By TOM STEWART
Globe and Mail Update


Record industry in slump -- CD sales down 30 per cent!

We've all seen the headlines and heard the dire warnings of the music industry. If I were a member of Metallica, I might be concerned about the downloading debate. But what does it really mean to the other 99.99 per cent of musicians -- the average working artists?

I'm one of those guys. I've spent 20 years playing in bands, touring and releasing records. I've played rock'n'roll, punk rock, folk and country. I've performed in tiny, empty clubs and at gigantic outdoor festivals to 20,000 people. So how am I, and the thousands of other working musicians like me across Canada, really affected by file-sharing, MP3 and downloading? According to the major recording labels, this trend is a direct threat to my livelihood; a death blow to the artist, a bullet to the head of Canadian culture.

I think it's a godsend. Internet downloading, and the technologies on which it's based, will turn out to be the best thing that ever happened to musicians.

Think about this: The same technology that has led to Internet file-sharing has also allowed musicians to record and distribute their music for a fraction of what it previously cost them. Most of us now have digital-quality home studios on our computers so we can record music virtually for free. What happens to a product when the cost of production decreases? It's pretty simple: The market becomes flooded and the price drops accordingly. But this isn't a bad thing -- I can afford to offer all my music as free downloads because technology now allows me to record, advertise and distribute my songs worldwide for free. Just 10 years ago, these things cost me a fortune. This is a pretty good deal, to say the least.

Of course, one of the things technology has done is to get rid of the middlemen. Here's where the music industry loses and the musician wins. We're finally in a world where artists can easily create, record and distribute their music to almost anyone, anywhere. There's no lawyer, distributor, or record company to pay. Is it any wonder that the outcry we hear is from the record industry, and rarely the artist?

So should we just give away music for free?

In fact, this did happen in pre-Internet era. One of the most successful music groups of the past 30 years, the Grateful Dead, built its entire career on encouraging its fans to recordlive performances and trade recordings. Recently, groups such as Phish and the Dave Matthews Band have tapped into the same scene. They're savvy enough to know which way the wind is blowing.

Now, don't get me wrong. I'm not saying that the mass-marketed Britney Spears of this world are going to disappear overnight. However, there is going to be a rapid rise in a segment of the music business consisting of artists who distribute their music purely by free downloads and fans' file-sharing. These bands will combine a non-commercial philosophy (in the style of the Washington-based band Fugazi) with the Grateful Dead's community-music-sharing culture, creating an entirely new way to be a successful, important cultural factor. And mark my words: Very soon one of these "Fugazi Dead" bands will become international superstars without having sold a single record.

I think it's pretty simple: In the future, the artists who entice the most people to download their music for free and to pass it on to their friends are generally going to be successful. The artists who don't realize this and continue to try to manufacture, distribute and sell music will generally fail.

So why is all this happening now? What has changed? The answer, again, is technology (or more accurately, the way people perceive technology). Twenty years ago, consumers were enchanted by a shiny new product called a compact disc and happily opened their wallets. Today, they see the same product as almost valueless. Many of the current woes of the record industry are directly due to the CD format. Consumers do not perceive the value of this format as being worth what the music industry wants to sell it for.

Take your average rock fan who buys three or four CDs each month. He comes home from the mall with a new release. Walking in the door, he picks up his mail, which includes the latest AOL junk mailing. He tosses this into the garbage with one hand, while the other holds the disc he's just spent $20 on. Beside his computer is a stack of disposable CD-ROMs. Just this morning he discarded a gaming CD that came free in a cereal box.

Can you blame this fan for thinking maybe he overpaid for recorded music? After all, there's nothing special about the disc he bought. Many 10-year-olds can make the same thing at home. Our average music fan just spent $20 on something that looks like it should be thrown away.

The music industry has to remember that the consumer perceives value not only in content but in format, too. It has acknowledged this in the past. During the era of the 12-inch LP, record companies released cassette and eight-track tapes priced at about 70 per cent of an LP. No matter how much consumers wanted the portability for their car stereos and portable tape players, that format, which was considered inferior, commanded a lower price.

