KOAR News

Posted December 3, 2007 — in Music News

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Holiday Layoffs: Universal Music Group’s Island Def Jam label let a dozen people go on Friday. Among the axed were ‘vice president’ of promotion Greg Thompson and A & R hitters Paul Pontius and Rob Stevenson. Island Records also ended it’s relationship with record label Stolen Transmission. Also, Silicon Alley Insider reports that Sony-BMG is cutting its mid-level exec ranks by 40-70 while revenues at the label dropped 10% to $851 million in Q2 and the company was able to save $8 million profit before taxes, which was largely because it wasn’t spending money promoting many new releases.

EMI and the Titanic: Check out this lengthly article that discusses the recent woes inflicting EMI. My favorite lines include ‘What’s the difference between EMI and the Titanic? The Titanic had a good band on board when it went down’ and ‘Under the watchful eye of Sir Martin Sorrell and his peers, lapdancing bills and cocaine fuelled creative sessions have been replaced by careful cost management.

Can you call it a comeback? The music industry is relying on old stars to bring in new business. Nothing gets investors more excited seeing older artists like Whitney Houston preparing for a comeback. Check out her sing her signature hit signature song, I Will Always Love You at a concert in Malaysia and decide for yourself.

WMG — the M stands for Miscellaneous, Mismanagement or Muck: This is what Fox’s columnist Roger Friedman calls Warner Brothers. Friedman says Warner is a disaster and that other companies are toughening out rather than blaming the usual suspects including “the decline of the record industry” or “the unanticipated rise in popularity of downloading,”. Friedman talks about the wins among other companies like Epic Records’ home run with Sean Kingston, New Line’s “Hairspray, A&M/Interscope success with Amy Whinehouse, and Hollywood Records homerun with the Plain White Ts hit single, “Delilah.

Friedman pulls the rug under Warner and proclaims:

The problem is that nobody at WMG is really in the record business. They are in the hit-and-run business. By now, the executives have pulled their millions out of the company and fired as many staffers as they can get away with.

Meanwhile, it’s fairly clear that WMG is indeed turning into a management and concert firm, with only viable CD sales in their catalog.

Edgar Bronfman Jr. has put his money into Irving Azoff’s Front Line Management, Chris Lighty of Violator and now Bulldog Entertainment’s luxury concerts. No new act would sign with WMG now, and the old standbys will probably give third and fourth thoughts to sticking around.

Damn, that hurts….

17 Comments »

  1. Wait, so you say the record industry needs to do something besides just sell CDs, and then you criticize WMG for doing just that? That’s logical.

    Comment by Anonymous — December 3, 2007 @ 10:59 am

  2. We are just reporting the news. I personally think Friedman has a beef with Cohen or one of Warner execs. Friedman is also stating that Warner couldn’t knock out a HIT like the other labels.

    The truth is, these guys have a lot of enemies, they gave the middle finger to a slew of people for a long time and this is a case of “every dog has its day”.

    The record business is somewhat hated by bitter artists who never were successful and ex employees. I’m not into the whole ‘vindictive attitude”….

    Its really obvious that the record business is under the gun and everybody wants to see it fail. I can’t disagree with you’re comment that Fox’s Roger Friedman claims that Warner needs to get out of the record business then is critical of them for trying different things. That is a bit contradictory.

    Look at Lefsetz, he is the king of contradictions as well. I like his imagination but he is another dude that wants to see the labels fall to pieces.

    Bob is an avid supported of APPLE who embraces capitalism to its highest standard but calls out the record companies for wanting to make money.

    The music business is one of the few businesses where everybody wants to see other people fail..Its ashame but it is what is it…

    Lastly, KOAR will be posting new music soon. We got some big ones coming out..We have been saving the BEST for Last…stay tuned.

    Dean

    Comment by koar — December 3, 2007 @ 11:22 am

  3. Yikes. Just makes the whole DIY indie approach sound that much better. I know some would say that’s part of what contributed to the industry’s downfall via the oversaturation of artists. But to someone who just wants to make music, it’s seems like options are either do it yourself or don’t do it at all.

    Comment by jessicajohnsondotnet — December 3, 2007 @ 11:53 am

  4. Lefsetz criticizes the labels for trying to make money at the expense of music or the artists. There are bitter artists who never made it, sure. But there are successful artists who are also bitter. The labels are AT BEST a necessary evil in the eyes of anyone who loves music.

