As Music Production Costs Fall, Shouldn’t Price Fall Too?

Your new favorite song could come from here. (CC-BY Matt Gibson)
Your new favorite song could come from here. (CC-BY Matt Gibson)

The cost to produce music is at an all-time low.

The price of music is… well… schizophrenic. A single track can be simultaneously obtained for free on BitTorrent, or purchased on the iTunes store for $1.29. Or you can stream it for next-to-nothing on Spotify, or for a fraction of next-to-nothing on YouTube. And you can still buy the CD for $14.95 to get that one song you like, if you’re a masochist or retired.

The free music debate is often framed as an epic battle to save music itself. Proponents of stricter copyright enforcement claim that keeping these price points high is necessary to keep the quality of music high. Without the proper funding, musicians will make less music, or if not less, at least worse.

I think we can all agree that while the price of music is effectively (with streaming) or literally (with torrenting) free, the cost of producing music is anything but. There is real labor, real expense involved in producing an album.

On the one end of the spectrum, you have major labels paying over $1MM for a single. On the other, you have Nirvana’s Bleach, a multi-Platinum-selling album made for $606.17 in 1989.

What does it cost to produce music? Whatever you want to spend, or can afford. That’s the problem with putting the pricing debate in perspective — the costs to produce vary as wildly as the results. There have been plenty of multi-million dollar flops and home-recorded hits, so how can one ever put a definitive cost on music production? We can only assign a range of possibilities, but doing so does help illuminate the debate.

Before we talk production costs, there is something important to be said for the fact that costs vary wildly. It would suggest that pricing of music ought to vary wildly, at least somewhat in line with the cost to produce it. And yet, the basement DIY record and the multi-million dollar Rhianna album both retail for $1.29/track on iTunes. This is because the price of music is fixed by the big 3 record companies that control around three quarters of the global music industry. And yes, those same three major labels were the ones who negotiated how much artists get paid on streaming services — an amount that as we have seen is so paltry as to only be sustainable on a large, major-label market scale.

Point is, music should cost whatever the artist and their business team wants. This idea is often invoked by detractors of free access to music. “You can make your music available for free, that’s fine,” they say, “but I have the right to charge for mine.” Which is true, and copyright makes it so — artists enjoy a monopoly over the right to distribute copies of their music at the moment they record or write down a song. The intent of copyright is to create value around this right, so that production costs (both in labor and materials) can be covered, and the production of music can flourish. So it would stand to reason that the value created by copyright would not remain fixed as production costs fall.

Nope. The major labels have consistently fixed the value of music copyright by litigating and legislating against any force that threatens to devalue music access fees. They have extended copyright terms to draconian lengths. Any technology that is outside of their price-fixing controls is sued out of existence, and the law is changed if it does not suit their litigious needs. Forget free access to music, the powers that be don’t even want variably-priced music!

Major labels have enjoyed an effective monopoly over the monopoly that copyright grants artists. This happened because the value of copyright was not intrinsic, rather it was hitched to the ability of a business to exploit it. In the past, it was incredibly difficult for the artist to exploit their own copyright to create value — they had to sign their rights over to a label to be exploited. They didn’t have access to the apparatus of production, marketing and distribution like they do today. Thus, the value of music copyright was in the value of being exploited.

Over the last decade, we’ve seen a major shift in the value of copyright, due in no small part to the falling costs of production. The cost of recording technology dropped to a fraction of what it once was. You can still spend a few million dollars building a state-of-the-art studio, but more and more are recording for less and less. Modern recording technology also speeds up the recording process considerably, so there are fewer labor costs.

Music listening is becoming a more participatory process, and more music is being made (via remixes, covers and mashups) just for fun or expression, without commercial intent. You can still spend a year writing an album, but plenty of musicians are vastly reducing the labor involved in composing an album by using technology to demo as they write, with feedback and collaboration happening at a faster pace.

Marketing costs are at an all-time low thanks to social networks and the ability of bands to connect directly with fans. You can still spend millions on a national marketing campaign (or get a consumer electronics company to underwrite it), but it’s now possible to market an album guerilla-style, and catch on virally without spending a dime.

And don’t get me started on distribution. Since the Napster days, the cost to distribute digital music has been effectively free. The real expense that these streaming sites have is not server bandwidth (a point that would be largely mooted by peer-to-peer technology). The exorbitant expense is in the labor required to seek out rights holders, get them to sign a digital service license agreement, and the accounting behind tabulating and paying out their share of the streaming pie. And when you’re talking about having to negotiate with the big three majors, you better believe the expense is going to be as exorbitant as the top entertainment lawyers can manage.

