Not everyone is so optimistic: Paula Cole's contract is up in June, and she says she may not renew even if she's asked to. "I want to be at a place where there's enthusiasm for me and for music," she says. "The people I trusted and loved there are all gone. It's scary, because I have a kid and I want to make a living." [and where have all those goddammed cowboys gone?]
...."These cuts had to happen," says a WMG executive. "We had gotten fat and bloated, and we were releasing way too many records. If this means we put all of our efforts and resources behind what we actually do release, that's a good thing." [RolingStone.com] This should be a real boon to the indies as many of these artists will be picked up by them.
In related news, CDs prices continue to drop:
- The average retail price of full-length CDs fell to $13.29 in the first quarter of 2004--a decline of 4 percent from the same period a year ago, according to a new study.
The top 50 CD sellers nationwide sold discs for an average price of $13.36, a drop of 3.1 percent versus a year ago, said a survey released Thursday by the NPD Group. Meanwhile, catalog CDs--comprised of titles that are 18-months-old or more--dropped below the $13 threshold to $12.99.
NPD President Russ Crupnick attributed the decline in part to a changing market due to the file-sharing boom. In addition, competition for entertainment dollars has become tougher for the recording industry in an environment that saw DVDs and video games growing at double-digit rates, he said. [CNET]
![Out of the Vein [Limited Edition w/ Bonus DVD]](http://ecx.images-amazon.com/images/I/51VSC87DK2L._SL120_.jpg)
Article comments
1 - Craig Lyndall
This is all a reaction to a changing industry. I have a large piece that I am working on right now which will show why the whole industry will eventually look like the independent labels. I also think that as this goes, and labels spread an even amount of time on artists that we won't have the highs and lows in rock music. In the present day, it seems that rock has huge highs and lows, but I think it will be more of a consistent demand in the future.
2 - SFC SKi
Warner's once had the best rep for developing artists, those days are gone (no loss in the case of 3rd Eye Blind, IMHO. If it allows artists to do what they want, and use the Internet to publicize & distro themselves, I think it will be a bettert hing, considering the corporate elelments really don't care about music, the artist, or the customer. Sure, they use a business model, and what the market will bear, but selling music is not the same as selling cars, it does need to be done differently.
The indusrty missedthe boat 5 years ago, they are going to slide further before they make any headway back into my wallet.
3 - Mark Saleski
there's probably some truth in that with every single major label.
now it's all about getting the 'product' to 'market'.
4 - Mark Saleski
holy crap! comment-posting is fast!!
5 - Eric Olsen
quicker than shit through a goose
6 - Tom Johnson
But just think what Warner is doing - they're selling off artists who are currently developing, in other words, artists who may not have had a big hit but may in the future. They're just giving those right over to smaller labels who will pamper them and give them space to develop - and then one day some of these groups are going to have that One Big Hit. That small label will get attention and money and suddenly Warner and their ilk are going to be gasping for air as all these indie label surpass them in sales. They're killing themselves off - not that it would be such a bad thing. Maybe this is a sign of a coming music-industry revolution . . .
7 - Craig Lyndall
Yes, I think you are right Tom. The radio stations primary functions have been paying for recording, getting music on the radio and other types of marketing. These are all easily done by smaller labels and Radio is almost irrelevant now, so I do think the industry is changing.
8 - Jim Carruthers
There are two issues which obscure what is happening with the majors. For the past 8 years they have funded their growth by acquisition (just like dot-coms with stock swaps) not through productivity.
On the music side, they have used a 20/80 formula, which means only 1 out of 5 releases makes money. Or if you look at it like a business case, almost everything they do is a failure. Essentially, they have been kiting cheques for a decade, and it is running out.
By dropping acts which aren't making money, they can do accounting shenanigans to turn losses into depreciation or some-such to get through another year.