Somewhere along the way, record companies figured out that it's a lot more profitable to control the distribution system than it is to nurture artists. And since the companies didn't have any real competition, artists had no other place to go. Record companies controlled the promotion and marketing; only they had the ability to get lots of radio play, and get records into all the big chain store. That power put them above both the artists and the audience. They own the plantation.
Being the gatekeeper was the most profitable place to be, but now we're in a world half without gates. The Internet allows artists to communicate directly with their audiences; we don't have to depend solely on an inefficient system where the record company promotes our records to radio, press or retail and then sits back and hopes fans find out about our music.
Record companies don't understand the intimacy between artists and their fans. They put records on the radio and buy some advertising and hope for the best. Digital distribution gives everyone worldwide, instant access to music.
And filters are replacing gatekeepers. In a world where we can get anything we want, whenever we want it, how does a company create value? By filtering. In a world without friction, the only friction people value is editing. A filter is valuable when it understands the needs of both artists and the public. New companies should be conduits between musicians and their fans.
Right now the only way you can get music is by shelling out $17. In a world where music costs a nickel, an artist can "sell" 100 million copies instead of just a million.
The present system keeps artists from finding an audience because it has too many artificial scarcities: limited radio promotion, limited bin space in stores and a limited number of spots on the record company roster.
The digital world has no scarcities. There are countless ways to reach an audience. Radio is no longer the only place to hear a new song. And tiny mall record stores aren't the only place to buy a new CD.
I'm leaving
Now artists have options. We don't have to work with major labels anymore, because the digital economy is creating new ways to distribute and market music. And the free ones amongst us aren't going to. That means the slave class, which I represent, has to find ways to get out of our deals. This didn't really matter before, and that's why we all stayed.
I want my seven-year contract law California labor code case to mean something to other artists. (Universal Records sues me because I leave because my employment is up, but they say a recording contract is not a personal contract; because the recording industry -- who, we have established, are excellent lobbyists, getting, as they did, a clerk to disallow Don Henley or Tom Petty the right to give their copyrights to their families -- in California, in 1987, lobbied to pass an amendment that nullified recording contracts as personal contracts, sort of. Maybe. Kind of. A little bit. And again, in the dead of night, succeeded.)
That's why I'm willing to do it with a sword in my teeth. I expect I'll be ignored or ostracized following this lawsuit. I expect that the treatment you're seeing Lars Ulrich get now will quadruple for me. Cool. At least I'll serve a purpose. I'm an artist and a good artist, I think, but I'm not that artist that has to play all the time, and thus has to get f***ed. Maybe my laziness and self-destructive streak will finally pay off and serve a community desperately in need of it. They can't torture me like they could Lucinda Williams.
You funny dot-communists. Get your s**** together, you annoying sucka VCs
I want to work with people who believe in music and art and passion. And I'm just the tip of the iceberg. I'm leaving the major label system and there are hundreds of artists who are going to follow me. There's an unbelievable opportunity for new companies that dare to get it right.
How can anyone defend the current system when it fails to deliver music to so many potential fans? That only expects of itself a "5 percent success rate" a year? The status quo gives us a boring culture. In a society of over 300 million people, only 30 new artists a year sell a million records. By any measure, that's a huge failure.
Maybe each fan will spend less money, but maybe each artist will have a better chance of making a living. Maybe our culture will get more interesting than the one currently owned by Time Warner. I'm not crazy. Ask yourself, are any of you somehow connected to Time Warner media? I think there are a lot of yeses to that and I'd have to say that in that case president McKinley truly failed to bust any trusts. Maybe we can remedy that now.
Artists will make that compromise if it means we can connect with hundreds of millions of fans instead of the hundreds of thousands that we have now. Especially if we lose all the crap that goes with success under the current system. I'm willing, right now, to leave half of these trappings -- f*** it, all these trappings -- at the door to have a pure artist experience. They cosset us with trappings to shut us up. That way when we say "sharecropper!" you can point to my free suit and say "Shut up pop star."
Here, take my Prada pants. F*** it. Let us do our real jobs. And those of us addicted to celebrity because we have nothing else to give will fade away. And those of us addicted to celebrity because it was there will find a better, purer way to live.
Since I've basically been giving my music away for free under the old system, I'm not afraid of wireless, MP3 files or any of the other threats to my copyrights. Anything that makes my music more available to more people is great. MP3 files sound cruddy, but a well-made album sounds great. And I don't care what anyone says about digital recordings. At this point they are good for dance music, but try listening to a warm guitar tone on them. They suck for what I do.
Record companies are terrified of anything that challenges their control of distribution. This is the business that insisted that CDs be sold in incredibly wasteful 6-by-12 inch long boxes just because no one thought you could change the bins in a record store.
Let's not call the major labels "labels." Let's call them by their real names: They are the distributors. They're the only distributors and they exist because of scarcity. Artists pay 95 percent of whatever we make to gatekeepers because we used to need gatekeepers to get our music heard. Because they have a system, and when they decide to spend enough money -- all of it recoupable, all of it owed by me -- they can occasionally shove things through this system, depending on a lot of arbitrary factors.
