(Part2) The Music Industry Has 99 Problems. And They Are…

44. Google may also be accelerating the problem. Searching for torrents and pirated material is not only easy, it’s frequently auto-completed for the user in Google’s searchbox. Or, worse, delivered in email as part of a Google Alert.
45. Others, like Comcast, have blatantly abused the DMCA to temporarily remove high-paying, infringing subscribers before
reinstating them shortly thereafter .
46. Others, like SoundCloud, have built
entire business on DMCA-based takedowns . SoundCloud, now one of the largest music websites in the world, has been subject to massive content takedowns by major labels.
47. Even worse, bad actors like Grooveshark have directly abused the DMCA to build massively infringing platforms while collecting millions in ad revenue. Others can easily do the same thing, though perhaps not on that scale.
48. Meanwhile, the music industry expends
massive resources issuing DMCA takedown requests, even for sites that have already published thousands of infringing links in the past.
49. That points to a desperately needed change in law, though efforts to advance ‘ take down, stay down’ legislation remain slow and out-lobbied .
Piracy Problems.
50. Artists live under the constant threat of leaks, especially popular artists. Artists are typically forced to publish their songs immediately, even if they’d prefer to wait.
51. Despite rhetoric to the contrary, multiple research reports show that BitTorrent piracy rates continue to increase .
52. Perhaps more troubling for the music industry is the rise of BitTorrent-based streaming platforms, including a recent entrance by the Pirate Bay.
53. If an artist restricts content in any fashion, piracy typically increases in response . That was a lesson just learned by Kanye West, whose decision to restrict his music to Tidal resulted in a BitTorrent surge.
54. Major labels are now locked in an endless game of ‘whack-a-mole,’ with smashed sites like Grooveshark continuously popping up in new places (for example, grooveshark.asia). Others, like the Pirate Bay, refuse to die, while replacements like Kickass Torrents quickly fill the void.
Exclusivity and Windowing Problems.
55. Thanks to breakneck technological evolution, the music industry is now managing a portfolio of different formats that all reach different audiences and pay out differently. That has caused the industry to consider a shift towards format windowing, despite major issues with piracy (just ask Kanye).
Massive Media Overload Problems.
56. It’s harder than ever for a newer artist to get noticed.
57. The artist has greater and more direct access to fans than ever before in history. Unfortunately, so do millions of other artists, a situation that often causes fans to listen to less music.
58. Indeed, the typical music fan is flooded with music , not to mention videos, games, ebooks, and porn, all of which makes it extremely difficult to win and retain the attention of future fans. And, keep them around.
59. This also puts pressure on the artist to shorten the release cycle , and pump out content at a quick pace. Even at the expense of quality.
Facebook Problems.
60. The artist currently lacks a centralized hub online that is a default for music fans, thanks to the erosion of MySpace Music. Facebook was once viewed as a replacement for MySpace Music, but never materialized as such.
61. Even worse, Facebook charges artists to reach their own fans, a move it defends as necessary given massive increases in Timeline posts that are overwhelming users. That leaves artists with another difficult decision as to how to cut through all that noise, with frustration over why they’re having to pay at all.
62. Facebook has largely been abandoned by teens (and others), creating a partial fan-connection solution for artists. BandPage, a company that attempted to address this issue with a mass-site distribution platform, has been sold to YouTube .
Artist Survival Problems.
63. 63. Artists are figuring out more constructive ways to make a living, but many are still struggling to make a living wage off of their music, based on stats gleaned from leading digital distributors.
64. In fact, former member of Cracker and current artist activist David Lowery feels that artists are worse off now than they were in the analog era. And, he points to lower payments, less control, a shift in revenue towards tech companies, and less secure copyright protections to prove his case.
65. Most artists are overwhelmed with tasks that go far beyond making music. That includes everything from Tweeting fans, updating Facebook pages, managing metadata, uploading content, interpreting data, managing Kickstarter campaigns, figuring out online sales strategies, and fixing broken-down vans.
66. The average musician is underemployed . According to a musician survey conducted by the Future of Music Coalition (FMC), just 42 percent of musicians are working full-time in music.
67. Musician salaries remain low. Also according to the same FMC survey, the average musician makes $34,455 a year from music-specific gigs, with overall incomes (music+non-music) averaging $55,561.
68. Musicians are increasingly playing free shows , in the hopes of getting paid work down the line. According to a recently released report from the UK-based Musicians’ Union, more than 60 percent of artists have played at least one free gig in the last year.
69. Musicians remain resistant to growing revenues available from cover gigs , like weddings, bar mitzvahs, and parties (though this is starting to change with
services like GigSalad ).
70. Many older artists are touring just to pay the bills, including medical bills. That includes Dick Dale, who remains on the road despite his advanced age to pay for treatment for rectal cancer, renal failure, and massive vertebrae damage.
Environmental Problems.
71. Vinyl, like other higher-paying physical formats, are bad for the environment. That also goes for other revenue-generators like t-shirts and merchandise.
72. Actually, so is digital: some environmentalists theorize that the digital transition may actually be more damaging to our Earth than physical. Part of the reason is that cloud-hosting requires massive server facilities while consuming massive amounts of energy and pumping out lots of waste.
73. On top of that, digital formats only coexist alongside physical devices like iPads, iPhones, laptops, and sophisticated headphones, all of which are thrown away and replaced after a few years (or shorter).
Record Store Problems.
74. Traditional record stores have largely imploded, with holdouts like Amoeba now relics of an earlier era. A greater appetite for vinyl could reverse that , though it’s still too early to tell.
75. Record Store Day (RSD) has helped stem the decline among smaller record stores, though many complain that major labels are now flooding RSD stores with crappy products. Others regard RSD as a mere band-aid against the inevitable.
76. Either way, the biggest CD releases from the biggest stars always go to the biggest brick-n-mortar stores: Target, Best Buy, or Walmart. That helps the artist and the mega-retailer, but could be harming the industry.
77. The reasons is that these larger, ‘big box’ retailers are accelerating the downward spiral in CD sales, both by
dramatically reducing shelf space and by pushing pricing aggressively downwards (often to $5 or less). This is happening even though older demographics are often still receptive to the format.
Executive ‘Brain Drain’ Problems.
78. Most people who work at major labels have very low job security. Which makes it difficult for them to develop longer-term careers, not to mention those of the artists they represent.
79. Established music companies often overpay their failing executives by a wild margin , despite massive and ongoing losses. That may have the effect of skewing the executive focus towards personal enrichment, while sending red flag


