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EMI IN GOOD HANDS

New EMI owner Guy Hands considers paying musicians for their time - what a radical!

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The reason for the poor profitability is a squandering of cash that few other businesses would countenance. Expensive up front bets – “the signing of bands” – is the first excess. Then there is a poor record of estimating the right number of CDs the market requires for particular acts. For instance, it is rumoured that there are over one million unsold copies of a Robbie Williams' album.

The industry response is to take it out on the artists whenever possible. The so called “standard industry contract” in Australia will often involve musicians being charged for CDs that have not been sold – a device for keeping them in life time penury and obligated to produce more in a Sysiphean labour. Often various forms of financial "encouragement" to radio stations add to the costs, although of course there are routine denials that such “payola” exists.

The recorded music industry has consequently been unlike most other industries, in that it does not have employees who are paid for their work. It is routinely based on agreements between a big company and a, usually young and powerless, performer in which the risks are shared but the benefits tend to go only one way. The performers tend to get little, and to find they are assuming financial risks few individuals can cope with effectively - let alone the young and inexperienced.

If Hands moves to a more conventional model of paying a wage for work performed, it would not only be a much desired shift towards more humane practices in an industry where that is rare, it would also encourage a more healthy connection between the nature of the work and the market for the output of the work - that is, a normal market. The current arrangement is that the recording industry employers trade off their inability to predict market demand against their capacity to take everything when there is a success. It is a bit like the methods of venture capitalists (working with the dracula).

Paying musicians a normal wage in return for work produced - like the old song writing practices - and then attempting to create customer value, more resembles the methods of a manufacturing industry, which is what CD production finally is.

It would be something of an irony if a private equity manager – only one step away from a venture capitalist – was the one to change the industry away from its rapacious habits.

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The Right Bank

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Merlin casts spell

Merlin, the non profit entity representing 12,000 independent labels in cyber space now claims 8% of the digital market. Merlin claims it is providing sites like Myspace and Last FM with a body they can negotiate with to achieve legitimate access to independent releases. Merlin favours a subscriber based model rather than a pay-per-track and credits this for their success. How this works out for the independent muso is not clear although a little simple maths indicates that there might not be much to share around, “non-profit” or not.

Keep on Rollins

Recent visitor to Oz, jazz legend Sonny Rollins, states that he still practises every day. Refreshing change from the “I picked up an instrument and discovered I could just play it…” school of muso interview.

Borich makes blue

Blues legend Kevin Borich Borich recently made a huge fuss in a Gold Coast Bulletin article about being forced to cancel some Queensland gigs due to the interference of the Musicians’ Union. Trouble is the claim was completely false. Musos’ Union had nothing at all to do with the incident. Reporter didn’t check Borich’s info which came from the promoter. Borich has placed a clarification on his website (http://www.kevinborich.com.au/news.htm) and intelligence understands that the MUA’s lawyers are talking to the Gold Coast Bulletin.

Diddly dead

Another legend, Bo Diddly died recently. Thanks for the chunk a chunk a chunk, gachunk chunk Bo!!

More Bertelsmania

More reports that Bertelsmann wants to sell off its half of the Sony/BMG major. Decline of both revenue and operating profits are quoted as reasons for dumping the unit. The big “B” apparently thinks that the pressure caused by internet downloading is making the music biz a bad bet and also wants to sell its music club. Intelligence first warned of the likely dumping way back in 2006!

Money with Mouth

The Century Orchestra from Osaka (Japan) recently submitted petitions signed by 100,000 people to the local governor asking for continued funding. Gov pointed out that orch would be fine if all the petition signers kicked in 1000 yen (about $10AUD) each! Orch now plans a $10 a head supporters group, ain’t maths marvellous!!

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