Sink or Swim

     Over the last two years I have met with or consulted nearly five hundred artists, associated managers, and a dozen or so independent labels. Beyond issues related to touring, shopping for specific licensing, and building strong fan bases in foreign territories, the question and concern most often asked and addressed is what type of return in revenue can one expect in terms of sales versus marketing dollars. Some truly believe they can make it by passing out CDs and doing a few shows. While historically we have always seen one hit wonders, and the occasioned artist or group that literally explodes over night without much help, the true answer is that your sales level (given a quality commercial product) will definitely depend on the size of your budget, as well as the connections you have in the industry to properly make use of that budget. If you have no budget, you have no chance. 

     People have been really excited about digital distribution, the wide array of providers in this sector, and the ease of which they function, and they should be, at least you have bought a chance. But this is the same as the lottery without an effective plan ready to be put in place and a proper budget with which to make it all happen. As stated by Thomas Jefferson and many others, "The lottery is a tax on the ignorant…" and this is also true in the example of distributing widely around the world with no budget to market to anyone outside of your email list, local bars, and Facebook. I found a quick list of free and cheap for those on a small budget here.

     The explosion of thousands of niche sub-genres had a ripple effect on the music business as well, this took each sub-genre that found any success and quickly pumped out thousands of acts for each, each trying to fill the top three spots with almost identical feel if not material. To be an artist today could be compared to the mass explosion of female doo-wop groups in the fifties and sixties that exploded so fast with so many artists that not even the companies knew who to pay for what song. When this is taken into account, even the most singular and individualized, well branded, and unbelievably talented artist will have to spend a good deal of money and resource to cut through the clutter of those merely taking up empty space just to be noticed and remove themselves from the lottery and enter an honest selection of taste.

Necessity and Invention

     While there are certainly many new opportunities for one to license their content given the mass indulgence of the public in video games, brand new forms of advertisement, the different places and ways content is consumed digitally, etc, problems arise when parties are requested to acquiesce as to how the pie is cut. Indeed, everyone must be paid fairly for his or her time and service associated with any product whether it is for the production, manufacture, storage, or delivery but what constitutes fair, and who decides? Are the producers and license holders of the content due a larger piece of the pie for providing the content, without which there would be no product for service? Is a distributor to receive a larger piece of the pie due to their contracts and connections with stores, kiosks and other providers, or perhaps fees associated with commerce?

     There seems to be a lot of forward marching towards the technological advancement of media distribution in an effort to keep up with the full speed run of a concurrently growing appetite and consumption of digital media but there also seems to be a lot of clinging to old systems and statutes out of fear, like the rates that are paid out after collection for example. Yes, there have been some very beneficial court cases over the last ten years or so that have inched an industry closer towards change, and a few very important cases going on now that should be watched closely. But why should noticeable and mutually beneficial change have to come from extended trial and appeal?

     The very basics of economics and history shows us that when technology is revolutionized and industries shift there is a time where traditional roles and employment will cease to exist, old forms of business will also cease to exist, and new regulations and education are of the utmost importance for those who wish to succeed and live to tell the tale in a completely new environment. So why are so many intelligent people missing the bus?

     In a world where human ingenuity has proven over and over that necessity breeds invention we must also carry this philosophy and living ethic over to the statutes that govern our consumption, collection, and payment of/for media by reviewing and revising, as well as being willing to throw away old and make way for new to guarantee that traditional ways of doing things do not directly inhibit the growth potential in revenue for the artists, producers, and rights holders, or the industries from which these may also thrive. In an annual meeting with Congress, David Israelite, president and CEO of the NMPA, had this to say. "We must find efficient ways to license our copyrights and empower new business models. Much of the current licensing system is outdated and inefficient. It was built to service outdated business models."