The corporate filtering system, which is the system that brought you (in my humble opinion) a piece of crap like "Mambo No. 5" and didn't let you hear the brilliant Cat Power record or the amazing new Sleater Kinney record, obviously doesn't have good taste anyway. But we've never paid major label/distributors for their good taste. They've never been like Yahoo and provided a filter service.
There were a lot of factors that made a distributor decide to push a recording through the system:
How
powerful is management?
Who
owes whom a favor?
What
independent promoter's cousin is the drummer?
What
part of the fiscal year is the company putting out the record?
Is
the royalty rate for the artist so obscenely bad that it's almost 100 percent
profit instead of just 95 percent so that if the record sells, it's literally
a steal?
How
much bin space is left over this year?
Was
the record already a hit in Europe so that there's corporate pressure to
make it work?
Will
the band screw up its live career to play free shows for radio stations?
Does
the artist's song sound enough like someone else that radio stations will
play it because it fits the sound of the month?
Did
the artist get the song on a film soundtrack so that the movie studio will
pay for the video?
These factors affect the decisions that go into the system. Not public taste. All these things are becoming eradicated now. They are gone or on their way out. We don't need the gatekeepers any more. We just don't need them.
And if they aren't going to do for me what I can do for myself with my 19-year-old Webmistress on my own Web site, then they need to get the hell out of my way. [I will] allow millions of people to get my music for nothing if they want and hopefully they'll be kind enough to leave a tip if they like it.
I still need the old stuff. I still need a producer in the creation of a recording, I still need to get on the radio (which costs a lot of money), I still need bin space for hardware CDs, I still need to provide an opportunity for people without computers to buy the hardware that I make. I still need a lot of this stuff, but I can get these things from a joint venture with a company that serves as a conduit and knows its place. Serving the artist and serving the public: That's its place.
Equity for artists
A new company that gives artists true equity in their work can take over the world, kick ass and make a lot of money. We're inspired by how people get paid in the new economy. Many visual artists and software and hardware designers have real ownership of their work.
I have a 14-year-old niece. She used to want to be a rock star. Before that she wanted to be an actress. As of six months ago, what do you think she wants to be when she grows up? What's the glamorous, emancipating career of choice? Of course, she wants to be a Web designer. It's such a glamorous business!
When you people do business with artists, you have to take a different view of things. We want to be treated with the respect that now goes to Web designers. We're not Dockers-wearing Intel workers from Portland who know how to "manage our stress." We don't understand or want to understand corporate culture.
I feel this obscene gold rush greedgreedgreed vibe that bothers me a lot when I talk to dot-com people about all this. You guys can't hustle artists that well. At least slick A&R guys know the buzzwords. Don't try to compete with them. I just laugh at you when you do! Maybe you could a year ago when anything dot-com sounded smarter than the rest of us, but the scam has been uncovered.
The celebrity-for-sale business is about to crash, I hope, and the idea of a sucker VC gifting some company with four floors just because they can "do" "chats" with "Christina" once or twice is ridiculous. I did a chat today, twice. Big damn deal. 200 bucks for the software and some elbow grease and a good back-end coder. Wow. That's not worth 150 million bucks.
... I mean, yeah, sure it is if you'd like to give it to me.
Tipping/music as service
I know my place. I'm a waiter. I'm in the service industry.
I live on tips. Occasionally, I'm going to get stiffed, but that's OK. If I work hard and I'm doing good work, I believe that the people who enjoy it are going to want to come directly to me and get my music because it sounds better, since it's mastered and packaged by me personally. I'm providing an honest, real experience. Period.
When people buy the bootleg T-shirt in the concert parking lot and not the more expensive T-shirt inside the venue, it isn't to save money. The T-shirt in the parking lot is cheap and badly made, but it's easier to buy. The bootleggers have a better distribution system. There's no waiting in line and it only takes two minutes to buy one.
I know that if I can provide my own T-shirt that I designed, that I made, and provide it as quickly or quicker than the bootleggers, people who've enjoyed the experience I've provided will be happy to shell out a little more money to cover my costs. Especially if they understand this context, and aren't being shoveled a load of s**** about "uppity" artists.
It's exactly the same with recorded music. The real thing to fear from Napster is its simple and excellent distribution system. No one really prefers a cruddy-sounding Napster MP3 file to the real thing. But it's really easy to get an MP3 file; and in the middle of Kansas you may never see my record because major distribution is really bad if your record's not in the charts this week, and even then it takes a couple of weeks to restock the one copy they usually keep on hand.
I also know how many times I have heard a song on the radio that I loved only to buy the record and have the album be a piece of crap. If you're afraid of your own filler then I bet you're afraid of Napster. I'm afraid of Napster because I think the major label cartel will get to them before I do.
I've made three records. I like them all. I haven't made filler and they're all committed pieces of work. I'm not scared of you previewing my record. If you like it enough to have it be a part of your life, I know you'll come to me to get it, as long as I show you how to get to me, and as long as you know that it's out.
Most people don't go into restaurants and stiff waiters, but record labels represent the restaurant that forces the waiters to live on, and sometimes pool, their tips. And they even fight for a bit of their tips.
Music is a service to its consumers, not a product. I live on tips. Giving music away for free is what artists have been doing naturally all their lives.
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