on Sep 19th, 2008What’s the Point of Major Record Companies?
People have been asking me lately why have I been selling eBooks on my website and also why have I partnered up with iTunes and are now linked to the iTunes store. Some have even said I have sold out and I am no longer independent. This article is to address these points. Firstly, the idea of selling out is not the same as expanding my business. When it comes to being an artist it seems that the majority of acts/ bands are still being fooled by an old model of what music and in particular what selling music is all about. As the mercury award goes into another year we find story after story about record sales falling.
A case in point is Estelle and her hit single American boy, despite the track being a hit on both sides of the Atlantic the album has not been selling so, as all record companies do these days, they panicked and have pulled the single from the US iTunes in the hope that people will turn their attention to the album if they are unable to download the single. Kid Rocks Album was not sold on iTunes and he sold a very respectable 1.7 million. So, I guess the companies are thinking ‘let’s follow the same path and make it impossible to get the music on the worlds biggest download site’. The fact that there is a policy iTunes have where you can not just sell full album which in a sense encourages people to just purchase the individual songs they like. As an artist I look at the album as one piece of work and would love it to be bought as a whole, however the musical landscape has changed and I believe if you don’t make what your fans want available to them then you are cutting your own throat.
In my opinion it’s about time the music industry died, or should I say old music industry because that is exactly what it is, the old music industry. In fact is it dead now? It seems that the lid is closing on the coffin of the industry. Its last dying breaths are being sustained by sales of easy listening, middle of the road music to house wives through supermarkets like the Asda and Tesco chains and in so doing making it easy to pick your copy of James blunt or James Morrison as they buy their weekly food shop and the latest trend of new artist that sound just like dead idols.
This is why for me it is essential to change with the times and try new ways of getting the music out there and if the means making partner ship with companies like iTunes, then why not? Unlike record companies the new digital arena is not going to sign you into a contract that robs you of your rights as an artist.
In a brave and visionary move prince recently gave away an entire album free as a supplement in a Sunday newspaper bypassing the usual distribution channels and also did a 21 night stint in London retaining the entire door takings. This is a very different approach to the industry which is, in a word genius. Prince is an example of an artist who is thinking outside of the box, when it comes to getting his music out to the public and he is a lesson to all musicians. Granted, he already has a worldwide fan base and has had major label success but the question should be asked: If prince was starting out on his career now would he feel the need to sign to a record contract?
Don’t get me wrong there are artists who have made millions out of the traditional music record deal. However, I have only met a couple of them and are they the norm? On the other hand I am in contact with countless people who currently have deals and most seem to be in the same position as me with a little less control over their output. Yes, the major companies can give you a wider exposure if they are 100% behind you and if you’re making them lots of cash then everyone is happy. But, what is it that records companies actually do? Basically they run two types of business. Firstly, they are similar to a bank or depending on your point of view a loan shark. They loan you money up front in return for the rights to your music so you have the ability to record your album. The artist then has to pay the loan back with massive interest. The second business that record companies are in is the business of distribution, shipping the music in boxes around the globe through powerful distribution channels. Both these areas are now losing money because the business models are outdated. Technology has given people the ability to record their album at reduced cost and the internet has made it possible to distribute music directly to the end user.
When Vinyl was king the companies had everything locked down, they owned it all and even when CDs took over the market the record companies still controlled the game. By having many many retailers in a fragmented market the labels were able to manipulate the market and control the value chain. Those days are gone; that’s why so many retailers and record companies were angered by what prince did when he distributed his album for free via a newspaper.
The internet is less than 5000 days old and in that time look at what has happened globally. Look at what has happened in all areas of media; music in particular has become almost valueless from the viewpoint of the record companies. Richard Branson, who had been in the music business for some 30 years, has recently off loaded his UK virgin stores and did the same in the US last year. For an entrepreneur to get out of high street music at this time should tell us all that there is no life left in high street music shops, well not for music at least.
This is exactly the reason why I am expanding to make eBooks available and linking with iTunes both of which if I wish to terminate at any time I can. In the same way a label could drop any artist at any time. All this because the power is now in the hands of the artist and will remain there as long as we understand that the playing field has changed or in the words of Dorothy for the wizard of oz “I don’t think were in Kansas anymore”.
About the Author
ELAVI is the popular musician and writer originating from Old Trafford, a small borough of Manchester. Best known, for his seminal ‘album Soul Science’ recorded in 2007.
http://www.elavi.com
