Wednesday, August 13, 2008

"Major Labels" and their stupidity


In the music industry today, there are what is called "major labels". These are typically the big corporate labels that put huge dollars behind million-selling artists. Labels like Sony BMG, Warner Music, EMI, and Universal. These are also the same guys who are complaining about the digital music revolution (iTunes and the like), while continuing to overcharge for audio CDs (in most cases).

The labels are continuing to put their money behind a 25 yr old technology (audio CDs), and haven't been able to find a new technology that appeals to the masses. To casual music consumers, a typical audio CD has been more than satisfactory. The recent popularity of the iPod and other MP3 devices has only proved the the public is looking for more convenience, rather than increased quality. If the music sounds very similar to an audio CD and I can put my entire catalog of CDs onto a unit that fits in my pocket, that is proving to be something I'm willing to invest in. In other words, the major labels haven't been the best at chasing new technologies, and are now upset that the public is finding alternatives.

When your favorite band puts out a new CD, you typically will run to your local retailer and pick up the copy. Sometimes it will be on sale, as part of a new release promotion. But, you don't mind paying $10-$15 to help support your favorite band. You also help the band by getting them better initial sales results (possible chart position). You get to hear the new music, the band gets sales on the new CD, and the label sees some profits. A year or two later, your favorite band releases a CD of all new music, and the cycle repeats itself.

Lately, I've been seeing a new "trend" which further proves the major labels have only "money" as their driving force. A band will release a CD today, and start a tour to support it. If they happen to get some momentum behind the CD and it becomes popular, labels are now "re-releasing" these popular CDs (sometimes within 12 months of original release) as "expanded" versions. Basically, the fan who originally went out and bought the bands CD, now has to buy the whole thing over again to get a select few new tracks. Not only does this effectively penalize the consumer for buying the initial release, but it also tends to delay the release of an entirely new CD.

An example is the recent news of the debut CD from "Daughtry" (released Nov 2006)now being re-released with 3 newly added "acoustic" versions of songs from the CD (releasing Sept 9, 2008). A "bonus" DVD is also being included in the new "expanded" version. If you've already bought the original, are you going to buy again for just a few new add-ons? If you haven't bought the original, will this motivate you?

Rather than releasing an "expanded" version of the initial CD, why not go with the idea of a new "EP" (shorter format) CD with DVD, and put the new material out as a new product? Simply repackaging the original with some "extra" material seems to be a slap in the face to the existing fan base who has supported the original release.

This isn't the first time a label has done this sort of thing. The current popularity of "remastered" versions of CDs has provided labels with a new way to get a consumer to re-buy their favorite CD, in hopes of getting some enhanced product. In many cases, some additional "previously unreleased bonus" tracks are added to help the value. However, in the case of the "Daughtry" CD, we aren't even talking about remastering. This is purely slapping a few "bonus" tracks onto a popular release, and trying to milk a few more dollars. Not exactly the best way to keep the fans happy.

How many times have you repurchased a release? Did you originally buy something on vinyl record, then cassette, and now CD? Would you be willing to buy an "expanded" version of a CD you bought within the last 24 months, if they added the bonus DVD and a few songs?

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