Music industry's nightmare just shut down across 14 countries.

Discussion in 'Economics' started by wilburbear, Sep 7, 2010.

  1. gaj

    gaj

     
    #31     Sep 7, 2010
  2. Lol... wut eh dumb moov bi ze audorities... Looqs liek moere frii bubleeceety fer Ze Pirate Bay...
     
    #32     Sep 7, 2010
  3. Pekelo

    Pekelo

    But it is awfully hard to make a HIT album. :)
     
    #33     Sep 7, 2010
  4. What about the companies that promote them? What about the people that put in 1 or 2 million dollars of their own money to market these artists put them in the studio for months at a time(studio time is not free) and hire all sorts of sound techs and that. Should those people be screwed because some teenager wants to upload those songs to the net and give them away for free?

    Sometimes these people market artists and spend a million dollars or more of their own money and the music doesnt become a hit. So when they find an artist that does write a few hits, they need to recoup losses from the other artists that never got famous. Is it fair to steal from them?
     
    #34     Sep 7, 2010
  5. TPB is back.

    Sharing via computers becomes easier and faster ever year, regardless of all the headlines. I'm personally quite amazed the USA isn't fighting it harder as entertainment is a big part of the US economy.
     
    #35     Sep 7, 2010
  6. jem

    jem

    correct....

    and awfully expensive to record, package, distribute and promote 8 -10 out of 10 flops.

    ---

    I am not sure about the current economics... but 15 years ago, I think 1 out of 10 albums would make money for companies.
     
    #36     Sep 7, 2010
  7. jem

    jem

    In my experience, any company with a track record usually had a standard contract which provided artists with 7-10 % mechanical rate. Plus the song writers got publishing rights... It been about a decade but I think the songwriters got 5 to 6 cents a song for up to 10 songs an album.

    So an artist might get 1 to a buck fifty an album after about 100,000 to 200,000 albums.
     
    #37     Sep 7, 2010
  8. Pekelo

    Pekelo

    Not anymore.

    Record*: You can have a decent recording software for a few 100s bucks. Hell, I made my 3 CDs with stolen software... :)

    Package: Net distribution no package or art work necessery. They can sell their own T-shirts online or via Amazon...

    Distribute: Downloads for a fee, only server costs. But An artist can burn his/her own CD for nothing and sell it at the end of shows for $10.

    Hell, I have been to shows where at the end of the show you could buy the show what you have just watched on CD...

    Promotion: Youtube, free.....or the cost of running a website/server....

    *Even famous artists go completely digital and record at home or in a small studio.

    How did Dylan say? Times are a changing???

    Because it is easy to make albums that sell 100+K :)

    Anyhow, true story:

    Former obscure guitarplayer Andy McKee was complaining online that people made his album aviable in torrents. Then he suddenly got famous on Youtube, and now he is touring all over the world, due to people KNOWING him. Without Youtube this wouldn't have happened.

    I saw him 6 weeks ago, so he got my $20 bucks. I don't even have any of his albums...
     
    #38     Sep 7, 2010
  9. I own my own Record Lable, now digital label. I myself understand that "Slippage" in the industry however, I do not agree with "Illegal" downloading.

    Yet, revenue does not stream in from "digital Pay" models. It is a suppliment to the overall stream of Income for the label.

    My label, is known world wide, is carryed on over 50 paysites, from Itunes to Beatport, djdownload, msn, etc. My release are played on Sirius Sat. radio as well as countless other Radio Stations world wide. I hardly see revenue from "Play".

    The main source of Revenue is from Movie Scores, Tv/Commericals, and me playing live on tour.

    So, as part of my business model...I give away the music. I have promo list, of fans and people, who get the music when I release it for Sale. This is more of a marketing ploy. I do not expect big profits from basic downloads.


    The Model of the past is no longer, as in the current Stock Market and Economy. Things are changing fast and old sources of revenue are going away and being replaced by more efficent sources.

    The major Labels, whom I do not feel sorry for, waited almost 5 to 10 years before recently embracing the MP3. Their empires are falling and they are loosing control over their artist.

    In fact, GAGA, RADIOHEAD, and countless others are taking their own destiney...and forgoing Major Labels. The day's of the label paying artist little and keeping most of the profit, after expences were payed back...is over.

    The music industry is about finished. Now, its back to "tallent" and perfermance going forward. Sell out Clubs and Venues, make big dollars. Make a big track, you have a million downloads, good deal. However, not every song will pull in millions.

    The evolution is now in the hands of Music Lovers.

    No sympthy from me to the Majors but I disagree with Illegal Downloads. .99 cents for most songs...and 7 bucks for an EP. Far down from 25-40 bucks a cd/ep and you could never buy singles, unless it was a dance mix for like 5 bucks.
     
    #39     Sep 7, 2010
  10. So an artist might get 1 to a buck fifty an album after about 100,000 to 200,000 albums.

    _________________________________________________________

    Close but the margin is even tighter in some cases.
     
    #40     Sep 7, 2010