The price of music albums should be slashed to around £1, a former major record label boss has suggested.

Rob Dickins, who ran Warner Music in the UK for 15 years, said "radically" lowering prices would help beat piracy and lead to an exponential sales rise.

Mr Dickins was in charge of the label from 1983-98, working with acts like Madonna, REM and Simply Red.

www.bbc.co.uk/news/entertainment-arts-11547279

That's very deep.

For better or for worse, Dickins is right about the future price of music: much, much lower than today.

But he is completely wrong in believing that "in his scenario, record labels would be able to make "big money" from other sources such as gig tickets and merchandising."

Records labels as we know them today will be history - long before the price has dropped anywhere near the one pound per album range.

I think he could be right ... a very low price would encourage many "spec" purchases, and I could think of dozens / hundreds of albums that I would buy at tht price (but would not pay full price for).

It could lead to big-sellers selling many times the quantity that they do now ... thus boosting label margins.

It's easy for a guy who made millions off the back of HIS POLICY of selling CDs for £12/£15 each to say that isn't it? I remember BARD suiggesting £9-99 was the highest price CDs should be sold at in order to maximise volume in the late 1980s. He didn't agree at all.

Rob was the perfect example of many of my friends in the industry - fine when backed by the might and cash of a major corporation; a disaster on his own.

True entrepreneurs like myself, Mickie Most, Joe Meek and others were far better at discovering, making or breaking acts but often useless at the business side of things without that reserve of someone else's cash behind us.

Just the fact that he has said this means the whole system is collapsing around the Major Labels' ears.

There is no easy answer. Digital revolution and downloading have made music easy to make and distribute with a click of a mouse.

A band could sit in their front room and record an album - then at another click of a mouse - send it to a Million subscribers or fans later in the afternooon. This would all be at Digital Quality.

The cost - just the electricity to power all the stuff and the ISP connection. £1 to make an album.

Therefore, even if they sell it for 50p per copy then if a million fans pay the 50p they make £500,000 in one days work.

The model is there - but it cuts out the middlemen. The Record Company is not needed.

What is needed is from within the band - someone with good PC skills. Someone to record and mix to a good standard. Goes without saying decent songs and playing. A website through which to distribute and sign up fans. A payment system if money is to be paid for the album.

Not alot else is needed. Word of mouth on the net can get people interested with FREE downloads of a great single which can be advertised on forums like this and shared with a link to join the "Mailing or subs" list for 50p a year or £1 a year ( includes the album sent to you ! )

As a business model that is very lean and still means that the band can get alternative income streams from playing live to all these people who own the album and other things.

The book I co - wrote with STUART SMITH called HOW TO MAKE IT IN MUSIC gives a whole Chapter ( I wrote ) on the NEW MODEL comparing the Record Company 360 degree model with the DIY 360 model which is the one I have just described.

Needless to say the book is on its second edition - it may even make a third ? and there are still some copies left on Amazon of both editions ( the New Model chapter is the same in both )

I think it is the end of the Major Labels which will just have a handful of acts that sell large quantities but the real action takes place in venues and on the internet and video channels and in the re release of oldies for the majors.

BR you talk a lot of sense here and like you I do believe the new model is pretty much along
the lines to what you have written.
However, for lots of people who do not gig or do not have a fan base it is not easy to instantly
draw the crowd, but instinctively I believe strongly this is the only way forward for us all.

I have been quietly working on this model and been trying to crack the holy grail of marketing
without spending millions which would be necessary to power all of this.
You have spoken wisely BR and I will add that it is now possible to use Youtube and Google to
drive fans to your site and recoup every penny of it. The implication of this is staggering.
If you could use Google Adwords to surgically reach the righr demographic and not lose any money
on this then yes the power of the record company will be diminished.

BUT I would caution against writing them off just yet. I predict that the majors (much smaller)
will turn into service oriented labels very much like Tunecore who made MILLIONS last year.

If there are any music industry execs reading this board DO IT NOW ! (JK talk to these people lol).

Tunecore will go out of business tomorrow if EMI, SONY et al set up similar operations. A lot of
people want to associate themselves with the majors even in the above manner and the majors will
not die a death of a thousand cuts which they will if they don't do anything now.

But they won't "do anything now" KZ - they are staffed by wankers and drones whose sole ability is keeping their heads down.

My other worry is - this "new model" does not cater for the life blood of the music industry - one off hits; novelty smashes; those delightful gems which get the millions not deeply devoted to music to buy, listen, sing, hum... Who Let The Dogs Out? I Get Knocked Down... Johnny Reggae Reggae Lay It On Me...

No tours there thank god.

DJKZ wrote:
Tunecore will go out of business tomorrow if EMI, SONY et al set up similar operations. A lot of
people want to associate themselves with the majors even in the above manner and the majors will
not die a death of a thousand cuts which they will if they don't do anything now.

Even if the majors did "set up similar operations" they would still act with their mind set on "upstreaming" / "farming" etc. - with the aim to find the one artist to mold into a global superstar.

The "new model" (as I understand it) is completely different: Its centered on the artist who employs & pays some kind of middle man (managers / accountants / producers etc.) and uses the tools provided by Tunecore and others to reach his/her own goals.

JK wrote:
My other worry is - this "new model" does not cater for the life blood of the music industry - one off hits; novelty smashes;

From my point of view it is just the other way round: In the new model it will be possible for new artists to break thru / to get into the charts, but without the oligopolistic power of the old record cartell and with the new media landscape / lots of entertainment options / the short attention span of the consumers etc. it will be much harder to stay at the top: long-term careers will be the exception, "one hit wonders" will be the norm.

I beg to differ JK. The new model is perfect for novelty hits.
Didn't you hear about Bedroom Intruder ? The countless viral hits prove
that novelty hits will work well in the new model. The only problem is getting people
to write them. Novelty hits are a special market but the Facebook community
will get behind it. Maybe you should back one ?

Hi Djones,

Well that is possible but I don't think that is a bad thing as by then the artist
will have the choice to move into the self service system or the "managed system".
I am actually working on creating the very type of label I have been banging on since
the majors (as usual) are slow off the mark. Watch this space.

I do agree it will be service oriented and will put power into the hands of the creators
of music. No longer will they need onerous management or recording contracts.
Everything will be up for grabs depending on the type of deal you can negotiate.

BR what is the name of your book and where can one get it ?