Veerle's blog

Yes the lords of the music industry are at again, this time in The Netherlands (and don’t get me started on the Stichting Thuiskopie). Geert and I are listeners of the Daily Source Code from Adam Curry and we love the Mashups, Hit Test from Jan Polet or the Backtracks Podcast Quiz. A fun way to give our brains a good workout.

Mashups is the mixing of two different songs so that it perfectly blends into one. The Hit Test is an amazing quality quiz (production wise) where you have to guess very short sound-clips from the 80's and Backtracks Podcast Quiz is the same scenario but the songs play in reverse. A perfect setting to renew your interest in music. On several occasions I've bought songs that we're played on the Hit Test. I'm sure I wasn't the only one doing that! Such a beautiful way to make people interested in back catalog. But like many good things it must come to an end because of some vulture that smells lost of income. Adam has had several threats from Dutch organizations and is now completely switching over to Podsafe music. A new way for artists to get their music to listeners of podcasts.

I do not know all the details but from what I understand of it there was the goodwill of the BUMA/STEMRA, but the NVPI (de vereniging van de platen- en muziekwinkels) found it was necessary that before playing a record on your podcast the record company must be notified. End result is that the different organizations can't reach an agreement and it is goodbye those lovely items mentioned above.

This example isn't an exception but it is one of many writings on the wall that leaders of the music industry still don't get it. They also have no intension of modifying their business model so that it fits today's needs. In fact they fall back to scary tactics like installing a so called Rootkit like Sony BMG is doing with some of their 2005 CDs. Another example is the tiff that Steve Jobs has with some of the record labels in the negotiations. They want a higher price for most of the songs in the iTunes Music Store like 1,5 Euro. Here is what Edgar Bronfman Jr., the CEO of Warner Music Group had to say about that:

"That's not to say we want to raise prices across the board or that we don't believe in a 99 cent price point for most music. But there are some songs for which consumers would be willing to pay more. And some we'd be willing to sell for less."

He did even take it a step further:

"We are selling our songs through iPod, but we don't have a share of iPod's revenue. We want to share in those revenue streams. We have to get out of the mindset that our content has promotional value only."

Well Mr. Bronfman come up with some clever ideas of your own instead trying the easy route. Your company is struggling now just because you've missed the boat entirely. If my business model sucks tomorrow and I run into to hot water should I start blaming other web agencies and asked a cut from their revenue? No I shouldn't be so stupid to let it slip that far instead.

I buy a lot of songs in the ITMS (232 since the launch in Belgium in October 2004) because of the fact that it only costs 0,99 Euro and is so easy. If prices rise I would stop doing that for sure. And be honest do you really think a smash hit from 80's for example would sell for less? I don't think so, a huge hit would probably cost more instead. I love the simplicity of the 0,99 Euro model and I also believe it is essential in keeping the ITMS a success to keep people away from P2P. The ITMS is still in the early stages of a new market and simplicity is the key. Changing that would be like killing the chicken with golden eggs.

The status quo players are fighting for their survival while the emerging initiatives like Apple iTunes Store, The Podsafe Music Network and the many popular Podcasters are flourishing. The ground is shaking under the Music labels and they have no idea what to do, instead they are delving their own grave. If they are that greedy then I shout "Dead to the (BIG) labels" :-p

I only have one more thing to say to the record labels start trusting your customers we are not all thieves!