    Apple, on the other hand, is visibly striving to make the best products possible. Look at the store credit they gave that first round of iPhone purchasers. Could you imagine that coming from EMI, Universal, Warner, or SonyBMG? Of course not. Those guys won’t even cough up a fair share for the ARTISTS.

    It all comes back to philosophy & the quality that does or does not result from it. Apple cares what the consumers think. Apple even caters to the consumers. The labels are all about themselves, they treat their consumers like morons and it’s come back to bite them in the ass.

    Comment by Jon Cole — December 3, 2007 @ 12:37 pm

  5. I have the feeling Warner is one of the few major labels that is doing great in the rock/metal community; they have really big names like Avenged Sevenfold, My Chemical Romance(?), Linkin Park, Mastodon and Serj Tankian. I don’t know how these artists’s sales are though…?

    Comment by Bart Nijssen — December 3, 2007 @ 2:35 pm

  6. Hello, I’m sorry for the OT but.. Empty Walls by Serj Tankian is amazing!! and the video is great, too!

    so, interesting post… in my opinion the issue is that record label are trying to face the new music-world with old weapons…it’s about totally changing their own minds, their model cannot work anymore and trying to upgrade it is not possible… it must be totally reinvented..

    Comment by Zhaul - NuRev — December 4, 2007 @ 8:46 am

  7. KOAR, hit the nail on the head. Most of people who want to see any labels fail are bitter artists that never took off and ex -employees who were axed…don’t get me wrong, i really dont care, but its very obvious!

    Subject: Re: The Kindle

    I feel no sympathy for the major labels. After being signed to one it was more like slavery. I can’t wait till they are on the very brink of surviving and have to finally change they’re game plan. Napster kicked things in to high gear. I’ve sold over 50k records and have never seen a cent! The band is still recouping to Warner. When Napster was around odly enough more people came to our live shows. Anyway… Thanks for the rants.

    You rule!

    J

    Julian Dean Taylor

    Bent Penny Records

    Comment by jim — December 4, 2007 @ 10:26 am

  8. Julian, you feel that way because you only sold 50k. What do you expect? Become a millionaire with those numbers? The label has to make back it’s money. Get a clue!

    Comment by Jason — December 4, 2007 @ 12:12 pm

  9. If you really want to be forward thinking, rename the word ‘label’ as investor. In the future, we will have investment companies that may or may not look like traditional labels.

    Most artists and managers are not well equipped to handle and negotiate with investors.

    As you can see in the email above, this artist/manager is confused. To understand the breakdown you first need to put the batteries in the calculator, look at the recording contract and figure out how many CD’s you need to sell to make some money.

    Once you look at the recording contract, you may realize the size of a promotional budget ($$$$$$$$$). If you’re smart, one wouldn’t count on making money from CD’s including an artist who is indie or an artist who is teamed up with an investor.

    So, what do we do now? we focus on different revenue streams. Lets look at other things we can sell that is not tied to the investor.

    Are we all on the same page???

    Comment by koar — December 4, 2007 @ 1:00 pm

  10. I concur. The smart artists use the labels to build their brand. Yes, they give up potential income from CD sales, but the exposure a major label gives them allows them to play bigger shows, sell more merch, yadda yadda.

    If you’re a pop solo artist, you can branch out even further. Acting, launch your own clothing line, cologne, sneaker, the possibilities are endless. You need think multi-dimensional.

    Comment by Jason — December 4, 2007 @ 2:26 pm

  11. I’ll be really glad when guys like you have moved on from the music industry, Jason. Really glad. I’ll rejoice on the day that I never hear the word “branding” associated with music ever again.

    The future of the music industry is the niche. The playing field is leveling as we speak. Volume at a low per-song price is the model (as dictated by the public adoration of the iPod), not a small crop of chosen pop superstars, shoved down our throats via movies, sneaker commercials, etc. Consumers will consume more music & latch on to what they enjoy & discard the rest. It’s no longer decided for them.

    The ceiling for a major label release is continually dropping. They can’t give you an Appetite For Destruction anymore. You’re lucky to go gold. And what’s worse is that after an album or two, you’re pretty much done.

