There is an interesting article over at a blog/mailing list that I just recently discovered called ‘The Lefsetz Letter’. It’s published by Bob Lefsetz, who according to his bio is:

“Famous for being beholden to no one and speaking the truth, Lefsetz addresses the issues that are at the core of the music business: downloading, copy protection, pricing and the music itself. Never boring, always entertaining, Bob’s insights are fueled by his stint as an entertainment business attorney, majordomo of Sanctuary Music’s American division and consultancies to major labels.”

So Bob’s got a long history in the music business. Also, apparently this newsletter has been going on now for 20 years, originally in hard-copy form (remember paper? You know, dead trees?)

Anyway, he has this article detailing the woes of the industry and how it is most apparent in the new release by Prince, which he predicts (and I agree) will not sell well. He attributes this to an upheaval in music and the labels complete lack of any idea about how to sell this album.

What was interesting was a quote at the bottom of the article, which I think summed up both the problems AND the solution for the record industry in such a clear and concise way that it bears blogging about. That quote was:

…Focus on people hearing it (the music) first, figure out how to get paid second.

What a perfect synopsis. He goes on to say “The value of music that no one hears is zilch. If you do the opposite, you’re just RUNNING TOWARDS EXTINCTION!” Let that settle in for a minute and if you are a record label exec, you’ve just heard the solution to all of your problems. Now you just have to figure out how to make it happen.

If you want to read more about the Prince article, he also has some clever ideas about how to make the ‘getting the music heard’ part of his plan happen.

Click here for the full article

I don’t know how many of you have been following the whole ordeal regarding the RIAA wanting the Internet radio stations to pay royalties, but basically that has turned into a situation where if they go forward, most webcasters are going to have to close. That means, more than likely, no more Pandora or any other srevices like it, at least as we know them.

In these proceedings, the webcasters’ argument has been “Why are we different from regular radio?” And today, the LA Times is reporting that the RIAA has responded with “Good point! They should have to pay too!” Seems that suing grandma’s and children hasn’t given them as big of a revenue stream as they would like.

My take… Good for them. A part of me says that they should make the restrictions increasingly over the top. As they get further and further restrictive, it makes indie artists and Creative Commons music that much more attractive. This could make radio stations start paying more attention to free music and playing them along side the major acts. Either way this is just one more example of the fact that the music industry as a whole is in a serious period of upheaval and eventually the market is going to work its way out in the consumers favor.