Artists Will Lose, Again!

The most recent Billboard FOB editorial – this one written by a Philadelphia-based lawyer – proposes an across-the-board class action suit against the ISPs that are allowing users to spread and share copyrighted files on the Internet. Also scattered through the latest issue of Billboard are different mentions of ‘bundling’ (adding music subscription services to your home ISP service), and mentions of how subscription services like Napster and Rhapsody are having a tough time competing with direct music downloads, but are working hard at building up a solid money-making digital platform. A separate article focuses on how digital music sales continue to climb, making up for the shortfall in sales of ‘physical’ music.

It seems the music industry is dreaming of a future much like its past – in which distributors (in this case, subscription services and ISPs) take a cut out of artist revenue. Just like in past days, when music distros had to add their 40% markup to the cost of albums, this new model doesn’t seem to be that different from the old model: lacking creativity, and with a willingness to build up the same bloated industry beast that illegal downloading was, in one small part at least, a reaction against. I wouldn’t be surprised if this ‘distribution markup’ approached the same 40%, even though the overhead for digital distribution is markedly less than that of the old models, with their challenging stores, fussy staff, rent and pressure to succeed.

It’s pretty obvious that the struggling MI is intent on simply duplicating itself in a shiny new form. You think those record execs and A&R men are really going to lie dormant as their expense accounts and exorbitant salaries disapper? No. Rather, we’ll soon find them collaborating with ISPs and music subscription services and becoming execs of digital music companies, still intent on fashioning themselves a lucrative career on the backs of others, namely, musicians.