Did Steve Jobs Create a Digital Vampire for Artists?
The timing can't be coincidental. Fresh off our discussions of Halloween costumes and societal obession with ghoulish themes, comes Who frontman Pete Townsend saying (and implicitly criticizing the late founder, Steve Jobs) that Apple gouges artists and gives them little of the support that traditional record labels did:
"Is there really any good reason why, just because iTunes exists in the wild west Internet land of Facebook and Twitter, it can't provide some aspect of these services to the artists whose work it bleeds like a digital vampire... for its enormous commission?" he asked
Of course, to view the rest, you'll have to visit the BBC website and watch the videos. But I think this theme resonates with more than just artists. EJ Hill has been lamenting conservative myopia with regard to traditional news sources. Are conservatives being just as blind regarding artists? Given the heated discussions recently about digital copyrights here on this site, I would think that at a minimum EJ Hill, James Lileks and Richard Epstein would want to have a go at this topic.
Anyone else?
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May '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
I'm a sooper-small-time artist selling music (electronic downloads) at iTunes, Amazon, etc. via a company called TuneCore. When each company has taken its cut, I end up with about 65 cents of each dollar of sales going into my pocket (minus a puny $20 or so I pay up-front). To me, that is a phenomenal rate of return.
Maybe for someone at the other extreme of the scale, the economies are different. But, in that case, Mr. Townsend should make it clear he speaks for the 1%. Or, better, just shut up.
Aug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
I'm with Fredo as to seeing the real numbers, but that won't happen. I imagine that iTunes is pretty much unavoidable, even the Beatles came around and what a penny they coined on that deal ! Anyone even see the results past those in 2010 ?
Of course, the important thing is that we all stayed home, clicked through the iTunes site, and saved the planet with our carbon free shopping. Praise Gaia .
And thank you Pete for The Who.
Sep '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
I'm a sooper-small-time artist selling music (electronic downloads) at iTunes, Amazon, etc. via a company called TuneCore. When each company has taken its cut, I end up with about 65 cents of each dollar of sales going into my pocket (minus a puny $20 or so I pay up-front). To me, that is a phenomenal rate of return.
Without knowing the numbers, and not being a musician, my impression has been that recording artists haven't been complaining about the demise of record labels. Townsend's complaint seems to center more around the decoupling of content and distribution which, it seems to me, artists are on balance happy about.
But, I remain to be persuaded either way.
Oct '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Townsend is whining about the fact that his career has been mostly made by the record producers who had invested substantially in his success, demanded brand exclusivity, fronted the bucks when needed, and otherwise promoted The Who and himself to fame and fortune.
I-Tunes is a democratizer of music. As such, Townsend no longer enjoys the exclusive attention and promotion given him by the industry. How sad. If he owns the copyrights to his performances, he can lawyer up and get the stuff pulled from iTunes.
Meanwhile, Fredo and millions of "lesser" talents, that is, those without the ability or interest in being in the show biz 1%, now have access to the marketplace in general.
Sounds like Townsend can't handle the competition.
Oct '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
If there is a better way, I invite Peter Townsend to please bring it to market.
Sep '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
I found it quaint that the bleating is happening on the BBC website.
May '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
For the record, I didn't watch the video. I got the message "not available in this region" or some such. Not sure why that was.
Jun '11
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Pete points out, if you listen to the hour-long lecture, that the prior business model (which lasted many decades) provided for the artist: 1) banking/ financial support 2) creative nurturing/ guidance AKA: A&R 3) manufacturing 4) publishing 5) marketing/ promotion/ publicity 6) distribution & 7) payment of royalties
The digital download model only provides the last two, Mr. Townshend points out.
The trading of analog dollars for digital pennies has wiped out much of the structure between artist and consumer. It doesn't personally hurt him much since the easiest thing to sell from a spreadsheet music store is a known quantity like a major classic rock band.
Interestingly, Pete thought the "headlines" from this talk would be other items such as: "Rock music is junk." "My snotty inner artist says, I don't give a bleep about making money," and "The Who were OK, but without me they would've ended up working in the flower market. Or worse-- in Led Zeppelin."
Jun '11
Re: Did Steve Jobs Create a Digital Vampire for Artists?
He has a long list of very thoughtful suggestions for Apple (or anybody who might beat the itunes model in the marketplace) in the lecture. It would cost some of the 30% commission they take per download-- but if they did it well their volume would be much greater. Basically he cherry picks the best of the many things the record labels did in the old model and suggests that Apple (or a competitor) take on that work rather than keeping intermediaries between them and the artist so they don't have to deal with artists one on one.
He isn't speaking up for old guys like him but the undiscovered artist. He has his stack.
Nov '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
The old world is dead. He seems to be lamenting the fact that he has to work for his supper now. In the days of the music labels, bands not locked into them were therefore locked out. Without a label supporting you, you had no distribution. So you had to slog it out and work to pay for your own production and tours and play and play and play. A good example of a band that did it this way is Dave Matthews Band. They brought a hard earned fan base, won on the shoulders of constant touring and word of mouth promoting, the their eventual contract with the labels and proceeded to explode. But today, thanks to iTunes, the environment, rather than being against the hard working, is actually set up to facilitate success. As long as one is still willing to work hard.
Aug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Townsend seems to have forgotten that record labels were once considered the enemy.
In the traditional record label deal, the artist pays for everything. The cost of recording, parties, promotion, etc - is all considered an "advance" against the artist's royalties. The advances are recouped at the artist royalty rate - typically about 10% of retail.
