It’s typical of the recording industry to complain about anything which benefits the consumer. They seem to forget that the profits they make is due to a relationship between the artist and the consumer. There is a zero relationship between the record label and the consumer. From the consumers point of view, the record label doesn’t even exist in their mindset.
So the labels license their music to various streaming services for a fee and then pocket the majority of the multi-million fee instead of spreading it to the artists, because hey, why would the labels compensate the artists, since it’s the works of the artists that give them the negotiating power at the table.
Apple is considering putting a bundle together that incorporates Apple Music and Apple TV. More subscribing customers who normally wouldn’t subscribe to a music subscription would increase the pool of money. But then again, how many people would give up their Netflix and Spotify subscriptions for an Apple Entertainment bundle. We wouldn’t know because no one does their due diligence. For the record, I wouldn’t give up my Netflix, Spotify and Amazon Prime subscriptions for an Apple bundle.
So all of this is based on feelings. And somehow these feelings from the label executives that they will be ripped off are not based on any research or evidence.
Read the article.
Of course, the labels will sell the story that if they lose money, then it would have a flow on effect to the artist. But the labels haven’t been losing money for the last 5 years, so why aren’t the artists getting paid.
And artists bash up Spotify, but no one is speaking up about these bundles that Apple is proposing.
There is a blog post over at Seth’s Blog about ways to grow. It basically states that if you persist and get the word out, you will be the same. There will be no growth. This is the record label model, do what they have always done.
However to grow, they need to change something, like enter a new segment, earn trust or do work that matters to someone.
But it’s hard to grow and help the artists when the label executives are dragged kicking and screaming into a new segment.
Steve Jobs convinced EMI to sign on for $0.99 mp3 digital downloads and the rest came, only after years of negotiations. It took 3 years for Spotify to be licensed in the U.S. and during that time, YouTube became the unofficial streaming provider. And then again, they had to get a stake in the company in order to give the approval.
Artists really need to have a look at what they are signing away, because the label doesn’t care for you at all.
If they did, they would be proud to enter new market segments which could lead to more income. Instead they are scared to lose what they have, so they persist and do more of the same.