Recently I was listening to a podcast in which Tom Silverman of Tommy Boy Entertainment was talking about the music industry and album sales. He touched on the idea of “buying songs vs. buying artists.”

When you go to the record store (wait, what’s that?  I thought those were mythical places that people only dreamed of) or iTunes, what music are you buying?  Are you buying the stuff that you’ve loved your entire life, or songs that you have heard ten times a day for the last three weeks?  Are you getting the Top 40, or are you getting the latest stuff that nobody else has heard of?  Do you buy music for the content and what the artist stands for, or do you buy it because it’s the coolest new thing?

A Look at the Numbers

The Recording Industry Association of America (RIAA) posts some key information on their website.  This is important when considering trends in the music industry because it helps show how different mediums or formats are doing in their respective sales.  According to the RIAA:

CD singles have decreased by 12.5% ($3,500,000 to $3,100,000) from 2008 to 2009, while digital download purchases increased by 20.2% ($1,032,200,000 to $1,220,300,000).

Full-length album sales for CDs decreased 21.9% ($5,471,300,000 to $4,274,100,000), while digital download purchases increased 18.2% ($635,300,000 to $763,400,000).

What does this mean?  It means that more people are buying digital formats over physical CDs.  As for overall sales, physical CDs are bought in full-length albums more often than singles, while digital downloads are more often single songs than full-length albums.  Physical CD full-length album sales still make up the majority of sales in the industry from a dollar standpoint.  I’m not going to get into it in this post, but there are many factors that impact these sales numbers.  When you’re comparing physical goods to digital goods, you really need to take into consideration manufacturing, shipping, and general overhead costs.  You don’t have nearly as much costs involved with a digital product.  Again, that is another post for another time!

Buying Songs

So, what exactly does “buying songs” mean?  To start, we need to realize that it’s how people perceive the music they listen to.  Is it a commodity like a bottle of soda, or is it a piece of art like a painting?  Let’s try to be objective while defining this:
If you listen to the radio, and especially Top 40, you’re being sold on songs.  Not artists.  The record labels do their research on various demographics and attempt to create an artist and sound that will appeal to that market.  Instead of letting the people choose by way of calling in to radio stations, buying tickets to shows, and showing their support, the labels are increasingly packaging artists to look, act, and sound a certain way.  Then they are marketed to a particular audience and pumped up on the radio stations.  When a 14-year old girl hears the same song over and over on the radio, she makes the assumption that it must be good if it’s being played so much.  People must be calling in to request it, right?  So what does she do?  She calls in and requests it.  Downloads it on iTunes.  And repeats the process with the next song.  She doesn’t buy the full album because she could care less about the other songs on the album.  The rest of the album isn’t being played on the radio.  That one song is.  And that’s what she wants.  Just like that pair of shoes or some McDonald’s.

People who buy songs listen to the radio.

How, then, does this impact the sales for an artist? For an artist on a major label, chances are his or her singles are being purchased much more than his or her full album.  The musician is not making money because the kids are only buying one song at 99 cents (most of which goes to the label, management, producer, etc).  The label gives the group tour support so that the artist can make a couple bucks doing shows, though.  So the musician goes out on the road to support his or her album, most of which a lot of people probably haven’t even heard because they only bought the single.  It seems as though buying singles wouldn’t be as beneficial to the artist as buying an entire album.  Or better yet, going to his or her show and buying the full album.

Buying Artists

People that buy artists are supporting them.  They show that they enjoy the art that these musicians are creating.  By purchasing full albums, we get to experience the full intentions of that artist.  Many albums are written that have a dynamic flow to them from song to song.  I’m all for buying a single of a new group if you’re not quite sure whether or not you like them.  But if you’ve heard the group before and like them, why not buy the full album?  You often get a discount, especially when you go and get the digital format.  On iTunes, single releases range from $0.99 cents to $1.29.  For instance, Timbaland has an album on iTunes.  ”Shock Value II” is 17 tracks (There’s also a 13 track album by the same name).  Each track individually costs $1.29, bringing the total of all songs on his album to $21.93.  But, if you purchase the full album, all at one time, digitally, you’re looking at $12.99 on iTunes.  That’s a savings of $8.94, or almost 41%!  It only makes financial sense to buy the whole album in that case.  Additionally, you as the listener become exposed to more of the artist’s creativity, hearing things you may very well appreciate even more than the single you heard on the radio.

