NESP Forum

This AP article was published in my local paper today: A Few Opinions On How The Music Industry Can Reverse Its Slide

Some choice quotes:

“Big” Jon Platt, President, West Coast Creative/Head of Urban U.S., EMI Music Publishing: "...a full career, sell 3 million albums on the first album and a million the second album."    That's it?!  Basically this guy is full of hot air.  He might have some good ideas, but he's entrenched in the system, IMO.

50 Cent: "Outside of the country, I've pretty much been sold out in every venue I've been in: The awareness isn't changing. The actual record sales may be changing but people are actually getting the material the best way they can and coming out to see the show. This is why the music business is exploring creating a new deal system that allows them to create a 360-deal that allows them to be a part of an artist's touring and merchandising at the same time. I think it's the only way you can have a major company interested in providing the marketing dollars to create superstars. I don't think it's possible for you reach the point (without it) — even with the best material, without the right presentation, I don't think the public will embrace it. When you have a record that doesn't connect right away, if the company doesn't have a passion behind an actual artist and feel like this kid is an actual star and support it, it's just going to whither away." I had to copy this whole paragraph, because it's just so good!  Who knew Fitty was so smart?  This guy should be given control of a major, just to see what he can do with it.

Michael McDonald, co-founder of ATO Records and manager of artists including John Mayer and Ray LaMontagne: "I think the idea of genuine partnership is something that's going to have to really sink in, because up until now, from the deal perspective, the major-label artist relationship has not been based on partnership. I always equate it to paying off your mortgage and then the bank still owning your house."  I love that analogy!  So, so true.

Mark Cuban, owner of the Dallas Mavericks and guy who has nothing to do with music: "... their ultimate solution may be in reducing the price of CDs to under $5 across the board and building artists in order to monetize everywhere else."  I think it's great that Ms. Moody bothered to ask someone who is not part of the music industry, because sometimes you just need a businessman's perspective, not a music businessman's perspective!  Mr. Cuban has about as much money as God (although not as much as Bill Gates) so I'm inclined to believe him when he gives business advice!

Good stuff Mari!! 50 cent seems to have a good handle on it all

mari, thanks for this
Wish I had time to read the whole piece right now but it will be my priority when get back. Agree re: Mark Cuban - fascinating man.

I've elaborated on this in my new blog http://www.clubcalypso.com

On the $5.00 CDs idea. It's out there.. I just bought a CD at Target last week for $9.99, it's a singer I'd heard good hype on, listened to her single and dug it, so I figured it would be worth the $10.00 bill to check it out.

They had a whole end rack of $9.99 emerging artists. Granted I didn't know any of them, but if there was a corresponding website, I could check them out.

Norah Jones was promoted this way for her first CD... it was $8.99 for months until it hit its stride, then after about 6 months it was the hottest CD of the year. You gotta have a record label with patience, about the music as much as the numbers.

I recall seeing Daughtry's CD out there for $9.99 right after it came out, during the busy holiday shopping season.  I think it was at Best Buy and I think Target too. And we all know how well that CD did.

I typically buy CDs at Target the first week of release (for artists/new music I am anticipating) because for the first week, Target sells them for just under $10, then the price goes up to $13.99 or $14.99.
I bought Taylor's CD (two copies) at Walmart for the bonus track however.....it was under $10 on that Tuesday also.

Had an interesting conversation with my brother in law this week-end.
He's vice president of Anchor Trust Capital out of Boston.Multi-million dollar investment firm that work with very,very,large companies and very wealthy people and for insistance if you don't have 10 million they won't even talk with you, invest millions,upon millions of assets for them.Anyway we talked about Taylor and he had heard the news about his signing deal.He said his company just signed Live Nation as one of their new clients
and he bascally said everything that the in the know musicians have been saying about record signings and how they are in BIG trouble.The new wave of intertainment is LIVE performances just as our Taylor has been saying since day one.It's was just neat to hear his take on the music industry because he is on the other side of the financial side of business.He spoke very highly of Live Nation if you google them you will get insight on what they do.

Daughtry entered the market in the "bins" at $5.99 in most of the big box stores for Black Friday and the rest of that weekend after Thanksgiving.  They went back to 9.99 to 14.99 depending on the store, and seeminly the area of the country, after that.

Questioned the posts on Boogie to that effect at first but then talked to people who had seen / bought them in Bangor that weekend.  One person bought them at Best Buy as gifts for her nieces and nephews strictly because of the price - didn't even know who he was. So yeah it works.

But what do you all think the media would have done if the Winner had dropped a CD at $ 5.99 ??

And who do you think takes the hit for that low price ?

The record company?  The retailer ?  anyone want to bet against it being the artist who takes the hit ?  

Am in the business that invented the volume vs margin debate - - it is not a cut and dried one price fits all issue - there are many variables to consider everytime you set a price point.  If you guess wrong it can be costly to put it mildly.  



BTW - - The WalMart here did not discount Taylor's CDs except for a brief stint at 12.99 when the second shipment came in January but the last I saw before it sold out again it was back to 14.99.
It has never been restocked by the jobber since - - but will say the whole department has gone to the dogs in the last year and just keeps getting worse - don't think it is a plot against Taylor as much as really lousy and lazy work by the outside firm they're using now.


Didn't check what f.y.e. had for a current price when went last  Sunday.  Taylor does have one of their permanent plastic name cards now which made me happy    They almost always have one or two of his CDs in stock.


Am pretty sure Live Nation handled a lot of the bookings for Taylor's spring tour.  So much of the archives is missing on Boogie don't know if anything can be found over there on it now or not.  
CAA, the booking firm Taylor is using now, also has an impressive reputation - - but they didn't do a 120 million dollar deal with Madonna recently     Of course the jury is still out as to how that venture will play going forward.

mari, after thinking about the piece you started this thread with and letting it rattle around with some other things, I am of the mind that Mr. McDonald is the only one who has a real idea for the future.  
Platt is just reguritating old *ahem* platitudes.  
50cent is saying what pretty much everyone already acknowledges which is why the record companies are pushing deals to get their claws into tour profits.
Mark Cuban disappoints a bit by appearing to advocate making the artist into a commodity with the companies controlling every aspect of the music.  And of course the ubitquitous answer to everything when it doesn't affect your own bottom line -  cut the price.

Here is an interesting conversation to chew on courtesy of madaboutu
http://www.pbs.org/wgbh/pages/frontline/...uture.html


This Rolling Stone article from Jan 2006 is quite interesting too  ( thanks go to cochem)
http://www.rollingstone.com/news/story/9...year_ever/
Excerpt

There is a whole lot more I can feed you if you want the links.