Music Industry Continues Decline, Ignores Solutions

It’s time for another “the industry is going to Hell” report.

Guess what? Album sales are down… again… still. Why Billboard continues to write this story is beyond me. Isn’t the word “new” part of “news?” Music sales are in the toilet and the industry is stubbornly unwilling, unable, or uninterested in dealing with the elephants in the room.

If the story is that stale, why am I bothering with it? As always, the devil is in the details. The headline itself tells us nothing we didn’t already know. The underlying numbers reveal some trends that give voice to the elephants being ignored.

For starters, digital tracks are growing while CD sales are declining. I am one of a handful of people who would be disappointed if the music industry woke up and followed the consumer trend. I am a devoted fan of music on a physical medium. I like CDs. I like the tangible object. I seem to be increasingly in the minority in this department. The digital market may have gone a little soft in this latest report, but it is still growing. There is a huge market for digital distribution.

This trend says a lot about the demand for digital, but I think there is another message hidden in that trend. I wonder what the music sales landscape might have looked like had the industry embraced the commercial CD single. It continues to exist in the UK, but was practically banished here in the states.

People not only like digital, they like the idea of a la carte, or the idea of being able to buy the song they hear on the radio before committing to buying the full album. Just like with digital, the profit margin is smaller but you keep listeners and keep people in the habit of buying music.

Music fans started feeling like they were being systematically screwed by being asked to pay $15-18 for an album without having heard a single song from it, or at most one song on the radio by the time the album was released. People were unwilling to do that.

Killing the single also effectively killed the genre-crossing guilty pleasures. For example, I was not a fan of Korn in the ’90s, but I liked the song “Freak on a Leash” (don’t ask me why, I can’t explain it). I don’t like Korn enough to buy the CD. I don’t like Korn, I like “Freak on a Leash.” The industry gave me the choice of $14.99 or nothing. I took nothing. They could have gotten a couple bucks from me. They didn’t get anything, either. Digital stores like iTunes now give listeners that freedom. I haven’t bought “Freak on a Leash” because I’m over it. I would have at the time and been embarrassed about it today.

Digital is not only becoming more and more the medium of choice, it’s becoming the shopping experience of choice as well. One place CD sales are actually up is in nontraditional retail establishments, which includes online retailers. What could the industry infer from this?

How about selection? Even before I had my final fit and swore off Best Buy, I was finding it increasingly difficult to find anything interesting in the store. More and more, I was going to online retailers like Amazon, CDUniverse, and CDWow. Now with Best Buy off the list there aren’t many decent alternatives in Huntsville.

Turns out, there aren’t many decent alternatives in a lot of places. Tower Records is kaput, FYE has closed several stores and so have other mass merchant music chains. Independent stores have been getting clobbered by competition for years and many closed long ago. In most cities across the country, your options for buying a CD are to go to one of the “box” stores or go online. If you have tastes that deviate far from the Billboard Hot 100, it’s to the internet you go.

Now selection is one part of the equation, but Amazon is not getting rich because they’re the only place you can find a copy of Otis Rush’s Right Place, Wrong Time or The Byrds’ Fifth Dimension. You know what else the compartive health of online retail compared to traditional retail tells us? The experience of buying music in the Wal-Marts and Best Buys of the world sucks so righteously people would rather order a CD online and forgo the instant gratification of buying it now than suffer an array of indignities shopping in these places.

Then, of course, there’s price. As a good friend of mine says, “In God We Trust, Everyone Else Pays Cash.” If fans thought prices at discount stores and chains like Best Buy were too high (and many of us do), it’s amazing places like FYE and Sam Goody are still in business. Their prices are atrocious! At a time when sales are declining, some of these places have actually raised prices. I’m not an economist, but something doesn’t add up there. I’ve seen them charge more for a used copy of a CD than what I could get it elsewhere new.

Here’s something else this report has told us that ought to shock you: rock and roll isn’t dead, but rap and country are.