80. That makes it impossible to attract innovative superstars with competitive packages , especially with top-line revenues continuing to fall.
81. But even innovative executives like Rob Wells can find themselves forced out for advancing more forward-leaning approaches. That suggests an older boys’ club that refuses to accept fresh, younger approaches.
82. And even outside of pay, younger people are generally not interested in working at labels or in the traditional music industry anymore, which makes it even more difficult for more older companies to innovate.
83. One result is that very little innovation actually comes from inside the industry . Instead, it is now dictated by non-industry players like Google, Facebook, YouTube, and Apple.
Indie Label Problems.
84. Instead of enjoying some theoretical resurgence, indie labels are mostly getting squeezed by devalued and declining recordings, piracy, and far greater leverage from artists themselves.
85. Those problems are expected to magnify with ongoing download sales declines , a critical revenue source for indie labels.
Live Concert Problems.
86. A large percentage of live music fans are frustrated with high ticket prices at concerts, not to mention wildly overpriced, in-venue items like beer.
87. All of which means that fans now regard live concerts as a one-off, infrequent ‘event,’ instead of a regular outing. In fact, the average consumer goes to just 1.5 shows a year (per Live Nation Entertainment).
88. Older, arena-filling artists are starting to die .
89. Concert security has now become a major concern in the wake of the Bataclan attacks. That can increase the cost of putting on a show, especially for targeted, high-profile artists (like Bob Dylan).
90. Despite rhetoric to the contrary, touring is actually extremely difficult and expensive for most artists. Even for more established artists like Imogen Heap , who stopped touring despite solid crowds, and
Pomplamoose, who found the financials of touring to be extremely challenging.
91. And, the secondary ticketing market is often fed before the actual market, thanks to bots, aggressive scalpers, or the artists and ticketing providers themselves.
92. Fans frequently miss shows from their favorite artists, even when these artists roll into their hometowns (this was being addressed by fresh players like Magnifi, though unfortunately, that company did not succeed).
93. Meanwhile, service fees continue to outrage fans, even though artist guarantees and advances are often a culprit (then again, Stubhub recently found that ‘all in pricing’ led to fewer sales .)
Songwriter Problems.
94. Songwriters are often paid pennies for successful tracks , even top-charting songs on major streaming and internet radio platforms. In the latest episode, it was revealed that Kevin Kadish, writer of the smash hit ‘All About That Bass’ by Megan Trainor, made just $5,679 for 178 million streams.
95. Lower royalties are killing an entire generation of writers: according to one report, Nashville has lost more than 80 percent of its songwriters since 2000.
96. Songwriters (and publishers) often have little negotiating power, thanks to government-mandated, compulsory royalty rates for platforms like internet radio, in-store performances, and covers.
97. Even worse for songwriters is that performing artists often force themselves onto the list of writers to increase their royalties, even if they didn’t write a note or lyric.
98. Meanwhile, the threat of accidental plagiarism is increasing, thanks to a hyper-connected creative world and the high likelihood of two writers composing something extremely similar.
Classical Music Problems.
99. Classical orchestras and ensembles continue to struggle , thanks to a continuing problem invigorating younger audiences. That has forced many smaller-market orchestras to downsize or discontinue, while applying plenty of pressure to bigger-city orchestras as well. Meanwhile, top-ranked conservatory grads are battling for a smaller number of gigs.

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