Where is the innovation?
The Record Industry is losing money, this is no secret. EMI recently announced losses of a whopping $1.2 billion dollars, with revenue falling from $2.8 billion to $2.3 billion. But the truth is that record labels everywhere are generally experiencing reduced revenue streams. This is reducing the volume of records which are being put out, and means that more pressure to succeed is being put on the few records are that are being released. As Glen Peoples of Coolfer points out in this article, this is a climate which discourages risk taking. Record Labels are no longer willing to take risks on relative newcomers but would rather focus on bands which already have an established fan base and a few releases behind them. This same kind of risk analysis forces labels to focus on signing mainstream artists (which have a greater chance to make them money) than focusing artists outside the mainstream which are seen as a more risky investment.
This logic is understandable since their old revenue structure is being increasingly challenged by the changing music environment, but it doesn’t detract from the criticism that questions of risk and profitability are distracting them from brining us fresh records. This view was voiced by Epic Records U.K. managing director Nick Raphael who said at a recent musexpo meeting, “It’s about finding great music and great artists, and not getting distracted in the process”. But it seems they are getting distracted, distracted because they feel increasingly pressured by questions of risk and profitability. This fails the bands who are trying to forge new paths outside of the mainstream and at the same time the listeners who expect labels to innovate and keep the music industry vibrant and alive. If this trend continues, it seems like the onus is on the new music generation to fulfil their role and find the talent they will inevitably miss, and to provide the resources for bands who are considered “high risk” to have an equal chance at developing their music. With distribution and promotion channels becoming more accessible to the majority, and recording costs far cheaper, questions of risk and profitability will hopefully become less central and the conditions within the industry more democratic and inclusive.
Tags: industry, innovation, label, Music, record, The new music industry
