For years, the music industry blamed big box retailers for destroying mom-and-pop record stores. Now, it simply looks like physical retail itself - small, medium, or large - is evaporating entirely. Here's what EMI Music chief executive Roger Faxon told a Senate panel on Thursday about the state of the largest retailers.
"Let's understand. Best Buy and Target, music is a very small part."
"If we as an industry or even a significant player tries to raise prices in a way that is going to reduce demand, and therefore reduce turnover per square foot, what is going to happen? It's a very simple thing, and so they will resist and we have to supply at the terms that they will accept. And these stores, they look at their square footage and say, what's my turn, what's my profit retention, and if music isn't providing it, they put something else in."
Entire music section at a Walmart outside Austin, TX (picture taken in March, 2012; more pics here.)
@the_jenius Friday, June 22, 2012
Loss Leaders aren't such a loss.
Visitor Saturday, June 23, 2012
What did Walmart, Best Buy and Target bother to do against piracy?
Nothing at all.
They don't give a shit about musicians.
That's the simple truth.
Jon Hughes Monday, June 25, 2012
It's not their job to fight piracy; it's the label, artist, and managements duty. Which they failed at.
John Noi Monday, June 25, 2012
Seems a bit silly for the industry to think that music will be consumed as a physical product in the future - the channels in which music is purchased have been completely shifted and will continue to shift.
danwriter Monday, June 25, 2012
Exactly. That's what the Universal/EMI power play is all about: market size to leverage licensing terms for streaming and other digital distribution channels. Physical product has evolved from mainstream to niche. (Yes I know that the majority of revenue still comes from CDs, but let's be aware of the trend.) Brick & mortar are irrelevant in the future.
Griff Monday, June 25, 2012
I can only think of one way to save the music industry and especially the Indie artists. And... this is a weak suggestion and we already know it.
It will take a large organization like RIAA to make the necessary comittment. That is a video campaign that asks the question of the consumer "What if the music died?" In that ad it could be explained how musicians are starving and the paybacks are few for a life on the road and miniscule earnings from record sales.
As I said, it is weak, but someone may have a better idea. That's mine for now.
And we knew this was going to Monday, June 25, 2012
This is what happens when music consumers get tired of paying $15-$18 for a CD, it took entirely too long for prices to come down. I've also heard time and time (and time) again that the quality of music is tanking, this leads people to buy single songs instead of a whole album. Lets get back to the MUSIC and forget all about this main stream crap.
Just Another Voice Tuesday, June 26, 2012
we paid a lot more that $15 (net adj for inflation) for an album in '65 ;) j/s
Visitor Tuesday, June 26, 2012
I wouldn't say that this shift is anybodys fault in particular. Just like many other things have moved into a digital form or are now being purchased online the music industry has seen the same shift.
We can look at spaces like streetwear and fashion down to electronics and music. All of these industries have seen a shift to online sales. It is a natural shift. The music industry just needs to adjust.
Darko Wednesday, June 27, 2012
It's nobodys job to fight piracy - thats the dumbest shit I ever heard. There is no way anyone will ever stop piracy, are you kidding me? Online piracy has been happening long before the media and the public even heard about it.. Instead of thinking like the American government and trying to control everything with force, doesn't it make sense to actually offer the fans something more for their money, or actually make art instead of some worthless washed up image based product that most people only care about based off the big hit singles that are brainwashed to the mass public through our propaganda corporate money making bullshit media... Real artists that want to connect with their fans don't care about music piracy, because their corporate money stealing record companies are the ones who profit from that. If you want to act like you support artists then get off your damn McDonalds fatass and go to their shows, and buy their merch. <end rant>
Nate Wednesday, June 27, 2012
Same lame argument in defense of piracy...