Facing the Muzak
Feb. 12th, 2009 09:08 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
greatbearSome serious developments in the music industry in recent days. If it's not long-standing players in the industry dying off or facing other dire situations, it's greed and monopolistic practices destined to kill the remaining bits.
First off, the oft-derided Muzak Corporation is filing for bankruptcy. Now, some out there might think this is not such a bad thing, preferring instead to take their elevator rides sans cheerful generic pop music done entirely in strings. But their reach goes beyond lifts, and the music spans the spectrum from headbanging to nodding off. Those of you who subscribe to Dish Network satellite television in the days before they carried the Sirius music channels were treated to several dozen channels of varied, totally uninterrupted music of every genre. These channels came courtesy of the Muzak Co. The thrash metal and thug rap might not have found a home in your average dentist's office, but if it had anything to do with music, Muzak would handle it. Also, the company was not without it's sense of humor. Known mostly for cheesy remakes of pop standards into instrumental string arrangements, they would occasionally slip remade versions of Led Zeppelin, Black Sabbath and the like into the music streams feeding shops and stores. This would completely fly over the heads of everyone, except for those who know the originals and 'get' the joke. If Muzak dies, a lot of Eastern Bloc radio orchestras will be down on work.
Speaking of Sirius, it seems that the newly-minted SiriusXM satellite radio conglomerate is also facing some serious financial dire straits. Let me be the first to say 'I told you so'. Take two competing companies, neither one able to operate in the black since their inception, and merge them into a single anti competitive entity. You end up with one company with twice the troubles. The satellite radio industry is buoyed by the sales of new cars and continuing subscriptions, neither of which is happening in this recessionary (depressionary) period. Sirius made the big mistake of hauling Howard Stern on board for the ridiculous sum of a half billion dollars. While this caused an initial uptake of subscribers, the math was not there. Stern, like so many people these days should take a pay cut in order to stay employed. I honestly feel that it's too late in the game for the satellite radio giant, since their combined force resulted in a lot of upset customers, and the increased price of subscriptions will drive off existing customers and keep new ones away. You just dont go around raising prices and cutting service on what is essentially a 'luxury' item during periods of slow economy. It's a sure-fire way of losing customers, both potential and existing.
Dish Network, a major holder of SiriusXM, has in the past put it's sights on Sirius. This can be a formidable threat in the near future as SiriusXM looks for any way out of the mess. But I feel the satellite TV industry is going to soon be hit with it's own desire to merge, if for all the wrong reasons.
We've all read about (and I have written about) how the major music labels are dodging coffins amongst decreased sales and alleged music piracy. The one bright spot held up by music fans, artists and promoters is the sales of concert tickets and live performances. This is about to take a hideous turn for the worst, at least in the U.S. as the two purveyors of live music, Ticketmaster and Live Nation, prepare to merge. This is some terrible news for music fans, since the combined conglomerate, to be called Live Nation Entertainment, will be the sole source for concert tickets to major venues and acts nationwide. The combined entity will be a vertically integrated business controlling venues, promotion, ticket sales and even recording deals with artists. How did this happen? Live Nation, once part of Clear Channel Communications (aka The Company That Ruined Radio) was primarily a concert venue owner and promoter. Ticketmaster, that company everyone loved to hate because of their penchant for tacking on exorbitant 'convenience fees' and other dubious charges onto ticket prices, was often the sole source for tickets to major (and not-so-major) live events. At one time, the two companies had begun 'competing' in ticket sales, but that was short lived. Turns out it was machinations leading towards this eventual merger.
Ticketmaster had in recent years began their own mass-scalping operation by redirecting people looking for popular shows to their wholly-owned ticket 'auction' site, TicketsNow, mere minutes after tickets would go on sale and were supposedly sold out. Tickets for sale at TicketsNow would often be three to ten times the face values of the original or box office tickets. Canadians have brought aboot their own half-billion dollar class action lawsuit as a result.
With all the financial and business shenanigans these two companies engaged in, it does not take much to know what the end result will be. Forget going to live shows of any major acts unless you do some serious saving, go into debt or are independently wealthy. This will only serve to take an already teetering music industry and send it over a cliff. Of course, it will all be blamed on file sharing. The only real solace will be found in the independent, small acts and clubs. Much like it was before music became an 'industry'.
First off, the oft-derided Muzak Corporation is filing for bankruptcy. Now, some out there might think this is not such a bad thing, preferring instead to take their elevator rides sans cheerful generic pop music done entirely in strings. But their reach goes beyond lifts, and the music spans the spectrum from headbanging to nodding off. Those of you who subscribe to Dish Network satellite television in the days before they carried the Sirius music channels were treated to several dozen channels of varied, totally uninterrupted music of every genre. These channels came courtesy of the Muzak Co. The thrash metal and thug rap might not have found a home in your average dentist's office, but if it had anything to do with music, Muzak would handle it. Also, the company was not without it's sense of humor. Known mostly for cheesy remakes of pop standards into instrumental string arrangements, they would occasionally slip remade versions of Led Zeppelin, Black Sabbath and the like into the music streams feeding shops and stores. This would completely fly over the heads of everyone, except for those who know the originals and 'get' the joke. If Muzak dies, a lot of Eastern Bloc radio orchestras will be down on work.
