Today over lunch somebody explained to me some of the dynamics behind the way the music industry lost control of the debate over song distribution. It was something I hadn’t really thought through before, and I found it fascinating.
For many years the recording industry had been taking a hard line with musicians. The general attitude was “We’re putting all this money into production support, promotion and distribution. Therefore we should get the lion’s share of the profits.” Artists responded by learning to depend upon another source of income: Concerts and touring. While the industry was making money hand-over-fist, first on record sales and then later on CD sales, musicians learned to maximize their earning power as performers, rather than relying on the modest cut they received as recording artists.
It all worked fine until the dawn of the age of internet downloading. Suddenly the recording industry found that its natural ally – the artist – didn’t really care. Consumers would have listened if their beloved musicians had asked them not to indulge in free downloading. But the musicians simply weren’t all that invested in the issue.
And so the great unwashed masses of the music-loving public engaged in a massive collective act of intellectual property theft, and the industry was powerless to stop them. In the end, the labels were brought to their knees.
And one could argue that they were done in by their own greed, which had led them to establish an adversarial relationship with their greatest natural allies – the recording artists.
Fortunately for the film industry, directors and actors make their money through film sales, not through film promotion. So Clint Eastwood, Meryl Streep and all the other glamorous Hollywood icons are right in step with the studios on this one.
I guess there is a lesson in this: Don’t get too greedy. You never know when you’ll need friends.