    Alternatively, if you forgo the first week sales, spend less money recording your album (this requires that you write songs that stand on their own & can actually play your instruments), & protect your image (no cologne endorsements), you’ve got a chance of actually lasting. You can make money, but you can also write, record, & play music for a very long time, which is a very beautiful thing when the process is not tainted by folks like Jason, telling you that you need to act or do ridiculous endorsements or some other bullshit.

    Comment by Jon Cole — December 4, 2007 @ 4:30 pm

  12. Jon, you’re not getting the point. Not every band or artist should do (the same) endorsements, or should release (the same) “lifestyle” products. As a rock band you can sell other things than music, and still keep your credibility. It just has to be in tune with who you are.

    A female pop singer like Hilary Duff who’s fans consist of teen girls should absolutely put out a clothing, make, and cologne line. It’s in tune with who she is, speaks directly to her core fanbase, and therefore wont result in her losing any fans. Quite the opposite will happen, it will strengthen the relationship to her fans.

    Your puristic view on the entertainment industry is naive. It was always about branding, along with releasing quality music. Nirvana = Grunge, The Beatles = British Invasion, Elvis = King of Rock n Roll, yadda yadda.

    Branding, branding, branding!!!

    If you cant position yourself in the marketplace, and have something unique to offer, apart from your music, you wont survive. This is also what KOAR oftentimes refers to as multi-dimensional acts. What’s unique about you? You play great music, but a lot of people do that. You have to stand out somehow.

    We’re in the show business. It was NEVER just about the music. Not even before “video killed the radio star”.

    Comment by Jason — December 5, 2007 @ 3:50 am

  13. Jason, well said. You have to give the fans more than music. If you don’t, just sit at home and post songs on myspace. There is no problem, being a web-based band.

    The most important aspect of an artist is being ‘Who You Are’.

    And Yes, all the Mega Stars are multi-dimensional acts including the classics - Elvis, Michael Jackson to the contempories - U2, TOOL, Pearl Jam,…

    Comment by tina — December 5, 2007 @ 9:11 am

  14. If you’re saying Hillary Duff is a walking billboard, void of any substance, working to pay for the mansions of her parents & other handlers, I won’t disagree with you.

    But I believe you’re confusing image & charisma with other things. I mean… Nirvana didn’t go out & endorse flannel shirts. He just was who he was, & the press had a field day creating this idea of “grunge.” Copping to that image might’ve sold records for Bush or Candlebox (who both sucked ass) or even Seether (who REALLY sucks ass), but the songs & Kurt’s charisma sold Nirvana. That’s how it should be. The songs & Eddie Vedder’s integrity sold Pearl Jam. And a killer live show. That’s why Pearl Jam is still around. And Gavin Rossdale is only still relevant as Gwen Stefani’s baby’s daddy.

    Having a visual impact is important, but that should be organic… if you’re some run of the mill shmuck, chances are your songs & your performances are going to be boring.

    I’m not saying you can’t make loads of money by wading through all of the bullshit, by making everyone else their undeserved millions, but it won’t last. You’ll fall to the wasteside. Integrity & a carefully handled image is why Pearl Jam, Radiohead, & Tool are still around. It’s what kicked Guns ‘N Roses up from 200,000 sales, eight months in, to an eventual 15 mil. “Everything was directed at trying to achieve the sales without sacrificing the credibility of our music. We worked real hard to sell this many records. The album wasn’t just a fluke. Maybe Appetite will be the only good album we make, but it wasn’t just a fluke.”

    Oh I get everything that you’re saying, believe me. I’m just saying there’s a low ceiling & a short shelf-life there. And the ceiling is continually dropping & the shelf-life is continually shortening.

    And I’m not entirely against endorsements or licensing deals… I found out about Nick Drake through a very tasteful Volvo spot & I think the Wilco VW ads have all been very well done (even if others think it was a bad move). I think Garden State & Wicker Park did great things for Postal Service. But those all made sense, & didn’t rob too much credibility from the artist.

    Credibility is a lot like water… it moves around, but isn’t often created or destroyed. When you sign an endorsement deal, their whole idea is to have you pour some of your water into their cup. Depending on how much you would have to pour out, it can be worthwhile for the exposure & the money. But it’s still a finite amount. And if you go pouring it out all at once, you’re finished. You have to realize that the water is what drives ticket & album sales. If you’re like Pearl Jam & you hang onto your water, you can make much more money over a much longer period of time, selling tickets, selling copies of your live performances, & selling albums, all the while playing music you love everyday to people who love it & living a very great life.

