This is a blog post I posted on my myspace-blog som years ago. Thought I´d move it here instead of letting it rot there… Maybe I´ll even make a follow-up?
Tirsdag, november 27, 2007
INDIE LABELS / FILESHARING
The crisis within the music record business is becoming extremely acute. The whole file share business has it’s stranglehold on record companies that are already cut down to size. Most all smaller and up and coming artists and smaller labels are on board a sinking ship they seem powerless to save.Why try and sell your music on the internet when someone else open huge marketplaces (offering your catalogue as well) online where you can get EVERYTHING for FREE? Cachelogic.com says torrent-traffic alone amounts to around 35 % of ALL internet traffic on a worldwide basis, that says a bit on how much artistic content that is consumed without any artists, bands, labels, movie-companies, software companies etc gets compensation.
The file share sites make money on advertising. The song writer, producers and record labels who put a lot of work into and paid for making the recording, distribution, marketing, promotion etc don’t get a single cent. Is that fair?
Few seem to take into consideration that a lot of work, time and economical resources is put into a song or an album.
Say it took a song writer 500 work hours to make an album and 50000$ in expenses to record and mix it, pay musicians, designers, press records, pay for promotion and marketing etc (And still 50000$ is nothing if you want to have an international career of some sort). The simple fact is that his album can, in theory, be bought by 1 person and then be put on countless file share sites and be downloaded for free by millions of people. One thing is that he put a lot of work and time into making that album, another thing is that it cost a lot – is it fair that he is the only one who suffer as a direct effect of that he made music that millions love? He will not get any mechanical rights compensation for that my music is distributed via fileshare sites, nor any royalties, neither a share of the advertising income at the file share sites.
“Adjust to reality man, find new ways to earn money on your music”, some people say. But how? Who wants to buy a t-shirt with an solo artists name written on it?
Sell his music to commercials and film? Well, one thing is to get access to that market – another thing is what if he does not want his music in shampoo commercials and high-school films?
The only hope to make money then would be to tour all year to earn money, but then again he would have less time to compose music. Since so many bands and artists are losing money on record sales the live market has grown even more important than before. Problem is you need to be “big enough” to pull a couple of hundred people at the least, depending on your touring costs, to break even. And to pull people you need to be marketed, too be made visible. And marketing costs money. And how do you make money to pay the marketing when you can’t get paid for people buying your music?
I’ve focused on finding deals and partners for Norwegian bands and artists in a wide variety of label segments: metal, jazz, experimental, electronic, hardcore etc.
3 years ago, for example, I got one of the bands I worked with – punk / hardcore band JR Ewing - license releases in UK, Sweden, Central Europe and USA. All on small labels, all hopefully-break-even projects, but great fun for the band and great for me in terms of getting more knowledge and a bigger network.
Nowadays it’s very hard to find someone who dare sign Norwegian artists. One thing is that few indie record labels dare to sign a Norwegian act that is stuck in a corner of Europe, another thing is that it’s difficult to even find a Norwegian label that is willing to sign new artists (Unless you appeal to people over 40 who still buy cds).
Some people within the file share business tend to create an impression that they contribute to kill the “evil, capitalistic major label industry”. It’s fascinating to see how much hate there is for businesses that in fact just release something as harmless as popular music. I might personally think it’s a tragedy that The Ketchup Song was the biggest hit ever some years ago, but hey a lot of people liked it – and nobody forced them to like it either. However, yes, the major labels do suffer under file share, and a lot of people have lost their jobs. But: their back catalogues and infrastructure are so solid, although they do regroup and adjust themselves at this very moment (Like ANY other business need to from time to time), maybe even turn into one BIG company in the end, but it’s NO WAY they will disappear.
So, in other words, those who start to feel it now, where it will really start to hurt the coming years, is among artist and indie labels.
One of the most DIY labels on earth – Gold Standard Laboratories - shut down it’s business a couple of weeks ago. Part-owner and main man Sonny Kay ran the label either from a dirty office in LA or from internet cafes and phone boots across the world while being on tour with his own screamo punk bands. Addressing in an email what forced him to shut down he said: “Filesharing was never much of a problem until everyone got the ipod, then the sales disappeared overnight.” And this comes from a label which is, I mean was, looked upon as the Warp of punk rock – releasing extreme punk and experimental music - NOT a label that produce radio hits.
