Creative Destruction
“I have great confidence that we will have the best record company in the industry, but the reality is, in today’s world, we might have the best dinosaur.” Rick Rubin, President, Columbia Records
Having been in Europe last week, I happened to pass by a rack of CD’s in an Autogrill (a sort of European McDonald’s with real food, and a shopping center attached)– and to my wonderment, was actually able to spot the 21st Century dinosaur, right there in living color. Here was a whole section of new album releases by top superstars just in time for the holidays, each available for a mere 25 euro apiece.
Wait. What was that price? 25 euro? Isn’t that the equivalent of almost $40 USD? Like anyone who’s just seen a prehistoric creature rumbling through the shopping mart, I couldn’t help but shout in amazement:
What’s going on?!?
As anyone who’s seen my previous blog, “Water Into Wine”, will note, I’m not a huge proponent of free music, or ad-based models. I think music has a value, and we should be willing to ask people to pay for it. But $40 for a CD? When any 10 year old can figure out how to listen to the whole thing for free with the click of a button? What is our industry thinking?
Incredibly, my wife actually did purchase two new CD’s while we were away, thankfully at a price less severe than 25 euro: the new James Blunt album “All The Lost Souls” and Craig David’s “Trust Me”. While I’m not looking to play music critic, one could politely describe both records as imminently forgettable. They did however bring to mind any interesting question, albeit not a musical one:
Why are we making this stuff?
Not music– I think we can all agree that there’s still some use in that. But why do we keep making 10,12,14 song albums? Just because the Beatles made “Sgt. Pepper’s” back in the Sixties? Because Stevie Wonder made “Songs In the Key of Life” in the Seventies? Because it’s all the industry knows how to do?
This past summer, the Shop Boyz had one of the biggest hip-hop hits of the year, with “Party Like A Rockstar”. On the heels of that hit, they hurriedly slapped together an album, “Rockstar Mentality”, that failed to produce even a follow-up hit, much less any significant record sales. Mim’s “This Is Why I’m Hot” generated an album as well– but not much in the way of subsequent success. Why are we doing this?
What if rather than throwing together an album to capitalize on a hit single, the Shop Boyz or Mims had concentrated on creating just one more hit of the caliber of their initial single, and then selling downloads and ringtones of that new hit? And then doing it again, and again– one song at a time? What if rather than trying to push out an uninspired sophmore album in time for the 4th quarter, James Blunt had put out a reasonably priced, 4 song EP, with one song that actually measured up to his previous hit “You’re Beautiful”? Why keep making albums when there is no indication that an audience wants to buy them, or that an artist actually has enough to say to actually justify a 10 song collection? There is no law that requires this. We can put out any kind of product we want.
I just finished reading Alan Greenspan’s book “The Age of Turbulence”– in it, the former Fed chairman talks again and again about “creative destruction”: the way that capitalism allows old economic models, old businesses, old industries to be destroyed by new, more useful, more efficient ways of meeting consumer demands. It’s time for the music industry to read the writing on the wall at the Autogrill, and put the Long Playing Record album (and its $20 price tag) on the scrap heap– unless an artist’s vision really requires that format, and his or her audience demands it. Otherwise, let’s find new, more engaging ways to package music– ones that are competitively priced, and artistically appropriate.
Like every other business, the music industry is going to have to come to grips with creative destruction. Either we destroy the old dinosaur, and get creative about building a new model– or we watch the old dinosaur destroy a once creative business.
The definition of insanity is doing the same thing over and over and expecting a different result. Please– somebody stop the madness!
I agree a hundred percent with this article. So much so it inspired me to think about other business model possibilities for the music industry. Its sad to say but we humans have lemming like characteristics and we call the person that thinks different a genius. This is why genius is so attractive. Somebody will figure out the new model eventually, it will just take some time.
I agree with much of what you’ve said, but there are still performers out there who time and again throw knockouts; George Strait and Brad Paisley come to mind. Maybe James Blunt, Mim, and Shop Boyz were not as roundedly talented as their hit singles made them appear. Regardless of the format, the most talented performers, writers, and musicians will still thrive and the others will get their occassional hit.
Ike– I’m glad this got you thinking. I think alot of us in the business are racking our brains at the moment, trying to come up with some answers. It’s not that easy. But we do know that the current formula of over-priced albums doesn’t work– so there’s no harm in taking some chances on some new ideas.
Rico is right too. If you’re Kanye West, with a vision and a concept that requires the scope of a 12-song album, by all means, make that record. If you’re the Shop Boyz– then don’t. Certainly George Strait, Brad Paisley, or the Dixie Chicks have that breadth of vision. But Billy Ray Cyrus, to use a very old example, did not. What if he had just concentrated on making great singles, rather than cutting mediocre albums? We’re treating this business as a one-size fits all formula, and there’s no reason for it except lack of imagination…
Eric, Great piece very well put and great examples used. I know you are a very busy man and have alot going on however I am launching a website in January called Behind The Industry.com which will feature great advice, interviews, and stories shared by some of the industries power players. We will and have interviewed A&R’s, engineers, CEO, CFO’s, etc. and our main goal is to provide easy access to information that users may use to get ahead in the industry regardless of their field. I would like to feature either an interview or possibly have you write a piece about any topic regarding the industry as long as you have a strong opinion about that topic. I really like this article and possibly you could elaborate more on this and feature it on the site (or a painless interview will serve just as good for our viewers).
For more information and to schedule the interview or writing please contact me at brandon(at)behindtheindustry.com
Thank-You again keep up the great work!
Brandon– Happy to do something for Behind the Industry. I’ll reach out to you. Thanks for the great feedback.
Scrolled back to read this Eric, another great post as usual! (I think I spelled that wrong!) And thanks for taking up my question on catalog aquisition. I think i was asking the wrong question, What I was trying to say was since licensing is the new wave, and I was a pop/rock/commercial artist would I be wise after starting my own publishing company to try to administer publishing for a genre that i was not in such as singer/songwriters that lack the know how and or time/passion for this. Looking at opportunities for places such as greeting cards and more? Terrible spelling and more I know rushing to type!
I remember you talking about someone buying the high school or college fight songs an this got me to thinking. Also, is there or what are the differences between cobalt an Bug music? They say they both administer and also secure placements. I thought that if you just had a administration agreement, the only handled paperwork? Sorry for such a long rant, this will give you something to read on a break! Also a few more things…..Do you do individual consultation?
i’m in your class, as well as I was thinking about what you said about producing an managing artist with the same company. Is that covered in your class, or the managing artist class? Ok by Friend, again sorry for the long sloppy rant!!!!
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