    Comment by Jon Cole — December 5, 2007 @ 9:36 am

  15. http://ofmontreal.net/blog/2007/11/19/selling-out-isnt-possible/

    There is no such thing as credibility or selling out.

    Comment by Jason — December 6, 2007 @ 5:59 am

  16. Selling Out Isn’t Possible
    by Kevin Barnes

    Are you a sell out? Yes. Don’t let it bother you though, cause apparently I am also a sell out, and so are your parents and everyone you’ve ever known. The only way to avoid selling out is to live like a savage all alone in the wilderness. The moment you attempt to live within the confines of a social order, you become a sell out. Once you attempt to coexist you sell out. If that’s true, then selling out is a good thing. It is an important thing. If we didn’t do it, we’d be fucked, quite literally, by everyone bigger than us physically who found us fuckable.

    The pseudo-nihilistic punk rockers of the 70’s created an impossible code in which no one can actually live by. It’s such garbage. The idea that anyone who attempts to do anything commercial is a sell out is completely out of touch with reality. The punk rock manifesto is one of anarchy and intolerance. The punk rockers polluted our minds. They offered a solution that had no future. Of course, if the world would have ended before Sandinista! was released then everything would have been alright. It didn’t. Now we have all of these half-conceived ideas and idiot philosophies floating around to confuse and alienate us. I think it is important to face reality. It is important to decide whether you are going to completely rail against the system or find a way to make it work for you. You cannot do both — and if you attempt to do both you will only become even more bitter and confused.

    When I was younger, and supported my parents, I chose to float between the two. A lot of people choose to do this. There are so many confused young people running around now polluted by this alloyed version of the tenets of the punk rock manifesto. Of course they’re confused. It isn’t possible to be in chorus with capitalism and anarchy. You must pick one or the other. Very few people are willing to do it, though. The worst kind of person is the one who sucks the dick of the man during the daytime and then draws pictures of themselves slitting his throat at night. Jesus Christ, make up your mind! The thing is, there is a lack of balance. When capitalism is working on a healthy level, everyone gets their dick sucked from time to time and no one gets their throat slit. It’s impossible to be a sell out in a capitalist society. You’re only a winner or a loser. Either you’ve found a way to crack the code or you are struggling to do so. To sell out in capitalism is basically to be too accommodating, to not get what you think you deserve. In capitalism, you don’t get what you think you deserve though. You get what someone else thinks you deserve. So the trick is to make them think you are worth what you feel you deserve. You deserve a lot, but you’ll only get it when you figure out how to manipulate the system.

    Why commercialize yourself? In the art industry, it’s extremely difficult to be successful without turning yourself into a cartoon. Even Hunter S. Thompson knew this. God knows Duchamp and Warhol knew it. Some artists are turned into cartoons and others do it themselves. I prefer to do it myself. at least then I can control how my cock is photographed. Why should it be considered such an onerous thing to view the production of art as a job? To me, the luckiest people are the ones who figure out a way to earn a living doing what they love and gain fulfillment from. Like all things in this life, you have to make certain sacrifices to get what you want. At least most of us do. If you’re not some trust-fund kid or lotto winner, you’ve got to slave it out everyday. People who wanna be artists have the hardest time of it ’cause we are held up to these impossible standards. We’re expected to die penniless and insane so that the people we have moved and entertained over the years can keep us to themselves. So that they can feel a personal and untarnished connection with our art. The second we try to earn a living wage or, god forbid, promote our art in the mainstream, we are placed under the knives of the sanctimonious indie fascists. Unfortunately, there isn’t some grand umbrella grant that supports indie rockers financially and enables us to exist outside of the trappings of capitalism.

    The thing is, I like capitalism. I think it’s an interesting challenge. It’s a system that rewards the imaginative and ambitious adults and punishes the lazy adults. Our generation is insanely lazy. We’re just as smart as our parents but we are overwhelmed by contradicting ideas that confuse us into paralysis. Maybe the punk rock ethos made sense for the “no future” generation but it doesn’t make sense for me. I like producing and purchasing things. I’d much rather go to IKEA than to stand in some bread line. That’s because I don’t have to stand in a bread line. Most people who throw around terms like “sellout” don’t have to stand in one either. They don’t have to stand in one because they are gainfully employed. The term “sellout” only exists in the lexicon of the over-privileged. Almost every non-homeless person in America is over-privileged, at least in a global sense.

