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Rick Rubin says music business model is 'done'Dela @ Sep 05, 2007 00:24 | 32 comments
"I have great confidence that we will have the best record company in the industry, but the reality is, in today's world, weti might have the best dinosaur. Until a new model is agreed upon and rolling, we can be the best at the existing paradigm, but until the paradigm shifts, it's going to be a declining business. This model is done," he said.
An example of a model that he proposed was giving consumers access to music from cars, TV sets, cell phones or anything possible, for a monthly fee of around $20. So basically, Rubin is talking about a kind of "MP3 locker", a concept pushed for a long time by Michael Robertson's MP3Tunes (and past service MP3.com)
Rubin's suggestions would make music devices such as Apple's iPod obsolete as a main medium to enjoy music. The same arcle that quotes Rubin claims that Columbia is considering approaching artists for a cut of up to 50% of revenue from touring, merchandise and from the Internet. Performers have typically been allowed to keep revenue from touring and merchandise while the label gets the biggest cut of a CD sale.
The subscription-based service that Rubin seems to be proposing is something that consumers have already been offered in several forms and have largely ignored. The concept of "renting music" seems too alien for consumers it would appear.
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Comment by: Statik (Sep 05, 2007 08:30) Hmm.. I already have a "rental" service of this kind and its free, apart from some commercials. Its called "Radio". Its in my car, in my home, in my cellphone, so its everywhere where I am.
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Comment by: oofRome (Sep 05, 2007 09:27) Quote: Unbelievable. I understand labels getting their cut of music sales, as they are responsible for production and distribution... But trying to get a cut, a 50% cut no less, for the artists going on tour and performing is just outrageous. I paid attention to this article until reading this. What a great new business model!: Have more control over your artists!
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Comment by: georgeluv (Sep 05, 2007 09:32) frances model is the best, everyone pays 10 bucks a month, you get to pirate all you want.
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Comment by: BludRayne (Sep 05, 2007 12:05) $240 a year to rent crappy music from no talent musicians, no thanks! |
Comment by: emugamer (Sep 05, 2007 12:10) Hmmm....50% of the artist touring and merchandise. For doing what? They have to realize that their time is over. There is such little of a need for physical media in mass quantities.
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Comment by: SProdigy (Sep 05, 2007 12:36) Originally posted by emugamer: Well said. We hear the music for free (something we CAN do with plain vanilla radio) and then we pay $$ to go see the artist on tour. Artist makes money and the RIAA doesn't. So, what is the problem here? You're right, the middleman is cut out. Too bad. We're going back to a time when DJ's actually played what they wanted, and bands could bring their recording to the station. The middleman is a goner. |
Comment by: albino92 (Sep 05, 2007 14:27) I like the idea of the monthly fee because say you're busy one month and you have no time for music you don't need to pay for that month but if you're taking a flight somewhere you could buy that month. |
Comment by: DVDdoug (Sep 05, 2007 15:17) Quote: What? The only way artists make money is by selling songs and concert tickets. Every time you buy a CD or a download, the artist gets a royalty.
Quote: Bummer. Most new bands will agree to almost anything to get a record deal, but the already-successful artists will never sign a contract like that! |
Comment by: emugamer (Sep 05, 2007 16:47) Quote: Read the article dude. The label gets the biggest cut of the CD sale. Not the artist.
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Comment by: simpsim1 (Sep 05, 2007 18:39) I was actually looking forward to a music discussion that didn't get round to the age old debate on piracy. Oh well, I guess I expected too much.
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Comment by: emugamer (Sep 05, 2007 19:49) Originally posted by simpsim1: The comment on people not wanting to rent music pretty much summed it up for me. Sorry I couldn't provide more fodder :-( What stood out to me as the most absurd part of this article is the labels wanting to cut into the touring and merch profits.
