TO: BIG FIVE RE: DOWNLOAD SITES
by David Medsker and Neil Soiseth
You'd be hard pressed to find a bigger music fan, a
truer music geek, than me (save, perhaps, my
PopMatters colleague Will Harris, who is Lord of all
Pop Boys). In college, one guy asked who was coming
over for a party. When my name was mentioned, he said,
"Dave, sitting-on-the-floor-playing-with-tapes Dave?"
A dead perfect description if ever there was one. Any
time he'd seen me at our friend's apartment, I was
sitting in front of the stereo, taking full advantage
of their dual cassette deck, turntable and CD player.
If there is one thing I can do really well, it's mix
tapes. It should go on my headstone. David Medsker.
Born 1968. Died 2053. Made great mix tapes.
These days, of course, I make CDs. I love my CD
burner, though it probably doesn't love me much. I
make CDs by the pound, and in the process have helped
scores of bands sell records. My friend Tony, after
receiving a mix disc from me, went out and bought the
albums from every single band that I put on
that disc, and in some cases bought the entire catalog
of a band. (You're welcome, Guster) The Recording
Industry Association of America should be paying me
referral fees for the bands that I've promoted on
their behalf. Instead, they think I'm a thief and part
of the reason the music business is in so much
trouble.
The music industry, after a good 10-year run of
smashing success, a period which spawned the most
absurd out-of-the-box sales in history, is in a
recession. There are many reasons for this. The main
reason is the obvious one: the entire economy
is in a recession. The first thing that dries up is
disposable income, and what's more disposable than pop
music? Absolutely nothing. Say it again.
However, there is a second, far more significant
reason for the music industry's woes: they've been
riding on artificial profits for years. A good chunk
of the sales have been from the conversion of old
albums and cassettes to CD, a market that is finally
starting to dry up. This leaves the majors in the
position of thriving solely on the sales of new
releases. And they can't do it.
This is why the music execs are acting like a
cornered, wounded animal. The music industry, for the
first time ever, is at the mercy of the consumers.
They got fat on the convenient timing of cassettes and
CD's, which led to consumers buying an upgraded
version of an old title over and over again. But since
nothing has come along to replace CDs, the
back-catalog well is finally starting to run dry. The
sensible course of action by the labels would be to
scale back expectations regarding how many copies sold
is an acceptable amount and cultivate a more
respectful relationship with music buyers. However,
they have gone the other way; they've slashed their
rosters and gone for high promotion and saturation of
prefab bands. It's a pure boom-bust approach to music
retailing, treating the consumer as someone to be
duped and milked until the sap has caught on, and
which point they move on to something else. That more
and more consumers aren't playing the game is
apparently the consumer's fault.
And with fault, comes blame. The Big Five (Sony, Time
Warner, Universal, BMG, EMI) and the RIAA have
conveniently blamed free file-sharing servers, and the
supposed criminals who use them, as the source of all
of their problems. Not the falloff from the back
catalog sales. Not the skyrocketing price of a CD
(twenty dollars, jeesh). Not the public's weariness
with teen pop and nü-metal. (Those horses have been
dead for a while, guys) No, no, no, it's none of these
things, but rather the filesharing heathen. This
statement by the industry is, for all intents and
purposes, a declaration of war on their revenue
stream. To be certain, this is an innovative business
model, but it's not exactly the brightest.
The majors will tell you that since Napster and its
brethren started popping up on the Internet like a
digital Whack-a-Mole, the industry has suffered huge
losses. Therefore, the file servers must be to blame.
They were so convincing with their case that they even
lured Lars Ulrich into committing career suicide by
taking a stand against Napster. Look at how this is
hurting the artists, they said.
Preposterous, say I. This issue, despite how the RIAA
is spinning it to the media, is not about lost money
or artistic integrity. The latter is laughable given
how the industry treats its artists. The former is a
smokescreen, or a false ordering of importance. The
issue is about power and control. How else can you
explain their desire to copy-protect their CDs so
that they won't work on anything that uses PC
technology? (For the record, that includes DVD
players.)
