In this ever-increasing connected world of social media, where artists have direct access to fans and listeners, what value can a major record deal bring an artist?
For some time, we have heard that artists no longer need a label to be successful. The Long Tail model popularized by Chris Anderson comes to mind.
Anderson
explains the theory of the Long Tail as a cultural and economic shift from focusing
on a comparatively small number of sales at the head of the demand curve toward a huge number of niches in the tail.
Kevin Kelly took the Long Tail model a step further suggesting that 1,000 true fans can essentially create a democratized middle class of musicians. The 1,000 true fans model requires that if an artist has 1,000 fans that will purchase $100 of a music and merchandise annually, typically something special and unique must connect the artist with the fan. If successful, this model results in the artist making $100,000 per year.
Despite the indie artist having choices, the major labels still dominate the industry. The Digital Music News website reports that the Long Tail model’s actual results have not lived up to expectations. In 2011, 90% of new album sales came from 2% of releases. According to Paul Resnikoff of Digital Music News "There's now even more proof that for early-stage artists, the money is probably not in recordings. That is, unless there's serious financial or label backing involved."
Another reason that major record labels are valuable for artists was noted in an October 2012 interview between David Byrne and Trent Reznor. Reznor of Nine Inch Nails was the poster boy for the DIY artist. In this interview, he discusses his decision to return to a major record label. Reznor cites an experience on his last tour in the city of Prague. Despite a massive Twitter following, the Nine Inch Nails show that was happening that night had no support at the local record store. However, Reznor noticed that the Radiohead (Capitol Records) show that was to happen at the same venue in six months had fliers hanging everywhere. Reznor realized that he was really good at writing, producing and preforming music. And despite his best efforts, major labels are better at promotion. He can outsource promotion, but he cannot outsource his music production and performance.
The conclusion is that record deals offer an artist certain value, but at a price. Record deals have always been difficult to get. A&R, the gatekeepers at the record labels, have increasingly been selective in signing new artists, including many factors that go beyond talent. Not every artist will
have the option that Reznor had to return to a label for support. So the quest continues for the indie. To
quote Dale Carnegie, "If you believe in what you are doing, then let nothing hold you up in your work. Much of the best work of the world has been done against seeming impossibilities. The thing is to get the work done.”
The following video is Trent Reznor speaking with David Byrne on his decision to return to a major label.
I like you're blog template-got a very musical feel to it. I have mixed feelings about the future of record production as well. It is in my opinion that most production companies will have to take a step back in production and a step forward in promotion. THis is because musicians have access to more advanced technology than ever before an might choose to create their compositions in a makeshift studio versus a recording studio. However the quality of production under a record label is beyond comparison. Unfortunately record labels are so exclusive that many artists rule it out as an option, yet the resume their talent through other social marketing means which helps spread their name and music. We will both be working in a very different type of business model in the next decade! Live performance and music video content will be in higher demand than ever before!
ReplyDeleteYour post provides a useful and insightful perspective to musicians that are just starting in the music industry. I would like to start my comment with the quote you ended your article, “ the thing is to get the work done.” Despite many beliefs that technology has given freedom for artists to choose their own path, produce their own music, and promote their work following the long tail model, the idea of just “getting the work done” most likely will not fly high. The misconception of this theory is to believe that one has the power to exponentially grow as big as a musician that has a contract with a giant record label. The long tail is just a big noise or what Jaron Lenier would call it the raw data. Like or not, giant record labels hold artists’ profits hostage because they are the ones who have access to the analytical data of which is the key to a musician’s success. The virtual world has a lot of noise and only the ones that have access to what this noise means can actually rise above the noise. This is why artists like Trent Reznor feel trapped and end up making deals with the devil.
ReplyDeleteBefore making music I would recommend new artists to gain more knowledge on digital economy:
http://www.youtube.com/watch?v=G1KObNG_Wnw