So, what about fan loyalty?  How does that compare with the current Top 40?  If I show you that it’s on the top of the charts, then it must be good, right? Seriously, though.  Take 10 songs from the top 40 and pull them out.  Pretend with me for a second that these were artists you’d never heard of.  Strip away the large marketing budget.  Disable the Autotune on the vocals.  In many cases, the opinion of the general public would probably change.  (But now we’re getting into reasons why artists are artists, and that’s an entirely separate blog.)

Now, take your favorite band that is playing in your home town this weekend.  They work 9-5′s, practice in the evenings, and drive themselves to their shows every weekend.  They are truly talented musicians writing great music that really connects with their fans.  Why aren’t they in the Top 40?  Because the labels have determined that you won’t like them.  Or more accurately, they’ve determined that the 14 year-old girl who will buy the music won’t like them.  And by “determined,” I mean, “we have had our decision made for us.” And those decisions aren’t always based on quality of music as much as profit potential (again, an entirely separate blog).

Conclusion

So, is it better as an artist to push your singles, or your full album?   That depends, really.  It depends on how the pay structure is broken down, who you have to pay before you get paid, whether your fans are more likely to buy singles or albums, and a whole lot more.  One thing to keep in mind, though, is how iTunes works.  For example, Apple will not let you sell your album in its iTunes store unless you make each of the individual tracks available for single sale.  Which isn’t necessarily a bad thing.

Did you realize that there are artists who don’t release their albums on iTunes or break them down into single tracks?  Kid Rock, AC/DC, The Beatles, Tool, Jay-Z, and more have not released their albums on iTunes.  The usual reason for not selling their music on iTunes? They want their album sold as one piece of work to represent their musical creativity, not split into many fractions.  As a musician, I completely appreciate where they’re coming from.  Tool’s latest release, “10,000 Days” is a perfect example of the previous statement.  After listening to that album I realized very quickly that they had written the entire album with each song in mind.  In an interview between Guitar World and Tool guitarist Adam Jones, they talk about the full album in this way:

“[The songs] start in one place, go somewhere else, and end in a completely different place altogether. It’s as if the songs are telling a story in a linear fashion.”

Think for a moment about the last time you heard a song on the radio, in a friend’s car, or in a restaurant.  A song you’d never heard before.  Perhaps you found out who that artist was and found them for sale online, only to realize that you had to buy the full album in order to get that one song that you’d heard.

Now, say you went on over to iTunes and found that same album for sale digitally.  But you also had the option to purchase the one song that you’d heard.  You buy it for 99 cents (or $1.29) and listen to it for a few days.  Then you go back to iTunes and buy the whole album because you liked that single so much.

Obviously it varies from person to person and artist to artist, but I do believe that it is a good thing to purchase singles and then go back and get the entire album. There are many positive benefits to buying full albums from the beginning. You become an invested fan; you almost feel a sense of  ownership in that artist’s creative output.  I’d say that the tendency to really hear the artist’s music increases when you’re listening to the other songs on the album, when you’re critiquing their work.  But what if you buy a full album and you’re sorely disappointed?  Well, first of all, you probably wouldn’t have bought the album if you hadn’t heard at least one good song you liked.  Secondly, you now have a well-rounded perspective of the band and who they really are.  Plus, at least you made that judgment call yourself–you were able to base your opinion off of your own perspective. If more fans were music critics instead of radio junkies, I’d guess that our world of music, as we know it, would be drastically different.