Speaking of Sirius, it seems that the newly-minted SiriusXM satellite radio conglomerate is also facing some serious financial dire straits. Let me be the first to say 'I told you so'. Take two competing companies, neither one able to operate in the black since their inception, and merge them into a single anti competitive entity. You end up with one company with twice the troubles. The satellite radio industry is buoyed by the sales of new cars and continuing subscriptions, neither of which is happening in this recessionary (depressionary) period. Sirius made the big mistake of hauling Howard Stern on board for the ridiculous sum of a half billion dollars. While this caused an initial uptake of subscribers, the math was not there. Stern, like so many people these days should take a pay cut in order to stay employed. I honestly feel that it's too late in the game for the satellite radio giant, since their combined force resulted in a lot of upset customers, and the increased price of subscriptions will drive off existing customers and keep new ones away. You just dont go around raising prices and cutting service on what is essentially a 'luxury' item during periods of slow economy. It's a sure-fire way of losing customers, both potential and existing.
Dish Network, a major holder of SiriusXM, has in the past put it's sights on Sirius. This can be a formidable threat in the near future as SiriusXM looks for any way out of the mess. But I feel the satellite TV industry is going to soon be hit with it's own desire to merge, if for all the wrong reasons.
We've all read about (and I have written about) how the major music labels are dodging coffins amongst decreased sales and alleged music piracy. The one bright spot held up by music fans, artists and promoters is the sales of concert tickets and live performances. This is about to take a hideous turn for the worst, at least in the U.S. as the two purveyors of live music, Ticketmaster and Live Nation, prepare to merge. This is some terrible news for music fans, since the combined conglomerate, to be called Live Nation Entertainment, will be the sole source for concert tickets to major venues and acts nationwide. The combined entity will be a vertically integrated business controlling venues, promotion, ticket sales and even recording deals with artists. How did this happen? Live Nation, once part of Clear Channel Communications (aka The Company That Ruined Radio) was primarily a concert venue owner and promoter. Ticketmaster, that company everyone loved to hate because of their penchant for tacking on exorbitant 'convenience fees' and other dubious charges onto ticket prices, was often the sole source for tickets to major (and not-so-major) live events. At one time, the two companies had begun 'competing' in ticket sales, but that was short lived. Turns out it was machinations leading towards this eventual merger.
Ticketmaster had in recent years began their own mass-scalping operation by redirecting people looking for popular shows to their wholly-owned ticket 'auction' site, TicketsNow, mere minutes after tickets would go on sale and were supposedly sold out. Tickets for sale at TicketsNow would often be three to ten times the face values of the original or box office tickets. Canadians have brought aboot their own half-billion dollar class action lawsuit as a result.
With all the financial and business shenanigans these two companies engaged in, it does not take much to know what the end result will be. Forget going to live shows of any major acts unless you do some serious saving, go into debt or are independently wealthy. This will only serve to take an already teetering music industry and send it over a cliff. Of course, it will all be blamed on file sharing. The only real solace will be found in the independent, small acts and clubs. Much like it was before music became an 'industry'.
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no subject
Date: 2009-02-12 04:41 pm (UTC)Once people became accustomed to paying nothing for content, their desire to continue paying nothing for anything entertainment related seems to grow exponentially.
no subject
Date: 2009-02-12 05:00 pm (UTC)That said, once people learned they can get stuff for free, how can you blame them? Besides, mix tapes and such have been around long before the advent of digital downloads and all that so is not exactly without it's share of holes in its logic to begin with.
no subject
Date: 2009-02-12 05:06 pm (UTC)Also, the ubiquitous nature of music these days in 'legitimate' channels is killing the value of music. Radio has always been free, at least the terrestrial sort. Now that music is being used as it's own product placement in things like television commercials and shows like never before, the intrinsic value becomes less. Many commercials using songs as their soundbeds even offer a link to download the song for 'free'. Of course, you have to interact with the sponsor's site to get it, but to many that ends up being a 'negative' aspect to deal with in order to get something they might want. With music being treated as something peripheral rather than a value in and of itself, the perceived value is lessened even more.
The decoupling of music from physical formats alters one's perception of value. I grew up during the height of music consumption in practically all it's physical manifestations. Now that people, mostly the younger set, prefer their tunes in ethereal digital formats, one has to ostensibly attach a value to something that has no physical form. Add to that until recently that form was fraught with numerous digital restrictions limiting use of an 'item' that one purchased with their hard-earned cash. Compare that with something they could easily get for 'free' which was free of any of those restrictions and the period of time that could have been used to get people accustomed to paying for digital formats was entirely squandered. Had the industry put their wares out sans all the DRM nonsense at the outset, things most likely would have worked out better for the industry in the long run. Pay money for something that you had myriad rules to obey just to enjoy in a limited fashion versus acting against your conscience and getting something for free that works in practically limited fashion... the temptation was just way too great.
no subject
Date: 2009-02-12 08:07 pm (UTC)Also, I think the public has become more aware of the bizarre and idiotic things recording companies put in artist contracts to squeeze the hell out of them. (We've been in the CD age for how long now - and they're STILL writing new contracts with an allowance for LP breakage?!) They may like an artist, but not be willing to "feed the beast," as it were. One of the advantages I have in not following new music is that I figure established popular acts like ZZ Top and Jethro Tull are in a position not to have to put up with that kind of crap from a record company, so I don't have that issue impeding me from buying their CDs.
As for the long tail - I can only be glad companies like Wounded Bird exist, who are apparently making money reissuing albums that the companies who actually own the rights can't seem to figure out how to get out there and make a profit on. And then there's CDBaby.com - I've discovered a number of artists have re-released albums through them, and their transparent artist payment model makes me confident that the artist is actually getting paid - something I don't feel with a lot of the stuff that comes out through the "majors."
You're absolutely right in that the recording industry absolutely squandered their chance in the digital space - but really, they've been opposed to virtually every technological innovation ever - and the only reason they didn't oppose CDs was because when they were introduced, they were "uncopyable". I even remember pieces talking about how they didn't think people would tape them, because the loss in quality would be too jarring....
I don't know where all this is going, but it's going to be interesting.