Wednesday, February 23, 2011

“Why is high-fidelity going backwards? What’s wrong with people?”

Beginning in the late1940s, we’ve been told to upgrade to a new type of music playback medium every five or six years so that we be able to experience better sound.

If you’re brave enough to step into my basement, you will find CDs, LPs, 12-inch singles, 7-inch singles, cassettes (both pre-recorded and homemade), a couple of 8-tracks (Where did those come from?), a pile of DAT tapes, assorted MiniDiscs, some rescued concert recordings on 10-inch reel-to-reel tape and probably a couple of 78’s. Under the stairs is a pile of 12-inch Laserdiscs that I’m willing to let go cheap. I’ll even throw in the player.

About the only thing that’s missing are some cylinder recordings and a couple of stillborn formats like the Elcaset and anything to do with DCC.

The International Standard Organization’s approved the algorithms that make music as MP3 files possible in 1991. Twenty years on, the public’s love affair with the format’s convenience seems to know no end.

We’re firmly into the digital age. Global digital music sales reached $4.6 billion in 2010, which equals about 30 per cent of all sales by record labels. The value of the global digital music market has gone up 1,000 per cent since 2004. There are more than 13 million tracks legally licensed for download by music publishers. The MP3 rules.

But despite the severe high-fidelity shortcomings of MP3s, most people seem completely happy with what they deliver. The same goes for Apple’s AAC format, which is what you get when you buy a song through iTunes.

Although technology used in today’s hard drives keeps driving the cost of storage lower and lower, few music consumers seem interested in switching to a better sounding codec like FLAC. A song ripped to FLAC is about four times larger than when ripped to MP3—but if you’ve got the room, who cares?

Outside of a hardcore cadre of audiophiles, no one seemed much fussed that the public is listening to music with sonic qualities that are substantially worse than what we heard from vinyl on a good turntable 30 years ago. I find it strange—and rather depressing—that while we continue to demand bigger and better HD and 3DTVs, few people are demanding that the audio quality of their music gets better.

Why is high-fidelity going backwards? What’s wrong with people?

- Alan Cross


Monday, February 21, 2011

The Grammy Bounce And The Real Seller

It used to be that a Grammy performance was worth a million unit sales. That's obviously not the case anymore, but at least for some artists, the Grammy's can mean a significant sales bounce. Arcade Fire, Lady Antebellum, and Eserpanza Spalding all saw big iTunes gains after their performances on Sunday's show (see the chart on the left). Mumford and Sons saw spikes as high as 156% for some songs.

And while that might seem impressive, consider this. The Grateful Dead began presales of their Europe '72 65 CD set (yes, 65 discs) and sold out their 7200 unit run in 4 days - at $450 each. That's $3.3 million dollars, an amount that any record label would kill for these days.




Wednesday, February 16, 2011

Grammy Hangover - Do Singles Build Careers?

In the old days, we never would have known Mumford & Sons was the hit of Grammy night. Because we wouldn’t have instant sales information and the album couldn’t have been successful because the limited physical inventory would have sold out in a flash in brick and mortar stores.

But now you can manufacture ad infinitum, online, iTunes was ready with all the inventory necessary. Mumford & Sons is still number one on the iTunes chart.

The old wave constantly bemoans the new wave, says the Internet ruined music. What the old wave hates is it’s lost control. Which came in the form of distribution. Radiohead could not go their own way. And it would have been hard to seed retail with enough copies of Mumford & Sons to show a spike, to feed demand.

The future is not digital sales, it’s streaming. And if the labels were smart, which they are not, they’d go with Spotify immediately, before Apple or Google allows customers to keep their purchases stored in the cloud, obviating a need for subscription services. So these sales statistics, which are anemic by old wave standards, are not harbingers of the future. But they do illustrate demand. You cannot categorize what appeals to the public. In this crazy world anything can hit. With everything available, the public selects from the giant smorgasbord, messing with the system.

People want to be touched emotionally. That’s what Mumford & Sons delivers best. In other words, in an era where so much music is made by machines, people truly desire that which is made by humans.

When it’s all said and done, Mumford’s album could outsell Katy Perry’s, it’s close. Sure, Katy sold more singles, but do singles build careers?


Sunday, February 13, 2011

Weekly Roundup

GUITAR HERO
It was a fad. Stuns me that a business that specializes in selling fads didn’t realize this. Ringtones were going to save the music industry, then ringbacks and Guitar Hero/Rock Band. They’re all fads. In the modern tech world you get in early and get out early, just like with a musical fad. Give props to Scooter Braun and his Justin Bieber movie. Because it won’t be long before there’s no fever surrounding the Bieber. How do I know? Because I’ve lived long enough to see everybody from the Monkees to NKOTB to the boy bands to Miley Cyrus come and go. And let’s not forget Leif Garrett…

LADY GAGA/EXPRESS YOURSELF
"Express Yourself" was a hit in 1989. That’s twenty two years ago. Most of GaGa’s fans hadn’t reached consciousness or weren’t even born yet. No one cares. And "Express Yourself" was a good record!

