creative deconstruction

What Will it Take to Unite Artist, Industry and Fan?

Posted on 19. Aug, 2009 by refe in MUSIC INDUSTRY

This post was originally published on OneMovementWord.com, official blog for Australian music conference One Movement for Music Perth.

It’s no secret that the music industry is fractured. The point was driven home once again last Friday when the RIAA – the main lobby group for the recording industry in the US – won their second high profile lawsuit against an individual fan accused of sharing music files online. Damages in the two cases totaled over $2,500,000.

The recording industry is bankrupting fans in court, technology is reshaping the marketplace faster than anyone can keep up, and fewer people than ever before are buying music. How did we get here? More importantly, how do we respond?

One of the biggest roadblocks in the way of healing is the industry’s unwillingness to let go of the past. So much has happened in the last 10, even 5 years. The consolidation of record labels, the digital revolution, the social web. Each new development has brought its share of challenges and opportunities, but the clock can’t be turned back. It’s time to stop guarding our castles and throw open the doors to change. In order to make real steps toward a unified music industry progress must be embraced, not feared.

Unfortunately, this industry isn’t such a big fan of change. For years the record companies were riding a wave of incredible profits. In the 90’s the cost of a CD peaked as high as $19 in the US.  People were willing to part with the cash because there was no alternative. The record labels had fans right where they wanted them. They even convinced themselves that things could remain that way forever.

When Napster arrived on the scene the limitations of the old system were brought into sharp focus. Fans were tired of being overcharged and under-served. A new precedent for finding and sharing music was established.

Had the industry been willing, they could have recognized the new ways that fans were finding and interacting with music. Instead they shut it down. But it was too late – the world had tasted the potential of digital distribution. While the major labels were still patting themselves on the back for their victory over Napster, a thousand smaller, more agile networks were already being deployed to take its place.

Years later many industry leaders have since admitted that they missed a big time opportunity in their handling of Napster. Geoff Taylor, head of UK major label trade group BPI penned a now famous article for the BBC expressing his regrets. Unfortunately, this concession has done little to affect the way the music business is run. Instead of learning from their mistakes the major labels retreat further into protectionism. Today nearly every new technology, service and alternative business model is met with litigation.

It’s time for the music industry to stop trying to protect what has already been lost and to begin to look forward at what the future might hold for the music business. The playing field has been leveled. Artists have the tools to what only labels were capable of providing only a few short years ago. Has technology made record labels obsolete? Some believe so, but I disagree. Artists still have much to benefit from what a label can bring to the table. It simply won’t look like it did ten years ago. Both parties have the potential to go so much further if they come together as true partners to create an environment where quality music can thrive.

And that’s what this should really be about. There’s so much talk of money and business  models and economics that it’s easy to forget that music remains at the heart of this industry. Where great music is produced, fans will emerge. They’ll even be willing to open their wallets if they feel that they are supporting the music and the artists they love. More music is being created now than ever before, and never in history has it been so easily accessible. It’s an opportunity that begs to be seized, and if we won’t do it someone else will. Because one thing is certain: the music will go on, with or without any of us.

Tags: Napster, record labels, RIAA, TECHNOLOGY