desperation:
Comments
As much as I agree with your sentiment that the RIAA ia largely evil, the fact remains that if you understand and respect copyright issues, it is indeed illegal and wrong to sell a used iPod filled with music while keeping copies of the original CDs or even the digital files. And it's critical to understand that a publisher, whether of music, books or otherwise, has as a primary mission the goal of selling units. Artist promotion is simply another way to increase CD sales, not the other way around, and it's always been true that musicians make a much bigger chunk of income from touring and merchandise sales. Authors of computer books make more money doing consulting or speaking than they do from book royalties. These are the true dynamics of publishing, and the fact is that like a casino, the house always wins. The real problem with the RIAA is that, like much of the corporate world, their members became addicted to insanely unbalanced profit margins, and started screaming poverty once those profits took on more of a realistic level. When you make 1000% profit, and then have to adjust to _only_ making 500% margins, you claim that your business is down by 50%. The music publishing world is changing, and the Internet is allowing musicians to bypass traditional publishing and distribution channels, providing product directly to their audience and keeping the bulk of the income. Expect to see more of this in the future - my fave band Radiohead has let their label relationship lapse, and are likely to use the net as a primary distribution method for their next album. They'll be able to make as much, if not more income, even if the unit numbers are smaller than what they would have moved through the "normal" channels.
Posted by: David Biedny | Feb 16, 2006 10:49:09 AM






