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Elwood P Dowd

(11,443 posts)
Mon Jan 5, 2015, 03:11 AM Jan 2015

How Wall Street Destroyed The Music Business


http://www.positive-feedback.com/Issue76/records.htm

<snip>

But just as money attracts money, money is addictive: shareholders want to see constant growth, and a steadily improving stream of quarterly reports. They get used to it, or they get gone. And the 1996 Telecommunications Act opened all doors to all comers. Company after company was purchased, merged, long-time employees dumped, profits extracted. Competition was reduced. From the Common Cause report: Unintended Consequences and Lessons Learned - The Fallout From the Telecommunications Act of 1996: "Instead, the public got more media concentration, less diversity, and higher prices."

<snip>

The next couple decades saw a transformation into major business by many familiar changes, small and large. One of these phenomena, which ultimately affected all sorts of businesses, was the rise of the MBA, the educational stream that taught enormous numbers of uncreative thinkers that making money was an end in itself. If I were to meet someone who argued that this was the primary trigger that began our downslide, they wouldn't get an argument from me. Where money was to be made, MBAs infested it. But the gradual assumption of decision making power by MBAs in record companies was barely noticeable at first.

<snip>

There are of course sound ways to apply the shareholder approach to business; I'm not arguing against the entire system. But when either the executives or the shareholders themselves have a specifically short-term definition of interest, when the value of and for the customer that supports the profit isn't considered, then the system breaks down, and breaks the industry down with it. A business, no different than any other kind of organism, completely reliant on the health of the environment it functions in. When the business damages its own environment, it can't expect to survive in good health.

<snip>

For myself, for other musicians, I have no predictions for what the future will bring. Last summer I saw my friend Rosanne Cash give a talk and when asked about the state of music her reply was that there is no money in recording royalties for musicians anymore, only on the road. But the Great Recession has taken a toll on that too.

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JDPriestly

(57,936 posts)
2. The music business, that is, the business of music, has changed many times over the centuries.
Mon Jan 5, 2015, 05:56 AM
Jan 2015

And every time it changed, it reflected a deep change in the social and economic organization of the time.

Monks sang Gregorian Chant in their monasteries.

The Germans began to organize orchestral music that involved a conductor. The musicians all played at the same time. That was a big step if my music history classes many years ago were correct.

We moved on to a situation in which musicians were sponsored by the nobility or continued to work for the churches.

Then around the time of Mozart and especially in the Beethoven era, musicians moved out of the castles and became independent. We entered the age of capitalism.

Technology is changing our social structure. The music business is necessarily changing to accommodate the new structure. Who knows where it will go?

The music industry is just reflecting the changes that are occurring generally in society with regard to the employer-employee relationship. It's changing, but who knows what the next step will be.

Funny. My husband and I watched a good movie on Netflix called King of Devil's Island. My husband admired the fact that it seemed that everyone involved in the film from the main actors to the direction (great) to the extras seemed to want to work together to make a really good film.

Maybe group efforts will be the employment, the work organization of the future.

We moved from the feudal era to an era of entrepreneurship. We seem to have moved from entrepreneurship -- independent entrepreneurship into capitalism. Our economy is now dominated by corporatism with a some (maybe more than we realize) small business entrepreneurship surviving from an earlier era. But the insecurity in the workplace that all workers, not just musicians, are having to deal with is challenging. Who knows what is next?

Musicians have to adjust to the new economic realities like everyone else. But they have gone through it before. Music always survives.

 

Bluenorthwest

(45,319 posts)
5. King of Devil's Island is a good film, not sure it was made under any collaborative methods but I do
Mon Jan 5, 2015, 09:49 AM
Jan 2015

recommend, if you liked that one, both 'Mirush' and 'Cross My Heart, Hope to Die' from the same director, Marius Holst. Also good films.

Nye Bevan

(25,406 posts)
4. I remember the days of paying $20 for an album to get the one song on it I wanted.
Mon Jan 5, 2015, 08:52 AM
Jan 2015

But I am not convinced that it is "Wall Street" that is responsible for those days being over. My understanding is that most artists never made significant money from CD sales, and that most of their income did, and does, come from live performances.

Initech

(100,081 posts)
6. No it's the record labels and the traditional distribution methods.
Mon Jan 5, 2015, 10:50 AM
Jan 2015

Artists are realizing that they can make more money than they ever could by bypassing the traditional distribution methods and releasing the music directly to the fans themselves. The record labels know this and they're actively fighting back against the new methods. That is what is ruining music kn its current state.

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