
downloading = disintermediation?
October 19th, 2002I just watched The New Music on City TV in Toronto. Today’s show was largely about downloading and its effects on the industry. All through the piece it was all about the artists, how downloading affects *their* livelihoods.
I’d be interested to see/hear artists describing their revenue breakdown. How much do they as artists make from the records and royalties? How much do they make from concerts, appearances, merchandise?
My impression from articles and letters from Janis Ian, Courtney Love, and the recent court statements from one of the Backstreet Boys about never receiving royalties is that the artists themselves make very little if anything from the recording industry. The assumption I’d like investigated is that they view the recording industry as a necessary evil that allows them to graduate into revenue streams that actually make it as far as their own pockets – concerts, merchandise.
Assuming that these observations hold true, with professional recording and wide distribution having become reasonably affordable via computers, might it not be true that artists could be far better off in the future producing and distributing their own material for free consumption in order to jumpstart their personal payback of concert and merchandising streams, thus cutting out the RIAA middlemen who seem from many accounts to be taking close to all of the money and exerting all of the control?
This is fairly closely tied to the CARP issue that has effectively shut down internet radio stations, who were also encroaching on the recording industry’s ability to control what is played on increasingly centrally-owned broadcast radio. Both downloading and internet radio are threats to the RIAA et al in that they realize that if enough artists wake up to it, they will realize that completely disintermediating the process will give them direct control over their art, their profits, and their marketing.
It sounds almost too simple. Am I wrong?
