Thomas Middelhoff Goes To Jail
They all want to be rock stars.
Who?
You know, the guy who ran Bertelsmann, before he was forced out and they sold RCA to Sony, the guy who embraced Napster and was then squeezed out by the controlling Mohn family when he wanted to take Bertelsmann public and utilize the proceeds to further expand.
Financial shenanigans.
That’s right, be glad you’re a musician. Who creates something of worth, that can pay dividends for decades to come. Everybody knows your name, well, at least some people do, and you can appear live, even open grocery stores if you choose.
But these businessmen… They’ve got nothing other than their gig.
In other words, are you gonna hate on Daniel Ek and Mark Zuckerberg and the rest of the tech titans who created something out of whole cloth, or the people who run today’s music business who never had any skin in the game, who believe they’re the stars, not the acts.
Transparency. Bono brought it up and Daniel Ek echoed it. This is the labels’ worst nightmare, letting royalty partners know how much came in and how much they’re entitled to, never mind do so honestly. That’s anathema in the entertainment business, not only in music, but in films. But those involved always blame someone else, the techies, the public, no one likes to look at their own dirty laundry.
And the truth is music is a mature business. It long ago shed its wild west entrepreneurial phase, when Bill Graham built live and Ahmet Ertegun built recording, each screwing artists along the way. Scott Borchetta would like to pull Florida Georgia Line from Spotify but he can’t, because they’re part of his venture with Universal, he doesn’t have the right.
And you sit at home saying that you’re screwed.
You bitch that the label doesn’t have the deep pockets to pay you a huge advance and then market your record to success. You’re pissed that the barriers to entry are no longer high, and untalented nitwits can play. You laud iTunes when you bitched for half a decade that it was decimating the album and CDs.
Because you have a short memory.
But history does not.
Everybody wants to be a rock star. You know, rich people who can do whatever they want, get laid whenever they desire. But most don’t have the talent, never mind the looks. So they find a way to snooker those who do, so they can personally triumph.
Like Tommy Mottola.
Well, at least Tommy started independently, give him credit. But when he took over Sony it was all about him, and his team. Increase royalty rates on CDs, are you kidding me?
And then Thomas Middelhoff.
In case you missed the memo, after getting squeezed out of Bertelsmann, he started his own fund and then took over a German retailer whose stock he decimated with his financial planning and maneuvering. Because that’s what these guys do, reallocate the value so someone can get rich, including themselves. When you hear about a company dividing, doing a spin-off, it’s never about improving the entity but someone getting rich.
Hell, Thomas Middelhoff was even on the board of the “New York Times.” And you may hate the Grey Lady, but the truth is it sets the agenda for the nation, it’s the only outlet with boots on the ground. And even they were snookered by this wannabe fat cat.
And the funny thing is all the musicians want to be businessmen. They invest in tech, as if you need know nothing to succeed. I ask you, can you be a successful musician without training?
And the acts no longer go their own way, but shine themselves up to sell to the corporation, a disillusioning process wherein the acts who pay lip service to being beholden to their fans are anything but.
They want to be like Thomas Middelhoff.
And Thomas Middelhoff wanted to be like them.
Commuting by helicopter, flying private to Cannes for a meeting. Who cared if the company was doing poorly, he was entitled.
Do you really think the execs sacrificed when the CD business cratered? No, the acts did.
And now Thomas Middelhoff is in jail. They stripped him of his gold watch and sold it for debts, truly.
And this is who you want to be?
Dave Grohl might make me-too music, but he had it right. Your main goal is to get someone to listen, it’s all about the music, but it hasn’t been about the music in such a long time.
That’s the problem with the industry. Not Spotify, not piracy. Hell, we talk about YouTube because there’s nothing to say about music. It’s just endlessly repetitive crap. Tell me how Taylor Swift pushed the envelope…by telling the unwashed poor how great New York City is, a place they can visit but never afford to inhabit?
So, it’s our whole get-rich culture. Where everyone feels entitled and no one wants to sacrifice. Where everybody believes they’re entitled to be a rock star.
Is everybody entitled to play in the NBA?
Thomas Middelhoff was once one of the most important people in the music business, certainly one of the most powerful. And what he did had consequences.
But you’d rather bitch and moan that Spotify is lying, that they don’t really pay 70%, and you’re entitled to be rich.
But the truth is you’re part of the problem. You’re no different from Thomas Middelhoff. Cutting corners, believing he’s entitled.
You’re entitled to nothing.
Deliver something worth paying attention to, that is not propped up by marketing.
Then we’ll care.
“Thomas Middelhoff, Ex-Chief of Bertelsmann, Gets 3-Year Prison Term Over Misuse of Funds”
“Dave Grohl on Taylor Swift Spotify debate: ‘I don’t f**king care'”
