
Michael Arrington at TechCrunch breaks news of a $5 “tax” that Warner Music is cooking up to impose on ISP’s — per individual customer — to guarantee protection from future liability caused by their customers downloading music, regardless of the fact that only a minuscule fraction illegally download music, let alone download music through proper channels at all.
Admittedly, this degree of hubris reaches a new level for the Industry, but dying business models will be dying business models.
The important question to focus on is: What’s going to replace these dinosaurs?
Cause there’s no way this scheme will ever fly.
In the comment thread, Dennis Ramirez makes a few good points:
[…] no, a band does not need a manager nor a label to play a local coffeeshop nor VFW hall. sometimes, they may even be able to organize a small tour for themselves.
if they are content with that, fine. more power to them.
but the majority of artists themselves are not, and there are only 24 hours in a day, so it is much more efficient if a band can hire someone to route touring, get them P.R., reviews, solicit labels or investors, etc., so the band can find time to write songs and record them.
a couple can do it, like Ani DiFranco, but they are overwhelmingly teh excpetion, not the rule.
and the manager needs to be paid (i dont know where you get the 25 manager thing from, bands only have 1), as does the booking agent, the recording engineer, the producer, the artist who designed the cover artwork, the web designer, their rent, their bills, etc. etc.
and that’s if they distribute everything themselves.
a music label can help a great deal with that, just like a VC helps a great deal in getting a startup off the ground. it’s not hard to understand that.
Ramirez names at least eight disparate communities that must be involved in an artists world to assist them in their quest for exposure and compensation. Right now, that’s what the label offers. So what could take its place?
Sounds like the perfect storm necessary for creating an industry-specific social network.
Sketching…