PEAS AT THE SUPER BOWL
Of course they sucked. But they weren’t playing for you, they were playing for the mainstream. The Hold Steady are never going to play the Super Bowl, get over it.

THE GRAMMY SHOW
Train-wreck incarnate. The same people complaining about the Peas are gonna bitch about this show. But never forget, it’s about television, not music, it’s about ratings, not quality. Just like radio is about advertisements, not content. Don’t get your knickers in a twist. The show is meaningless. Just a celebration of what once was in the mainstream. Yes, most of the stars will be gone tomorrow. And the audience doesn’t care, it’s too addicted to Facebook.

EGYPT
We were there first, music fans already revolted. They killed not only the album, but the major labels. We’re living in an era of chaos. To complain is to be Mubarak. The audience was oppressed for too long, given an opportunity to go its own way, it did. Remind me how it helped the audience to have to buy a fifteen dollar CD to hear the one track that was a hit? Now they just buy the hit on iTunes. And if they don’t do that, they don’t even bother to steal it, they just watch it on YouTube. You don’t need to own it, next year it won’t mean anything.

WARNER/EMI
The latest report is that Warner wants to sell itself before EMI, to get the most cash. The major labels were decimated by the Internet. Their assets are worth something, but not what they once were. Publishing will go for a lot. Someone will end up with the masters. As for new music, that’s up for grabs. Who’s going to break new music? Who’s going to pay for its development? That’s a problem we need solved, but you don’t see VCs and techies throwing money at that, because it’s just too difficult, it’s easier to trade on the assets of what once was.

EMI
Ignore Faxon. Banks don’t like to hold assets. That’s not their business. EMI’s for sale, it’s just a matter of when.

VINYL
Enough. There are people who collect buggy whips too. Sure, it sounds better. But do you think everybody’s going to drive fifties Thunderbirds because they look better? Face the future, don’t try to bring back the past. At some indeterminate time bandwidth will be so plentiful and cheap that quality sound will return. But it’s not imminent.

THE DECLINE OF WEB-BASED E-MAIL
The Decline of Web-Based E-Mail

People check their e-mail on their mobile handsets. Young ‘uns don’t use e-mail at all. Think mobile. That’s where all the action is. That’s how you reach customers. And that’s what’s killing the major labels. They’re still making revenue from physical product when the future is streaming to the handset. If you’re married to the past, you’re lost in the future.

WORLDOMETERS
worldometers

The numbers are positively staggering. You need to start right in front of your nose, but don’t stay there. The money to be made exploiting music around the world is huge. You don’t need to reach everybody, there are so many people out there.

HOWARD STERN ON TWITTER
Howard Stern - Twitter

Today he watched his own movie, "Private Parts", and tweeted the real story behind all the scenes. Musical acts should go on Twitter and do the same thing, tell the real story behind making their music and being on tour. The public eats this up. If you do the tweeting yourself and are honest. Don’t forget, the key is TRUST!


Friday, February 11, 2011

Wow, YouTube Really Thinks We're That Stupid...

Sorry, the gig is up on free music. It isn't making bands rich, or even making ends meet, for that matter. If you need proof of this, check out this discussion thread about Spotify - it contains real numbers and testimonials about how paltry the payouts on free access are. It's not just Lady Gaga that's getting the shaft.

Thursday, February 10, 2011

What Does Lindsay Lohen and The Canadian Record Industry Have In Common?

TORONTO: Album sales continue to mirror the career trajectory of Lindsay Lohen. According to Nielsen SoundScan Canada, the sum total of the top 10 totalled 30,859 units for the week ending Feb. 6, down from the mortiferous 32,511 units reported the previous week. Year-to-dates sales for titles in the weekly top 10 total 174,424, down almost 50% from the 323,916 sold in the 1st 5 weeks of 2010. The #1 album for the week, Doo-Wops & Hooligans by Bruno Mars, sold a wan 4,200 copies

Wednesday, February 9, 2011

DIY is not D2F

Of the 94,000 albums released last year how does one rise above the clutter of the thousands of other releases? Just because you can easily record and release your music with a click of a mouse, doesn't mean you should. Is DIY the answer? DIY is not DTF, and DIY has its limitations.

DIY – or ‘do it yourself’ marketing for the uninitiated – was widely viewed as an early startup approach during the sessions. ReverbNation CEO Mike Doernberg called pure DIY “crap,” though at the earliest stages it can help an artist get some initial traction. “The DIY problem is that people think it’s DIY for life – it’s not… you cannot do it yourself,” said Steven Van Zandt. “All the best records ever made were made by an army of people.”

By contrast, DTF, or direct-to-fan, is highly related but ultimately something different. The marketing team surrounding Radiohead, Trent Reznor or Arcade Fire, for example, is going direct-to-fan. But "they" are not doing it by themselves.

DIY = WTF! is live and on the air!

Join the conversation at www.twitter.com/DIYisWTF