Digital distribution is what truly democratized the music industry, and the genie is never going back in the bottle no matter how much the RIAA continues quixotically to cram it in. I can distribute my music worldwide via any number of retail aggregators (CDBaby, OneRPM, TuneCore, DistroKid, etc.) for the cost of a magazine subscription. I can certainly distribute it worldwide absolutely free as well. The cost of digital distribution is near zero, and has been for quite some time.

So, there we have it. The labor involved in songwriting (to the extent you can call it ‘labor’) has been slightly decreased by technology. The time and cost of recording has been drastically reduced. Successful marketing can be achieved at a fraction of former costs. Distribution is nearly free.

The cost to produce music is much lower than it was just a decade ago. Shouldn’t the price of music adjust accordingly? Isn’t the pricing of streaming much closer to what’s fair for consumers? Doesn’t the declining cost of music production dictate that we charge less — even nothing — for access music? When you factor in new opportunities in direct fan patronage, a growing live music market and greater demand for licensed music, shouldn’t we continue to develop the intrinsic value of music as a service, and relax monopoly distribution rights on the music product in order to do so? This would be disadvantageous for the big three record labels, but a boon to most musicians and their fans, because a chance to be heard is a chance to be supported.

Copyright Reform Necessary to Protect the Consumer-Creator

musiccreator

Free song sharing is this generation’s VCR.

Twenty years from now everyone in the music industry will look back at the plummeting price of access to recordings and shake our heads much the same way the movie industry looks back at its attempts to outlaw the VCR. How could anyone rationally think otherwise? And yet the entertainment industry has been chipping away at the legal underpinnings of fair use established by the US Supreme Court just under 30 years ago.

In Sony Corp. of America v. Universal City Studios, Inc. — otherwise known as the “Betamax case” — the Court narrowly ruled in favor of the greater good.

Justices Marshall, Powell, and Rehnquist joined Blackmun in dissenting, completely ignoring welfare-based theories of copyright. These justices were siding with the MPAA’s view that any leeway given to copyright infringement, even personal copying for private use, undermined the whole system of copyright.

It’s not that they were wrong in their assessment. VCRs did undermine copyright in the sense that fair use enabled people to make tens of millions of copies of copyrighted material. But nothing happens in a vacuum. Consumers were so busy “undermining” the copyright, they developed a voracious appetite for films and TV shows, and the movie and television industries positively exploded.

The same thing is happening in so-called music piracy, it’s just happening incredibly slowly because the music industry is still for the most part fighting free access to music.

Certainly, creators need to be compensated for their labor. Copyright exists to provide this incentive to work, ensuring creative works get made. It also exists to protect our personhood — our identity as defined by our creative expressions. Copyright should prevent our labor from being unjustly exploited, and our identity from being stolen.

For many, this is where copyright ends because they are only thinking about themselves (it’s something of an American pastime.) They ought to stop and think for a moment, because there are an estimated 315,613,999 other folks in this country alone who deserve consideration.

Copyright is not just about protecting your individual right (or, more commonly, a corporation’s right) to profit from or be fairly represented in the exploitation of their works. It’s about the greater good, a concept that trumps any individual concern. We tend to overvalue our own creative endeavors because the labor and personhood considerations of creativity distort our perception. Our value is high because we worked hard and infused our work with something of personal essence.

But while the price of creative work may be set by individual, society at large will ultimately judge its value. This is why record labels have to fix prices — to override the more reasonable value judgement of consumers by exploiting their control over music access. In a truly free market, the value of music remains high and climbs even higher while the value of access to music approaches utility levels (think Spotify) if not zero. The music industry is fighting the devaluing of access to music rather than the music itself. On the contrary, there is now more music being produced per year than ever before — more bad music to be sure, but much more good as well.

Copyright is supposed to ensure the needs of the greater good are met by stimulating individuals to contribute to that greater good. We recognize that having a market in which one’s creative works have value is a strong driver of individual contributions. But we must also recognize the purpose of copyright is to “promote the Progress” of the public and culture as a whole. In the case of labor and personhood, copyright is the art of balancing the individual need for monopoly protection with the public need to access creative works.

We need to stop looking at this like one creator is producing work for 315,613,999 consumers. It’s the 21st century. One creator is producing work for 315,613,999 other creators.