This would at least explain their pathetic,
half-hearted attempts at building their own pay
download sites, which they say are meant to counter
the free sites but are so poorly assembled that no one
in their right minds would use them. Some of the sites
contain coding so strict the user can do nothing with
the song but play it on the PC. It could be argued
that the Big Five doesn't really want pay download
sites to succeed in the first place. The music
industry has staunchly opposed nearly every new
product that's ever hit the market, from blank tapes
and CDs to even listening stations. They would rather
dupe people into buying a record and hating it than
give them the chance to sample it and make a more
informed decision. Anything that gives people the
luxury of hearing new music for free frightens them,
because they can't control (again, that word, control)
the buying habits of the consumers nearly as much as
they'd like to.
In a perfect world, the Big Five would all go to bed
one night and wake up to find the Internet had been
destroyed while they were sleeping. What they don't
realize is that the Internet is their salvation. I
have a plan for a pay download site that not only
makes economic sense, but also can make them more
money than they ever imagined. The best part is, it
makes everyone, from the labels to the fans to the
artists, happy.
Everything should be on one site.
Imagine if record stores were set up the way that the
Big Five download systems currently exists.
"Hi, I'd like to buy the new White Stripes record."
"Sorry, this is the Capitol/EMI store. You'll have to
try the V2 store two miles down the road."
Ridiculous, isn't it? Yet that's exactly what the Big
Five expect their online consumers to do, to set up
accounts with each label individually and hit multiple
web sites to find their favorite music. Does the
average soccer mom know which label her daughter's
favorite boy band of the week is on? Of course not. If
you really want this to work, make it easier. Put
everything in one site, or set up mirror sites that
are easy to find and follow. No one cares if Warners
doesn't get along with EMI. This must be easy for the
consumer in order for it to work. One-stop shopping is
a must.
In fact, the store is already set up for you, and it's
called eMusic.
(eMusic is owned by Universal Records) For a monthly
fee, consumers can download as many MP3 files as they
want. There's even a setup where you can download an
entire album with one click. They have lots of variety
too, from John Lee Hooker to Apples in Stereo to
Rosemary Clooney. Which brings me to my next point.
Everything should be on that
one site. Attention, Big Five: Did you see the
kinds of songs that were available (and immensely
popular) on Napster? Things that you don't sell
anymore. Get a clue. Put everything you've ever
released in your label's history up for sale. Make
every album track, extended dance mix, live recording,
B-side -- everything -- available for download.
You'll start making money on things you had long
discarded as being unprofitable. Imagine a world where
no album, maxi-single or EP is out of print. That is
the potential that the Internet is offering you.
It may sound like a daunting project, but disk space
is cheap, and when you start seeing money come in for
a download of Arthur Baker's remix of the Rolling
Stones' "Too Much Blood", or for the Boomtown Rats'
1985 album In the Long Grass (something I've
been trying to track down for years) it will all start
to make sense. This also helps the thousands of
artists who no longer receive any royalties because
their entire body of work is out of print.
I would be happy to offer my services in converting
the out of print CDs I own to MP3 for the cause.
Actually, that brings up another idea. Print a list of
albums you'd like to make available, things that used
to be in print but have since been deleted, and offer
anyone who has a CD copy of that album some kind of
reward (cash, credit, whatever) for converting those
albums to MP3 and uploading them to a site for you.
The whole thing could be finished in a week, because
the fans would line up to help out.
Also, consider the added benefit of crippling the
bootleg market by putting everything back in print.
Those CDs of rare and unreleased recordings that
typically go for $20 (I spent $20 on a very cheaply
made Duran Duran B-sides disc, because the stuff
simply wasn't available anywhere else) would be
worthless. And you, not the bootleggers, would be
getting the money. It's the right thing to do. Do it.
