Reader Request - The Future of Record Labels
October 17th, 2007 - by Eddie
Despite news that after 24 years, Madonna will leave Warner to sign a $120 million-deal with concert promoter Live Nation, Labels won’t go anywhere.
There will always be record labels out there. Thanks to the movie “Fallen” and sadistic nuns in grade school, I know evil can never truly be eviscerated. It merely adapts, changes form and continues to spew its venom out into the world.
But now musicians (and Madonna) are fighting back. Radiohead released their album for free (and now there are reports that they may have made a profit), the Eagles will release their new album exclusively through Wal-Mart (another can of worms we won’t touch today), and Trent Reznor dumped ties to his label as well.
Does this mean labels will turn into more of a place for up-and-coming artists who, when they become big enough, graduate to concert promoters? Or will they resort to their plan B, which is to troll around the streets, stealing change from street musicians? (remember, evil never truly dies)
Plus, what do you think concerts and albums going to look like under the control of concert promoters?
Hit us back, just to chat.
October 18th, 2007 at 10:13 am
Perhaps it goes without saying that these examples are all very successful artists- who have had the benefit of the major label machine working for them their entire careers. Because of that support they now have the freedom to do something different.
I think what the Live Nation deal speaks to is the shift to a business model based on multiple revenue streams. Korn recently did a deal with Virgin in which the company’s investment in the band is reciprocated with cut of the profits from not only records, but touring and merch as well.
The music business is changing- and that the role of the label will change as well. But I think that labels will act in one way that they always have- as a filter. Similar to any construct in the music business. A way to try and make sense of an overwhelming number of choices.