Some of you may have been able to take advantage of the music settlement lawsuit. It was determined that the major record labels were in collusion to price fix retail music CDs. So, on the strength of many fileswapping services, Napster, Gnutella, Morpheus, Kazaa, etc, and many annoyed consumers, a class action lawsuit was filed. If you're intersted, read the article.
Got my check for $13.86, I look at it as a moral victory. I will continue to grab and share Ogg and MP3 files. The RIAA should be more interested in reducing the cost of shrink wrapped music, lest they will continue to hear the bellyaching of major music labels.
A typical 80min CDR cost roughly 0.25, but if you buy shrink wrapped music CDs, you'll pay anywhere from 13-19 bucks. Talk about high margins. This is explains why Internet fileswapping services are so popular. The reality is that the music artist makes little if any money from the CDs that are sold in stores. Most artist make cash by doing tours. The record labels stand to profit the most by selling music CDs at a premium.
Hell, I only purchase underground mixed-tapes and CDs. In general, I have found that I may only like two or three cuts on an album anyway. Most record stores that I frequent, will allow you to listen to selections before you purchase.
Why did it take the music industry so long to figure out how make loot from the Internet music model ?
Mad props to founders of Napster for giving back the power to the consumers and developing a Killer App.
The industry still hasn't figured out how to make loot on the Internet model. The stated price of $1.00 per song isn't going to be a money maker unless you get the equivalent of a gold (500,000 units) or platinum (1 million units) single.
As an independent artist, I'm not a fan of the major labels, but at the same time, because I have my own record out, I can tell you it isn't as simple as looking at the price of a .25 cd-r and the retail price of a cd. Production costs (the actual recording, the artwork, etc.) and marketing costs (videos, advertising, paying the marketing professionals) are where the real money comes in.
You can use the argument that artists aren't making that much money when you buy a major label cd, and you would be right. However, if you download from Kazaa or their ilk, the artist isn't making anything.
Real wages have gone down in the recording industry for artists and labels alike for file sharing. This affects everyone from the big-money record execs to the engineer who recorded the album and the guy who actually does the shrink-wrapping.
Also because of the economic downturn, live revenue is down, especially for lower and mid-level artists who don't have the marketing dollars behind their tours like the platinum artists do. (When is the last time you came to one of my shows, AG?) Folks have many more options for their entertainment dollars now than they did even 10 years ago, so they aren't going to clubs and concerts as much.
I'm not one who will tell you not to download, but at the same time, you should understand the economic implications. The industry's business model has to change either way, but right now, it's getting kinda hectic. The next time you decide to download and burn, think about the artist. Most are sharecroppers who create a product without owning the fruits. Also think about the people who made the sound recording and the physical product. These are folks who are just trying to make a living. I have no love for the multi-national corporations, but those same corporations who are exploiting consumers are also exploiting their employees.
One answer: support independent music. Go see a band at the local club. There is a lot of great music in the underground that isn't being experienced on a mass level. Dig a little deeper, and you'll find a higher quality product that is worth that premium price.
Nadir
www.distortedsoul.com
"It's not enough to write a revolutionary song.
You must fashion the revolution with the people,
and if you fashion it with the people, the songs
will come by themselves and of themselves."
- Sekou Toure, 1st President of the Republic of
Guinea , Address to the 2nd Congress of Black
Writers and Artists, Rome, 1959
Nadir: I do appreciate and respect your comments. Obviously, there are many problems with the business model associated with the music industry. Hopefully, the forthcoming changes will create a win-win situation for both the consumer and the artist. I still don't have much sympathy for the huge conglomerate record labels.