by The Oracle - reprinted here...

In the OLD days, the labels offered three things:

1) Distribution
a) Great relationships with record retailers...guarantees of shelf presence...KEEP THE INDIES OUT!
b) Good supply of product at any significant retailer when needed.

2) Promotion and marketing
a) A lock on radio...KEEP THE INDIES OUT!
b) A lock on MTV...KEEP THE INDIES OUT!
c) Enough resources to maximize print, tv, radio advertising

3) Musical guidance
a) A&R having the knowledge and skills to play an active role in the product
b) Labels had the patience to allow an artist to GROW.

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Fast forward to 2008:

1) Distribution NO LONGER AN ISSUE. ANYONE CAN GET PRODUCT FOR SALE AT #1 MUSIC RETAILER...ITUNES, who maintains a LONG TAIL approach to the store...WHY CARRY A LIMITED NUMBER OF PRODUCT WHEN YOU CAN CARRY EVERY SINGLE RECORD BEING MADE?
a) Great relationships with record retailers...NO LONGER APPLICABLE BECAUSE RECORD RETAILING IS DEAD. TOWER GONE. VIRGIN GOING. RECORD STORE AFTER RECORD STORE CLOSED.
b) Good supply of product at any significant retailer when needed. AGAIN, NO LONGER AN ISSUE

2) Promotion and marketing
a) A lock on radio...NO LONGER AN ADVANTAGE. RADIO IS A DEAD MEDIUM AS MORE AND MORE PEOPLE MOVE TO THEIR OWN IPOD PROGRAMMING.
b) A lock on MTV...NO LONGER AN ADVANTAGE. HIGH END MUSIC VIDEOS ARE EXPENSIVE TO MAKE AND MTV ISN'T PLAYING THEM. MEANWHILE, GARAGE VIDEO ENTHUSIASTS ARE MAKING VIDEOS ON THE CHEAP FOR YOUTUBE PLACEMENT, ETC.
c) Enough resources to maximize print, tv, radio advertising. NO LONGER AN ADVANTAGE WHEN THE LABELS HAVE VERY LITTLE COMING IN FROM SALES...CAN NO LONGER FUND WIDE-RANGING AND EXPENSIVE PROMO CAMPAIGNS.

3) Musical guidance
a) A&R having the knowledge and skills to play an active role in the product. NO LONGER AN ADVANTAGE. THERE IS NO ONE WORKING IN THE INDUSTRY TODAY WHO HAD THE MUSICAL SMARTS OF JOHN HAMMOND, SR., HERB & JERRY, MO, BERRY, ETC.
b) Labels had the patience to allow an artist to GROW. NO LONGER AN ADVANTAGE...LABELS NOW OWNED BY MAJOR CORPS WHO MUST ANSWER TO INVESTORS ON A QUARTERLY BASIS. NO PATIENCE ALLOWED.

Am I missing anything?

Sales for majors are still good - and still cover large campaigns.

Apart from that much is good in that article.

The majors are shifting into becoming Marketing Companies for big acts only.

Most bands will do it the new way.

Eventually the majors will work out exactly why they exist. Remember they still have the corporate structure and investment funding to break bands big.

Remember they still have the corporate structure and investment funding to break bands big

That's exactly the problem of the majors: They are way too big, and even if they "break bands big" this doesn't mean much in financial terms (compared to the 80s & 90s).

Saturation marketing doesn't directly affect the profit line unless the music is great and the act is great.

Jessica Simpson's demise at Columbia Records US is the perfect example of this. The worst exposure to profit margin in the history of Columbia Records. (Now she's in Nashville, thats got to be the funniest thing I've heard in a year)

Don't even get me going on Pop/American Idol. If their lucky enough to get any traction with anyone it comes and goes in an instant.


On the A&R Statement........yes the there are shepherds of real talent in the industry now....they are called producers.......and myself and the brethren I know are opening their own wallets to find it and nuture it for the long haul.