Recording Industry Dirt

A couple of weeks back I posted a thread titled "Is There Big Trouble Brewing?". For those of you who did not read it, it's primary focus was on the state of the recording industry and the retail music industry. Some very interesting, intellegent and insightful responses were posted. I would like to Thank those who participated.

Upon receiving the new Stereophile magazine yesterday, I began reading "Industry Update". They must have been reading our thread. I've transcribed an excerpt from a very interesting article written by Barry Willis. It involves "accounting discrepancies" being pursued by the band Incubus. I think some of you might find this interesting also....

"On March 18, LA Times reporter Jeff Leeds offered a trenchant analysis of the band's accouting dispute with Sony, demonstrating how a CDs wholesale price of $12.04 gets windowed down to $5.53 through a series of accounting deductions, including $1.63 for promotional copies, $1.84 for "new technology investments" (the CD is now more than 20 years old), and $1.84 for packaging. The band's "33%" royalty is paid on the reduced amount, not on the manufacturer's wholesale list price."

The article goes on to explain how "the pie" is divided and who is actually profiting from the proceeds. Once again, very interesting. I am sure that some of you may want to debate these numbers, but ultimately, I feel it would probably be a futile effort.

The point being, when you are standing at a cash register ready to dish out $12.00-18.00 for a CD, keep in mind who is actually being supported by the proceeds. We are all responsible for our own decisions. Whether it may be signing contractual obligations with major record manufacturers or puchasing a CD. Ultimately, the decision is our own.

Although, I feel that new musicians and bands are becoming increasingly aware of alternative means for bringing their material to market (can you say "Internet"?)

The music companies are scrambling to reposition themselves as retail music sales drastically drop. Mergers, multi formats, new technologies, etc,etc,etc. Good luck! I would like to send this message out to the major record labels out there...

Take care of "the people" who are taking care of you.

Because soon "the people" might not need you anymore.