The Billboard Music Loophole
It's a new day in the music industry. Itunes is officially showing up as the biggest market for music retail in the world. but is it really? How are songs like Usher's - "Love in the Club" and Leona Lewis - "Bleeding Love" going from number 81 to number 1 in one week? Not to say that these aren't hit records, but if you've been paying attention to the charts lately then you might be scratching your head wondering how records now a days become "hits" so fast. The truth is, itunes probably isn't the biggest market now but it is the cheapest distribution and the easiest access. If a major record label can get your single number 1 on itunes then radio has to play you, and billboard has to put you near the top. Are you following me? The fee that itunes takes off of each song sale is around 30% or around 70 cents on the dollar. This means that a major record label with a lot of money can buy 10,000 units and only spend $3,000 dollars. Do you follow me? Now obviously the label has a lot of people to pay out of that remaining money from itunes, but what if they had a previously worked in promotional budget that was put aside for "digital sales inflation." What if the labels have backdoor deals with itunes etc. Not what if.. They do! The music industry is pretty scary right now and the billboard charts are skewed and more inaccurate than ever. Ironically, all these tactics are also causing the record labels to die a fast death. But will the labels ever really die? Will the old money and television, radio networks ever completely date themselves? The internet is providing a more powerful and cheaper market for independent music and established artists alike to take more control and have a larger outlet for their music. But there may be hope for the labels! Apparently there is a new government developed internet that is coming soon. Why is this significant? Well it is about 20 times faster than the regular internet and they have created regulations to things like music, movies, software etc. but is it possible? Will someone just figure out a more advanced way to make napster? Will someone just reinvent the mp3 file? I am interested to see how "the government" is going to make this "super" internet work. We will see but for now the labels have more control over Billboard and your tastes than ever. Think about that every time you hear an AYYYE in another song! - aka I am the soundbite.
1 comments:
soundbite, i think we should offer a class in "How the industry really works 101"......
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