Change and not a Moment Too Soon

Within the past couple weeks, Radiohead announced plans to release their new album under a 'pay what you want' plan, Nine Inch Nails announced freedom from their music label and Madonna signed with a concert promoter rather than a traditional music label. The music industry is seeing some big changes and the traditional music labels are on the outside of the process for a change.

The interesting thing to see out of this 'pay what you want' concept is how much money will these bands state they've made off this model. How will it compare to what they made under the music companies? In a store like Best Buy, a big new release might be $11 -$12 bucks but the average CD is $13-15. In the mall (why would you go to the mall to shop for music?) they tended to be $17-18.

How much of that went to the artist? I remember reading the breakdown at one point but can't recall what it was anymore. I know it's not much. Maybe $2 a CD? If I download an album from the artist and kick them $5 via Paypal, it's still cheaper than iTunes to me. I feel happy, the artist feels happy (technically they just made a $3 profit). Win-win. Most of that money went back to the label to pay for the recording studio time, video shoots and any other money the label advanced them so it's likely that, in most cases, the band never saw any money from CD sales. It sounds like a modern day form of indentured servitude.

Every year I go to Irish Fest with the goal of buying at least one CD while I'm there as the artists come with disks. I know they'll be $15-18 but I do it anyway. Why? These bands tend to be on smaller labels. I always feel I'm helping that band directly as opposed to feeding some big corporate machine that will use my cash to promote the winner of some reality show as a performer. Given the chance to easily download the tracks directly from the artist and know that my money is going right to them... how could I not want that?

I have the feeling this is going to turn around faster than people think. There will still be CDs in stores for awhile now (most people aren't that technologically comfortable yet) but the power of the recording industry will disappear quicker than they expect. Look at the Catholic Church one hundred years ago and compare it to today. They're still around but it's not the respected powerhouse it once was.

I also think it will create more jobs than it displaces. A big corporation has to keep things streamlined for their stockholders. A band will need a tech guy or two to run their website and make sure the downloads happen cleanly and the money comes in safety. Some bands might team up to do this but they'll have the option of doing it on their own terms. Whatever they pay that tech guy or team won't even come close to the amount of money one CEO that hasn't liked music since 1957 makes in a year.

On the whole, I think that's a good thing. Viva la revolucion!