Today's consumers are sending a clear message to music companies: Recorded music in CD format will not command the prices charged in the past. Barring the introduction of a higher-value format, the traditional business of manufacturing and distributing music is dying.

At the same time, these changes create amazing opportunities for Canadian musicians. We can control the creative processes -- from writing to recording -- just as musicians did before the managers, agents and labels took over. We can reach audiences that are potentially universal -- rather than just the slices that the record-distribution and commercial-radio industries are willing to dole out. The traditional handicaps of being a Canada-based artist are shrinking dramatically: Geographically dispersed audiences, weak financing, and remoteness from U.S.-based media, all matter less and less each year.

Canadian musicians are being liberated from middlemen and corporations. The sooner we realize that the rules have changed, and start rising to the new opportunities opening up for us, the better off we'll be.

Tom Stewart, a 20-year veteran of Canada's music scene, leads the Ottawa-based, alternative country band, Slo' Tom and the Horseshit Heroes, which released its first album in 1999. He also played bass guitar for the punk rock band, Furnaceface, which has released five albums. All his music can be downloaded from the Internet.

Awsome, now we need you, Tom, to get all your music buddies together and lets have a benifit concert with thousands of fans to usher in this new era and see if the press would cover it.

get this guy off of here....he makes too much sense

I agree with the way Tom looks at it, I create Independant films, and P2P is the greatest distribution tool to come my way. I look at it in the sense that if someone downloads my movies or soundtracks for free, a % of them will actually go out and buy my movie. If only .5% of 93 million people actually buy my movie I will be very happy. But even if they dont, I can still have the bragging rights that 50+ million people have download and watched my movie.

Funny you should mention this, compmore. I am currently in the process of getting a ton of bands I know, signed to Indie labels, major labels, and no labels, to join me in putting on a free concert for thousands of people around where I live. I'm pretty sure you'll hear about this when it comes about. I'll send some information to whoever will promote it when it has been put together. I'm using it as a dry run for festivals I'm putting together in the future (they'll be under the same name as each other and twice a year). Right now, I'm looking at close to 30 bands guaranteed to show up.

Good to know there are actual musicians who come here and see the advantages P2P distribution can bring. I can see typing a note in an MP3s ID3 tag with something to the effect of, "Like this tune? Go to our site where you can buy lossless versions of this and many other songs of ours." You could also provide a way to buy CDs and set up a paypal-type way for people to give donations in the event the MP3 is good enough for them (as well as maybe provide a page that explains your philosophy about music distribution and takes a good hard stab against the current music regime ). Since cost of distribution in such a scenario would be very low, the price would likely be agreeable to the band and the fans. Sure the paid-for files might be shared over P2P, but I would be much less likely to share out the paid-for versions of music from a band that 1) I like and 2) gives their fans options. I'm not against the idea of paying for music; I just want to make sure the money goes to the right people. Sorry if this would be more appropriate in the forums.

We need artists like him to get together, not just for a concert, but to say aloud that the RIAA and its international clones do not speak for them as they claim to.

Since I don't have the time to do it, nor do I think it is an idea to be patented, my P2P distribution model for bands, that will still allow them to sell some CD's.

Record your music digitally, offer it for free over P2P or for download off of a web site, keep track of which songs are downloaded most. When you have a good idea spend the money and time to put together a nice collector's edition CD compilation with good photos and maybe a short insert book. Produce a limited number of these, perhaps signed and numbered and sell them directly at auction on Ebay, set your minimum bid so you don't take a loss on production.

It's nice to hear a musician speak out. This is what the RIAA/record companies do not want. the artists turning against them. I recently went to a Mettalica concert and Lars Ulrich and James Hetfield spoke a little about it. They said they are not against their fans getting their music, but they asked them to wait till the CD is released....i guess they realized not to piss off their bread and butter.

This article gives me hope. We need more musicians to rally to the cause. I'm a huge David Bowie fan. With a large tear in my eye (sniff, sniff), I sent an email to his official site letting him know that I unfortunately have to boycott his new CD if it is, in anyway, affiliated with RIAA. I also offered to send money directly to him. I know that this offer won't be accepted, but I made the offer to make a point. Most people don't mind paying for music if 1)its reasonably priced and 2)more money goes directly to the artist. ITS TIME TO CUT OUT THE MIDDLEMAN!!!