Conclusion? Stop buying songs and instead buy artists.   Support the artists that you like.  Don’t buy music for the sake of buying music, either.  Don’t get the song because you want to have it at the next party so people think you’re cool, which leads you to create a party mix of overrated musicians just because they get played on your local Top 40 station every hour.  Critique musicians like you critique ball players or actors or politicians. Get music that you like, that connects with you.  Music that moves you and makes sense to you.  Don’t settle for less.

Thanks for reading, guys!  Let’s hear your thoughts and feedback now.

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I’ve introduced you all to a number of different people and local businesses in this networking series.  For instance, I’ve written about a local legal blog, an FHA mortgage broker, an insurance quote blog, and a social media coach.  This week I’m writing about an inbound marketing expert.  And this guy really knows what’s going on regarding social media of Indiana.

If you’re online and have any sort of web prescence, you need to understand the importance of search engine optimization, or as it’s also known, SEO.  You don’t necessarily need to know all about SEO, but you should at least know someone who does.  And that person is Nate Findling.

The internet has transformed.  It is changing month by month.  Day by day, for that matter.  And we need to keep up.  If you are looking for a way to maximize your online presence, check out what Nate is capable of.  Todays internet, and our presence there, is much broader than just one url; now, all of our social media activity is a part of who we are online.  Our reputation and legitimacy.  Not all of us have a way with words that communicates our ideals fluently; that’s where a copywriter comes in.  Someone that can take your idea and concept and translate it into an understandable and comprehensible story.

Nate is that guy.  He can help your company or organization really reach your target audience.  In words they’ll understand.  Not only does he write for other people and companies, he’s writing a book of blues himself.  A book about the ups and downs of life, and how he got to where he is.  Where he’s going.  And everything in between.  As an internet marketing specialist for Chicago and Indiana,  he understands the importance of using digital media to help make his publishing dreams come to fruition.  Don’t think for one second that because you’re writing a book for print that you don’t need a solid and sharp online presence.  Let Nate take a look at your situation and set you up for a successful journey.

If you have a website for your company (and if you don’t, you should), you need to talk to Nate about how to maximize the potential of your site.  You, like many others, may not realize the full potential of the content on your site.  Nate Findling can and will.

Again, thanks for reading.  We’re all in this together, so why not take a few minutes every day to get to know those around you?  You never know when they’ll come in handy.  Even if you never need their services or talents, they will bring a little joy into your life that would otherwise have been absent.

Cheers,

Josh Walker

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Have you ever listened to the radio and heard a song that just didn’t “deserve” to be there? Thought that your band should be? Well, as sad as it is, in this current state of the industry, you will never be heard outside of your friends. And you can thank MySpace and the internet for that.

It used to be that in the old days you could record a demo, put together a decent press kit, and ship off a few copies to the labels. They’d listen to them, and if you were good and what they were looking for, they’d give you a call or show up at one of your gigs. Or perhaps you were lucky enough that you were just gigging like you usually did and there was an A&R rep present who dug your sound. Things were good if you were a truly talented band. And if you did in fact get signed, you were set. Think of the artists who have been around for years. Aerosmith, Mettallica, U2, Led Zeppelin, Bon Jovi, and so many more. Then think of any artist today that will be around in the next 10 years still making hits. Or who will be considered one of the “greats”. You’ll be hard pressed to come up with more than 3. And this is sad.
With the advent of the internet, we thought that it would be easier to be “found”. Record a demo, put it up in (the disgusting) MP3 format with a few pictures, and then sit back and wait for the calls from the labels.

