MusicScribe BLOG

David Bruce Murray
Feb 27, 2009
Observations

The Death Of The CD And Why People Who Wouldn’t Steal Cars Don’t Mind Stealing Music

Gerald Wolfe discusses an ever present problem in Southern Gospel music…illegal file sharing. (via Coomer Cove)

Unfortunately, Wolfe’s analysis appears to be getting closer and closer to reality: “There is a very real possibility that we are just a few short years away from not being able to continue to record and produce music any longer.”

I believe the death of the traditional CD as a popular format for delivering music will be much longer than the death of the cassette, as I’ve discussed before. CDs were introduced in 1984. Record labels continued to offer releases on cassette for another 10-15 years. The MP3 format, believe it or not, was actually introduced in 1987. Of course, MP3 and other digital formats didn’t really take hold until the internet boom in the 1990s, but it could be argued that CDs have already endured much longer than cassettes in the face of a popular new technology.

The point is that now, digital delivery (legal and otherwise) is so popular that record labels are reaching a point where they can no longer continue business as usual and expect to survive.

Before the CD is dead, we are likely to see:
1. An ever decreasing quality from most groups as production budgets drop lower and lower. This could possibly be offset by continually improving sequencing software that replaces or reduces a reliance on live musicians.
2. Cheaper and cheaper graphic design
3. An endless parade of “greatest hits” and hymns collections

The key for artists and record labels is to adapt to the changing market. It won’t be easy, and I certainly don’t have all the answers. I’ve shared some ideas on the topic before. I just know enough about human nature to say the problem isn’t going to go away. The digital box has been open for too long.

I know what doesn’t work: DRM. DRM only serves to frustrate honest customers. There’s no DRM that can prevent sharing. If the purchased file has file protection, analog sounds can always be played “in the wild,” captured and converted to a non-DRM format that can be shared. Obviously, regardless of the format, music must be analog at some point in order to be heard. The only DRM that could eliminate sharing would be a DRM that prevents music from being played…and in fact, some DRM comes close by tying a format to a particular piece of hardware (like a cell phone) or a particular brand of music player (like an iPod).

Wolfe believes the key is to educate buyers about the law and appeal to their sense of Christian decency. While that can help, there’s a disconnect. The concept of intellectual property goes against the natural grain to a certain extent. To many people, convincing them that sharing music is wrong is just as difficult as convincing them that breathing air is wrong.

There’s a logical fork in the road when you simplify the issue, as Wolfe did, by comparing the theft of a rather expensive physical object like a new car to a very inexpensive, practically non-tangible item like 3-4 megabytes of random access memory data. Remember the old expression, “I got it for a song?”

Now, please don’t read this and think I’m trying to defend people who steal songs. I’m not. The law is clear enough that the majority of people should know they’re breaking it when they download music for free. The same can be said about people who buy items at flea markets that are clearly stolen goods due to the fact that the items are new and still have price stickers on them from the stores from which they were stolen…but that’s another ball of wax.

All I’m attempting to do here is explain why people perceive stealing physical property differently from stealing intellectual property. People don’t give their cars to total strangers with no restrictions. They do share their music, though, without restrictions. Why? The difference is because the car isn’t being duplicated. It goes with whoever uses it. With a song, the person using the copy (or the copy of a copy of a copy) isn’t depriving the owner of the original copy of listening to the song as well.

It’s fine to use the comparison if it convinces people to do the right thing, but that key issue is always going to present a problem. Wolfe is correct. All the signs indicate that the CD and big recording budgets are going away. Eventually, successful artists like Gaither and Haase will use recorded music as a loss leader to boost concert ticket prices while everyone else (artists who work venues ranging from free to $15/seat) will see their CD quality decline.

At the end of his article, Wolfe states: “Recorded music is one of the most effective tools available to spread the Gospel and encourage Christians. We have to work together to insure its availability for many years to come.” I don’t agree that a lack of music is going to be a problem. We will have just as much music as ever before if not more. It’s getting easier than ever to record music using inexpensive equipment in your living room. Even big name artists like Steven Curtis Chapman make use of their own personal recording studios.