There is a problem with free mp3 downloading for the little guys, though. There are so many bands out there all trying to make it big, and some of them are good and some of them are not. The best way to determine their popularity is to look at their sales. With everyone downloading free copies, there are no sales figures for a struggling band to make it big.

I'm taking from the mouth of a friend who's in a band trying to make it, have 2 cd's released in stores, tours the US doing concerts & performances, mainly focused around the Chicago area as that's where they're from. They're upset with mp3 downloading because so many people like their music but they have no proof of it, and as such are not making any advances in the music business.

Once you are already an established, popular band such as Grateful Dead, Phish, etc. it's a lot easier to allow people to copy free mp3's, but for a starting band, they do need the proof of popularity first, to elevate them above the rest of the pack.

Moral of this story? Just understand that there is a down side that does need to be addressed.

dakota81:

"They're upset with mp3 downloading because so many people like their music but they have no proof of it, and as such are not making any advances in the music business."

Why are they upset at p2p? This makes no sense. They should be upset at the system that discounts popularity through p2p. You are basically reiteraring the RIAAs position that people download but never buy. Nothing personal, but maybe if they aren't selling very many CDs, they aren't superstar material.

I wouldn't take that hardline of an approach Urethra901... because I can see the frustration of someone who is unknown trying to break into the p2p market. I mean, if you name your band Flambogaskets or something, how many people are just gonna type that into their search?
On the flipside, I am *POSITIVE* (like I would bet any amount of money on this) that p2p "tracking" software or companies will emerge that will, just like download.com, amazon, gamespy, and just about any other credible shareware/freeware download site, track the downloads of certain songs. They'll have a "newest" section, a "most popular section", probably a "what the guys with the money want you to hear" section of paid ads, stuff like that. This will give the new guys a chance to be heard by a few (from the "new" section) and if they are really liked, it will spread in the chatrooms and they will be downloaded a lot, making it to the "Top 40" section, or whatever.
You get the idea.
There will be means for new artists to get heard - those means just haven't been developed yet... but I would bet money on it in a heartbeat.

A little off topic..but..cnn.com has a story about the "do not call" list. There is a quote from Billy Tauzin (R-Lousiana) "50 Million Americans can't be wrong". Well, there are about 60 Million people using P2P. This is what the people want. Sorry RIAA but you can't beat that. Adapt or die! Its "natural selection" for the entertainment world!

"I mean, if you name your band Flambogaskets or something, how many people are just gonna type that into their search?"

The best way to start is to do the dirty work yourself. Spread the word to your friends, and their friends, and so on. Get a small fanbase going and have them share your material on KaZaA.

Now here's the secret to getting noticed: Covers. If you do some cover songs of more well known bands, they will be caught in the fish net as people are searching for that song. They might see your version and decide to listen to it. If they like it, they'll find more stuff that you've done. It might be a slow start but it's relatively easy, and the better of a band you are the faster you will grow.

Also, getting local gigs can help your popularity just by getting your name known. Join online communities like DMusic. There are lots of ways to get people to type in your obscure band name.

Sites indexing new, popular and niche music available on P2P and sites such as Dmusic and IUMA would be very good for finding new stuff, as per MikeTwo's comment. It's too easy to think of P2P as existing in a vacuum. To really do things righteously, an entire virtual infrastructure would need to be implemented. Parts of it already exist (P2P, indie sites, etc) but the trick is to find an effective way to link them together. Of course, certain entrenched entities would very much hate to see their rich middleman status disappear, so they have to be brought down a few dozen pegs first.

UNDEATH --- Cool!!! you rock

Take a look at the article on cnn.com (entertainment) about Michelle Shocked. See how she got totally screwed by her label. I know artists see "getting signed" as a benchmark or even a must in their career. But come on, is it really worth it? At least she was lucky enough to have a clause in her contract that reverted all of her material back to her after 10 years. I just don't know why musicians would want to compromise themselves this way. They have no control, creatively or financially. Oh yeah....CHA CHING! They are looking at the dollar signs. They think they have "made it". I hope more musicians start realize there is an alternative.

