July 27th, 2009 at 4:34 PM

It took more than two years for the labels to finally complete their experiments. In April 2007, EMI became the first label to offer DRM-free tracks. Five months later, Amazon launched its store with DRM-free music from ALL labels (including Universal). Meanwhile, Apple is still forced to sell DRM-free. Zune is launched with its Zune Marketplace and point system. Labels let this run for about a year and a half like this. They watch their sales decline, the volume of (legal) downloads rise, and iTunes continue to thoroughly dominate the industry, becoming the largest retailer of music (download or CD) in the US, ahead of even the big Wal-Mart. Eventually, labels read the writing on the wall and capitulate. DRM is history, music is set free.

Labels cannot do ANYTHING without the blessing of Apple anymore. This initiative, the primary purpose of which is to re-introduce the concept of the Album, which was the main, if not the only driving force behind their business for the past 30 years. As iTunes became such driving force, so has the album begun losing out to singles. First time around (when singles disappeared together with vinyl), labels simply killed the single by forcing everyone to buy album CDs (and forcing musicians to write, record and produce a dozen songs in order to get signed). This time around, there’s Apple, which simply won’t let labels sell bundles without selling singles anymore. So, this time around, labels are actually thinking about the consumers and planning to offer additional value with that bundle. Yes, there will most likely be crappy tracks in that album bundle, but you’ll also get other interesting stuff, which you won’t be able to get with a single.

This is a triumph for a consumer, and I’m sure Apple will not have objections to it. I have no doubt, if anything does save music industry, it will be their shift towards the consumers, for a change. Who would have guessed…?

July 27th, 2009 at 4:47 PM

Marcsten:

The LP experience was superior to CD experience for a good reason. At the time, consumers had the choice of buying singles (with hits) or albums. For labels, the cost of pressing albums was just pennies higher than for singles, but retail price was significantly higher. So, in order to motivate consumers to buy those high-margin albums, they HAD to offer a better experience. In addition to “long playing” record (where you could be making out to “Shine on You Crazy Diamond” for 25 minutes without having to flip a record), you also did get the actual album—a fairly large sleeve for that record, with a lot of interesting information.

The CD generation hasn’t seen the singles, nor the actual albums, so when the downloads came, they jumped on the chance to only get the stuff they want. CD didn’t offer anything of value over a single download; only a few crappy tracks that were the filler for the good ones on the album. Rare were the artists that took the constraints of the form and filled them with true works of art.

If Labels get this right, they just may re-create that album experience, but for the digital age. Hey, you never know (as the lottery people tend to say…).