So what we’ve got here is a Universal alliance that allows the music conglomerate a chance to pick up nascent acts, merging them into their system with all its advantages.  Huh?

That’s the problem here.  No one knows what acts are successful!  We’ve got to get that data, we’ve got to get inside, so we know what’s happening. If ANYTHING is happening everybody with an ear to the ground knows it immediately.  So I don’t see the advantage to Universal here.  Nor do I see the advantage to acts.  If you’ve got some success and you want to go with a major label is the problem that you don’t have a preexisting relationship?  Are you kidding?  Every single major will take a meeting with anybody who can demonstrate sales success.  Their problem is wading through the wannabes who want to get signed, get a ton of cash with NO track record.  Furthermore, so many of today’s acts with a track record DON’T want a major label deal.  Why give up all that action to be told what to do, giving up the lion’s share of the profits along the way?

As for selling CDs in Guitar Center…  Wow, how eighties!  We sell them at Whole Foods, we sell them at convenience stores, that’s the problem, that’s why revenue sucks, people have nowhere to buy CDs!  Absolutely ridiculous.  To turn Tunecore into a backward-looking operation is like using your iPhone to calculate when your typewriter ribbon will run out.  Huh?

If only there were some true innovation here.  What if Universal offered something more than the usual "rich and famous" contract.  
What if Universal was in partnership with ALL the bands on Tunecore and offered unique opportunities?

That’s how dumb Universal is.  In order to truly enter the twenty first century and profit they must be a distributor for ALL, skimming a tiny profit on each.  A great musician is usually a lousy businessman.  Rather than try to rape the player, offer him something he can’t do himself.  Like a Website where not only do you sell his music, but you sell merch, facilitate contests and giveaways, where you generate additional revenue beyond recorded music!

That’s the opportunity.  Stop crying in your beer about iTunes.  Give me one site where I can buy ALL my music-related stuff.  That’s what Ticketmaster wants to do with its Live Nation merger.  That’s the play.  Maybe even give away the music with the sale of a concert ticket, but also sell merch as part of the same transaction.  But what if you’re a wannabe band, just starting out, and Frontline won’t manage you and Live Nation won’t promote you?  Who’s your friend then?  Some of these acts will be successful…who’s gonna start out on the ground floor with them and help them? Believe me, Universal is no help.  Have you seen one of their contracts?  And now they want a piece of EVERYTHING, not only recorded music. Blows my mind that they’ve got no vision of the future other than saying we’re best at selling music the old way!  Isn’t that what Doug and Jimmy are doing?  We’ll get you in front of millions and make you a success, and now not only will you get screwed on recordings, you’ll get screwed on live appearances…what a deal!

Someone’s gonna roll up the new acts.  And based on this Tunecore deal, one can say Universal will not be the one.  You’re gonna need someone who can see the future.  Who sees that a ton of pennies is worth more than a few dollars.  Who sees the future is about partnership with the acts, with transparent accounting and fair deals.  Michael Jackson called Tommy Mottola the devil and he was making more money selling records than anybody!

But he wasn’t making as much as CBS/Sony.

As long as Universal believes it’s entitled to the lion’s share of the revenue, while offering nothing new, nothing innovative, nothing helpful in this new digital era, the company is laughable.