Two different takes on the current state of the music biz from Wired.com:
"It was only a couple of years ago that we said, 'What's going on here?' Really, an album that someone worked on for two years — is that worth only $9, $10, when people pay two bucks for coffee in Starbucks? People never really understand what's happening to the artists. All the sharing of the music, right? Is it correct that people share their music, fill up these devices with music they haven't paid for? If you had Coca-Cola coming through the faucet in your kitchen, how much would you be willing to pay for Coca-Cola? There you go. That's what happened to the record business."
- Universal Music Group chairmain and CEO Doug Morris
"As one who makes a living making records for others, I have to tell ya the whole 'touring uber alles' meme is tired and deeply flawed. Setting aside the loss of a valid modern art form (the album, as distinct from it's compositions and performances), both club circuits and pay scales have been in decline for a couple decades now. While artists could make a good living touring in small clubs in earlier eras, not so today: Indie bands are doing good to make $200 in a mid-size city on a weeknight, which must cover gas, food and lodging for 3-6 people. Burger King is a better option. Touring is very difficult for bands who lack outside revenue (from album and merch sales or a day job). Even the most savvy artists with great merch and name recognition tour at their own risk: Typically only weekend shows are profitable outside major cities.
The notion of artists surviving on their live performances or touring revenue is naive and worthless. Venue attendance is weak across the country, gates are stagnant, and radio support non-existent. It's difficult to grow a following organically, requiring an investment of years and thousands of out-of-someones-pocket dollars in tour and life support. Suggesting bands give up royalties for recordings and instead rely on road revenues is ludicrous on it's [sic] face. It's a mantra chanted by people looking to validate the false morality of illegitimate file trading. It's easy to rationalize ripping off big labels, especially when their [sic] headed by douchebags who hate fans as much as they love money. But the fact remains, we need to find a revenue stream for recorded music, as venues move away from live entertainment and opportunity narrows for tour revenue."
- Mastering engineer D. Lincoln
