Bob Shedd, the man in charge of "Artist and Repertoire" for Revelation Records, an influential independent hardcore rock label, recently commented on surviving in a "post-file-sharing/post-Tower Records music retail landscape."As music listeners increasingly choose digital MP3s over the standard physical CD format, record labels and artists are being forced to adapt or risk sliding into financial trouble or irrelevance. With the ability to pick and choose the tracks they want from iTunes and similar music download sites, listeners are also eroding the viability of the full-length album as we know it.
He sees an "...inevitable displacement of cds with purely digital distribution, " though he would like to see some sort of DRM in place, despite his misgivings about it, that would prevent the "... massive sharing that seems to be hurting record sales." Shedd also notes that the record industry currently faces a big dilemma when it comes to reconciling the costs of music production versus the return on digital music downloads. "Record sales are dropping," he says "but at the same time the cost of recording, actual production and promotion are not dropping." He acknowledges that "Digital distribution is a growing reality...but there is a large leap to be made before the CD, as a format, is extinct." Until then, he refers to the current era as a "transitory period" during which time he hopes to "...grow and expand as a label." Shedd furthers: There are still labels working in what will soon be an archaic system of inflated recording budgets, and they’re competing with labels that are attempting to move towards this new era where there will have to be some balance of budgeting versus sales in a non “CD”-centric world. Vinyl is expensive on the production end, and with internet piracy / file sharing, there is no certainty that a record label could survive on digital distribution alone in their current climate.We have almost our entire catalog on iTunes, and I would also plant Revelation firmly in the crop of labels with a progressive idea of the relationship between label and artist and how that will be changing in the near future.I find it interesting to note the production costs versus the ability to recoup those costs with a non-physical CD format. Too often we cast aside music industry gripings about diminishing profits as the result of years of overpriced albums at last being reconciled with technological advances making true consumer choice a reality. But, the actual production costs of an album can't be so easily dismissed and is a very significant issue that consumers must take into account when digital music pricing is discussed. Sure Steve Jobs is adamant about his 99-cent downloads but, does this price allow artists to recoup the costs of making the track and allow them enough money in the end to invest in creating more? It's a curious subject for discussion that has yet to be discussed, and perhaps it's about time it was. In any event, it's nice to see at least one "music label guy," independent or not, acknowledging the reality of the future of music and the progression towards a "non CD-centric" music world. Looking for more stuff to watch or download?
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First, "He sees an "...inevitable displacement of cds with purely digital distribution, " though he would like to see some sort of DRM in place, despite his misgivings about it, that would prevent the "... massive sharing that seems to be hurting record sales."
It is DRM that is hurting sales in the first place! People have already said with their pocketbooks they do not want it, how much more will it take for labels to actually listen to what the consumer has to say?
Second, "But, the actual production costs of an album can't be so easily dismissed and is a very significant issue that consumers must take into account when digital music pricing is discussed."
The "actual production costs of an album" are largely inflated! This I know, because I am a musician and know about the prices of recording equipment. Years ago, it was true that a regular person could never match a music studio's equipment and that to actually make a vinyl record, involved a LOT of money, timeand equipment. There was simply NO way an average person could purchase all the huge tape decks, equalizers and effect machines they would need in order to make a decent album.....THEN you also had the cost of PRESSING a vinyl record which invloved a record pressing machine or having it sent off to be pressed into records!
Now...let's "fast forward" into today...today there are literally HUNDREDS of ways a person can have a home studio and make a CD quality album without the "middleman" or major studio costs involved. There are hundreds of DAW (digital audio workstation) programs for a computer, that even professional studios use today that the average joe can also purchase.
It is nothing for a home studio today to use a lot of the same recording equipment that major studios use. One of them being Stienburg cubase, which is great for editing.(NOT cubase sx, but the regular cubase program, though sx is agreat hoome tool)
My whole point is simply this: years ago it was not possible for average people to invest in some recording equipment and make a decent album, but today, it IS possible. Yes,the major studios have recording engineers, but there are recording engineers that also have home studios that would rival a pro studio.
So the reality for a producer of a professional album is that he has a choice today that he never had before. A friuend of mine recently did a whole CD with the drummer of Tina Turner playing for him and did it with TWO semi-truck trailers full of PRO recording equipment. These are the same guys that go to live shows and record things at places like the superbowl games. The whole thing cost about $40,000....which is not a drop in the bucket for a regular professiuonal album!
So of course a record company oewner is going to say that it takes a lot to make a CD, but then again, he is an owner of a recording studio! But in reality, the inflated prices that major and minor studios charge and what an album actually COSTS to make and distribute is FAR LESS than what they want to lead the public to believe it is.