Seduced by fame
A moth into the flame

I have been listening to “Moth Into Flame” on Spotify daily. I must say it’s one of the their best songs written since we entered the 2000’s. The structure of the song, the brilliant intro, the lyrics, the barking verses and the melodic chorus all stand out.

Infamy
All for publicity
Destruction going viral

It could be about anyone in the entertainment business. Hell, it could be about Metallica’s Napster lawsuit.

For “Hardwired… To Self Destruct”, I like the lyrical message and the story behind the title more than the song in itself.

“Fifteen years ago, when you put out a record, there was a particular way that you did everything. Now it’s just whatever works for you. We’re in the process of putting a new record out this fall, and we’re just doing whatever we feel is right. There’s no particular way that it should be.”
Lars Ulrich – METALLICA

The last time Metallica released an album was in 2008. First week sales of “Death Magnetic” in the U.S market topped half a million units. But back then, streaming didn’t exist in the U.S market. It also didn’t exist in the major European and Asian markets. Now streaming makes up a large portion of the record label revenue however the price points are still debated. The customer has the option to purchase an album digitally, purchase the album on vinyl or CD, subscribe to a paid streaming service, subscribe to Spotify’s free tier or illegally download the album for free. Depending on the country you are in, the price points range from $0 USD to $10 USD.

As the Forbes article states, there is no alternative price in between even though research has shown that a $4.99 USD monthly subscription fee would convert the 60 million free tier streaming users into paid users.

What is better for the recording industry, 30 million users paying $9.99 USD a month or 90 million users paying $4.99 USD a month?

Do the math.

30 million paying users at $9.99 = $299,700,000

90 million paying users at $4.99 = $449,100,000

Metallica are masters of their own destiny, masters of their own recordings. For them, they do not have the high risk unknown that other labels have. They do not spend close to 20% of their revenue on artist development. They can negotiate their own streaming rate with Apple Music, Spotify, Amazon and Google. But they still do it the old way, taking time out to write and record 10 plus songs for a release. They will still judge this album on amount sold, instead of the amount streamed.

The article at Forbes, states what the record labels of the future would look like in six bullet points and one of the points is an artist-run record label.

Metallica own their masters. With the help of their management team, they have set up their own label. This gives the band negotiating power and it allows them to monetise their masters for the best price possible. Spotify has Metallica on it and it was on Metallica’s terms. You don’t hear Metallica complaining about the lack of money given to them by streaming services. Actually Kirk “I need a wah wah pedal for leads” Hammett might complain.

“Back in the day when Sean Parker and Shawn Fanning approached the music industry with a little baby they had called Napster, and the music industry refused to entertain any kind of deal with them on any level. Instead they open-sourced it to the world, and that changed the face of music. And so the industry’s reluctance to go with technology back in the day is something that we’re all, unfortunately, suffering from to this very day. Thankfully, the industry has seen the error of their ways, and they are embracing digital and technology on an unprecedented level, and we’re going through an adjustment period. It’ll take time.”
Dan Draiman – DISTURBED 

Instead of working with Napster, the recording industry got Lars Ulrich on board and went to war against the consumers of music. But in 2016, the recording industry is at another crossroad. It needs to decide on a price point for streaming that converts the 60 million plus free users into paid users. But the record labels want an increase in the current $9.99 price point. As far as the labels are concerned, it needs to be more.