This culture in which everyone participates as both consumer and creator was still a ways off back in 1984 when the Betamax case was decided. Interestingly, dissenting Justice Blackmun unwittingly predicted a future in which the line between creator and consumer would not be so clear:

“Fair use may be found when a work is used ‘for purposes such as criticism, comment, news reporting, teaching… scholarship, or research.’ …other examples may be found in the case law. Each of these uses, however, reflects a common theme: each is a productive use, resulting in some added benefit to the public beyond that produced by the first author’s work…”

In particular, this quote reminds me of the concept of “semiotic democracy“, a phrase first coined by John Fiske in 1987. In studying television culture, Fiske observed that “rather than being passive couch potatoes that absorbed information in an unmediated way, viewers actually gave their own meanings to the shows they watched that often differed substantially from the meaning intended by the show’s producer.”

This concept finds its legal context in addressing the growing creative, participatory role in culture that consumers are beginning to enjoy. In other words, we must start treating every consumer as a potential creator. This is not to say we need to mandate everyone make a cultural contribution, but only that we need to respect use and sharing of creative works as a potentially creative act, and one that cannot be reduced to mere product consumption because that was the intent of the producer.

Again, the market assigns value and meaning to creative works independent of intent. Increasingly, a big part of that value is in source material or inspiration for a new creative act.

Most of us in the 80s (those of us who were around, anyway) didn’t use our VCR creatively. I knew I was the exception when I sat in front of the TV recording little snippets of commercials and shows until I had an avant-garde remix of bizarrely juxtaposed images. Without YouTube, I had no distribution network (and few friends at the time) and did this purely for personal enjoyment.

I might not have seemed so out of place in today’s culture. Some of the most popular videos on YouTube are remixes of existing clips (much more entertaining than my VCR art). Dubstep and mashups have turned unlicensed sampling into the music of a generation. Even consumption is collaborative, with fans forming their opinions collectively through social networks. Welcome to the world of the consumer-creator.

It’s really not such a long way from creating our own meanings for TV shows in our heads to producing an expression of those unique meanings. We’ve been doing the former since the days of the VCR and earlier, but only recently have the means for creativity grown ubiquitous.

What does a world in which everyone’s a creator mean for copyright? It should mean reform.

We can’t do away with financial incentives to stimulate creative labor, but we have to reassess if a virtually perpetual market monopoly is bringing a chainsaw to a knife fight. There is much about current copyright term length and a narrowing definition of fair use that works against a culture of creativity. We need to allow consumer-creators to freely remix our individual works into new works if culture is to progress. (Creative Commons leads the charge in this arena, and you can find dozens of books promoting the idea of making fair use fairer.)

We should continue to protect the author’s personhood and the “essence” they contribute to their works. But we’re overdue to reconsider the roles of attribution and identity in a culture that is transcending our psychological hang-ups around copying as the core of creativity. (Marcus Boon’s In Praise of Copying is a great start.)

Finally, and most importantly, we need to push back against laws that clearly favor neither the individual nor the greater good. Lobbying and litigation have become the tools used by entertainment industry elite to stifle this new culture of the consumer-creator. Often passed of as acts to protect creativity, the industry is really only interested in driving consumption. Corporations like to keep creativity at an easily co-opted and exploited level.

If we can keep the corporations in check, one day, passive consumption will be taboo and participatory creation status quo. It’s what’s already going on in our heads. To keep culture locked up just so large corporations can profit (be they record labels or tech companies) is the opposite of copyright’s charter to promote progress. As the creator-to-consumer ratio changes, so too must the law.

Who’s Killing Culture? Changing the Tone of the Copyright Debate

copyright killed

copyright killed

This morning, the Web is abuzz debating copyright, and the comments coming from both sides continue to be snarky, obstinate, and most importantly, worlds apart.

Clearly, it’s better to have this acrimony than not. The copyright debate has been stifled by industry leaders and government officials for too long. Case in point is what caused the recent copyright kerfuffle — the Republican think thank that recently released a report touting copyright reform, then retracted it due to pressure from Big Content…. well, they fired the guy responsible. Conversation over.

Yes, the political and industrial elite are still trying to ensure we don’t even have this discussion. We may be a bunch of people screaming at each other in a room, but at least our voices are being heard.

But why does there seem to be no middle ground between those who believe copyright is critical, and those who believe culture should be free?

Or, to put it another way: Why can’t copyright supporters realize their policies are killing our culture, and why can’t free culture advocates realize without copyright, culture would fall apart?

