Headache

I feel like there are two music businesses. The old, big, dying one we all know. And a newer, underground one playing by its own rules – or no rules at all.

The old rules no longer apply, nor do they really work anymore. A&R departments aren’t discovering and nurturing talent. A&R sell-outs looking for the next talent-less teen sensation aren’t delivering many that can sell millions upon millions of units. The diva and the 15 minutes-of-fame-phenomenon is a dying enterprise.

While the labels always screwed the artist financially, at least they were seen as a crucial vehicle for breaking the artist – now that simply is not the case. The label’s power won’t get the act on the radio and if it does, who is listening? MTV is another dead road. The labels are not a power broker for getting an act a legitimate booking agent or a key component in helping land an unknown act a coveted supporting slot on a major tour. Oh, they are trying to bring back vinyl. Glad they still have their publishing empires.

Physical music sales are dead. Downloads clearly aren’t a solution or the next viable format for consumers. There are a lot of rumblings about subscription services taking over sooner rather than later. Renting music? If that is where it goes, a few diehard fans of the physical format won’t be able to stop it. Hopefully one can actually purchase the music they are renting if they actually want to own it!

Most of the established stars can’t sell a new album. Many are lucky to move half a million copies. Luckily they still have lucrative touring revenue to stay afloat. But of course, the touring business is finally starting to feel the pain of a dying business. The public simply cannot continue to support the inflated ticket prices that have been rammed down their throats for the past decade. The promoters and agents are still trying to push the limits, but the warning sirens are sounding and everybody hears them.

There are very few premier managers that are not aligning themselves with Irving Azoff’s empire. That is great if you are a superstar, but there are many middle-of-the-road acts that simply won’t get the attention they need or once received by being just another name under such a large management umbrella. And for acts trying to break? They don’t have a shot. You would think with Azoff’s muscle they would, but it doesn’t appear they are a priority because after all, they don’t make money.

Speaking of Azoff, is it not amazing how one guy controls touring, the last lucrative element of the old music business? His management company has a large body of clients, most of who do solid business on the road. Yes, Live Nation has a few exclusive deals out there with the likes of Madonna and U2, but many of the major concert attractions are associated with Azoff’s Front Line management company. And of course, once Live Nation announced they were going to severe ties with Ticketmaster, Azoff sold a chunk of his company to Ticketmaster, which in turn made Azoff the head of the company. So now, Live Nation’s in-house ticketing operation is in direct competition with Ticketmaster, which is run by the artist manager of many acts that will play Live Nation venues. Ticketmaster has also aligned itself with AEG, Live Nation’s direct competitor for talent buying operations. Very twisted and a very brilliant move by Azoff. He holds all the cards. The touring business may have some real pricing problems in the future, but for now, Azoff and his acts will milk it dry.

The newer, underground business is more in tune with the idea that it is all about the music. Locking in gigs anywhere and developing a fan-base. Giving away music, selling it online, embracing P2P, making it cheap, establishing strong fan communities. The hype is being generated through word of mouth and through affordable live shows. Not pinning the hopes of success on a traditional record label getting an overproduced single some rotation on the radio. There isn’t necessarily a structured model in place in terms of hierarchy and monetary rewards. How can there be? The old, powerful business that is fading away is the only one that had any structure or rules. Now, the hungry, independent act has to bypass the old world and just play – do whatever is necessary to stay afloat and to spread the music.

Who knows where it will lead? Perhaps a new full-service entertainment entity will surface that embraces the new world and even subscription services. It is hard to tell. But, the current landscape is a mess: watching the old powers struggle, watching to see if new innovative leaders emerge, fans desperately holding onto physical product while others use CDs as coasters, watching music sales plummet, wondering what the next music format will be, Azoff pulling off one more power-play in a fragile concert industry, etc. This whole thing gives me a headache.