You gotta sell a lot of CDs to recoup $500,000+.
Yes, the labels of yesteryear provided nurture and support, along with arm-twisting radio stations, shady give-aways, and lawyers that could make all manner of misdemeanors disappear. But that was years ago. The record business changed forever with the advent of MTV. Were Pete Townsend to be looking for a first-time record deal today, he wouldn't get it - because he is not photogenic enough.
The labels are dying because they refused to keep up with technology. (Record contracts still contain boilerplate clauses from the 1930s.) No company is invulnerable to change. Some clever kid is probably already developing whatever will bring iTunes to its knees.
The final nail in the record labels' coffin will be the reversion of song and record master ©s that will begin in 2013.
Aug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Why is it necessary for Apple to be the organization that provides musical artists with all the "support" that Townshend claims they need?
Why can't other entrepreneurs become independent managers, marketers, producers, mentors, etc, and take their own cut out of the artists' 65 cents?
If the artist doesn't think he/she needs to give a piece of the action for that "support", then they are under no obligation to do so.
Jun '11
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Songwriter: Townsend seems to have forgotten that record labels were once considered the enemy.
In the traditional record label deal, the artist pays for everything. The cost of recording, parties, promotion, etc - is all considered an "advance" against the artist's royalties. The advances are recouped at the artist royalty rate - typically about 10% of retail.
You gotta sell a lot of CDs to recoup $500,000+.
Very true. And many, many artists, after 3 records or fewer, were dropped in a state called "unearned." The label then would often eat millions of dollars in recoupables. Do that a dozen times or more a year and the "banking function" part of the label will change the A&R part of the label.
I am amused by Pete's desire to rebuild, at least in part, an infrastructure that he didn't embrace wholeheartedly in his youth. However, he makes some valid points about how difficult it is for the unknown artist to break through. For those who have toiled in those fields it's worth the hour it takes to listen. I would point out, again, that he isn't whining about his situation.
Nov '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
If Apple gets into the business of picking and choosing artists to develop & support, they'll open themselves up to charges of monopolistic practice and likely iTunes will get broken up. So from a business POV, it's better just to remain a neutral purveyor. (FWIW, I don't use iTunes, I find the recording quality somewhat lacking...)
Aug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
As much as I hate to use this example, but Rebecca Black is a perfect example of how a small record Label provided the kind of promotion and marketing needed to support a small artist. ARK music factory has done quite a job getting out the names of their artists.
I am all for delegation of tasks to those better equipped to do the task, and it is often true that talented artists need the help of talented marketers in order to garner notice, but that doesn't require Apple to do anything.
The new frontier is exciting, but it is also open to a lot of hucksterism. I worry for the artists -- talented -- who shell out money to "publishers" who do nothing to promote them.
One thing to remember, and this should be true in the new market as well as the old:
Money flows toward the creator.
Remember that.
Money flows toward the creator.
Sometimes the flow is lessened as the value chain takes its cut, but that is the direction the money flows when things are on the up and up. If you are paying "upfront" to a label, you are being scammed.
May '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
This is what I know about the recording industry. "Back in the day," as they say, artists usually were paid a flat rate plus a per sale amount. A Decca® 78 rpm for their biggest stars (Bing Crosby, Judy Garland, etc.) usually retailed for around 75¢ and the artist got about 2¢ of that for the first issue.
Adjusted for inflation in 1940 you were paying about $12 per two-sided 78! That makes Apple's 99¢ download quite the bargain. Still the artist was only getting 32¢ per song. (But if your name was Crosby and you cut over 1,700 commercial recordings that would add up to hefty chunk of change.)
Edited on Nov 1, 2011 at 2:43pmAug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
I don't buy that argument. I get plenty of exposure to new musical artists via free "Song of the Day" podcasts, other music services like Last.fm, and even homemade YouTube music videos. I've gone on to buy music from some of the artists I liked the most.
The idea that the new "John Peels" of the world can only exist on radio is just silly.
Sep '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
On this one point, I'm with Pete Townsend: iTunes is the devil. Ptui. I won't let that satan-spawn software infest my computer. And, geez - 30% is the kind of vig that most loan-sharks would envy.
Jun '11
Re: Did Steve Jobs Create a Digital Vampire for Artists?
Misthiocracy
The idea that the new "John Peels" of the world can only exist on radio is just silly. · Nov 1 at 1:31pm
I agree. In fact, the "taste-makers" of today and the future almost certainly don't and won't come from radio. What Mr. Townshend thinks about that point I'm not sure and don't particularly care. It was a BBC event that honored John Peel after all.
Aug '10
Re: Did Steve Jobs Create a Digital Vampire for Artists?
It's small potatoes compared to many industries. How much does an inventor get when licensing a patent? Unless the inventor actually manufactures and markets the product himself, I believe the percentage is usually less than 5%.
If iTunes gets 30%, that means the independent artist gets 70%. That's a big increase, percentage-wise, from the old model of getting 2% from a record company.
Of course, under this model the artist gets a higher percentage because he/she is assuming more of the risk. The artist assumes more of the cost of producing the music, instead of letting the record company assume that risk. Luckily, the artist doesn't have to pay for the cost of manufacturing records/cassettes/compact discs, or the cost of distributing all that hardware to stores.
The trade-offs seem eminently fair to me. If the artist wants to hire others to help with marketing and support, the cost can come out of the artist's 70%.
(Personally, I love iTunes. It's pretty much the ONLY reason I haven't switched exclusively to Linux.)
Edited on Nov 1, 2011 at 2:13pm