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Comment by: webe123 (Sep 05, 2007 20:02) Quote:Originally posted by simpsim1: |
Comment by: dikdimond (Sep 05, 2007 21:03) Rubin is only saying what we have known for years...the old system has to go,plain and simple...glad someone has finally got the hint,but how long until real changes are made? Will the other labels follow suit? |
Comment by: mebjolz (Sep 06, 2007 03:19) ........... |
Comment by: bomber991 (Sep 06, 2007 14:25) Originally posted by Ludikhris: Sounds as confusing as a cell phone plan. |
Comment by: TagBiker (Sep 06, 2007 16:14) Quote: Say it how you like. You use something you didnt pay for and would not have been given to you for your use free by the creator of it, then you are a thief and stealing. Wouldn't you be a thief if you took a television from a store without paying, even if you wouldnt have paid for it if you could have? A tv is a far cry from a song, but the concept is still the same. Situational ethics is just an excuse to do what you want and not feel guilty. Wrong is wrong. And to say that a downloaded song does not translate into a lost sale is absurd. Not ALL of them do, but certainly you have dl'd cds you would have paid for, so at least SOME dl's are lost sales. Its a gray world, but you have to do what you feel is right. |
Comment by: emugamer (Sep 06, 2007 17:42) Quote:Quote: First you say its stealing as if it were black and white, then you say its a gray world and you have to do what is right. Intellectual property and rights is a whole different beast and cannot be compared to outright physical theft. I personally buy my CD's when I like an artist. I don't judge people for not though. I even take it a step further and by the Vinyl if available. But I have to feel that it's good enough. That is why I have trouble believing that a download translates to a lost sale. People delete songs all the time. Songs come and go from people's hard drive. A guy with 5TB of downloaded music probably doesn't listen to it and has no emotional attachment to an artist anyway, so wouldn't have purchased the box set. Or maybe he would have, but to make a blanket statement that someone is a thief doesn't make sense to me. The Labels don't have a grip on the feeling and emotion behind music and how it moves people to become a part of the experience. Once again, I find it absurd that if I record a song on a cassette that I can be fined and considered a thief. If I share a song with a friend, then we can go to jail. The beauty of music is sharing, and the definition of a thief is too broad.
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Comment by: TagBiker (Sep 07, 2007 09:40) emugamer
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Comment by: emugamer (Sep 10, 2007 18:50) Originally posted by wordwan: Interesting idea, but I still think it is in the best interest of the artist if he/she was in total control of pricing. Artist provides art - customer pays artist. No need for money to exchange from any other hands. If you're feeling benevolent enough, then it wouldn't hurt to donate to an artist either ;-) |
Comment by: borhan9 (Sep 10, 2007 20:10) This is not going to solve the issues. Clombia needs to move to digital but not drm locked files. |
Comment by: emugamer (Sep 10, 2007 20:45) Originally posted by borhan9: Which issues are you referring to? People downloading music for free? People don't like DRM and there are ways to bypass it. So DRM isn't really a factor in any argument. It's just a nuisance. Artists need to drop labels, give up on any DRM and put their trust in their fans. There has to be a point where the artist says "if you like my work, buy my stuff" - and then accept whatever profit he/she makes. That profit would determine the value of that persons art. Invite the fans into their world. Provide the experience they want. Work for the $$$ by relying primarily on touring. Create quality merchandise. Music should be something heard freely without charging frivolous royalties. Just my opinion. |
Comment by: mebjolz (Sep 11, 2007 00:46) Originally posted by wordwan: that all sounds great in theory, and to a certain extent it has been implemented already, for example The Brian Jonestown Massacre have the majority of their albums (full albums!!) available for free download from their website along with a link for fans who are generous enough or feel indebted enough to pay funds into a paypal account for them. Unfortunately, as an artist myself I know how people value creativity until it comes down to their wallets, its a different matter then... |
Comment by: militantm (Sep 14, 2007 19:48) I'm with the rest of the folks here who say $20 a month to rent, to hell with that, try more like 10 a month. Satellite radio is less than that already and Sirius plays some great stuff. As for the record companies cutting into half the acts profits from touring and merch, they have nothing to do with either one, why should they be entitled to half of the real work the acts have to do to survive? You can check for yourself a lot of these groups have to tour constantly just to stay financially stable. Most are not millionaires, at some point half of nothing is nothing. Next they'll be projecting expected tour profits and go off that then sue the acts for the remaining amount they didn't able to come up with. there is such a thing as cancelled shows and failed tours due to less than expected ticket sales you know. That's certainly a marriage I wouldn't want to be involved in. There was a time when I thought old Rick was cool cat, if he really said any of what was mentioned in that article he can go jump in the lake, his pockets are plenty full. Whoever wrote some of his production efforts were sub par they were also correct, he may have some popular recordings(units sold) under his belt, but let's face it folks, the quality of the production on a lot of them is crap. |
Comment by: simpsim1 (Sep 15, 2007 17:08) Originally posted by emugamer:
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Comment by: Anonymous User (Mar 20, 2011 08:36) Rick Rubin made out better then the Large Record Labels that held onto the old he went with his ears musically and visual and is still ahead of them. |
