EMI Fires Two Executives
The ever-changing record business has lost two more soldiers. EMI fired two of its top executives this morning because of a "slow" holiday season.
Here's the dealio:
CD prices have lowered in accordance with the explosion of mp3's (some legal, many illegal). Itunes keeps labels in the relative chips via its rocking store. The malady? Marketing costs have skyrocketed over the last ten years. Oh and did I mention that music is now fast food, hot today gone tomorrow, and we get fatter in the meantime? Does anyone really believe the majors when they issue press releases about the "most anticipated album of the year" due in a few weeks by The Shins? Why is it the most anticipated CD of the year? Because some marketing schmuck at Warner said so? Nothing against The Shins, they rock, but music has changed. Bands don't lead youth anymore, or at least they don't lead masses upon masses of kids with nothing else to believe in.
Conventional wisdom is constantly talking about how the labels need to "change" their business models. Well, buddy boy it isn't just the labels that need an attitude adjustment. Did you know that sleazy radio promoters still charge $15,000 to mount a promotion campaign that hits the 100 smallest US broadcast markets? No way those guys can get away with those prices forever. Also, artists themselves need to get a better handle on the business. Record companies should give all prospective artists an IQ test or at least a rudimentary business course.
Until marketing costs are brought in line with the economics of the record industry the majors will continue to bleed executives and dollars.
This year the majors will spend $5,000,000 on 50 bands and 5,000,000 bands will spend $50 on mylivepromoter. Hey, Myspace is a cheap way too promote, but who really goes there anymore? Myspace is on life support among the hip and websavvy. Any good myspacer knows how to ignore those "Hey check out my band's heartfelt ballads...." emails.
Bands like myself and others will continue to make interesting records at a cheap cost and keep spreading the love audience member by audience member until things shift.
Mr. Romano is a musician and the President of Avant Garde A Clue, Inc. and the founder of the AltEnergyTour.
Here's the dealio:
CD prices have lowered in accordance with the explosion of mp3's (some legal, many illegal). Itunes keeps labels in the relative chips via its rocking store. The malady? Marketing costs have skyrocketed over the last ten years. Oh and did I mention that music is now fast food, hot today gone tomorrow, and we get fatter in the meantime? Does anyone really believe the majors when they issue press releases about the "most anticipated album of the year" due in a few weeks by The Shins? Why is it the most anticipated CD of the year? Because some marketing schmuck at Warner said so? Nothing against The Shins, they rock, but music has changed. Bands don't lead youth anymore, or at least they don't lead masses upon masses of kids with nothing else to believe in.
Conventional wisdom is constantly talking about how the labels need to "change" their business models. Well, buddy boy it isn't just the labels that need an attitude adjustment. Did you know that sleazy radio promoters still charge $15,000 to mount a promotion campaign that hits the 100 smallest US broadcast markets? No way those guys can get away with those prices forever. Also, artists themselves need to get a better handle on the business. Record companies should give all prospective artists an IQ test or at least a rudimentary business course.
Until marketing costs are brought in line with the economics of the record industry the majors will continue to bleed executives and dollars.
This year the majors will spend $5,000,000 on 50 bands and 5,000,000 bands will spend $50 on mylivepromoter. Hey, Myspace is a cheap way too promote, but who really goes there anymore? Myspace is on life support among the hip and websavvy. Any good myspacer knows how to ignore those "Hey check out my band's heartfelt ballads...." emails.
Bands like myself and others will continue to make interesting records at a cheap cost and keep spreading the love audience member by audience member until things shift.
Mr. Romano is a musician and the President of Avant Garde A Clue, Inc. and the founder of the AltEnergyTour.
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