Tuesday, April 18, 2006

Music Industry Money Break Down

Interesting little read about money and music

Money and Music

Comments, Disagreements?

P.S. I knew Crazy (Gnarls Barkley) had some pop potential, but that much is even better. I hope people here (americas) are smart enough to jump on the bandwagon. Look out for them on Conan O Brien in May (info at their myspace).


teru said...

Interesting read. I guess it all boils down to investment. The bigger the investment the greater the risk/loss or gain.

Good points, but it fails to mention distribution. Whether people want to or not, they have a lot more options for music now. Artist don't need to rely on record companies as a sole means to get heard as they did in the past. I think(hope)that's going to become a big factor.

Hopefully a day will come when companies need artists more than artists needs companies.

Marco Raaphorst said...

am I reading this correctly? small is the new big right? if that's what it's all about and 100% agree.

I guess Victor should be able to comment on this too. He worked at a few record companies if I am correct.

gurdonark said...

Record deals are really just a form of financing, on fairly onerous repayment terms. They are, to be fair, financing that many artists could not get otherwise.But anyone with a different way to do a deal and a reasonable way to distribute would never sign such a deal.

Day jobs are, to me, a superior form of financing of creativity, as they involve less indentured servitude.

The new technology is going to make such financing irrelevant.
It also will break the stranglehold on marketing which was the record companies' advantage.

The large labels are dinosaurs, and the meteor has fallen. Extinction is inevitable. The issue, though, is how long before it occurs.

At the same time, I have less than perfect sympathy when grown folks who know how to hire lawyers and accountants, and can figure out when to take which risks, bewail the fact that they took a risk.
I think the old myth that "I can pay attention to may art and ignore business" was always naive, and no moreso than now. If one chooses to sign a record contract, then one takes the bad with the good, it seems to me. So many times people choose to will their souls to large corporations, and then bewail that corporations, created and chartered to put profit at a prime importance, do what they are designed to do.