The thing about everyone in the industry who is fighting piracy is that every time someone blows the horn on "how the majors are going to stop piracy"  a new kill method is developed.  As the RIAA is spending thousands of dollars in suing and stopping people from illegal file swapping the latest non-stoppable trend has lanced and they are called Jump Parties.

In the pop sector, kids are getting together and swapping files at these parties with their jump drives.  Some of the people call this iParties.  Though without a doubt it wont have the direct impact of thousands of files getting swapped via internet, but nonetheless, another way to defeat the non-piracy mission.

So I guess it's coming to pass........in the old days music was heard and shared around the camp fire.  Looks like history repeating itself, no? 

Message to the industry who is spending thousands to prevent piracy; if you throw a rock up a mountain it's going to roll back and slam you in the head.

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The <G> Blog Of The Day.......Amazon Doing The $.89 Dance!

This is without a doubt the biggest sign that the record biz of winters past is on it's last legs.  Amazon just launched the non-DRM music download section with over 2 million tracks from the price range of .89 to .99 and fill downloaded CD's around $7.89.

This is going to strong-arm iGuys to change their format and force the old school industry to the last breath. The only way that today's top majors are going to survive is if the turn themselves into advertising agencies and attach products to there artists.  OH WAIT: that's the biz model I'm working with three labels right now......

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The <G> Blog Of The Day.......Is It Me or What?

I have had plenty of discussions with many mucky-mucks about the future of the industry and they all seem to come up with the same thought process about the future; charge more for downloads and partner with gadget companies. How is it that they think you can up the rate for something that is devaluing each year?  Fucking morons!

Is it me or are major labels spending a ton of money devising new marketing techniques to re-purpose old product and not concentrating on new artists. 

Is it me or are record companies desperately running for partnerships to make stock holders feel like something new is going to pop? 

Is it me or is it that obvious that while the younger decompressed demographic are giving away the music while it seems like old money is scrambling to secure the Titanic? 

Is it me or do all these major record companies think that they can secure the whole world for $.99?

Is it me or should record companies be thinking about expanding their artistic stable by releasing products with 50% less of blown out production overheads?

I guess it's just me..........

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The <G> Blog Of The Day.......RIAA's Digging A Hole In Water?

Here is a recent headline on a website I just came across -

The <G> Blog Of The Day.......Download The Math

This is a response to an email I got asking "How do digital distribution companies really make money"?

If you have looked at a digital distribution deal, you (in general) know that out of the $.99 that your song is sold to the consumer, you're going to get anywhere between $.50 to $.59 per unit.  Of course, the digital distribution company is assessed a process fee for the "Financial Transaction" by the credit card companies and other percentage-of-purchase charges in the motion of the purchase; roughly $.30.   So it would seem that there's $.10 left for the DD, right? That being said, here we go:

The following work-out is based on you (record company/Artist) signing a deal that you're getting $.59 per unit sold from the digital distributor.

If Joe Consumer buys one song at $.99 and you get $.59, the distributor only makes $.10 (minus the $.30 "Financial Transaction" fee).  Pennies to the dollar considering what goes into building a digital distribution company.

BUT, how much will the distributor make if Joe Consumer buys your whole CD with 10 songs? 

The answer: $2.80.  There's only one "Financial Transaction" fee to download 10 tracks in a single purchase.

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The <G> Blog Of The Day....... Sell CD's Like Hotcakes?

So here we are again and UMG is "Trying Something New".  Recently released information says that UMG is going to releases a short round of tracks released as Mp3's without DRM restrictions to test the environment.

IMO, the problem with that line of thinking is that the fluctuating line of decompressing demographics will make it harder to solidify the "new ways" to secure sales while trying to cut down on piracy.  Look, the music industry pancake only has two sides; one is the younger demo who thrives on rip-and-run mentality and the other is the honor system of pay to play.  That side of the pancake is attached to what I call the tangible demo.