Those calls never came. So you improved your site, worked on your songs, and then sent them to the labels. Still, the calls never came. All thanks to the influx of mediocre garage bands. Don’t get me wrong. I think it is absolutely fantastic to have these outlets for your music. I wish I’d had access to them when I was younger. But it all seems too good to be true. A little misleading. You think you’ll be able to get your music to millions, and you’ll be rich and famous. You’ve got that next big hit, right? Well, sorry, but no, you don’t. Because no longer do we as musicians and listeners decide what we want to hear. The labels have taken it upon themselves to “research” the industry and see where the trends are. They take an artist who has visual appeal and market the life out of them. If you see an artists face enough and hear their name enough, eventually you start to think there must be something to them. They’re getting all this attention, right? Well, they’re only getting it because the labels are generating the buzz. It’s a self-fulfilling prophecy. And the labels will go to extremes to make sure the artist sells millions of records. If they don’t, the labels drop the artist or sell their contract to another label. And there is nothing the artist can do about it…unless your name is Madonna or you’re in U2. Then you can do whatever you please.

For you bands out there that are trying to “make it big”; stop trying. Start focusing on the market that you already have unlimited access to. Your hometown. Historically, hometown fans have been the base that really supports a band and show any prospective label that the band has a truly loyal fan base. This conveys hard work and determination on the band’s part. And those local fans will spread the word about your band so you can focus on playing. Why work so hard when you can have people do it for you? And other listeners and radio stations will believe a fans word over yours. You’re trying to sell your product. The fan doesn’t have anything to gain from promoting you, though, and this is evident to potential listeners, stations, and labels. Keep that in mind.

Concentrate on making good music that you’re passionate about. This is why you began playing in the first place. Don’t rely on anyone else to get you somewhere. You have to do it yourself. Good luck!

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For all you bands out there:  If you have music on your site, you should be VERY CAREFUL!  

If I were to go to your MySpace, listen to and like one of your songs, I could download it, figure it out by ear, record it, release it, and make millions.  And you wouldn’t get a penny.  You could even sue me, but if you don’t have it registered with the U.S. Copyright office, you’ll lose.  I could steal it, and then register it MYSELF.  Then, a judge won’t care what you say, because I would own the copyright.

In the world of MySpace, correct copyright is more important than ever.  That’s why I’m telling you this.  Here are the basics:

Is the “poor man’s copyright” (mailing it to yourself) valid? NO!

Benefits of registering your song with the U.S. Copyright Office

1. You can collect mechanical royalties
2. You can sue an infringer in federal court
3. If someone tries to steal your song, you have the best proof that it’s yours.

As the copyright holder,

you would then have the EXCLUSIVE rights to:

Reproduce the work
Add/remove/change the words, music, etc.
Do re-mixes
Distribute copies of it
Perform the song(s)
Perform the work publicly via digital audio transmission

YOU NEED TO COPYRIGHT YOUR SONGS

It’s extremely affordable and provides peace of mind.  Why wouldn’t you secure your songs and ensure that you’re safe?  If you have questions or need help copyrighting your songs, let me know.  It isn’t as difficult or time consuming as one might think; it’s all about knowing where to start.  Let me help you out!

Cheers.

Josh W

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How many songs do you have on your computer?  10?  50? Or is 1,500 a little closer?

If you own a computer and are connected to the internet (which, if you’re reading this, applies to you), you need to know how the DMCA can affect you.  And trust me, it can really affect you…just ask Jamie Thomas.  She had 1,072 songs and has been sued for $220,000 by the RIAA.

The Digital Millennium Copyright Act (DMCA) is a United States copyright law which implements two 1996 WIPO treaties. It criminalizes production and dissemination of technology, devices, or services that are used to circumvent measures that control access to copyrighted works (commonly known as DRM) and criminalizes the act of circumventing an access control, even when there is no infringement of copyright itself.

First, I just want to point out one of the big catches here.  “It criminalizes production and dissemination of technology, devices, or services that are used to circumvent measures that control access to copyrighted works”.  What this means is that any person, company, or oganization that creates a product (computer, MP3 player, tape recorder/CD player/burner), program/software (iTunes, Limewire, etc.), or service (broadcast), can be considered a CRIMINAL.  These products and services make it possible for people to illegally share music, therefore making them criminally responsible/liable according to the DMCA.

