Great article in Advertising Age this week about how major labels - with the help of the RIAA - are slowly digging their own graves. Check it out here:
http://adage.com/mediaworks/article?article_id=130766
And it's pretty much true: majors are so fixated on making money the old school way that they can't - or won't - embrace new technologies and the new playing field that has unfolded before them. In a way, you can't blame them. These are massive machines that support thousands and thousands of people (except for those who are getting laid off...). It's like trying to turn around an air craft carrier: it's gonna take a few days, only in this instance, a few days equals a few decades in major label years. And by then, it'll be way, way too late.
This is why we love to work with independent labels. Because they are quick and nimble and open-minded and they get it. They understand the awareness = new fans = revenue equation. And they have (in most cases) the lean infrastructure to be able to adapt to change. One of the key differences between indies and majors is that indies (and particularly artists) have been able to use disruptive technology to their advantage, whereas majors - having sunk billions over the years into establishing slow, lumbering machines - have been caught completely offguard.
It's sad and frustrating watching the majors try to wring every last drop of blood from their once fruitful stone. For me, the most telling "we're completely hosed" moment was when they started charging media outlets blanket fees to stream their music videos, seeing as how videos were totally promotional for, oh, about 40 years.
I could go on and on (just ask my fellow Brandrackateers...), but you get the point. Jack be nimble, Jack be quick. Whatever you do, Jack, don't be a major label in 2008. ~ Tim
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