MUSIC: Radiohead Says: Pay What You Want

Another piece from my netvibes.com home page. This from Time.com. - OlderMusicGeek.

Sure, Radiohead is on a sustained run as the most interesting and innovative band in rock, but what makes In Rainbows important — easily the most important release in the recent history of the music business — are its record label and its retail price: there is none, and there is none.

In Rainbows will be released as a digital download available only via the band's web site, Radiohead.com. There's no label or distribution partner to cut into the band's profits — but then there may not be any profits. Drop In Rainbows' 15 songs into the online checkout basket and a question mark pops up where the price would normally be. Click it, and the prompt "It's Up To You" appears. Click again and it refreshes with the words "It's Really Up To You" — and really, it is. It's the first major album whose price is determined by what individual consumers want to pay for it. And it's perfectly acceptable to pay nothing at all.

Labels can still be influential and profitable by focusing on younger acts that need their muscle to get radio play and placement in record stores — but only if the music itself remains a saleable commodity. "That's the interesting part of all this," says a producer who works primarily with American rap artists. "Radiohead is the best band in the world; if you can pay whatever you want for music by the best band in the world, why would you pay $13 dollars or $.99 cents for music by somebody less talented? Once you open that door and start giving music away legally, I'm not sure there's any going back."

The ramifications of Radiohead's pay-what-you-want experiment will take time to sort out, but for established artists at least, turning what was once their highest-value asset — a much-buzzed-about new album — into a loss leader may be the wave of the future. Even under the most lucrative record deals, the ones reserved for repeat, multi-platinum superstars, the artists can end up with less than 30% of overall sales revenue (which often is then split among several band members). Meanwhile, as record sales decline, the concert business is booming. In July, Prince gave away his album Planet Earth for free in the U.K. through the downmarket Mail on Sunday newspaper. At first he was ridiculed. Then he announced 21 consecutive London concert dates — and sold out every one of them.

Link to the complete article

MUSIC: Future Uncertain for Internet Radio

This is a piece from Radio Paradise's home page. - OlderMusicGeek
p.s. sorry for not blogging for so long - my life's been hectic!

The US Copyright Office has released their new set of rates for the payment of royalties by Internet Radio, and they ignored all of the facts presented by webcasters (including RP) and gave the record industry exactly what they asked for: royalty rates so high that they will put RP and every other independent webcaster out of business. See Kurt Hanson's newsletter for 3/2/07 for the details on how the rates work and what they will mean to stations like RP. You can participate in the discussion about this issue in our Listener Forum.

For some time, we've suffered with a system where we pay a large chunk (10%-12%) of our income to the Big 5 record companies - while FM stations and radio conglomerates like Clear Channel pay nothing. Now they want even more. In our case, an amount equal to 125% of our income. Our only hope is to create as much public awareness and outrage about this staggeringly unfair situation as possible. Neither the record industry nor Congress are ready to listen to us at this point. But members of the media may well be, and we need to get their attention.

If you have a blog, write about it. Feel free to quote anything I've written in the Listener Forum. If you find a good blog post about the subject, Digg it or Slashdot it. If you work for a media outlet, look over the facts of the situation and see if you don't feel the same sense of outrage that we do. Write a letter to the editor of your favorite magazine or newspaper. Let everyone you can know what a loss it would be to you personally if your favorite Internet radio stations, including RP, were no longer available.

The RIAA can, at any time, agree to strike a deal with independent webcasters to allow us to pay a more realistic royalty, one based on a percentage of our income. We're hoping that if all of you make enough noise they'll be more inclined to do so. We'd also like to hope that at least one member of Congress will take a look at this situation and become willing to propose ammendments to the deeply flawed 1990s pieces of legislation that are responsible for the unfair treatment of Internet radio.

Thanks a lot for reading this, and for considering the idea of taking some action on it. We'll be posting new information and links here as they become available.

MUSIC: : In This Digital Music Age, The Listener is King

Here's some excerpts from an article in The Chicago Tribune that gives some hope for the future of the music industry. ("Some" being the key word.) - OlderMusicGeek

In this digital music age, the listener is king
By Greg Kot
Tribune music critic
Published October 15, 2006

MONTREAL -- For six years at its annual policy summit, the Future of Music Coalition has tried to navigate a path through uncertainty. Now, with the music industry in the midst of its most profound transition since the invention of the phonograph more than a century ago, some solutions are finally coming into focus.

The big labels continue to lose money; record sales are down for the fifth consecutive year. Commercial radio has been publicly embarrassed by payola investigations conducted by the New York State attorney general's office, in which record companies admitted that they've been paying off radio stations to play songs for decades. And retail stores are losing business; more than 1,200 closed in the last year, and last week the bankrupt Tower Records chain announced it was closing its 89 stores in 20 states and laying off 3,000 employees.

But the summit was hardly a wake. Instead, a roll-up-the-sleeves optimism prevailed, especially for artists and consumers.

"More people are experiencing music than ever before in the history of mankind," said Paul Spurgeon, general counsel for SOCAN, the Society of Composers, Authors and Music Publishers of Canada. "The great question is how do we get paid for it?"

Panelists agreed that record companies are now at a do-or-die crossroads. Their prognosis: The labels that survive will do so by spreading sales across a wider range of talent, rather than concentrating on a handful of megasellers to ensure profitable quarterly statements to satisfy anxious shareholders. The new marketplace isn't being built for the 10-million selling act. It'll be about building a foundation for artists that sell less than 100,000 albums.

It makes sense. More than 80 percent of the music that is released in America is made by independent artists who don't sell big enough numbers to attract major-label interest. Yet a handful of corporations continue to haul in the bulk of the shrinking industry's revenue. That's because they concentrate their marketing efforts on a few dozen mega-selling artists, while more than 90 percent of the artists who record for a major label never see a penny in royalties. That business model looks particularly rickety in the Internet era.

System of sharing

A new Internet-savvy music hierarchy is being created. Commercial radio, MTV, retails stores and even record companies are losing their tastemaking status, while consumers are becoming de facto music programmers who share information and music via message boards, Web pages, e-zines and MP3 blogs.

In the process, more people than ever are making and consuming music. Without a physical product to sell, costs for recording and distributing music are sinking. At the same time, opportunities to be heard are increasing. In this world, the narrowest music tastes are being served, and a musical planet encompassing thousands of subcultures is being created.

The debate about the future of music is going back to the past

In a sense, it brought the debate about the future of music back to the past, and the oldest marketing concept of all: playing in front of an audience. It's one thing to hear an MP3 file of a new band like Montreal's Lovely Feathers, quite another to hear that band perform that same song on stage. The breathtaking intensity of the quintet's live performance at Pop Montreal made the songs on their latest album sound quaint in comparison.

"It's hard to quantify how we got noticed," said the Arcade Fire's Win Butler. "No doubt Pitchfork had an impact. But who really cares reading an article? It's the music ultimately. You listen, and you either like it or you don't. For us, we've been so much about playing live and making that connection that I don't know any other way."

"Live music," said former Talking Heads singer David Byrne, "is an experience you can't digitize."

Link to the complete article