What we have here is a complete contradiction in positions, so the violent clash comes as no surprise. Each side believes the other is killing culture, and will fight to the death to protect it.

So who’s right?

The problem with the debate is that both sides think they’re fighting over the same culture — and in a way, they’re right. Culture by definition is something we all share, an invisible but interconnected web of expression and communication.

But that’s not the way the debate should be framed for one big reason that virtually everyone is ignoring:

We are trying to kill each other’s culture, trying to stop each other from sharing the way they want to share. And it’s got to stop.

There are no absolutes in human culture. Some folks want to be Steven Spielberg (Star Wars and Jaws), others are happy being like Harmony Korine (Gummo, Kids, Trash Humpers). Both represent the apexes of their respective cultures — the biggest difference is that Spielberg’s culture is about pleasing the greatest amount of people and making the most amount of money, while Korine’s culture is pleasing only himself and his small niche audience, worrying about money only as far as it allows him to sustain his art.

The world is full of Korines wanting to become Spielbergs. At some point along the way, the transformation from Korine to Spielberg requires being exploited and making compromises. This is precisely where art crosses over to business. How quickly the Spielbergs forget their humble beginnings, and how quickly the Korines resent their success and judge them for it.

We all need to support the Korines, but over time the copyright system has transformed from something to protect the Korines, to something that protects the Spielbergs. That should come as no surprise to those who understand copyright has always been meant to protect business, not art.

Want to bridge the polemical gap? Let’s start with the truth: we need each other to succeed. The Korines need the Spielbergs to keep the market going, the the Spielbergs need the Korines to keep the art going. Without the Big Content megastructure, there wouldn’t be as much business opportunity for the indies, but without the indies, Big Content dies.

We should celebrate our passions, whether they be business, art, or a mix of both. But we have to be cognizant that while we may be at opposite ends of the media ecosystem, there’s room for both of us to thrive if we can foster mutual respect. Only then will we get the kind of copyright reform we need, or else both our cultures may die.

Answering the Question, “How Do Musicians Make Money in a Free Culture?”

Thanks to the hundreds of readers who made yesterday the most-visited day for my blog yet! And a big thanks to QuestionCopyright.org for their kind words about the article everyone was reading. If you haven’t checked out their site, it’s great.

As you can imagine I’ve been getting a lot of feedback, both positive and negative. I’d like to respond to a F.A.Q. that boils down to something Upton Sinclair said: “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” (thanks to Aaron Wolf for the quote).

In other words, if I’m a musician that acknowledges free or near-free music as an inevitability, and I’m watching my income depreciate thanks to this effect, what the hell am I supposed to do? Isn’t it impossible to make a living as a musician if one’s music is available for free?

It’s an issue that Free Culture advocates should be acutely sensitive to. In fact, I believe most of the negative feedback I’ve received stems from the frustration of artists who don’t know how to approach this new business of free music.

First, I need to dispel this myth that musicians are getting paid by the people consuming their music. In fact, it is the labels, publishers and performing rights organizations that get paid and then distribute money to musicians. Along the way, that money is subject to all manner of recoupment, administrative fees and questionable distribution formulas that favor corporate-backed music enterprises. So forget about this idea that when you buy music, the musician is making money. Too often, musicians making money is the exception to the rule.

Second, I need to dispel another myth — that when musicians make money, it’s because their music is good, or at least popular. It’s certainly much harder to make money off of bad music, though a casual glance at the Billboard top 100 shows it can be done if you throw enough money at the problem.

But creating music people enjoy is only a small part of the business of success as a musician. It’s the musician’s business team that often determines how lucrative and sustainable the artist’s career is. You may be surprised to compare two artists with the same amount of album downloads and see that one is broke while the other is buying an iced-out watch. A good or bad manager or lawyer is all it takes to make the difference there.

So, now that we understand musicians make money when they have a successful business team that knows how to play the game of squeezing money from labels, publishers and performing rights organizations, we are more qualified to answer the question, “How are musicians supposed to make money in a free culture?”

As you can see, it’s the musician’s business partners that first must answer this question. And no matter how well they understand the potential answers, it may be moot if the labels, publishers and performing rights organizations continue in vein to put off changing their old business models to new ones that embrace technology. I probably don’t have to tell you that this is exactly what’s happening to a large extent.

While efforts drag on to reform mechanical licensing and manage the complex micropayment chaos threatening the industry’s ability to compensate anyone fairly, the truth is none of the musician-industry intermediates are going to be making graceful paradigm shifts into a free or near-free music model anytime soon.

