April 09, 2010

Some industry observers like to suggest that efforts to address the theft of music online are somehow tantamount to efforts to maintain an “outdated business model” rather than to address forms of unfair competition based on illegal acts.  The suggestion is there are ample alternative mechanisms for generating revenues from music -- money from touring, selling merchandise like t-shirts, licensing music for commercials. 

Completely ignored are the pleas for enhanced copyright protection from artists and unions. Instead the handful of established artists for whom Internet anarchy works as an effective marketing tool are cited. Even more importantly, the reality of the marketplace is ignored in favor of theory. While touring and merchandise sales will work for some bands -- most notably big bands that “made it” in the 80’s, 90’s or earlier (and built on the back of touring support from music labels) -- it is exceedingly challenging for other bands to generate sufficient income just from touring, and touring support from the labels is rapidly disappearing.  Check out this article in BBC News about UK rock band Doves.  And of course, without brand/name recognition, merchandise sales are commercially irrelevant. 

One last question:  how is generating revenue from licensing of music to sell other products more socially useful than the sale of music itself?  It seems to me that this is the worst of all worlds, one in which all artistry will not be rewarded -- and one in which only music that works well in selling diapers and cars will be commercially produced. Is this supposed to sustain the diversity of music that we want? Would we have Bob Dylan, Leonard Cohen, Patti Smith, the Sex Pistols under this kind of system for compensating artists? Not remotely. Exactly what kind of product licensing would have sustained the Smiths or Nirvana?  Was there anything on Springsteen's first record that would have drawn the attention of advertising companies? In fact, we never would have had Elvis (either one)! This is an alternative universe in which I would not care to live.

Neil Turkewitz, EVP, International, RIAA