Concerned by the current situation I wrote some indie label contacts across the world to ask them how they felt about the present situation.
I’ll manage, do not worry about me dear reader.
Why I’m writing this is since I worry that if the indie labels die then there will be no one to nurture all the great, weird, beautiful music out there.
Support the artist – BUY their music.
Best regards Vegard
John Szuch - Deep Elm Records – Owner
Profile: THE original emo rock label
Artists: Appleseed Cast, Last Days Of April, Planes Mistaken For Stars, Pop Unknown +++
http://www.deepelm.com/
1. In 5 years – how do you think your label structure will be?
We expect to be a digital-only label if CD sales continue to slide. We are already limiting the number of CDs we press for new releases…they are all limited to 1,000 CDs. Digital sales are building, but fans need to understand that illegal downloading is wrong…it’s a crime.
2. Is it realistic to think that in the future music will, or can, be given away for free?
I have a lot of respect for RadioHead as musicians and songwriters. OK Computer is the best album ever recorded…well, a close second to our new release “Aurora” by Desoto Jones. But what they started really makes me angry…devaluing music. And many other big artists are following suit. This will eventually trickle down to the indies because fans will think they should get music for free. I think what they did has given validity to illegal downloading. Ironically, in the first week there were 200,000 “free” downloads of their new album, but an estimated 500,000 illegal downloads. Fans did not even want to pay £0.01 for it because of this insane mindset that music should be free. I think it’s a definite possibility that major labels will give music away for free…only to their eventual detriment.
3. IF music were to be given away for free – how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
It’s easy for multi-millionaires like RadioHead to give away their music, but not for true indie artists that are touring in vans, sleeping on stages and eating pizza every night. And it makes it impossible for true indie labels like Deep Elm to survive, develop and support their artists. Fans may be more apt to buy tickets for a tour and tee shirts when they arrive since they got the music for free, but remember that labels do not share in any tour revenue. So how are we supposed to generate money to keep our doors open? If free music becomes the trend, we will be forced to stop releasing new records and supporting independent artists….like so many other indies have already done.
4. Do file share affect your label?
Very much so. Six months after Napster came out, we saw our sales drop by 50%. I was shocked that people would steal music. Music is the cheapest form of permanent entertainment…yet it means the MOST to nearly everyone. A compact disc or legal download generally costs $9.99…and it’s permanent…you have it forever and can make duplicates for your personal use. $10 can literally change your life…I know it did for me. That’s the price of two beers, one movie or one lunch…1/8 the cost of a new video game. Why would anyone steal music?
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
I think fans needs to be educated about what they are doing and what the end results will be. When all the indie labels close down, it will be a sad day for the listening public. Fans will be stuck only with new records from major labels / major bands which are focused on sales and sales alone. Soon, all the cool new music will never see the light of day because there will be no one supporting them and giving them an opportunity to be heard. So you see, in the end illegal downloaders are cutting off their nose to spite their face.
6. Can changes be made in the way people consume music without governmental action towards file share sites?
It blows my mind that illegal sites are not shut down. If governmental authorities know these sites are being used 99% of the time to share and illegally download copyrighted music / movies / software / video games and NOT recipes from your grandma, they should be abolished. With nearly all aspects of life moving onto the web, we are gonna start seeing problems in many other areas as well. As compression technology increases, the problem with illegally downloading movies is gonna increase tenfold, which will likely lead to even worse problems in music. How will the major record labels survive when they can no longer be supported monetarily by their profitable sister film divisions that are currently supporting the music arms? It’s all a viscous cycle. If this continues, it’s the end of music as we know it.
7. Any other comments?
We are well aware that not everyone steals music. And to those people, we have respect. As for those of you that do, think a little bit about what you are doing and the implications. Think about that record that you love so dearly…the record that makes you feel better when you are down…the songs that make you smile and the songs that make you cry. Now imagine that they never existed. Shame on you.
