What the HELL?! pt. 1

I’ve been asked a few times about my view of the music industry, as well as the originality issues in Hip Hop music.  I’ve been wanting to address these topics anyway for quite some time so the requests came at the perfect time.

I’ll address them in seperate posts:

MUSIC INDUSTRY

Declining, decreasing, hurting, wounded beast….but as a whole (you decide on what you want to consider as ”the whole”. i.e. Major labels only, Majors and independents together, companies involved with music such as Wal-Mart, Live Nation, Amazon.com, etc.  There are exceptions to the rule, as always).

I believe major labels have been so accustomed to the “fame/in power” ways of things for so long that they forgot one major rule of life and evolution:  The only thing that’s consistent is CHANGE.  Nothing stays exactly the same forever.  You have to change with it or die (figuratively more than literally) and they are certainly dying a SLOW death…at least 8 years thus far.

Now will they disappear, no.  I don’t believe that…they’re just gonna hurt alot and for awhile until they can adjust.  They suffer from the classic ailment of too many expenses, not enough revenue, which is and always will be the death sentence of a business (I learned that over time personally, not from a book).

Majors have gotten used to “living the life”, that no one saw this coming, or at the individuals who could’ve made a change.  I would have to say that Negligence, Greed, combined with “failure to appreciate” artists with a sprinkle of Ego (“they will always need major distribution and label help, we’re a commodity, they need us”), created this situation.

I can just imagine some PAST dialogue:  “Yeah, I’ll meet you there.  Gotta’ go to Cali to see/hear this 18 yr old who’s supposed to be the sh*t, and should only take a few hours.  I’ll run some errands, send some emails, then meet you for dinner in Miami.  Plus, it’s Miami, I’m sure I can find something to do down there to justify it being a business trip.”  (Expense, no revenue.)  Or… “Ayo, going out to this club to do some “networking” for (insert label of your choice here)..call the homies and let’s meet up and be out by 11.  Don’t worry about sh*t, tonight’s on (insert label again).  Plus when you sit back and consider the label’s high failure rate of new artists compared to their successes…this pattern doesn’t help business…fast enough.

Now, don’t get it confused, SOME of that is necessary!  Not even I would be where I am if didn’t do SOME of that.  But the issue addressed here is SOME.  “Some” individuals feel it’s too much work to assess whether an outing, national/international flights, ballin’ or frontin’ -faking it, looking good on the outside- is good use of time or a waste.  Can what you’re going out for be handeled through text message?  Phone call?  Email?  Letter?  Do you really have to attend all 238 of your contacts’ birthday parties and buy them, their friends and yours, 2 round of drinks?  And come on, is it really necessary to eat PF Chang’s twice a day, 5 days a week, for 3 months?  Haven’t you heard of a sack lunch, dollar menu, or Lunchables?

When you have thousands of employees “nickeling and diming” capital, revenue, petty cash, plus the last 4 artists you signed plummeted…you do the math…it’s only a matter of time.  You have international offices, 200 employees with benefits, travel expenses, and disgruntled artists (from raping them without physically touching them which is even MORE disrespectful).  All of that comes to being or becoming Expenses or Liabilities…all things that cost you money instedad of generating it.  “The only thing consistent in life is change.”  Find a way to change with it or adjust.  Succeed or embrace your current state.

However, aspects of the industry aren’t doin’ too bad.  Independents are doing pretty well, collectively.  In fact, some major label signed artists are going independent because it’s a better deal for them.  They may not reach the same “number” of people/fans/customers, but retain more of the earnings and profits (if they conduct business properly of course).

Here’s a simple example: $15 CD with a Major, artist retains $2 (13%, and most artists don’t have it THAT good. you’d be surprised), and sells 500,000 copies making gross of $1 million.  Now before the artist sees any of that money, deductions are taken out for the studio time used to make the album, producer fees, and costs of RENTING the sexy car, shiny bling, and clothes used for videos and photo shoots (some artists have more to pay back, but hopefully this gives you an idea).  Then the artist sees what’s left over….then they have to pay taxes!  Can someone come out of shock to say “Sodomation!” (the act of getting screwed…take it how you want it).  Of course variables play a part in every situation.

Now, same $15 CD, except since the artist has more control, retains $9 AFTER using the remaining $6 to pay the expenses of the album, but only sells 150,000 copies vs 500k.  Gross total:  $1.3 million for THEM…then pay taxes.  (Now they may cry watching that money leave since it’s a higher percentage over a million, but the “sodomation” doesn’t sting as bad).  Each situation could be better or worse, however, this is a simplified example and variables play a big factor in case by case situations, so keep that in mind.

In other words…in the music industry, amongst majors and independents alike, the Rottweiler is wondering where the hell all these Chihuahuas are coming from, but hasn’t realized that the porch has been lowered.