It’s the End of Music As We Know It (And I Feel Fine)

The general consensus is that music, as we know it, has died. The major record companies are telling their consumers (and, subsequently, their stock holders) that no one buys music anymore. Furthermore, consumers themselves are being accused of ‘illegally’ downloading music, file sharing, etc., which is - according to industry reports - affecting its overall profitability. Finally, the Internet has led to a revolution, whereby artists have endless possibilities to launch a career without the aide of a label.

New developments throughout the music industry have been implemented in order to boost sales and profitability. First, record labels have structured “360 deals” to sign new artists. In these deals, an artist signs with a label in exchange for percentage shares from touring, publishing, merchandise, etc. Second, touring has become more crucial then ever before in creating revenue streams for an artist. Third, licensing music for commercials, TV, film, and video games has evolved into a bona fide platform for both income and exposure. Finally, independently controlling one’s material has become a staple for both up and coming artists, as well as established acts such as Radiohead and White Stripes.

According to Rolling Stone Magazine (Issue 405, February 7, 2008) “[a]lbum sales are down 36 percent since their peak in 2000,” whereby album sales in 2000 were 785.1 million versus 500.5 million for 2007. However, touring excelled with revenues surging “eight percent, to $3.9 billion – thanks to massive reunion tours by the Police, Van Halen and Genesis.” Additionally, this issue features an article on how Radiohead has managed to top the charts without the help of a record label releasing In Rainbows as a download on their Web site. Fans were free to pay whatever they desired for the album. According to the article, there were 1.2 million visitors in October to the Web site (the month the album was released). An online survey group, comScore “claims only two out of five downloaders paid anything at all, [with] the payers [averaging] $6 per album – which, factoring in the freeloaders, works out to about $2.26 per album, more than Radiohead would have made in a traditional record deal.” When the CD version was released on January 1st, it debuted at Number One in both the U.S. and Britain.

These changes to the music industry, however, do not quite explain the reasons for overall sales being down. I propose an alternate explanation as to why music sales, particularly CDs, have declined since the year 2000: Quality. Music, in the mainstream, has evolved into a turnover commodity based upon corporate structures, quarterly reports, and overall numbers. Shows like “American Idol” and “Nashville Star” have replaced A&R scouts. Furthermore, record labels became greedy after the pop music boom of the year 2000, featuring such artists such as N’ Sync, Backstreet Boys, Britney Spears, and Christina Aguilera, without much planning for the future.

When one glances over pop history to see who conquered the charts, one finds Elvis Presley, the Beatles, the Rolling Stones, U2, Michael Jackson, Prince, and Madonna. The irony with all these artists is that they are still relevant. In fact, each artist’s respective back catalog sells extremely well. With the exception of Christina Aguilera (who actually can sing), none of the pop artists from 2000 are significant in today’s music world (my apologies to Britney; however, tabloid news does not make one’s music career relevant). Furthermore, tour revenue has succeeded primarily on the strength from older, established acts (Police, Van Halen), rather than up-and-coming artists. Even in the case of Radiohead, their success is based upon a pre-existing fan base, whereby publicity is not an issue.

If the music industry becomes patient again, and supports quality over quantity, then sales may increase, stabilize, and inspire consumers to purchase new music. Technology will continue to evolve and enhance how we listen and obtain music. However, it should not be the culprit – or excuse – as to why music isn’t selling.

Catch ya' on the open road!

- gypsy george.