I was sent an interesting article today about the music business and wanted to share it. I thought this was the perfect way to get more active in blogging again.

This article leads to another announcement regarding Warner Music Group and its shakeup.

As you read below think about “Where do we fit as …a fan, an artist, a champion of independent music, etc” and share your feedback.

Here we go:

The big story today is John Mayer leaving Twitter.

This is not today’s big news.

I searched on Twitter and found out there was a fire in Benedict Canyon.

Today we get our information from one another.  Our news is personalized.  The only way to be successful today is to create a phenomenal product that members of the public embrace and spread to their friends.

Hype a crappy product and you might get some old wave press, but you won’t make any money.

So now, more than ever in the history of recorded music, THE MUSIC is most important.

Used to be the key was distribution.  If no one could buy your music, it couldn’t succeed.  Major labels controlled physical distribution.  You might be able to ship to an indie retail outlet, but try getting paid without a steady stream of product.  A hit could put you out of business, and did.

Now anybody can distribute on iTunes via CD Baby or Tunecore or sign with a digital label with major label ties so minimal fees.  So there is no major label distribution advantage.

As for marketing…  Labels have less to spend and it’s harder to get the message out.

Sure, it takes money to make it.  But you can record for peanuts and the money to build you doesn’t have to come from a label, hell, it could come from Coran Capshaw and his Red Light empire.  Or a fat cat uncle.  Or…

So the major label advantage means less than ever.  Which is quite a turnaround from the 1990’s, when inflated CD prices and MTV airplay rained down revenue.

NOBODY KNOWS THE FUTURE!

The Atlantic team are trying to invent it.

There’s no innovation at Sony.  None.

EMI is dormant.

And Universal is so old school as to still believe in one room education.  Hell, at Universal it’s all about the records, but it’s like the Internet doesn’t exist.  Other than the money-draining Vevo, Universal’s unprepared for the digital future. They just want to go back to the past.  But the past is never going to return.

The history of creative people running record companies is not good.  But that was back when you needed someone to oversee all departments.  To not only wine and dine the performers, but supervise distribution and radio promotion and marketing.

Now, radio promotion and marketing mean less than ever before.  You need someone who can speak music to musicians and can help them make great albums - meaning you need a great producer.

Rick Rubin is a great producer who could never make his own label truly work.  But if Rick Rubin were smart, he’d stop making those albums for someone else and start his own company.  So many of the acts he works with are no longer under contract.  If the Eagles could sell millions of albums with a virtual record company staffed by essentially no one other than Irving Azoff and Larry Solters, imagine how well Rick could do with Rubin Records.  Does he really need Columbia?

Or, to put it another way, does Weezer really need Interscope?

Weezer made a deal with an indie.  Sometimes it’s cheaper to outsource functions.  But I’m sure the band is making a lot more per record than it did with Interscope.  Meanwhile, to the untrained eye, there’s no difference, “Hurley”’s media presence is quite significant.

It’s now about 360 deals and marketing partnerships and…

Today’s executive changes are not seismic.  They’re a drop in the bucket.  The manager and digi label owner are king today.  And you don’t need a major label.  Everything’s up for grabs.  
But if major label want continue working in music, reinvention is key.  The old label President doesn’t even exist anymore.
The power of the studio guys is returning.

Meanwhile, the acts are on their own.  You’ve got to not only make the music but maintain contact with your fans.  No label can tweet for John Mayer, no one can create the message and the bond.

But know that you’ve got to create great music and utilize the new tools to maintain your relationship with your fans and hope they spread the word.

Fans create buzz, not labels.

There’s enough money for acts to survive, possibly make good livings.

Welcome to the new music business.
[1] http://www.wmg.com/newsdetails/id/8a0af8122af095c2012b11f35d830ead

Thanks to Kim Williams of Fanatix Agency for forwarding us this post and story