Besides removing anti-piracy software, more importanly, Apple has finally caved in and will embrace 3 tier pricing.
Apple finally bowed to a long-standing recording industry demand and agreed to sell music downloads at three prices — 69 cents, 99 cents and $1.29. Starting in April, iTunes customers may pay the top price for a hot new track such as Beyonce’s “Single Ladies” and barely half that for a long-forgotten song from Air Supply. (Los Angeles Times)
Tiered pricing can open the door to more experimentation and digital bundles.
For example, Kanye West’s single “Heartless” might be packaged with a discounted track from the “808s & Heartbreak” album, or a cellphone ring tone.
We will observe significant changes in 2009. With Apple beginning to sell DRM free songs and embracing tiered pricing are steps in the right direction. As the Los Angeles Times said, “Apple will follow one of the oldest tenets of capitalism: The more someone wants something, the more you can charge for it.”
British music sales are booming as consumers are turning to buying songs online rather than illegally downloading them.
Download sales grew by 33 percent last year, while 2008 was the biggest sales year on record in terms of singles sales in all formats, with 115 million single tracks sold.
Of course the recession has hit some big box retailers but others claim this could help drive digital sales and help the industry.
“During a recession, people look for purchases that are excellent value for money and bring a lot of enjoyment, and music does just this,” says BPI boss Geoff Taylor. (Yahoo News)
As more people buy online this will help the market for albums. For instance, 10 million albums were sold, a 65 percent increase on 2007.
“The big lesson of 2008 is that if the music is strong enough and retailers work well with suppliers to get that product in-store, music fans will respond and buy in their droves.”
The British music industry can continue to smile after Apple said that songs on iTunes will be available without anti-piracy software.
 
American Taxi – Chicago
This Chicago rock act who are known for their intense live show belongs on your radar list. The band cites The Clash and The Replacements as influences and were named “The Top 8 Bands To Watch” by the Daily Herald. American Taxi will be performing at the Double Door January 27th. Our favorite tracks include The Mistake and Dead Street.
The music business has gone through a technological shift as all businesses have. The Los Angeles Times profiled Hollywoods Musicians Institute that teaches students the new role of A&R.
A&R execs were in charge of discovering and signing talent and typically would spend their time scouring nightclubs and sifting through demos hoping to find the next big thing. A&R professionals would also spend time nurturing an act by pairing them with fitting producers and serve as liaisons with other divisions of the record company which are now carried out by independent consultants or the musicians themselves.
“There’s been a massive shift in A&R,” added Jeff Blue, the newest member of the institute’s A&R staff. “It’s evolving — and devolving — and more and more artists have to be their own record label.”
Today, major music labels do not have the time nor money to develop an act for any period of time.
“Instead of partnering singers, instrumentalists or composers with producers, they might pair them up with a music supervisor working on a popular television series or a video game franchise, media that have become great ways to break artists.”
Also, many of the old principles still apply, even though technology has changed how we go about business.
“It’s not impossible, of course, but Blue and the others note that, despite evolving technological ways for artists to connect with fans, it’s still true that the best way to get a gold record is to shake 500,000 hands through touring and personal appearances. And no amount of live Web chats or Facebook activity will substitute for good old songwriting skills.”
The bottome line – artists today must understand that they play the most important role in their success. The Beatles, Metallica, and all those game changer acts also were responsible for their fame and fortune. Sure, those acts eventually had major music labels supporting and marketing their efforts, but it was only after they proved themselves by writing great songs, performing shows and turning heads.
“Prince’s promise of three albums in 2009 and he is in negotiations with “a major retailer” to distribute the music and a highly interactive website will also provide an opportunity to buy. ” (Los Angeles Times)
Prince also said he refocused on his playing while performing live dates with the singer Tamar Davis in 2006; with the spotlight trained on someone else, he could fall back in love with solos and riffs.
This is what I would like to see – more consistency and more albums from artists. Why wait 2 to 3 years between albums?
In fact, it was quite common for artists to release an album every year. As one commentator stated, “Neil Young, David Bowie, Bob Dylan, and Led Zeppelin were relentess for years, and would have quality records out on a regular basis.”
Of course recording contracts have changed as well. Record deals use to be for a term of one year, with options to renew for additional periods of one year each. The artist was obligated to deliver 2 albums each year. This worked terrifically in the in the days when records were banged out like pankcakes. As Donald Passman says, every contract is a history lesson.
Releasing albums more frequently would benefit the artist and the label while keeping the fans energized. Also, it is easier and less stressful to release more albums frequently as many artists today are releasing records independently without contracts and stipulations.
What can we learn from the legends? More albums and more consistency.
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