Distribution is king.\u00c2\u00a0 Remember that please.\u00c2\u00a0 He who owns the pipe wins.\u00c2\u00a0 It’s why John Malone is so rich and powerful, to the point where one can argue HE is the most important person in the music business, owning so much stock in Live Nation.\u00c2\u00a0 Distribution is not glamorous, but it’s where the action is.\u00c2\u00a0 Let me make it simple, it doesn’t matter how good your album is if no one ever hears it.\u00c2\u00a0 The major labels were in charge of getting music made and heard.\u00c2\u00a0 That monopoly on distribution is gone.\u00c2\u00a0 THAT’S why they’re in trouble, not P2P theft.\u00c2\u00a0 The Internet broke their hold on distribution.<\/p>\n
The reason major labels survive to the extent they do, other than their trove of copyrights, is their control of distribution on terrestrial radio and television.\u00c2\u00a0 You cannot get a record played on a major station unless you’re on a major label.\u00c2\u00a0 Insiders know that the Spitzer crackdown actually made the result worse.\u00c2\u00a0 And television wants gatekeepers, channels don’t want to deal with every wannabe in the world, they want to be spoon-fed acts that will be supported, that will make a splash in the media, they don’t want to be caught out on a limb.\u00c2\u00a0 Alone.\u00c2\u00a0 Which is why you rarely see the cutting edge on TV.\u00c2\u00a0 The mainstream is a club, it’s not about taking risks.<\/p>\n
Then again, I was out with a major label publicity person and a powerful indie and they both said that late night TV gives no bump whatsoever.\u00c2\u00a0 Used to be there were few shows many watched that featured music only occasionally.\u00c2\u00a0 Now music is on constantly and no one cares.\u00c2\u00a0 There’s no sales bump.\u00c2\u00a0 You want a spike?\u00c2\u00a0 Go on Sunday morning television, they say that still has power.<\/p>\n
But the main power of the major labels used to be the control of retail distribution.\u00c2\u00a0 They could get records in stores and could get paid. And if you think either of those are easy you live in a fantasyland where your eight year old just got GarageBand and you believe he’ll be a world-dominating superstar in three months.<\/p>\n
But the Internet killed the major label distribution stranglehold.\u00c2\u00a0 Anyone can sign up with Tunecore and get their music on iTunes. ANYBODY!\u00c2\u00a0 Sure, the music won’t sell, except to family and friends, but it’s what this represents that’s important.\u00c2\u00a0 Access and the ability to get paid.\u00c2\u00a0 The power has shifted.<\/p>\n
As for terrestrial radio…it means ever less.\u00c2\u00a0 Same with TV.\u00c2\u00a0 You can thank technology, most especially the Internet, for that.\u00c2\u00a0 People watch what they want when they want.\u00c2\u00a0 The days of sitting in front of the TV seeing what’s next are heading towards extinction, killed by the DVR and online access.<\/p>\n
And speaking of TV, all of the above is inspired by a fantastic article in "The Atlantic" about Netflix.\u00c2\u00a0 About its distribution power.\u00c2\u00a0 How content creation does not scale, how that’s not where the money is.\u00c2\u00a0 It’s long, and it can get boring, but I recommend it:<\/p>\n
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