Download Deep Elms Anti-Illegal Downloading banner here:
http://www.deepelm.com/illegal/
Julie Weir - A&R director - Visible Noise Records - UK
Profile: Hardrock / emo / metal
Artists: Lost prophets, Bullet For My Valentine, The Legacy ++
www.visiblenoise.com
1. In 5 years – how do you think your label structure will be?
It will be an all encompassing structure as it is the only way a label can currently make things work. We currently look after recording, publishing, booking, management, street team and are currently getting into Graphic Artists too…we have our own gallery in Berlin which we will be using as an exhibition AND performance space. Majors are doing deals cross copyright currently but I believe the well structured indies will be able to provide this quicker and more effectively - as everyone communicates.
2. Is it realistic to think that in the future music will, or can, be given away for free?
I would prefer to think this would be a NO…..for smaller artists, I think it will still have to be bought and have a value given to it as that is the beginning of a bands career. Giving away for free wouldn’t really work here. With people like Prince, the issue was the album as a promotion of the huge run of gigs he did (which he was still paid 1 million pounds for by a daily newspaper in order for them to covermount the album). This spurred on his concerts at the o2 arena to be sold out for an entire month, again generating live and merch revenue. The music end here is a stepping stone - similarly with Radiohead who used the promo of pay what you want for their new album in order to garner unprecedented publicity. They made money from this AND are now out to release worldwide as a physical product.
Bands having music out gets them press coverage, which in turn sells live tickets, which sells merch. The issue that will arise is how publishing payments are made and how PUBLISHERS also make money if everything is being given away so cheaply so it effects more than just the labels.
3. IF music were to be given away for free – how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
See question 1…..the industry will just get riskier though. New channels of diffusion such as videotones, ring back tones, animated screensavers etc will become the new “singles”.
4. Do file share affect your label?
Absolutely - it affects every label….the indies more so than the majors as they cant write off such things and swallow them up into wider budgets.
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
Incentives such as different artwork, additional tracks, opportunities for limited edition items…
6. Can changes be made in the way people consume music without governmental action towards file share sites?
They will have to be as it will be impossible to get rid of all file sharing sites - again, the way we consume music has changed so much over the last 30 years it will have to continue to evolve really… However, legal action and legislation must also be put in place to stop the major offenders, really.
Vique Martin - Revelation Records - USA
Profile: Hardcore label started mid 80s. One of the worlds leading hardcore labels of all times.
Artists: Gorilla Bisquits, Youth Of Today, Bold, Judge, Shelter, Quicksand etc
www.revelationrecords.com
1. In 5 years - how do you think your label structure will be?
For Revelation Records we have already really scaled things down. We have no A&R person OR publicist anymore. All publicity is being handled by outside companies and all A&R duties split up amongst the staff for the distribution side of things. It’s working out OK. The sales for the label just do not justify any full time staff. New releases sell, on average, between 3000-4000 copies [including vinyl and downloads]. This isn’t enough to sustain a label - but fortunately we have our extensive back catalog which still chuggs along. I think in 5 years it would hopefully be the same, but who can tell? Everyone is hoping that things will level out and stop dropping, but that’s just hope…
2. Is it realistic to think that in the future music will, or can, be given away for free?
No I don’t think it is. Very few bands would make enough from tour or from merchandise to cover the costs of recording their music. So I think things will splinter and big bands will possibly do that [like Radiohead just did] and even big indie bands too. But smaller bands will either not have the money to record records [labels won’t be able to fund it!] or will have to pay for recording themselves and hope that they make back the money eventually. This could lead to either some really talented people never getting the opportunity to record their music, or get it ‘out there’ so people can hear it. Or could help with the ridiculous glut of bands [a huge percentage of which have no talent] being culled and only really talented musicians / songwriters being given record contracts - more like the old days!
3. IF music were to be given away for free - how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
I don’t think they could! Bands themselves would be able to from merch and show money - if they are successful enough. But labels are usually shut out of that side of things. Some labels are changing their contracts with bands with the aim of getting a peice of this pie - getting 10% of merch and tour income - which can help offset the cost of recording.