Now, sit back, take a breath, and ask yourself, “Does that make sense?”.  Honestly.  This means a 70 year old grandmother could be sued into the dirt because her grandson used her computer to download a song on Kazaa.  The kid could be sued, the computer manufacturer could be sued, the Internet provider could be sued, and the grandmother could be sued.  This is not a joke.  This is real.  With the current laws this scenario could easily happen.

Here’s how it works:  A person owns a computer connected to the internet.  They get on the internet and use software/websites to download a song, movie, program, picture, etc.  The RIAA is also on these sites by way of a company, “BayTSP”.  The company acts as another “user”, and when they see someone connecting to a bit torrent or otherwise interacting with another user, they copy the IP address of that user.  They then serve the Internet provider with orders to hand over the personal information of the user,

“In addition to limiting the liability of service providers, Title II establishes a procedure by which a copyright owner can obtain a subpoena from a federal court
ordering a service provider to disclose the identity of a subscriber who is allegedly
engaging in infringing activities. (Section 512(h)).”
-The Digital Millennium Copyright Act of 1998

and then serve the person with “cease and desist” orders.  However, the odd thing is that for this to happen a singe file never even has to be “shared”.  If you so much as connect to another person’s computer, whether intentionaly or not, you may very well be served orders.  When it goes to court, you are guilty until proven innocent.  If found guilty, the DMCA allows for a first time offender to be charged up to $500,000 or 5 years in prison and $1,000,000 or 10 years in prison for a repeat offender.  I hope grandma has half a million dollars in her social security account!

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Why the Major Labels are Major

Think about it…Do we as music listeners dictate what gets played on the radio? Do we really decide which songs top the charts? NO. The major record labels do. Can you just call your local radio station right now and have them play your favorite local band? NO. The major labels record, market, and sell the music they know we will buy. They push their label’s artists on the major radio stations, who in turn own the smaller stations. We hear it on the radio and think, “Hmm…it’s on the radio, so it must be good!”. And then we will call in and request that song again, and again, and again. Why can’t you take something down to the station and drop it off? Because that would take up air time for the major label artists.

Money is power. By giving them our money, we give them our power.

We pay their enormous paychecks…we fund their extended vacations to Rome…we pay the lease on their Ferrari…we pay the outrageous electric bill in their Malibu beach house.

There have been lawsuits and fights against the major labels…a huge organization fighting the common man…David and Goliath. However, if we were to rise as one unified voice and power, the common American music listener could bring the corrupt record labels to their knees.

How to Combat the Majors
My information comes from both research and personal instruction by credible people in the industry. I’ve learned how it has gotten this bad, why it hasn’t changed, and what must be done. There is a need for change; but, in order to start changing the industry, we need to first know why it is the way it is:The major labels have so much power simply because they are huge corporations with lots of societal influence, and they have plenty of (our) money, which they’re not unwilling to spend in order to get what they want. The record labels have a lobbying group to represent them and to speak on their behalf, known as the Recording Industry Association of America (RIAA). Whenever legislation or laws are being discussed in D.C. that effect the music industry (and believe me-it occurs much more often than you are aware of, which is something we will later discuss), these lobbyists are there to persuade the Congressmen. The Congressmen get fat and happy from the lobbyists’ money and other means of persuasion, which help convince our politicians to pass the laws in favor of the major labels. Because the average American is unaware of what goes on, and because the very few people who do know what happens don’t speak up, the major record labels are continuing to grow and monopolize the music industry with virtually no effort or consequence.
The average music listener probably thinks he or she has a choice of what he or she wants to listen to; to a certain degree, I suppose they do. But here is a staggering fact, literally straight from the RIAA’s website: “RIAA members create, record, or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States.”

If that doesn’t sound like a monopoly, I don’t know what does. The RIAA members don’t leave much room for the local bands, unless you consider 10% sufficient. As this blog continues, we will discuss other factors that contribute to the monopoly on music, but from this statement alone, it sounds to me like the major labels decide what is “popular”. Call me nuts, but I don’t think this is what the average music lover wants.

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