Rx for Music Industry: Seek Out the Old Geezers

Here's a business model with a future: sue your customers. That's what, as of this month, the recorded-music industry has been doing. It filed suit against four college students involved in Internet file-sharing (in which compressed "files" of music are swapped, Napster-style), asking for billions of dollars in damages. Yes, billions. Interestingly enough, the Bush administration, known to be opposed to frivolous lawsuits and in favor of tort reform, has weighed in on the side of the industry. Let's go after those students. That's where the money is.

This strategy would suggest that lawsuits against computer makers and the manufacturers of modems (and, for that matter, the little cables that connect your computer to the phone line) are in the offing. A calmer voice from the back row of a Business 101 course might well offer this suggestion to the industry: stop seeking as your customers the people most likely to steal from you.

The record business is clearly in a slump. The value of all music product shipments decreased from $14.3 billion in 2000 to $13.7 billion in 2001, according to figures released by the industry's trade association. This was not a one-year drop, either; it continues a recent trend. (A cautionary note: these figures are based on sales to stores and not on sales directly to consumers.)

The industry line has been that file-sharing caused these declines. Others point to the fact that boomers may have finally bought, on CD, copies of all the music they had already purchased on vinyl. And Andreas Schmidt, of the music giant Bertlesmann, said the unsayable: "We didn't put that much good stuff out."

Nobody, let's remember, twisted the arms of the record and movie industries into focusing their product and their marketing muscle almost single-mindedly (if that's not being too generous) on people in their teens and early 20's.

They seemed like a great market: easily persuaded, with the free time and the free-floating enthusiasm to see films repeatedly and line up at midnight for sneak releases of "hot" new recordings.

As events have proved, there is one crucial problem with this demographic cohort: it has much more time than money. And, if these music lovers are enrolled at a university, they probably also have access to a superfast Internet connection, which makes the usually cumbersome process of downloading music files as easy as checking your e-mail.

Many people over the age of 25 have been moaning for years, correctly, that nobody is putting out records for them. These people have families, church and community meetings to attend, golf to play and cooking to do. They have careers and disposable incomes. All this makes them far more likely to opt for the convenience of stopping by the record store than trying to figure out how to work Kazaa or Gnutella or any of the other strangely named avenues of Internet commerce avoidance.

Will people older than 25 actually buy music? Obviously. Just consider the niche audiences for re-released oldies — swing or rock. And as recently as the 50's, there was a huge adult market for something called pop music.

Arif Mardin, the producer of the hit CD by Norah Jones, said of these customers the night the disc won three Grammys, "They don't know how to download, so they go to the store and buy the record."

Sure enough, the next week, the CD was No. 1, selling half a million copies, and registering the biggest post-Grammy spike in recorded-music history.

So, before the record companies sue any more college sophomores, or go back to Congress for more legislation allowing more intrusion into the nation's private Internet behavior, perhaps they should just tweak their product and marketing strategy, and aim at the people who have at their disposal more money than time.

Harry Shearer, the host of the weekly radio show, "Le Show," appears in the new film "A Mighty Wind," for which he co-wrote some of the songs.

Excellent.

Yes I knew that was him (and he was in Spinal Tap).

Older folks not buying as many albums is a component of the sales slump but there are plenty of albums targeted to over 25 listeners. The industry releases the albums but radio doesn't play tht songs.

Classic rock plays the older artists but not the new recordings by the older artists. They also don't play the boxed sets of "also rans" from the eras that those listeners like.

Soundscan doesn't look at the indies as well (independent stores may not participate, it doesn't include their mailorder catalog sales, and since they don't get commercial radio airplay, their songs aren't tracked on playlists.

I posted another article about a month ago that said the independents are doing just fine.

There was a struggle in the music industry when that "rock and roll fad" came up. Dick Clark helped tame the wild artists and substitute poster idols but it came back in the 1960s. Frank Sinatra and others (primarily ASCAP artists) never held quite that reign on the charts again.

I've never been satisfied with the rock music I heard on the radio (starting with listening to radio as a kid in the 1970s, hated disco, Kiss (too gimicky), and fern bar music). I do listen to some music from the 1970s now (including IRS's The Cramps, WB-Sire's The Ramones, and some Australian garage punk) but even today it doesn't get radio airplay. Since I haven't looked to radio (or mainstream tv/movies) to validate my musical tastes I don't particularly notice that music product sucks today, more than ever. I listen to plenty of great new bands but the industry would rather have an unsigned act than an established indy band and would rather have performers under age 25.

Another thing that people don't take into consideration enough is that there is a music/entertainment GLUT. How many cassettes, LPs, and 45s do you have? Now then, you can trade some of those in at a store and get credit where you can get someone elses' used CDs and LPs. None of those sales help the "music industry" because they only take into account new album sales. Even new sales of Dark Side of the Moon no longer track under the revised ranking of Soundscan.

Consider too that a DVD of a movie can often be found for the same price (or less) than the CD soundtrack for that same film. It's a buyer's market but the music suppliers still think they can raise the price point for CDs.

There are blues performers who have been at this game for over 50 years (and Huey Long, one of the Ink Spots just turned 99 this weekend).

I saw the Cramps last week and Lux and Ivy must each be pushing 50 (the band has been playing since 1976 as have the Fleshtones, who released a new album a week later than the Cramps). The Dictators debuted on Epic in 1974 and their new album equalled or surpassed their others. Iggy Pop must be over 50 now.

I've seen James Brown and Little Richard, they may be nipping and tucking the wrinkles.

Link Wray has his wrinkles but at 74 (and one lung) he can still play guitar that has 30 year olds saying "Man, that's too loud!".

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