Therefore, the onus is on us, the musicians, to work with our business teams in ways that obviate the need for old methods of making money.

In fact this is exactly what’s happening. Steve “Renman” Rennie, manager of the uber-successful band Incubus, has publicly stated that record labels no longer have much to offer a profitable act. The list of bands foregoing labels is huge — keep in mind that it’s not the musicians saying, “we’re fed up with the old way of doing things” but the business team themselves. When the lawyers, wheelers and dealers that have to keep the money coming in are telling the labels they suck, we ought to take note.

Self-publishing is reaching new heights as well, with the ability to license music through any number of democratizing Internet services that aggregate independent music for paying licensees. And while the performing artist organizations (ASCAP, BMI, SESAC and SoundExchange here in the U.S.) continue to try to adapt to the changing landscape, musicians and businesspeople alike are starting to question their efficacy in helping small music businesses make money, noticing how much of the spoils are concentrated among wealthily, powerful industry incumbents.

The question is “How do musicians make money in a Free Culture?” and by now you’ve seen they can’t rely on record labels, publishing companies or performing rights organizations like they used to.

You’ve also seen this is a question that musicians aren’t asking rhetorically out into the ether — their business teams are hearing it, probably once a week at least.

Allow me to answer the question with a quick but relevant anecdotal aside. All around me I see people choosing to go into business for themselves rather than get a job at a corporation. In addition to the difficulty of finding a job opening in the first place, they know that we no longer live in a world where you work for 40 years and automatically become a company man/woman with a fat retirement package and full benefits. So I see many people making the smart move to control their own destiny and start their own small business. They know they can no longer rely on the corporations for sustainability.

The same exact thing is happening in music. Musicians and their business teams are realizing they need to aggressively pursue their own small businesses, no longer able to rely on the old methods of making money. They are taking matters into their own hands and taking full responsibility for their own success or failure.

I realize this may be more abstract of an answer than you were expecting. I’m telling you the way to make money in Free Culture is to look outside labels, publishing and performing/mechanical rights, but not giving any specifics as to what those outside sources are.

The Future of Music Coalition’s recent landmark study on Artist Revenue Streams is the best place to start looking for specific money sources. It identifies 42 discrete revenue streams that musicians and their business teams can draw upon. Granted, a bunch of them have to do with labels, publishing or PROs, but plenty don’t. The short, specific answer would be to comb this list for those exceptions — particularly those under the headers ‘Brand-Related Revenue’ and ‘Fan, Corporate and Foundation Funding’.

I have a marketing background, so I’m keen on thinking of everything as a “marketing funnel”. Basically, picture a funnel where the wide end represents casual interest in your band, and the nozzle is where true fans pass through with their money. Somewhere in the middle are your Facebook and other social media followers.

Free or near-free music represents the widest, cheapest funnel entry possible. In fact, it no longer becomes about marketing music in the traditional sense of manufacturing popularity. By democratizing music discovery, small music businesses have a shot at eking out a modest living. (If that’s at the expense of R Kelly having to take a taxi instead of a limo, so be it.)

Social media provides a filter for the funnel to catch and keep people’s attention. Looked at in purely capitalist terms, following a band on a social network or app is akin to saying, “I would consider spending money on this band or a product affiliated with its music”.

If you’re going to push fans into the money-making nozzle of the funnel, this is where you begin. Not somehow interacting with your online following, especially when it’s in the three- or four-figure range, is like opening a retail store and not staffing it. This is where the concept of “band as brand” becomes critical. If that whole idea makes you want to puke, well, you won’t be puking your way to the bank. Besides, that’s what managers are for.

Now that you’ve pulled your fans to the edge of spending money on your band, it’s time to push them over. This is where the formula for making money as a musician is super-easy to understand. Getting them to a live show to buy a T-shirt is your goal now. Clearly this will not add up to rock and roll riches, but will provide the cash-on-hand you need to run the business of your band. The second this basic revenue stream dries up, so does your business. This was true before Free Culture and still is.

Now, give the fans what they truly want: The ability to directly support you, and feel part and parcel toward your success. Patronage through crowd funding and other inventive means is the new label deal — a deal with your fans who are excited to know their money is going “directly to the cause”. They can see their money paying off in front of their eyes through behind-the-scenes updates leading up to the launch of the product they backed. It truly is one of the most exciting things happening on the Internet and if you’re not privy or convinced, read my recent article Top 3 Reasons Musicians are Scared of Crowd Funding and Why They Should Get Over It.

