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The record industry’s uphill struggle against a world of convergence

The film industry is there. Distribution, availability, pleasing customers. The networks get it. Episodes are streaming online for free, being sold on iTunes, and being TiVoed. More availability and more options equals happy customers and profitability. It’s not that hard of an equation, especially with the technology available to us today. So why can’t the record industry find their bearings amongst a world of blossoming media convergence? The times have changed, yet the music folk are still playing by the rules of the old paradigm. So, what gives? In the mid-late 1990s, CDs were (over)priced at almost $20 a pop. Many consumers had no other option but to purchase music at these set-in-stone prices. The rise of Napster in 1999 waged war against the exorbitant prices and expectations the record industry were parlaying to their consumers. People no longer had to pay $20 per disc; rather, they could type a song name into Napster and download the music instantly for free. Alas, the consumers’ dreams were met; P2P was born. Easier access at a much better price. After reading H. Jenkin’s “Introduction: “Worship at the Altar of Convergence”, I remain appalled by the industry’s lack of speed in technological progression and wonder if they will ever begin appropriately serving their consumers instead of fighting them with lawsuits.

Jenkins says that convergence culture is “where old and new media collide, where grassroots and corporate media intersect, where the power of the media producer and the power of the media consumer interact in unpredictable ways.” By definition, he states that “by convergence, I mean the flow of content across multiple media platforms, the cooperation between multiple media industries, and the migratory behavior of media audiences who will go almost anywhere in search of the kinds of entertainment experiences they want.” Given these two quotes alone, it’s clearly easy to determine which industries are excelling by embracing convergence, and how others are losing by shying away from it.

Before I continue unsympathetically bashing the music industry (there will be plenty of time for that later, of course), it’s of importance to stress the role of the consumer in convergence. Jenkins says it “depends heavily on consumers’ active participation,” and he’s absolutely right. He calls it a “cultural shift”, with consumers seeking out different avenues and methods of utilizing the media. It’s hard to fathom how someone of right mind could deny the power of the consumer, with his/her unquenchable thirst for content and abilities to virally spread a favorite song or Youtube clip like a disease. But again, the labels just want to sue the heads off of music fans, such as these students and these other 41 defendants. Nice, RIAA. Real nice.

Jenkins also notes that we must stop talking about media producers and consumers are if they maintained separate roles, but rather, view them as an interacting team. Convergence happens internally (inside one person), but also externally, as consumers talk to each other and spread the word. He writes, “Because there is more information on any given topic than anyone can store in their head, there is an added incentive for us to talk among ourselves about the media we consume. This conversation creates buzz that is increasingly valued by the media industry.” It really is a no-brainer that media companies and firms should be highly invested and involved with those they’re trying to sell to.

I could summarize this entire work, but honestly, I’d simply suggest that everyone read Jenkins “Intro”. I couldn’t stop thinking about the record industry as I was reading, so I knew it was a perfect fit to write about it. Lawsuits aside, the music industry has been/is extremely sluggish in accepting new techniques. Napster shouldn’t have happened. I used it, and loved it, but it shouldn’t have happened. A) Prices never should have gotten that high for a single record, B) the industry should have seen Napster coming, and offered a similar system to its consumers (a la, a store similar to the iTunes store), and C) if music consumers were truly happy with the options established and provided, the Napster/P2P generation wouldn’t have been necessary. The Napster movement was definitely a consumer shout-out of “We’re not happy! We need alternate options!”. It was a big middle finger to the Industry, who in turn, gave it right back (lawsuits) when it should have changed the rules of the game right there. The lack of respect between music fans and music professionals can, will, and is hurting the business.

And so they created stores that would sell legalized downloads of music, which seemed to me to be too little, too late. Consumers, previously used to the “Want. Take. Have.” mentality, now were forced to pay for their music. Then, the industry sold music that wasn’t transferable to the Apple iPod. The Zune wouldn’t allow transferable music, and even put a limit on the time Zune-to-Zune tracks could stay on each player. The labels missed the starting gun, and are now struggling to catch up in a race they probable won’t win anyways. Bob Lefsetz, a former Entertainment Lawyer and consultant to major labels, discusses these issues frequently in his blog called “The Lefsetz Newsletter,” (highly recommended, if you’re a music buff). To save readers from my further burning of the industry, Lefsetz tackles the situation perfectly in this installment called “Music Industry Most Hated”. Jenkins explained the messages he learned while attending the New Orleans Media Experience: “1. Convergence is coming and you had better be ready, 2. Convergence is harder than it sounds, 3. Everyone will survive if everyone works together,” the third of which he states “Unfortunately, that was the one thing nobody knew how to do.”

As a huge music fan and entertainment fanatic in general, I hope the music industry can patch up former (present?) wounds inflicted upon by the displacement of new media and the industry’s struggle to control it. As Jenkins learned, convergence is coming, and the music industry had better be ready.

All I know is that I’m glad NBC is with it, because thanks to their free online streaming of “30 Rock” and “Heroes,” I will be fully boarding those Season 2 ships come this fall. And isn’t that what it’s all about?

5 Responses to “The record industry’s uphill struggle against a world of convergence”

  1. Great Blog. It was right to point. I miss the days where I could download must for free from Napster. But, what do you think will happen next with the music industry? What will they come up with next?

  2. I think the Industry really needs 1 standard “store” that all indie and major labels will join and accept. I think the labels have the right to charge whatever they want to (it’s a free country), but I don’t think they should have to set a price at .99, like iTunes forces them too. If they can cut iTunes right out of the equation, they would save money and be able to lower prices right on the spot. Also, if full albums are going to be sold online, they HAVE to be lower than 9.99. They aren’t producing a tangible product so $10 is unfair to charge. This doesn’t even begin to chip the iceberg of things the music industry needs to change. I think that Anderson was right in “The Long Tail” when he said that our beliefs in what is popular really are skewed. There are so many niche, indie bands out there that don’t get the recognition, promotion, and respect they deserve because the Majors are too worried about promoting Beyonce, Nickelback, Fall Out Boy and other terrible fodder they force-feed the masses. I could go on and on and on…lol

  3. Your post brought to mind something a comedian said back when Napster was coming under fire. It might have been Robin Williams on ‘Inside the Actor’s Studio’, but I can’t recall exactly. They said:

    “You know the world’s gone crazy when Metallica is representing the establishment and bringing lawsuits against those crazy radical kids in Harvard.”

    I think that pretty much sums up the whole Record Industry snafu for my understanding.

  4. I think that the music industry’s answer to some of the free downloading was to jack up concert ticket prices which really makes me angry. I’m not saying that every concert ticket you buy is expensive but I mean I think some of the ticket prices are outrageous.

  5. Adam…that’s really funny! and so right about Metallica. That was so lame of Lars…

    and Jen, I totally agree. Concert tix have increased in price of late, and it probably is because less people are buying records. Arena concerts are so expensive! I wanted to see Van Halen with David Lee Roth…but I’m not willing to pay 125+ to see them at Mohegan!


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