Off topic in a sense but i still think we should pay for music, but not nearly as much as we do now. If there was a network of perfect 128kb rated MP3's with a very good selection of music then i would gladly pay 20 dollars a month if we could burn cd's. Then depending on how much an artist has been downloaded a 50 percent chunk of the pie goes to them. Simple Enough..

Wake me up when CD sales are down 100%. Then the parasitic recording industry would be forced to get a clue.

Canada rules. Maybe more Americans should move there and send a message to the fascist, corporatist, Mussolini-type THUGS who run American companies and government.

Good article Tom, you have joined the ranks of such Boycott members as CodeWarrior, Indepentm, Gziemen, and me(I wish). We need more like you.

and Seraphielx...

That whole article made too much sense. I must have woken up in another dimension today

OK, is there an internet station that plays all Indie????

Please inform us who are less knowledgable.

Good article pepe, now if you own your copyright perhaps you can post a few freebies here at Dmusic, and have Dmusic sell your CD mail order for ya. This is THE new formula that makes me glad I didnt sign when it was in front of me.
Gwen said "I know artists see "getting signed" as a benchmark or even a must in their career. But come on, is it really worth it?" No, its not. With todays technology home recording is easier then ever, distrubution online is easy and theres a lot more profit for the band with much cheeper CDs for the fan.
Not long after not signing I gave up on music as a living (I sobered up too lol) but after popping around Dmusic Im expiramenting with recording and starting to practice everyday again.
Some of the artists at Dmusic may appear amature (like myself), but be sure many are in working, touring bands and using the site as promo and distrubutor.
"OK, is there an internet station that plays all Indie????" This leads me to believe quite a few are posting from boycott-riaa.com or another sister site, your username and password are valid at a large list of sites including Dmusic.com where you'll find Dmusic radio.
Poke around Dmusic, read the legal stuff that says you get to keep your copyright, see what services they can offer you as an artist, as a fan or as some recording equipment loving geek lol
Plz plz plz can an Admin correct my spelling?!?

it DID NOT go down 30 percent. probly just 5 percent.

I couldn't have said it better. Electric Gypsy songs will always be free to download. Our CD "Under The Covers" is FREE for the asking. We make music for the art and joy of it! We record it so others can hear what we do. Many folks like our stuff and some will eventually reward us by going to shows, buying our "commercial" CD's or other merchandise later on down the road. But even if nobody ever paid a dime for our music we would still make it. The decades of music industry greed are comming to an end because the "industry" itself will succumb to our better ways of doing the business of sharing music with the fans.

Get yer free music!
http://electricgypsy.iuma.com

Shmoo, of Electric Gypsy
Support Local and Independent Music!

"is there indie internet station??"

Hey, surfside, there are MANY... if you are at the boycott-riaa site, just click one of those links over on the left for starters.

Shmoo

dakota81

"With everyone downloading free copies, there are no sales figures for a struggling band to make it big."

While I have to agree with what you are saying, I also have some reservations.

The music industry makes only a limited number of cds per artist. If they think the public will buy more, they make more. Case in point, Best Buy has a fairly large selection (genre challenged, but large). I found 1 cd from Nightwish (Wishmaster), while there were 38(!!) copies of Linkin Park - Meteora. I like some of Linkin Park's music (3 songs on Meteora), but the rest of the cd (imho) is not worth a dime.

The music industry floods the market with what they perceive to be the most popular of each genre, but (some of) the good bands don't get any exposure.

I did not find any cds from any of my favorite bands in the Progressive/Power Metal genre. Bands like Vanden Plas, Symphony X, Edguy, Angra, etc. get absolutely no exposure in the US. P2P is great for them, 'cause you can get their cds from their websites. Most are not signed to riaa labels. Small European labels have them signed.

In short, P2P is a great tool for the struggling musician, but an evil entity for those in the riaa's pocket.