This was the morning discussion at Midem, where topics once again turned towards 'cannibalism,' streaming services, and buying music.
Ted Cohen (TAG Strategic, Moderator): "Do we really need to buy music anymore in a streaming and cloud environment? Is there any need to own music anymore, or are we moving completely to service?"
Craig Pape (Amazon): "I think it's a great question, it's a fair question. I think what you've seen historically even in the 'olden days' when things were ubiquitously available on radio people still bought 45s and the hit singles, so I ―"
Cohen: "But respectfully, there wasn't that same ubiquity, because right now if I have a streaming music service and I want to hear a song over and over and over...
...radio created a demand, it didn't satiate a demand. Streaming services basically satisfy, I can get tired of a track very quickly. Do I need to own it anymore ―"
Rob Wells (Universal Music Group): "Yes."
Cohen: "What is the reason for ownership?"
Wells: "How about this for a brave statement: 'head of digital Universal says, in a world of full access streaming services, physical product actually becomes more important. Physical product transcends just a product and becomes ―"
Cohen: "Now why is that, that's a great statement, defend that statement, why is it more important?"
Wells: "Because it's high-end product, people will continue to buy physical but it will take on a different format. It'll be ―"
Cohen: "But it will have to be more of a Rhino experience."
Wells: "Absolutely, and it will be more expensive, it will be more collectible, it will be something that will sit on the shelf. The digital does not cannibalize that."
Comments Closed
Visitor Monday, January 30, 2012
I like how this highlights how Ted Cohen tries to talk over everyone.
mmm Monday, January 30, 2012
...and fewer and fewer albums will have mass demand for this specialty product they speak of.
Essentially they are talking about a high end form of merchandise, not physical product as a means to deliver music to the masses.
Maybe Monday, January 30, 2012
Maybe those high end physical albums can be sold directly on Ebay so the market can really speak and we'll see singed Katy Perry 12" with matching poster go for $11k.
nathanJE Monday, January 30, 2012
I heard Wells negotiated personal shares in Spotify. Makes sense.
@HeyGreenie Monday, January 30, 2012
Sure owning a physical copy of music will become important as a luxury item but it's not going to maintain your label.
Robby Tuesday, January 31, 2012
You're right, which is why management is increasingly bypassing labels and releasing product on its own, or through its own imprint. At that point, the physical product is a marketing tool and potentially a small portion of the entire revenue and budget of an artist.
Buck Monday, January 30, 2012
Once again... music industry execs overestimate the value of recorded music to the common fan. Will they ever learn?
@BobbyRicketts Tuesday, January 31, 2012
I think the physical experience will become increasingly more important, i.e. live performance... and because we're not always online, physical accessibility will always be important, just not in the form of a CD. A digital format on any portable listening device will do.
@EmpowerDigital Tuesday, January 31, 2012
Disagree!
@Wzzy Tuesday, January 31, 2012
Wait... what?
@davidjhahn Tuesday, January 31, 2012
Totally crazy.
ASHLEY BIRD Tuesday, January 31, 2012
We have been saying this for about 18month ...but found the majors never listerned....until now. The problem for digital is that you cannot own it like a physical device which you can touch, smell, collect and show off to your mates...
People at least in the near future will always want to own and show off physical product...like a badge of hounor...and yes this is probably going to be high-end limited edition product.We are finding more and more artists and labels are looking for something different to offer thier fans as a point of difference such as a recto TDK 90 cassette USB with the Artist demos on..which we did recently or a custom shaped USB product....where we created a digital platform for the artist to share thier content which acted as the conduit between physical and digital.
www.aderra.co.uk
tomcarolan Tuesday, January 31, 2012
We've been in this space for years, www.totalboxmusic.com and you don't have to fly to Cannes to get it done.
FarePlay Tuesday, January 31, 2012
Another example of the paradigm shift that has taken place over the past 12 years. Particularly, in the pre-cd album era, the artwork, packaging, liner notes, etc. played an important part in the fan building experience.
Now, instead of being at the beginning of the process, it takes place after the fan is fully engaged with the artist and wants a hard copy of the experience.
The fragmentation that digital access has created, where people buy songs, not a complete work is a very different experience. It makes you wonder if someday people will purchase chapters from books or scenes from movies.
david Tuesday, January 31, 2012
Americans like to own "stuff." And music-heads love liner notes, artwork, etc. Everyone has been expecting CDs to go the way of the 8-track for about 15 years now, but they are still here. In fact, I won't be surprised if CDs never go away. The percentage of shifts to digital sales and streaming may increase, but Spotify is insufficient for a real music fan and denies ownership. We could have a viable percentage of CD sales for a very long time.
FarePlay Tuesday, January 31, 2012
David, I agree, there's hope yet!!
Jake Ervin Tuesday, January 31, 2012
Liner notes, lyrics, etc. can be all available online. No need to buy a hard copy of any kind. And what does it mean to "own stuff"? Shelf space at home is limited, digital access not. People then "own" a subscription. It's like saying that a credit card isn't of any real value because the amounts are not printed on it like on bills.
We cannot predict the future but if we want to get as close to it as possible, this discussion should be held by people under 20 and not the ones who's professional interests blur the vision.
blastjacket Tuesday, January 31, 2012
LondonMusicMapp Wednesday, February 01, 2012
The time of year when most music is sold is Christmas, and this is no coincidence, music as a gift has always been incredibly important to the recorded music industry. Giving music to your friends and family is often as much of a pleasure as receiving music.
Therefore it is clear that high end elaborate physical music product will continue to be created and sold.
Consumers may not buy it for themselves but those who have a fan in their life will buy as it is a perfect gift, both personal and really in the great scheme of things not that expensive.
Here is a thought, with Valentines day around the corner, is it better to give your loved one a limited edition Box Set of their favourite artist or a coupon for a years free access to Spotify... One says "I really thought about what kind of music you like and the band you love and I went out of my way to find this and buy it for you". The other says "You like music, right?"
www.londonmusicmapp.com
tomcarolan Wednesday, February 01, 2012
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