That almost makes me swell with pride as rap and country have long been the banes of my musical existence. I take get massive amounts of satisfaction from their suffering. I wish I felt bad about that, but I don’t.

The only problem is… well, the rock that’s selling right now is mostly shit. I guess shit rock is better than hip hop or country at its best. It would be nice to see good triumph over evil, but I will settle for seeing record labels have to once again be reminded that people like rock music- even bad rock music like Nickelback and My Chemical Jacket Cab Boy-182. Even when rock sales decline, as they occasionally do, the genre isn’t the problem. The bands are. The way they are promoted is. People have been declaring rock and roll dead since its early days. It never goes away and it never will.

What we’ve established is that people like rock music and they are willing to pay for it. There are reasons for declining sales and ways to combat them. The music buying public still exists. Is anyone interested in serving it?

10 Responses to “Music Industry Continues Decline, Ignores Solutions”

  1. totally agree on all of this…except for the reflexive lumping of My Chemical Romance in with Nickelback. that last cd of theirs is a big pile ‘o fun.

    oh, and you know what else they never report about the music industry? cd sales are down….but the number of records released every year is down as well. maybe a chicken & egg thing…not sure there.

  2. The bigger question, to me, is why should we care? I’m not industry insider but my understanding has always been that even the biggest artist gets screwed in terms of profits made from record sells.

    The real money, they say, is from concert and t-shirt sales. If this is true, and I’m not all that sure it is, then screw the recording industry. Let the kids rip off the records, then let them go to the concerts and support the bands directly.

    With cheaper recording technology and places like myspace how much do we really need the big record companies anyway?

  3. PS did you know Guster was on archive.org? Streaming a show from 2005 as I type this.

  4. Mat, the reason to care is not so that the industry cats make more money. I could give a fuck either way. What would be great is if the industry, in an effort to restore its profitability, became more fan/consumer oriented. That’s what I am hoping for.

    With cheaper recording technology and places like MySpace, every asshole with a guitar thinks he can make a record regardless of talent. I’m no fan of the major labels but a little thinning of the herd isn’t so bad, if you follow me. There may be multiple ways to do that.

  5. you’re an asshole with a guitar….i don’t so you makin’ a record.

    ;-)

  6. on the reason to be worried (or not)…not that there are a lot of places to do this anymore (as josh documents), but quite a large percentage of my jazz/improvised music cds have been found in the middle of a random trawl throug the bins.

    not sure what i’d do if this opportunity went away. ‘browsing’ on the internet isn’t even close to the same experience.

  7. I wasn’t so much speaking of the end of CDs in full, but rather the destruction of the big corporations. I may be a little naive here, but it seems like we’re entering into a place where small niche record companies could thrive.

    While most people seem to be moving towards digital music, I suspec there will always be a medium for the real thing. Just like there is still a market for vinyl, though the record has been dead for decades.

    The open floodgates in terms of every asshole with a guitar being able to record can be filtered in better ways than the big record companies currently do it. I mean it’s not as if they aren’t releasing tons of crap already anyway. There are lots of cool groups out there in which to get turned onto good music.

    Take our little Mondo group. I’ve discovered lots of great music from you guys. True we’re all sharing music mostly released by bigger record companies, but who is to say this can’t happen for unsigned records on myspace? (in fact I’m sure it is happening)

  8. There’s only one of who has a guitar, and it ain’t me.

    Mat, I think it is a little naive. The big fish eat the little fish, happens every time. A band gets big on a niche label, it’s either going to get lured away by the big fish or the big fish will sign 10 just like it in order to try and get a piece of the action. I don’t like the way the record companies do business. They screw artists and fans. It sucks, but they’re not going anywhere.

  9. you may say that i’m a dreamer, but i’m not…

    nah you’re right. we’re always gonna be screwed.

  10. The Music Industry Parallel Universe: Welcome!

    I’ve been talking about the need to re-invent the music industry for nearly a decade now. Two years ago I called for the creation of a Parallel Universe music industry — an industry that understands and embraces the Internet. For too long I was frus…

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