Tuesday, March 24, 2009

John "Cougar" Mellencamp: The State of the Music Business... De highlighted by finger-pointing & blame directed at MP3 File Sharing


John Mellencamp

John Mellencamp

Posted March 22, 2009 | 08:18 PM (EST)

Over the last few years, we have all witnessed the decline of the music business, highlighted by finger-pointing and blame directed against record companies, artists, internet file sharing and any other theories for which a case could be made. We've read and heard about the "good old days" and how things used to be. People remember when music existed as an art that motivated social movements. Artists and their music flourished in back alleys, taverns and barns until, in some cases, a popular groundswell propelled it far and wide. These days, that possibility no longer seems to exist. After 35 years as an artist in the recording business, I feel somehow compelled, not inspired, to stand up for our fellow artists and tell that side of the story as I perceive it. Had the industry not been decimated by a lack of vision caused by corporate bean counters obsessed with the bottom line, musicians would have been able to stick with creating music rather than trying to market it as well.

During the late 80s and early 90s the industry underwent a transformation and restructured, catalyzed by three distinct factors. Record companies no longer viewed themselves as conduits for music, but as functions of the manipulations of Wall Street. Companies were acquired, conglomerated, bought and sold; public stock offerings ensued, shareholders met. At this very same time, new Nielsen monitoring systems -- BDS (Broadcast Data Systems) and SoundScan were employed to document record sales and radio airplay. Prior to 1991, the Billboard charts were done by manual research; radio stations and record stores across the country were polled to determine what was on their playlists and what the big sellers were. Thus, giving Oklahoma City, for example, an equivalent voice to Chicago's in terms of potential impact on the music scene. BDS keeps track of gross impressions through an encoded system that counts the number of plays or "spins" that a song receives. That number is, thereafter, multiplied by the number of potential listeners. SoundScan was put in place at retail centers to track sales by monitoring scanned barcodes of units crossing the counter. A formula was devised whereby the charts were based 20% on the SoundScan number and 80% on BDS results. The system had changed from one that measured popularity to one that was driven by population.

Record companies soon discovered that because of BDS, they only needed to concentrate on about 12 radio stations; there was no longer a business rationale for working secondary markets that were soon forgotten -- despite the fact that these were the very places where rock and roll was born and thrived. Why pay attention to Louisville -- worth a comparatively few potential listeners -- when the same one spin in New York, Los Angeles or Atlanta, etc., was worth so many more potential listeners? All of a sudden there were #1 records that few of us had ever heard of. At the time we asked ourselves, "Am I out of touch?" We didn't realize that this was the start of change that would grow to kill, if not the whole of the music business, then most certainly, the record companies.

Reagan's much-vaunted trickle-down theory said that wealth tricked down to the masses from the elite at the top. Now we've found out that this is patently untrue -- the current economic collapse reflects this self-serving folly. The same holds for music. It doesn't trickle down; it percolates up from the artists, from word of mouth, from the streets and rises up to the general populace. Constrained by the workings of SoundScan/BDS, music now came from the top and was rammed down people's throats.

Early in my career, I wrote and recorded a song called "I Need A Lover" that was only played on just one radio station in Washington, DC the first week it came out. Through much work from local radio reps at the record company, the song ended up on thousands of radio stations. Sing the chorus of "I Need A Lover." It's not the best song I ever wrote nor did it achieve more than much more than being a mid-chart hit, but nevertheless, you can sing that chorus. Now sing the chorus of even one Mariah Carey song. Nothing against Mariah, she's a brilliantly gifted vocalist, but the point here is the way that the songs were built -- mine from the ground up, hers from the top down.

By 1997, consumers, now long uninvolved, grew passive, radio stations had to change formats. Creative artistry and the artists, themselves, were now of secondary importance, taking a back seat to Wall Street as the record companies were going public. The artists were being sold out by the record companies and forced to figuratively kiss the asses of their corporate overlords at the time these record companies went public. In essence, the artists were no longer the primary concern; only keeping their stockholders fat and happy and "making the quarterly numbers" mattered; the music was an afterthought.

Long-tenured employees of these companies were sacrificed in the name of profitability and the culture of greed was burned into the brains of even the most serious music lovers. It seemed that paying attention sales, who had the #1 record from one week to next, and who fell or rose on the charts was all that validated music.

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