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| From | "Jaimie Vernon" <bullseyecanada@hotmail.com> |
| Subject | Re: eMusic |
| Date | Thu, 10 May 2007 20:42:28 -0400 |
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Chris,
Very well stated.
Jaimie Vernon,
President, Bullseye Records
http://www.bullseyecanada.com
SWAG:
http://www.cafepress.com/bullseyecanada
BULLSEYE LIVE 365 RADIO:
http://www.live365.com/stations/bullseyerecords
Author, Canadian Pop Music Encyclopedia
http://jam.canoe.ca/Music/Pop_Encyclopedia/
http://www.myspace.com/jaimievernonsmovingtargetz
>From: "Christopher Kouzes" <Christopher.Kouzes@btol.com>
>Reply-To: audities@smoe.org
>To: <president@bullseyecanada.com>, <audities@smoe.org>
>Subject: Re: eMusic
>Date: Thu, 10 May 2007 18:01:10 -0400
>
><<while the majors thrive because they have more money than God>>
>
>Sorry Jaimie, but it's been several years since the majors have thrived.
>In fact all of the majors have had substantial staff cuts in the past 24
>months and have seen their profits dwindle. Just this week, WEA
>announced a layoff of over 400 people. Music sales (and by this, it's
>largely meant major label releases) are down about 30% from last year.
>
>When Shawn Fanning and Napster made ripping and sharing mp3 so
>commonplace, they let the genie out who will never return to the bottle.
>Music, right or wrong, will be undervalued from here on out. Who knows,
>maybe it's always been overpriced? Maybe the turn of events over the
>past 2 years or so has brought the market to where it should be. Maybe
>musicians can't have a career based on music sales. Maybe most music
>offered will be a promotional tool to get people to see live shows
>(which is about the only part of the music business is still strong).
>Devauled entertainment product isn't limited to music. DVD prices have
>continued to fall. Open up any weekend circular and see what you can buy
>for under $10. Hell, under $5.
>
>If a label thinks places like eMusic are a rip off and are afraid they
>won't see enough money from sales to cover production costs, then simply
>don't use them. But anyone wringing their hands because competition (of
>any sort) or "unattractive" opportunities have turned over the apple
>cart and doesn't do anything to help themselves can't be felt sorry for.
>
>About 10 years ago when Best Buy was ploughing through the country
>opening stores left and right, it put a lot of indie stores out of
>business. But good stores, stores that met the challenge did things that
>removed the head-to-head pricing wars they couldn't win. They brought in
>things like t-shirts, pop culture stuff, used CDs, and anything else
>that the competition couldn't offer. The good stores were, in most
>cases, able to weather the storm.
>
>Bringing this back to music, I think what Bruce is doing at Not Lame is
>brilliant. By offering value added material (in the form of bonus discs,
>downloadable mp3s, additional information), he's now able to offer
>something that the likes of iTunes and eMusic can't offer. Ray at Kool
>Kat is doing the exact same thing. The new Maple Mars, Fooling April,
>and John Wicks CDs all have a bonus EP of usually demos or live. That
>seems pretty smart to me. I know I keep on buying from both sites.
>
>At the recent NARM meeting, the main topic of conversation was "what do
>we do next?" The majors don't really know. The indie don't know. But
>what is known is that artist or label still trying to think and operate
>the way they were 5 years ago probably ain't going to be around much
>longer.
>
>Actually Jaimie, the classic rock model you've got is probably a pretty
>solid one. Chances are most of those folks are slightly older and would
>still prefer to buy physical product. Your numbers are right on. I
>worked for an indie distributor/importer about 10 years ago and we had a
>few in-house labels, one of which just reissued classic rock albums and
>artists. The model was set so that some decent money could be made at
>2000 units sold.
>
>Chris
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