In fact, the best way to rope in the fans who are
going to download the most music anyway is to
start with the deleted items. I have two
Boomtown Rats CDs that routinely fetch $40 and up on
eBay. If there's that kind of market for it, you can
bet that they would get more than a few downloads at
eMusic. Sony, step up to the plate here. Send eMusic
the rights to the Boomtown Rats catalog, and see what
happens. I personally guarantee downloads of at least
three of their albums, provided you also do one small
but extremely important thing.
For God's sake, make it
affordable. One web site wants its potential
customers to cough up $3.49 for the right to download
the Lenny Kravitz song "Dig In". To purchase Lenny's
Greatest Hits online, $18.98. Puh-leeze. That's
more than it costs to buy the album in a store, and at
least with the CD version we would get the CD, jewel
case, artwork, and perhaps a video or two. What
incentive do we have to download music if you're going
to charge us more and give us less?
We all know how much CD's really cost to make. No song
is worth more than a buck, and ideally they should
cost about 75 cents apiece. No album should cost more
than seven or eight bucks. After all, what are you giving us
besides the music? There's no artwork, no raw
materials, just a file on my computer. How on earth is
that worth the same amount as the CD in a store?
eMusic currently charges as little as $10 a month for
unlimited downloads (previously, to download an entire
album cost $8.99, and individual songs cost 99 cents),
so don't say that it can't be done for that little.
Clearly, it can.
Price plans should be flexible. People who buy an
album every other month should be able to buy music on
a per-album or per-song basis. Those who choose an
unlimited download plan should pay no more than $20 a
month. (That figure is assuming all labels and the
entire catalogs are available. Otherwise, leave it at
$10 a month) Remember, even the hardcore downloaders
are still going to buy CD's of the bands they love,
since CD's sound better than MP3s. So don't think of
this $20 a month as the only money you'll see from the
music geeks. Think of it more as guaranteed money. Has
a nice ring to it, doesn't it?
Remember, if you want this to work, you have to give
the public a reason to want to do it. So far, you're
making paying for downloaded music as unattractive as
possible. $3.49 for an MP3 file? Pure arrogance. Drop
the price, and we'll talk. We're not opposed to
paying, we're just opposed to paying too much, and
right now, you're charging way, way too much.
Make it simple. Just stick with
MP3 as the standard file type, please. Don't put any
of that special coding garbage on any of the files. If
I've paid to download a song, what I do with it from
that point on is really my business, Internet
copyright rules be damned. Don't punish the many
(consumers) over the acts of the few (bootleggers).
Most consumers are honest and will do the right thing
with these songs. Besides, the key to music is its
portability. To attempt to hold music hostage on
someone's PC is just ridiculous. After all, there are
entire industries built around music's portability. To
restrict it to a PC or hard code a CD so that it won't
play on a computer? My God, that's a trick out of
Microsoft's book.
Again, look at eMusic's system. They use .mp3 files
because they actually trust their consumers. And as a
result, the consumers respect them back. Amazing what
results a company can get when they don't treat their
customers like criminals in waiting.
If the music industry isn't careful, they may see
themselves in a position not unlike Major League
Baseball. If they continue on their path to put piracy
protection coding on CDs while refusing to give music
fans a sensible pay download option, the fans, who are
like the players union with less money, are going to
strike. In fact, many of the recent announcements the
majors have made with regard to music prices,
copyright protection and free servers are not unlike
the stream of idiotic statements emanating from
commissioner Bud Selig's mouth on a daily basis.
What the majors need to realize is that fans, even the
geekiest of the music geeks, have a choice here. Music
is not a consumer staple. I don't need it the way I
need milk, bread, or Jack Daniels. If they continue on
their quest to make music unplayable, I will strike.
And they will notice, because I buy a lot of CDs.
It's time for the majors to come to their senses.
After spending years telling the people what they
want, it's time to actually listen to what the people
want and give it to them. They have the answer to all
of their problems, and just like it always has been,
it's sitting in their vaults.
21 August 2002