4. Does file share affect your label?
Definitely. Sales are way down compared to years ago. But I don’t think it’s just file sharing - I think it’s also a combination of cd burning along with entire libraries of music being shared via ipods. I totally know people who go to each other’s houses and just plug their ipod into their friend’s itunes and download onto their pod everything that they want to hear!
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
I think that they might figure out that it’s a really bad idea if their favourite bands can’t afford to tour, can’t afford to make new records, and can’t afford to write more music [because they have to have shitty jobs to make ends meet rather than living off their band] that might have an impact. If a lot less records start to be released - it might make people think twice about it. And if people start getting fined and prosecuted for it - that might make them think twice too!
6. Can changes be made in the way people consume music without governmental action towards file share sites?
I don’t think so. And I personally think that the file sharing sites SHOULD be prosecuted and fines. More so than the people who do the downloading. If the sites weren’t there they couldn’t do it!
7. Any other comments?
Revelation Distribution is fortunately staying strong by still selling a fair amount of CDs, along with a lot of vinyl and t-shirts. But it’s getting tougher and tougher to sell less and less cds, and if this continues I think we’ll see a lot of labels going the way of GSL over the next 2-3 years. It’s a shame. But then again - there’s been a LOT of really shitty music put out over the last decade. A lot of resources used to manufacture them [trees and oil] and transport them. There’s a huge amounts of cds in landfills now. Back in the 90’s a band had to record multiple demos and tour a ton before they could get a record deal. These days there are SO many labels and everyone so concerned with missing out on the next BIG band, that they get snapped up before they’ve had time to mature. There’s a lot of releases that didn’t need to have come out in the last decade. Perhaps this will take us back to the days of bands struggling to get deals, growing and developing their song-writing skills and musician-ship, and less records coming out - but those records being much better!
Molly Neumann - Lookout Records - US
Profile: Punk and hardcore
Artists: Green Day, Alkaline Trio, The Donnas, ++
Molly also works as director for Emusic
www.lookoutrecords.com
1. In 5 years – how do you think your label structure will be?
Lookout has already scaled down considerably in the last 3 years. We have focused on keeping our catalog in print and selling as actively as possible via digital channels. Because I still love new bands a year and a half ago I began Simple Social Graces Discos (www.simplesocialgraces.com) to expose bands I love and wanted to document but it is more of a labour of love and not necessarily something I’m trying to do to compete commercially.
2. Is it realistic to think that in the future music will, or can, be given away for free?
Well is IS being given away and I hope that some mechanism will improve to encourage people to value the music they want and that a model will exist that will make it economically viable for them to purchase music. We are certainly at a crossroad between what the owners of the content feel music is worth and what many consumers consider it to be worth.
3. IF music were to be given away for free – how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
That’s exactly it. It’s not a viable model for investment unless there is a way for revenue to be generated in a different way. There are already so many bands competing and so many labels trying to stay afloat, it’s a difficult effort.
4. Do file share affect your label?
Yes and unfortunately I think they even affect the psyche of some of the artists who operate on a small scale. Some can’t imagine why anyone would pay for an MP3. I work with many bands from Spain where file sharing is extremely popular (similar to Norway.)
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
I believe the internet providers can be better partners to the content owners and help us limit the amount of file sharing that is happening. They know how much data is being passed through their system and what is likely to be illegally downloaded. There are many areas to investigate in this regard.
6. Can changes be made in the way people consume music without governmental action towards file share sites?
A larger conversation that is not just enforced by the government can happen with kids to help them understand that what they are doing is stealing. They know they can’t walk into a store and take what they want and they should feel the same way about music. The industry needs to understand that consumers are very sensitive to price and figure out ways to present music in a more economically viable way, and to help expose the consumers to the music they want.
Justin Pearson, 31G Records, USA
Profile: Electronic, experimental, punk
Artists: Blood Brothers, Black Dice, Moving Units, The Locust +++
Justin also plays in grind/noise band The Locust (Signed to Anti / Epitaph)
http://www.threeoneg.com/
1. In 5 years - how do you think your label structure will be?
Honestly I have no idea. 5 years ago, I had no idea. I suppose it might be that cds will become obsolete. There might be other ways to have more elaborate aspects added to digital formats with the advancements in technology. Also ways to avoid illegal downloading. But maybe all labels will have to die and / or rethink what they are and how they function. I know that we are trying to figure it all out. But as of now, I have no solid answer for you on this.
