by Barry L. Ritholtz

"Musicians Looking To Let Internet Replace Record Cos"

At least, that's the headline which Dow Jones ran for this story. Most everyone else who ran this AP story used the tamer headline: Musicians Unveil Digital 'Manifesto'.

But I suspect that Dow Jones got the basic premise correct: A highly respected and intelligent pair of innovative musicians are making a power grab on behalf of artists. They are taking advantage of the general chaos in the space, and the apparent cluelessness of the big labels vis-a-vis the internet.

In other words, the music industry's Hell just got a lot hotter.

Consider the players: Gabriel is an extremely bright and creative musician. He has been a major innovator in his entire career, from recording with Genesis and on his own to live performances to social activism (on both Human Rights and the Environment, and is also associated with WOMAD) to his music business savvy. Gabriel owns recording studios, is a co-founder of the digital downloading service "On Demand 2" (OD2), and founded his own label, RealWorld.

If you followed Gabriel's career -- and his music -- over the years, than you know that he is not a mainstream thinker. I have a sneaking suspicion that Peter is a disarmingly charming and formidible (if not clever) negotiator. Now, along with his cohort, Brian Eno, the Music Industry's nightmare may have just gotten much worse.

Gabriel & Eno present an opportunity to turn the classic rocker cliché on its head: Think of a group of stoners, signing anything their label presents to them, while corrupt agents and business managers bleed them dry. Now imagine the polar opposite of that vision: That's Gabriel & Eno. Long term survivors of the industry, they are smart enough not to confront the industry head on -- they certainly do not want to turn this into a holy war. Instead, they are proposing a set of changes -- incremental in appearence -- which will gradually reduce the power of the record labels in favor of the musician. Gabriel is smart enough to retain a role for the labels, primarily that of marketing. That makes their model a compromise between the anarchy of P2P, and the disintermediation of a "labelless" pure internet model.

There's more... Complete Story

What I am most interested to know would be their own plan for distribution and pricing. I am not at all in the mood to overturn one set of masters only to find myself arguing with the new regime.

I am more than willing to objectively go through a period of discovery, but I have noted Eno and Gabriel are INCREDIBLY mum on these topics.

I think this is an important new development in the mechanics of the music industry....and great article George.....

Peter Gabriel is savvy..he "re-invented" himself after his time with Genesis (and lost that weird "anti-mohawk" hairdo)....Brian Eno has hung around with the likes of music great David Bowie, a survivor in his own right, long enough to develop some business acumen...,methinks this bodes poorly for the RIAA fat cats

It makes sense to retain the labels, but relegate them to the position of distribution, and distribution only. It's what they do well. And when there are checks & balances to protect the artists, it could work out very well for everyone. It's just too bad that the labels will have to give up control and settle for a less prominent role in the industry sans manipulation, corruption, etc. My heart bleeds for them... NOT.

Being the savvy business men they are, I don't think this will be the web "nivana" everyone thinks it will be. The boys have learned well the business of music and creativity and I would bet that they aren't about to forget the lessons that were very hard won.

While I don't think they will screw over an artist, they won't be getting screwed either. And, overall, anything that drop kicks the labels is good for the "biz" of music.

Well, if Mr. Gabriel can make a new album as stunning as "US" and distribute on the net in some lossless format at a price comparable to record club CDs, then I'd happily buy it from him. Happily. I'm not holding my breath, though.

"Meet the new boss, same as the old boss" --The Who

(I doubt it tho.) Gabriel and Eno ain't got THAT much power and strength.

Shmoo

independentm... may be right. I am curious to see how they play the game. The RIAA has a lot of money backing them and that is the name of the game. I have a feeling that they won't be as successful as many people think, I hope they do well, but still aprehensive. They aren't playing on the same level as the RIAA.

Gabriel is a prick anyway. You can rely on anything they do is for THEM. Not for US.