Book Smart, Street Stupid

I worked in the music business for two very different record companies and saw first hand how the Internet is changing their business model, whether or not they are willing to admit it.

This weeks readings about intellectual property got me thinking about peer to peer file sharing and music.

Often, the artist can directly benefit from their music being virally shared peer to peer. Word of mouth will get their record into the hands of the kids that will populate live shows and in turn buy merchandise online or in person (the streams through which most artists make their money). This model seems to work, right? It cuts out middle men and no one needs to worry about record labels (aka The Man) or seedy A&R dudes telling you what to like. It is just you, the consumer, and the artist. You get to pick what music you like and then spend your money in a way that directly benefits those artists.

So why don’t all record labels and artists embrace The Format way of doing things? Well, having worked in a catalog department of a major label, part of what we forget in the whole debate is that not all artists are traveling and selling merch.

The next time you are putting together a playlist for a party think about all the artists that are on it. Did you include “Come On Eileen,” “My Sharona” and “We Built This City on Rock and Roll”? Do you know the bands that put out these songs? Dexy’s Midnight Runners, The Knack and Jefferson Starship, by the way (Jefferson Starship is the only inactive band). Often people are downloading just one song, illegally because what can it hurt? These artists are super rich and what do you care? But we often forget about who really gets paid in all of this. Who is really benefiting from someone buying The 20th Century Masters Collection of The Moody Blues? It boils down to things like paying the staff at the record company that is in charge of music licensing so you can hear “Nights In White Satin” in a movie or on TV.

While, I am by no means a fan of how record companies and the RIAA are doing in regard to the shift to digital music distribution (you can’t turn back time, guys). The issue of rights and royalties is serious and more nuanced that what a lot of people like to imagine.

Indie bands are doing amazing things with the Internet and their music. They are really invigorating their fans so that they will shell out the extra $20 for a fan club membership and spend upwards of $100 or more on concert tickets and merchandise for one show. They are making money in ways beyond just the few cents they get from each album sold. They are fostering connections with their fans that go beyond just liking a single. It is what keeps them coming back for more, which is key for any bands survival. Brand loyalty.

However, we must also consider inactive bands like Jefferson Starship, which, according to VH1 recorded the “most awesomely bad song” ever. You still know the words to “We Built This City…” but who loses when you download that track illegally?