Music label – an urge for conversion
It’s clear that record labels won’t be able to earn big money on CDs, nor mp3s, in the future. But hey, that’s no reason to cry and certainly no reason to turn the back on new technical innovations. There is a future for labels. Yes, it will be a painful transition from the business model of today, but there are new ones just around the corner.
Artists are always going to need help to get their music heard and listeners will always need guidance to find great musicians. So let’s combine those two. Find great musicians, which is supposed to be the labels’ job, and do the distribution where the customers are, the internet.
It will take some time, maybe two or three years, but it won’t be that long until both CDs and mp3s are out of date ways to carry the art of music to the ears of listeners. That is, it’s about time to destroy and rebuild the old architecture of the record labels.
The first thing labels will have to do is skip the record prefix in their name and start calling themselves music labels. To be able to take the important full scale step from the physical world to the internet labels have to break a huge psychological barrier. The barrier of doing things in the way they’ve always been done.
I believe that the future of the internet as a distribution channel is all about filters. Here the music label has a big role to play: Creating artistic contexts for musicians to work in and consumers to find new things in. That is – labels will have to start focus on their core business again. They have to take a dozen steps back and set a side anything that haven’t to do with finding musicians they believe can influence people to the bone. This is something labels have been really good at in the past and is the reason why they once were created.
The way of how to make money from music distribution in the future is actually becoming quite clear. At least there is one clear tendency. Loads of streaming music services has emerged only in the last couple of months. They are taking advantage of two powerful distribution constituents – cheap data storage and fast internet connection.
The key to future incomes for music labels is to embrace those streaming services (Spotify, Deezer etc). And do it now when they still are being developed. There is no time to spill. If the labels don’t cooperate now chances are big that developers go illegal because they are being opposed by the content owners.
Think about it! All music in the world on someone else’s hard drive delivered to you at the same speed as mp3s on your own drive. And paid for by someone else in (i.e. corporations that always will want to be seen in the context of music).
What the labels, especially the major ones, should do to get this started is to open the big treasure of music they are sitting on. Making all the music they ever recorded available on the new streaming services. This is a cheap way of monetizing the back catalogue and a good way to convince music fans who haven’t already found their way to the internet how great the future is for music, musicians and fans.
So, Mr. Record label boss, become a music label and say yes when streaming services ask for permission to do the boring part of your job. I did it today.
torsdag 15 november, 2007 kl. 10:16 e m
[…] Read Martin´s thoughts on music and the internet. Well worth it. The first thing labels will have to do is skip the record prefix in their name and start calling themselves music labels. To be able to take the important full scale step from the physical world to the internet labels have to break a huge psychological barrier. The barrier of doing things in the way they’ve always been done. […]
fredag 16 november, 2007 kl. 5:38 e m
an excellent read!
if only the major ‘record’ labels werent so greedy..
måndag 19 november, 2007 kl. 4:09 e m
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Yes, I might have to agree… But at the same time, it´s not something I´d want. I myself dislike sitting by the computer listening to music, I quite enjoy trying to find those gems at stores in different towns/countries, the feeling of letting that needle touch the vinyl, pushing play on the cd and holding the booklet while sipping on a cold beer. You´re idea is good, but it involves commersialism in a sense that is against a lot of my political and everyday thoughts. I´d rather see a network (community), where it costs to become a member, and that way you´d be getting access to the songs, rather than letting it be for free but letting art suffer under commersialism.
tisdag 20 november, 2007 kl. 8:41 f m
Jyrki: I know what you mean. And it’s something I’m thinking a lot about. Physical products have a certain “hold on to”-value that digital files etc that collectors like. And collectors are people that is very much into things and those are the guys and girls that we as a label must satisfy.
I totaly agree with you that music is best without the involvment of money. At the same time I’ve realized that it’s the major labels that have “found” and spread most of the greatest music I listen to. Thus, it’s important to get the big ones on the train and to embrace the new technical improvements that will make it easier for small labels to distribute their music. Small existing labels have role to play. Like Sweden in the climate change debate. We can’t change the world alone. But we can work exemplary and show the big guys that it works!
Also, I am sure that the streaming services will have subsription based alternatives for those that doesn’t wan’t advertisment when they’re enjoying music.
tisdag 4 december, 2007 kl. 6:51 e m
I agree with everything you say.
There is a new generation of people that want to listen to music or experience music and they do not care about owning the recordings. That generation is used to being able to listen everything they want to for free. And I am not just talking about p2p sharing but there is music everywhere these days, even some of the the adverts on TV have great music in it.
Just because they are currently not paying directly for the music it doesn’t mean that they won’t do it in the future. It’s all about creating offerings that are unique and of high quality and then people will pay for it. Or maybe it will be based around advertising funded models.
The people who make the music or ‘own’ it have no control what is happening with it any more, the music fans are deciding. And that’s a good thing.
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