If that’s not specific enough for you, I’ll give you one more. It may be the least specific idea in and of itself, but from it you can draw many specific streams of revenue. My red-letter advice to musicians trying to make a living in a time of ubiquitous, free access to music…

Make something scarce.

Rather, make anything scarce — it doesn’t matter. Make limited edition vinyl. Make original artwork. Do you have a contingent of golf fans in your audience? Make custom golf balls. Make leather dog collars with your band name. Make a custom ringtone on commission. The only thing it takes is imagination to make something scarce — something sorely in short supply. But something tells me this movement to take back culture from the subjugation of industry and oppressive intellectual property law could mean we’ve got a lot more imagination to spare — and that’s a good thing.

Not incidentally, the same idea of scarcity that applies to your business applies to your music itself. The new scarcity in music is not about how many copies are made available — infinite copies have reached near-zero distribution costs on the Internet. The new scarcity in music is, “how awesome is it?”

We have our whole lives to struggle to make a living, but life is too short not to be awesome.

And remember, true musicians don’t make music to make money. We continue to rock whether it pays the bills or not.

In Defense of Free Music: A Generational, Ethical High Road Over the Industry’s Corruption and Exploitation

Note: This was posted as a response to David Lowery’s Letter to Emily White, which was in response to her article “I Never Owned Any Music to Begin With”. White is an intern at NPR’s All Songs Considered, Lowery is a contributor for The Trichordist, a technology and ethics blog.

As a musician and huge music fan, your emotional plea for our generation to renounce Free Culture so that musicians can make a living was indeed stirring. But beyond the choir you’re preaching to, we both know it’s falling on deaf ears. Asking today’s music consumers to kindly start paying for recorded music again because it’s the ethical thing to do isn’t only unviable — it’s not the ethical thing to do anymore. Free Culture is an ethic, and I think I can speak for my generation when I say we believe it to be the high ground over the way the music industry used to be run.

Your heart is clearly in the right place. But unlike you, I think most of us, our generation included, have a deep, unwavering motivation to compensate the musicians who enrich our lives. Here’s the crux of our disagreement: You claim listeners aren’t paying as much for access to music anymore because they’re unethical and no longer find it important to compensate artists. You and many others make this accusation over and over again without providing any clear evidence other than unconvincing anecdotes.

I believe the opposite can be clearly proven: Today’s musicians are held in higher esteem by listeners than ever before, and it’s the industry that has lost their respect (and money), due to a history of unethical behavior. The first point is proven by the sheer unprecedented volume of music now being consumed. The latter point is proven by even a casual glance into the history of the music industry.

Should listeners feel guilty for having free access to music? Of course not. It’s the best thing ever to happen to a music lover. Sometimes I wonder if all the Free Culture-haters are just jealous that they had to pay $20 per CD. You realize that price point had nothing to do with compensating artists, right? That ridiculous number was the product of illegal price fixing, obscene recoupments, payola, unethical ‘breakage’ fees and keeping statutory royalty rates for artists low, to name just a few reasons. Meanwhile, our generation experiences the ecstasy of free or near-free access to the global jukebox.

Should musicians feel threatened by listeners accessing their music for free? Only if their entire business model is based on forcing their fans (and potential fans) to pay for access to music. This is a model that our generation is using technology to reject. The exposure granted by free access to music is exactly what most musicians are after. Free exposure is only a lost profit opportunity for the minority of musicians who succeeded in the pre-digital record business paradigm. Most of the time musicians didn’t profit beyond statutory royalties anyway, because they could never recoup the cost of marketing and advertising. Now good music goes viral for free, and even generates ad revenue for the creator!

I’m going to level with you. You and many other Free Culture detractors are people from social circles with musicians that did well in the past but whose revenue dropped dramatically along with industry profits. I think the driver behind this blithely unrealistic “let’s go back to the way things were in the 90s” movement is pretty straightforward — you tasted profits from a business model that is no longer sustainable. You want your industry back.

We don’t.

Consider for a moment how were the profits of the “old” music industry won: By subjecting listeners and musicians — and indeed, our very culture — to a laundry list of horrendous commercial exploitation. Price fixing, payola, unpaid royalties, market monopolies, ticket surcharges, obscenely exploitative record contracts, manufactured popularity, censorship, perpetual copyright and destruction of fair use and the public domain… the list goes on and on. In short, the old way of doing things sucked and we don’t care if a few of that era’s successful artists no longer get mailbox money for music they recorded decades ago. We certainly don’t care if the record industry, which enabled these injustices, dies a slow, public death.