2. Is it realistic to think that in the future music will, or can, be given away for free?
There was a similar thing with cassette duplicating in the 80’s but that has been forgotten. Cassettes are obsolete. So are cds next? See, there has to be a way for bands, artists, and even labels to generate funds for what they do. So something will have to change. There is no way that as soon as one digital format is put on line, that its there for everyone, for free. It just can’t stay that way. Sure, I have another job, on top of me being a label owner and a musician, I don’t make much. But the Justin Timberlakes, the Rolling Stones, the Whoevers, they all need to make money and their bosses need to do the same. I’m sure they can lobby for something monumental. Or maybe collectively, the artists will change things.
3. IF music were to be given away for free - how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
I’m not sure. I ask this with every release. We pay for a recording, promotion, manufacturing and it’s out there for free before we sell a single copy. Not only are artists being threatened, but so are distributors, retailers, etc. With a lot of majors, its all about publishing rights. So selling material for commercials and films would essentially generate some money to help recoup. But for us, it’s a bit harder to see something like Orthrelm on a car commercial.
4. Do file share affect your label?
Yes, of course.
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
Well people in the bigger parts of Europe, say Germany, hated the jews and that changed. But seriously, it’s changed from when Napster first hit the scene. Things are changing and will change once things are figured out. It can’t stay this way forever.
6. Can changes be made in the way people consume music without governmental action towards file share sites?
If you mean how the government is not regulating illegal downloading I’m sure there can be methods to produce files that can’t be copied, or even uploaded. If someone cracks that, there will always be someone else to figure something else out. It’s just going to take time.
7. Any other comments?
We’re screwed.
Peter Quicke – Ninja Tune / Big Dada - UK
Profile: Electronic, jazz, hip hop
Artists: Cinematic Orchestra, Pop Levi, Spank Rock, Roots Manuva ++
www.ninjatune.net
1.In 5 years – how do you think your label structure will be?
I guess the trend will continue as now, to spread our efforts across as many different activities as make sense and can provide a contribution to our overheads. Our focus used to be to make money from selling records - we’d do lots of things but our living came from selling records. Now selling records is just one (important) part of the effort to survive promoting music and our artists. And it enables to create the other key businesses - digital sales and subscriptions, publishing, licensing (mainly synch licensing) - and the new areas we are developing: artist management, promoting gigs, selling gig tickets.
2. Is it realistic to think that in the future music will, or can, be given away for free?
Music must not be completely free. There must be ways to nurture talented writers and artists.
3. IF music were to be given away for free – how would, do you think, an up and coming band or a small label be able to finance recording, marketing and administration of a release and feed the artist?
There will be subscriptions services - all you can eat for a monthly fee. Free, and we get a share of advertising revenue, like from Youtube when Merlin do a deal with them on behalf of all indies (see http://www.merlinnetwork.org/). Free but we get a cut from ISPs, hardware manufacturers (AIM is lobbying government for a ‘value recognition right’, the right to force companies who profit from music and film etc to license the right to sell storage and media transfer - probably won’t happen for a while. See for example http://www.openrightsgroup.org/press-releases/music-industry-proposes-isp-tax/
4. Do file share affect your label?
Well it does help promote artists. But along with CD burning and the rise of personal MP3 players (IPods) this is the reason that punters don’t feel music is worth paying very much for. Or feel they need to pay less often.
5. When the bigger parts of people under 30 in Europe has been allowed to get think that you can “tap” music from internet like water from a tap for free, is there any hope for making them pay for downloading music? How can this be done if so?
I don’t know. Under 30s do pay for music on phones a little, not sure if this will continue. Services like Emusic are great, cheap if you use them a lot. Not as successful as iTunes but still earning some money…
6. Can changes be made in the way people consume music without governmental action towards file share sites?
I think government needs to give copyright holders (music, film, books) the right to license, sue companies that profit from music without licensing it. Ipod makers, ISPs, broadband, etc… See above.
