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Recording Industry Dirt

A couple of weeks back I posted a thread titled "Is There Big Trouble Brewing?". For those of you who did not read it, it's primary focus was on the state of the recording industry and the retail music industry. Some very interesting, intellegent and insightful responses were posted. I would like to Thank those who participated.

Upon receiving the new Stereophile magazine yesterday, I began reading "Industry Update". They must have been reading our thread. I've transcribed an excerpt from a very interesting article written by Barry Willis. It involves "accounting discrepancies" being pursued by the band Incubus. I think some of you might find this interesting also....

"On March 18, LA Times reporter Jeff Leeds offered a trenchant analysis of the band's accouting dispute with Sony, demonstrating how a CDs wholesale price of $12.04 gets windowed down to $5.53 through a series of accounting deductions, including $1.63 for promotional copies, $1.84 for "new technology investments" (the CD is now more than 20 years old), and $1.84 for packaging. The band's "33%" royalty is paid on the reduced amount, not on the manufacturer's wholesale list price."

The article goes on to explain how "the pie" is divided and who is actually profiting from the proceeds. Once again, very interesting. I am sure that some of you may want to debate these numbers, but ultimately, I feel it would probably be a futile effort.

The point being, when you are standing at a cash register ready to dish out $12.00-18.00 for a CD, keep in mind who is actually being supported by the proceeds. We are all responsible for our own decisions. Whether it may be signing contractual obligations with major record manufacturers or puchasing a CD. Ultimately, the decision is our own.

Although, I feel that new musicians and bands are becoming increasingly aware of alternative means for bringing their material to market (can you say "Internet"?)

The music companies are scrambling to reposition themselves as retail music sales drastically drop. Mergers, multi formats, new technologies, etc,etc,etc. Good luck! I would like to send this message out to the major record labels out there...

Take care of "the people" who are taking care of you.

Because soon "the people" might not need you anymore.
buscis2

Showing 1 response by wdhsvbgod

wdhsvbgod
22 posts
 
I wholeheartedly agree with your last two sentences.

I am increasingly disgusted with state of "the business of new music" and am proportionally impressed with the ingenuity of "new artists" vis-a-vis bringing their music to "the people" (not only can i SAY internet, I can USE it!).

There are hundreds (thousands?) of "new" artists recording today (many times on their own labels because they don't fit the maximum profit role models like Back Strret Boys, Brittany Spears, et cetra). Many of these artists possess tremendous musical ability, songwriting skills and passion. They deserve to have the opportunity to be heard even if they are not a "size 1" / "36D" (if they are female) or "buff" / "cute" (if they are male).

Perhaps if humongous multibillion dollar corporations that own record labels would stop looking to maximize profits at every single turn, they could afford to pay the artists on those labels what they are worth.
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