On the other side of the Free Culture argument, you have people like me: unsuccessful musicians and frustrated music fans. We are by far the majority, but our apathy is high. Critically, this does not translate into consumer apathy for compensating musicians. Quite the contrary, our apathy for corporations is driving a new appreciation for the original creators and producers of music, based on free access to recordings.

I believe my story is somewhat typical of the unsuccessful musician. After years of false starts and bad management I finally “made it” and got signed to an emerging indie. The advance was small, the recoupment high. But we had a great booking agent, nationwide tour support and opened for big bands in NYC. We got a sync license with MTV and some film placements. We had a high-powered manager and one of Britney Spears’s lawyers. Our friends were signed to Capitol, Sony began showing interest in us. We were on the cusp of making a living playing music. But while our fan base was rabid and widespread, it just wasn’t big enough. It wasn’t just a matter of “exposure” as most musicians whine. The business of the band didn’t scale, and eventually petered out. While I never quit playing music or trying to make a business of it, music became more of a hobby and I was now among the vast ranks of unsuccessful musicians.

Guess who was pissed (besides our band)? Our fans. Having supported us all those years, they now saw the apparatus of the music industry whittle away our faith in the business of our band to the point where we quit. It’s easy to look over this fact, but it’s critical not to: Music fans talk to musicians, and most musicians have historically not been happy with the way the industry worked. It wasn’t that we had bad music or bad management — our fan base just wouldn’t scale big enough to support our business team. I can see why those who succeeded in the past want to protect the old business model. It strongly favored the incumbents and built a nearly insurmountable barrier of entry that the average musician had little chance of scaling.

For both musicians and listeners, failure was the common narrative of the record industry. We sat and watched our friends write great music people loved, yet they were unable to make a living doing so, even and especially after they were signed. We saw the rare few musicians who truly made it big falter in the excesses of the industry, becoming drug addicts as the drive for manufactured popularity hollowed out the meaning of their music. Add to that the aforementioned widespread industry corruption. Factor in decades of consumers buying albums of mediocre music for one or two good singles. Pile on a digital distribution cost of near zero. Put a recording studio in every home with a computer. Lastly, drop the RIAA suing music fans for sharing music as the cherry on top, and there you have our generation’s hatred of paying for access to music.

If there is an ethical dilemma here, clearly it is your generation’s music industry, not our generation of listeners, that must bear the brunt of the blame.

I appreciate your statement that “on nearly every count [our] generation is much more ethical and fair than [your] generation”, but I don’t understand why you’d single out musician’s rights as something we specifically don’t respect. After such praise, a claim like that just seems silly.

Free Culture opponents often suggest technology somehow caused our generation’s desire for compensating musicians to evaporate. But it was clearly the corruption and ineptitude of the industry itself that is to blame for this negative attitude toward paying for music. Digital music technology provided the opportunity musicians and listeners have been waiting decades for — to balance the industry’s unchecked power, and maybe eke out a more sustainable living in the process.

Fans formerly had no apparatus to directly compensate artists. Now that they have tools like Kickstarter and Bandcamp, we’re seeing millions of dollars pouring directly into musician’s pockets. This represents a fraction of the so-called “lost value” of paid access to music, but given all the money and lobbyists the old industry has thrown at and against digital music innovation, it’s remarkable nonetheless.

That’s the thing about asking our generation to fix the record industry. We’re already doing it. We’re connecting artists directly to fans and bringing back patronage, a far less exploitative model that is emerging as the foundation of the new music career. We’re using crowdfunding to finance our work. We’re using digital tools to democratize distribution and licensing, with fairer publishing deals. Instead of basing our entire career on one album dropping or flopping huge, we’re ditching the LP in favor of a steady stream of singles, what fans really want. Apps are the new album. Production is going more lo-fi but is becoming more diverse and original in the process. These are the viable solutions I was talking about earlier. It’s all actually quite liberating because none of it involves being exploited by the music industry, and if it does, it’s certainly far less than in the past.

And yes, we’re selling T-shirts. I wouldn’t have to sell ‘em if I had a dollar for every time I heard, “your music is free, so what, you’re going to make a living selling T-shirts?” But the profit margin is good and they’re moving off the merch table like CDs used to. You have to realize that when the physical media that holds the music is no longer a profitable product, there are myriad replacements which tie the music to a physical product that can be profitably sold. The critical thing to realize here: the devaluation of the music recording increases the value of merch for the artist. Our fans are gonna spend $10 at our merch table anyway — should we sell them a T-shirt they will wear everywhere for a 150% markup, or should we sell them a CD they’ll burn and shelve for the statutory rate of 9.1 cents per song?

