[opendtv] Re: Book: When Labels Fought the Digital, and the Digital Won

  • From: "John Willkie" <johnwillkie@xxxxxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 7 Jan 2009 12:24:46 -0800

This is great news, and I heard it on the radio yesterday.  Jobs got what he
said he wanted -- an end to DRM -- and what he didn't -- a recognition that
hits (I think it will actually turn out to be 'new releases') are more
valuable than catalog.

Price reductions are always good.  I hope/trust Rhapsody will follow suit.

John Willkie

-----Mensaje original-----
De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En
nombre de Craig Birkmaier
Enviado el: Wednesday, January 07, 2009 6:21 AM
Para: OpenDTV Mail List
Asunto: [opendtv] Book: When Labels Fought the Digital, and the Digital Won

I'll save John the effort of a reply. Yesterday Apple announced the 
virtual end of DRM on iTunes and a new pricing structure that will 
kick in in April. Most catalog songs will drop to 69 cents, although 
some "hits" will increase to $1.29.

You can even unlock the songs you have already purchased...for a price.

The music industry is now in full capitulation to a new digital 
distribution paradigm. If one agrees with the author that "These 
dinosaurs are largely responsible for their own demise," we can only 
hope that the remaining dinosaurs in Hollywood are losing weight 
faster than Steve Jobs...

Regards
Craig

BOOKS OF THE TIMES
When Labels Fought the Digital, and the Digital Won

By DWIGHT GARNER
Published: January 6, 2009

"You can't roll a joint on an iPod," the singer-songwriter Shelby 
Lynne told The New York Times Magazine early last year. And, O.K., I 
suppose that's among the iPod's drawbacks. But it's hard to think of 
an electronic device released in recent decades that's brought more 
pleasure to more people.

APPETITE FOR SELF-DESTRUCTION
The Spectacular Crash of the Record Industry in the Digital Age
By Steve Knopper
301 pages. Free Press. $26.

Should anyone care that in the process, the iPod has all but killed 
the music industry as we've known it? Maybe not, Steve Knopper writes 
in "Appetite for Self-Destruction," his stark accounting of the 
mistakes major record labels have made since the end of the LP era 
and the arrival of digital music. These dinosaurs, he suggests, are 
largely responsible for their own demise.

Mr. Knopper, a contributing editor at Rolling Stone, provides a 
wide-angled, morally complicated view of the current state of the 
music business. He doesn't let those rippers and burners among us - 
that is, those who download digital songs without paying for them, 
and you know who you are - entirely off the hook. But he suggests 
that with even a little foresight, record companies could have 
adapted to the Internet's brutish and quizzical new realities and 
thrived.

This is a story that begins in earnest in the early 1980s, when 
digital music first arrived in the form of the compact disc. At 
first, Mr. Knopper suggests, almost everyone was frightened of these 
small, shiny new toys.

The labels worried about digital piracy and about refitting the 
factories that made vinyl LPs. Record stores didn't want to buy new 
sales racks. Producers worried about the effects on recording 
sessions, now that every footstep and door click would be audible. A 
group called MAD (Musicians Against Digital) quickly formed, and 
artists like Neil Young declared that CDs were soulless.

"The mind has been tricked," Mr. Young said at the time, sounding a 
bit like Yoda, "but the heart is sad."

The labels came around because they could jack up prices. (LPs at the 
time sold for about $9; most CDs went for almost twice that. ) Labels 
could also renegotiate contracts with artists and force customers to 
buy entire new album collections. According to Mr. Knopper, 
executives also thought it was cool watching "that little drawer open 
and close" on CD players.

Producers and artists came around, Mr. Knopper says, because the CD 
"just sounded better than the LP, no matter how much its detractors 
complain to this day about losing the rich, warm analog sound." But 
record stores remained resistant, and thus the existence of the much 
loathed cardboard or plastic "longboxes" - remember those? - until 
the early 1990s. (The author reminds us that in the movie "Defending 
Your Life" Albert Brooks's character dies as he tries to tear one 
open while driving.)

"The CD boom lasted from 1984 to 2000," Mr. Knopper writes. Then the 
residue of old mistakes and a wave of new realities began hammering 
the music industry from all sides.
One of the first things the labels got wrong, Mr. Knopper says, was 
the elimination of the single. It got young people out of the habit 
of regularly visiting record stores and forced them to buy an entire 
CD to get the one song they craved. In the short term this was good 
business practice. In the long term it built up animosity. It was 
suicidal.

When Napster and other music-sharing Web sites showed up, the single 
came back with a vengeance. Before long MP3 - the commonly used term 
for digitally compressed and easily traded audio files - had replaced 
sex as the most searched-for term on sites like Yahoo! and AltaVista.

The record industry bungled the coming of Napster. Instead of 
striking a deal with a service that had more than 26 million users, 
labels sued, forcing it to close. A result, Mr. Knopper writes, was 
that users simply splintered, fleeing to many other file-sharing 
sites. "That was the last chance," he declares, "for the record 
industry as we know it to stave off certain ruin."

Some of the seeds for this debacle were planted much earlier, during 
an industry fight in the mid-1980s over Digital Audio Tape (DAT). The 
labels, once again worried about illegal copying, installed a widget 
on DATs that permitted songs to be copied only once. But they made a 
short-sighted allowance for CD-rewrite drives on computers. Users 
could copy music almost endlessly there. Oops. "They blew it," a Sony 
marketer says. "Completely."

The final sections of "Appetite for Self-Destruction" describe the 
arrival of Steve Jobs and Apple on the scene. The release of the iPod 
was a kind of coup de grâce for the struggling industry. Before long, 
Apple became America's biggest music retailer. Music executives 
watched, apoplectic and helpless. "Apple had basically taken over the 
entire music business," Mr. Knopper writes.

He paints a devastating picture of the industry's fumbling, 
corruption, greed and bad faith over the decades. ("The business 
ain't full of Martin Luther Kings," one former music executive 
admits.)
It's too bad his interesting arguments and observations are wedged 
into such an uningratiating book. The prose in "Appetite for 
Self-Destruction" is undercooked, packed with clichés (the stakes are 
always high, people constantly take the fall, one-two punches are 
thrown) and awkward descriptions. Michael Jackson "danced like a 
backwards angel, screeched and squealed"; the Sony executive Tommy 
Mottola "wore gold chains and purple leather jackets and looked cool."
What's more, Mr. Knopper apparently did not get access to many of the 
major players in this tale, including Mr. Jobs. His account rehashes 
material covered in earlier, better books, including "Hit Men" by 
Fredric Dannen and "The Perfect Thing" by Steven Levy.

The record labels have, in the last few years, found some new reasons 
to believe. Ring tones have become serious business. Computer games 
like Guitar Hero and Rock Band have taken off, and need to be fed 
with new songs. And there's always the hope that Apple's near 
monopoly on music sales will be broken by other devices and services, 
allowing the labels to bargain for a better cut on song sales.

That could be a long wait. Apple will always be hard to beat. Mr. 
Jobs is probably at work right now on an iPod that will roll Shelby 
Lynne's joint for her.
 
 
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