That demographic is the 35 and over who still has an essence of purchasing goods they can touch and are slow to jump on the online wagon.  As this demo gets older and is pushed out of the online purchasing sector and the Uber demo is blowing up and all about illegally downloading and sharing units, there's going to be a shelf life to the above approach .......I'd say 5 minutes.

IMO, this is allot of time wasted on finding new ways to flip the same pancake instead of working on new batter to make the pancake better looking and better tasting to the consumer.  The music industry is in dire need of a "feel good" campaign! Give a little get allot.....

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The <G> Blog Of The Day.......Front Loading Record Contracts With Product Endorsements?

Yea, like this wasn't going to happen real soon.  Recent news of artists being attached to certain alcohol products didn't shock me at all!  Actually, it's probably one of the best moves I've seen from a corp. record company yet!  Amazing; they got it.

In 2000 I was asked to participate in the development of a new label based on a "super structure" of out of work "but did allot of stuff with my career" execs.  After a circle jerk of how powerful everyone was and what the plan was for this super label, I turned my head, grabbed my junk and coughed checking for a hernia after laughing my ass off on their "ideas" on making this label fly.  But in turn, I got laughed out of the meeting when I said the following:

"You're focused on the wrong thing here.  Signing an artist to a record deal will kill you before you get out of the gates.  Sign the artist to a management contract that incorporates a line item function under the promotional budget that is dedicated to producing a CD.  Then pre-attach product endorsements to these deals and utilize those monies to produce the CD and prepare for 2nd & 3rd points of ancillary income. Taking15-20% of the artist gross all-in (touring, merch, music) will secure a longer shelf life of income for the company"

Well, here I am in the middle of 2007 and you can't imagine what I'm thinking for the real future of music now...... In my mind, the music industry is only 200 feet down in a 2500 foot diamond mine.

Oh yea, the label never got off the ground......

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The <G> Blog Of The Day.......So......$1.29 Per Track?

Okay, so now all these new digital distribution companies (Google, Wal-Mart, Best Buy Digital Music Store, Rhapsody, Transworld, Passalong Networks, Amazon.com and Puretracks) are talking about non-DRM units being sold for $1.29 claiming better quality downloads.  What a crap message that's going to send to the consumer IMO!

So what their telling Joe Consumer is that what they bought for $.99 was a lesser quality product than expected from companies that are professing best quality production?  WTF!  Don't you think that would exacerbate the "screw you" mentality of the younger demo who's already forcing the hands of the top majors by the shear numbers of illegal downloads and re-selling??  Once again, the new machine is trying to run on old gas.  Flip the script people!

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The <G> Blog Of The Day.......Music For FREE?!!!

I got a few emails form artists saying that my video about "Will It Be Free" looks like I'm an advocate for free music and had a bad attitude about the future.  Okay, cool.......but did you really listen to what I was saying?

It's not that I'm advocating that at all as much as talking about the programmed devaluation that the consumer is getting from the types of product marketing which include "Free Downloads".  Remember, I too make a living on royalties paid from the licensing's/sales of my music.  I believe that there is a way to keep the integrity of that system in tack but only if the overall marketing machine of the industry goes through a rinse cycle and re-designs the approach.

But IMO, stay the same course and unfortunately the biz of selling songs will stray into the abyss of lost leaders which of course effects publishers and writers.  The worm has started to turn......

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The <G> Blog Of The Day.......Ring Tones On Their Death Bed

Okay, easy everyone.  I had a publisher say I was out of my mind on my video about "Ring Tones Getting Rung Out". This lady said that it was a very important stream of income for publishers.....and she's right.  But once again, I look 12-18 months with my rants and based on advancement of gadgets and for that, the ring tone shelf life is getting tight.

IMO, in about 2 years there is going to be an economic attachment to those who are only using cell phones that play G3p ring tone formats.  In other words, the hard working blue collar consumer that struggles to keep a cell phone in the future is going to need to get perks from artists instead of feeling raped every time the want a ring tone. Get it?

Like I said in my video, giving away the ring tone in the future will have a solid impact on data mining and future sales if done right.  By that time, publishers will have a new delivery format to exploit......so I'm thinking.  So relax.