    Obviously, I’ve struggled with the concept. I’ve struggled because of the backlash following my songs placement in TV commercials. That is, until I realized that the negative energy that was being directed towards me really began to inspire my creativity. It has given me a sense of, “well, I’ll show them who is a sellout, I’m going to make the freakiest, most interesting, record ever!!!” … “I’m going to prove to them that my shit is wild and unpolluted by the reach of some absurd connection to mainstream corporate America.”

    I realized then that, for me, selling out is not possible. Selling out, in an artistic sense, is to change one’s creative output to fit in with the commercial world. To create phony and insincere art in the hopes of becoming commercially successful. I’ve never done this and I can’t imagine I ever will. I spent seven years not even existing at all in the mainstream world. Now I am being supported and endorsed by it. I know this won’t last forever. No one’s going to want to use one of my songs in a commercial five years from now, so I’ve got to take the money while I can. It’s the same with pro athletes. You only get it while you’re hot and no one stays commercially viable for long. It’s not like Michael Vick is going to be receiving any big endorsement deals anytime soon. As sad as it may seem, one of the few ways most indie bands can make any money whatsoever is by selling a song to a commercial. Very very few bands make enough money from album sales or tour revenue to enable themselves to quit their day job.

    Next time you see a commercial with one of your favorite bands songs in it, just tell yourself, “cool, a band I really like made some money and now I can probably look forward to a few more records from them.” It’s as simple as that. We all have to do certain things, from time to time, that we might not be completely psyched about, in order to pay the bills. To me, the TV is the world’s asshole boss and if anyone can earn some extra bucks from it and they’re not Bill O’Reilly, it’s a good thing.

    Comment by Jason — December 6, 2007 @ 6:02 am

  17. Having grown up in Athens, Ga, I love Kevin’s music just as much as the next guy. Probably more… Satanic Panic In the Attic is probably one of my top 50 favorite albums of all-time. And he’s a really smart dude. But this is a case of a guy restoring his credibility… convincing his audience that he’s not in the wrong.

    Now we can argue ideologically all day long. Should fans support the financial successes of their favorite artists, regardless of the terms? Should fans pay for every song they download? Those are two cans of worms that we should save for another time, but the fact of the matter & what’s practical to discuss is that they don’t & they don’t. As much as the capitalist system demands that we “sell out,” it also demands that we react to consumers on their terms. After all, “in capitalism, you don’t get what you think you deserve… you get what someone else thinks you deserve.” Funny enough, Edgar Bronfman Jr seems to be the only one who wants to admit this to himself.

    As humans, we’re nothing more than a list of contradictions. You’re not a robot, are you, Jason? The only thing that makes us unique from one another is which of our own ideals we contradict & when. Ideologically, Kevin is right on. But I wouldn’t depend on those who don’t contradict themselves to put food on my family’s table. Then again, I don’t think Kevin is doing anything outrageous. (The Outback commercial wasn’t even his song, only his song rewritten as a jingle. My response the first time I saw the commercial was “I know that song… I know that… what’s that song? Of Montreal! Weird.”)

    Lefsetz says it all of the time, public opinion is the one & only thing that matters. The perception of credibility is a reality (whether you believe “credibility” actually exists or not) & this allows for longer careers. Period. Pearl Jam. Bob Dylan. Bruce Springsteen. Dave Matthews. Tool. These are bands who will ALWAYS be able to work because they’ve created the music they wanted to create & they’ve carefully maintained their image. Artists who are just out for a cash grab won’t last.

    Then again, if your songs suck ass (I’m looking at you, One Republic), you might as well grab what you can before you’re completely forgotten.

    Also important to note (perhaps most important) is that Kevin isn’t using these deals to grow his fanbase or to strengthen the relationship with his fans. OBVIOUSLY IF HE FEELS THE NEED TO WRITE THIS, THE RELATIONSHIP WITH HIS FANS IS BEING STRAINED. This only further proves my point & seems to contradict yours.

    Looks like I win.

    Comment by Jon Cole — December 6, 2007 @ 3:35 pm

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