I do share Wolfe’s concern, though, that Southern Gospel music, as we know it, may ultimately take a major hit in overall quality when it comes to recorded music. The larger labels in SG, despite their traditional baggage and methods, know how to cover all the bases…bases that sometimes get overlooked when an artist tries to do everything without the assistance of a label.

UPDATE: If you’ve read this far, it’s well worth your time to click the Comments link and read Mickey Gamble’s response. Mickey is one of the co-owners of Crossroads Music.

1 Response to "The Death Of The CD And Why People Who Wouldn’t Steal Cars Don’t Mind Stealing Music"

1 | Mickey Gamble

February 27th, 2009 at 6:09 pm

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I would agree with you, David, that CD’s are not likely to disappear soon. I could, in fact, argue that they may become more valuable as music becomes primarily a “cloud” item. I agree that music is not in trouble; the music business is. And I could agree that the quality of music may deteriorate, depending on how music companies deal with the current climate. But I, for one, would argue that Southern Gospel music is situated in a very good place to grow IF the right decisions are made by those who make up the industry.

The problem with most discussions like this is that they judge features of the business from the point of view of what have been the industry-standard ways of thinking for the last 40-50 years–an outdated paradigm that no longer works. That paradigm is crumbling and, therefore, questions asked, answers created, tools used, and predictions made from within it give only crumbling results. This “old” paradigm, which I sometimes refer to as “the music business tinkertoy”, consisted of artists, labels, managers, radio, print media, events, booking agents, and promoters, all interacting with each other and almost all totally funded or underwritten by retail sales in stores and performances. By fans. Largely unaware of the inner workings of the industry. Nearly every part of this list now is challenged, changing, or disappearing. It simply doesn’t work like it used to.

Retail sales have been dropping about 20% per year for 8-10 years and there’s no way within the old paradigm to put all those lost dollars back in the box. The whole paradigm is stressed out beyond fix. The failure of retail and the digital delivery and sharing of music has devalued the price and, therefore, the income to all players in the paradigm to the point that there is no more business as usual.

In the early part of the last century most folks stored their perishable food items in an “icebox.” Literally. A large wooden chest with space for a large block of ice, which would get delivered to their home daily, and space for the food. This was an industry: icemaking wholesalers, retailers, delivery companies, icebox manufacturers, etc. And then a new technology showed up–small electric compressors. Actually, somebody had the idea to take the large compressors that made block ice and miniaturizing them for that part of the population that had access to electricity. Thus the refrigerator was born and the icebox disappeared. Now the technology that created refrigerators was available to icebox makers. But none of them took it and ran with it. It was entirely new companies that emerged. The Icebox Industry and companies failed because they literally could not think outside their own (ice)box. This is usually what happens with paradigm change. Old companies doing old things give way to new companies doing new things.

And this is where we find ourselves now in the music business in general and Southern Gospel music in particular. Who’s making iceboxes and where are the General Electric’s. We are smack dab in between the demise of one paradigm and the creation of a new one. Most icebox companies will not make the transition. To do so they have to be working with some entirely new concepts. The General Electric’s are in formative stages. Of course many have embraced the internet and think they are headed in the right direction only to find that the “internet effort” does not make up for lost retail. This is because of a fundamental misunderstanding: “internet is the new business.” It is not. It is just a tool.

Imagine for a moment the best concert you ever attended. Hear the group. Remember the songs. Remember the performance. Remember how it all felt and why you loved it. Now, tell me what you can remember of the venue where it happened. You might remember that the lighting was good or bad; that the sound was good or bad; that the seats were comfortable or not. Probably not much more. If you walked into that (empty) venue today, would you feel the same as you did at that concert. I doubt it.

Everybody has a website and most think that puts them into the new world. It does not. Most are still trying to use it make the old paradigm work better. It won’t. That’s because the internet and the website is just “the venue.” WHAT HAPPENS ON THE WEB(site) is “the concert.” The concert requires the interaction of fans and artists. This is the basic concept behind whatever will be the new paradigm. Southern Gospel can thrive here because this interaction is a fundamental tradition with us. The creation and use of new tools to increase that interaction in more than just “road” venues is more possible and more likely than in any other music genre.

Oh yeah, and “companies” that can be “the staff” for artists and help them do this will be fine, too.

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