Post by Trees on May 2, 2007 9:58:36 GMT -5
Solutions are being talked about.... any ideas
Recording Industry Soul-Searching Continues, New Urgency Arises
A precipitous sales downturn has intensified the soul-searching process among recording industry executives, though few, if any, definitive solutions have emerged. At conferences in both Chicago and Los Angeles this week, digital models and experiments were more broadly embraced, though questions related to the long-term survival prospects of major labels emerged. "There's music, and people still want to get music, but it's not a business anymore," said rapper, producer, and music executive will.i.am, best known for his role with the Black Eyed Peas. The impresario, decked in urban-chic gear for the chat, repeatedly ruffled record label executives during a Musexpo forum in West Hollywood. Noting that label heads are "trying to swallow the harsh reality that their business is gone," will.i.am contended that the recording industry needed to invest in fresh hardware concepts fifteen years ago. The core issue, according to the performer, is that labels have systematically relied on related businesses to promote and sell their music, instead of controlling the channels themselves. "We're like a whore being paraded around Sunset," will.i.am said, pointing to the strip just outside the Bel Age Hotel.
A myriad of other problems were tossed around. "The whole competing with free thing is tricky, it works well in the water business but it's hard everywhere else," joked Jason Flom, chairman and chief executive of Capitol Music Group. The quip drew laughter from the crowd, though the underlying issue has been an incredibly difficult one for the business to manage. And years after the arrival of Napster, labels remain locked in a dogfight with both file-sharing firms and users. "We are essentially a technophobic business," contended Andy Karp, head of A&R at Atlantic Records Group. "When Diamond Rio came out with the MP3 player in 1998, we sued them," Karp noted. Meanwhile, Nick Gatfield, president of Island Records Group UK, pointed to the "systematic devaluation of music," another sticky problem that could be irreversible.
Interestingly, Gatfield noted that UK-based mobile operator 3 is now his third largest distributor, and pointed to sales of roughly one million over-the-air (OTA) downloads per month. "The ringtone is there, but it's flattened out," Gatfield said. Instead, full-track downloads and self-created ringtones are now taking a greater share of the action, according to the executive.
Story by editor Paul Resnikoff, on location in Los Angeles.
Permalink: www.digitalmusicnews.com/stories/050107ponder
Recording Industry Soul-Searching Continues, New Urgency Arises
A precipitous sales downturn has intensified the soul-searching process among recording industry executives, though few, if any, definitive solutions have emerged. At conferences in both Chicago and Los Angeles this week, digital models and experiments were more broadly embraced, though questions related to the long-term survival prospects of major labels emerged. "There's music, and people still want to get music, but it's not a business anymore," said rapper, producer, and music executive will.i.am, best known for his role with the Black Eyed Peas. The impresario, decked in urban-chic gear for the chat, repeatedly ruffled record label executives during a Musexpo forum in West Hollywood. Noting that label heads are "trying to swallow the harsh reality that their business is gone," will.i.am contended that the recording industry needed to invest in fresh hardware concepts fifteen years ago. The core issue, according to the performer, is that labels have systematically relied on related businesses to promote and sell their music, instead of controlling the channels themselves. "We're like a whore being paraded around Sunset," will.i.am said, pointing to the strip just outside the Bel Age Hotel.
A myriad of other problems were tossed around. "The whole competing with free thing is tricky, it works well in the water business but it's hard everywhere else," joked Jason Flom, chairman and chief executive of Capitol Music Group. The quip drew laughter from the crowd, though the underlying issue has been an incredibly difficult one for the business to manage. And years after the arrival of Napster, labels remain locked in a dogfight with both file-sharing firms and users. "We are essentially a technophobic business," contended Andy Karp, head of A&R at Atlantic Records Group. "When Diamond Rio came out with the MP3 player in 1998, we sued them," Karp noted. Meanwhile, Nick Gatfield, president of Island Records Group UK, pointed to the "systematic devaluation of music," another sticky problem that could be irreversible.
Interestingly, Gatfield noted that UK-based mobile operator 3 is now his third largest distributor, and pointed to sales of roughly one million over-the-air (OTA) downloads per month. "The ringtone is there, but it's flattened out," Gatfield said. Instead, full-track downloads and self-created ringtones are now taking a greater share of the action, according to the executive.
Story by editor Paul Resnikoff, on location in Los Angeles.
Permalink: www.digitalmusicnews.com/stories/050107ponder