Besides selling recorded music, there are dozens of revenue streams for us to pursue. Many are accessible to musicians directly for the first time thanks to the democratizing effect of digital technology. For you to blame technology for unfair artist compensation is odd, for it was unethical industry dominance over the technology of vinyl, radio, cassettes, CDs and the overall apparatus of distribution that created the record business in the first place. The only difference with today’s technology is that the exploitation-crazy record business doesn’t yet have a stranglehold on it. Whether musicians succeed or fail is now up to the musicians and the fans themselves, not the industry.

So when you ask my generation to fix the music industry, we shrug our shoulders — but not out of apathy for music or musicians. We know the music industry sucked and can be better, so we’re not going to support the old way of doing things. We are at a crossroads. There will be a period of hardship and confusion. But don’t tell me we ethically don’t support artists. We listen to vastly more music than your generation ever did. We like, on average, a greater diversity of music than your generation ever did. And we’re still spending money, we’re just being attentive to where it’s going. We want to compensate the musicians, not the industry. It’s not only our choice, but our cause and our fight. The industry is throwing all the money, lobbyists and lawyers it can toward legally protecting its right to intermediate the direct fan-to-artist connection we have sought for decades and finally hold in our hands. We’re not going to allow Free Culture detractors to let that slip away just so they can collect royalties and recoup advances on music made in a bygone era.

We’d love to solve the music industry — really, we would — but we kind of need to save our culture first. Not incidentally, we believe artist compensation as critical to saving our culture. Pining for the old days when we enriched entertainment conglomerates instead of technology conglomerates? Who cares which industry is trying to co-opt our culture today, let’s take as much control as we can while technology affords us the opportunity.

I hear lots of crying about the traditions of the old business model, from the beauty of album art to the selling of millions of records. But you know what’s really sad? It will only be a few years before the entertainment conglomerates including the “Big 4″ record labels (or soon to be “Big 3″, how fair is that?) push back against the technology industry with a SOPA, PIPA or CISPA-like bill that passes into law. By then it will be too late and we’ll be crying over a lot more than our lost free access to music. Our culture may be lost in the unsustainable abyss of capitalism run amok if we the people lose too much control over technology during this critical transition.

I think I speak for most musicians when I say I’m going to make the best music I can until the day I die, and that money only determines how much time I can dedicate to that pursuit. There are way too many other musicians out there getting exposure for me to even entertain the argument that the current environment dissuades one from being a musician. I have a $1,000 studio in my basement that would have cost $100,000 a decade ago. I can make and distribute an album for free, and crowdfund a basic living doing nothing but music if I can generate at least 1,000 fans who spend $50/year with me on average (many $20 supporters and a few big backers). All I need to do is write a year’s worth of good music. With fifteen years as a musician under my belt I think I can manage.

(Not incidentally, I have other life skills I am employing to make my living, which is a very underrated issue in and of itself. What percentage of your income must be derived from music to be considered as “making a living playing music?” What about those whose non-music careers enable their music success, like website designers or audio engineers? If you manage a great music career, are you a successful musician or a successful manager? Furthermore, aren’t we all musicians? Most of us have the ability to make music but just don’t practice. Instrument and recording equipment sales are on the rise, so musicianship must be too. Everyone is already a DJ, how long before listeners are considered musicians? But that’s a subject for another article…)

It’s obvious this new music industry is crappy for scaling a band into a big blockbuster. But we are slowly getting over the rock star trip. The new music industry helps numerous smaller bands scale into moderate success. As the success stories mount, fans are starting to believe in supporting music again. Try to tell Amanda Palmer or her 24,883 fans who collectively raised $1.2 million dollars on Kickstarter that the old way of doing things was better. Then realize her story is becoming less of an exception with each passing day.

All this talk about not being able to make a living as a musician is nothing new at best. At worst, it’s dangerous, because it perpetuates the myth that only through charging access to music can one have a music career. It’s that myth that is keeping us from entering a new golden age in music. Emily White was simply telling us the truth. Come on, you know she would not have written the article if she didn’t care about compensating musicians. She works for freakin’ NPR on a show that regularly breaks new acts. It’s time to look inward and consider that Free Culture is our generation’s reaction to the ethical failings of your generation’s music industry.