How the Music Industry Plans to Cope

I recently posted the basis for this essay as "What's in Store for the Music Industry." I received a lot of feedback on it and after more research into the topic, I ended up with this very different essay.

In 1999 Napster popularized the software that led to the music industry's biggest decline in revenue in its history. Peer-to-peer networking changed the way anyone with a computer acquired music and other media. Today, the music industry is a shadow of what it once was, due largely to the illegal downloading of music. After failing many times to fight the technology that now makes music so widely available, every aspect of the industry is undergoing drastic changes to try to maintain profits. These changes will affect how we listen to both old and new artists, and we brought them on ourselves by deciding we'd rather not pay for music.

A 2010 CNN Money report stated that 10 years after Napster's creation, revenue from music sales dropped to half of what it had been in 1999. This does not even factor in the massive legal fees from the industry's many low payoff lawsuits against file sharers. Despite their best efforts, there is just nothing that can be done to quell the frenzy of illegal downloading. The music industry has been desperately trying to change their approach to downloading since they found out it's here to stay. File sharing can be used to acquire music at zero cost and almost instantly, but there are elements of music that can never be downloaded.

The concert experience cannot be digitally handed out on the internet, but is instead unique to each individual attending any given concert. Artists generally strive for perfection while recording, and are often led and edited by a music producer. All artists sound different in concert than in studio, but nothing compares to the feeling of seeing your favorite artists on stage, performing the songs you get stuck in your head. Nothing can duplicate the excitement of cheering on a band with hundreds of other fans, the hope when begging the stars for just one more song, and the awe when they come back onstage and play the one song you wanted to hear. Because of this, we have seen a tremendous inflation of ticket prices while record sales have been declining.

In 1996, $25.81 was the average price for a concert ticket. This price reached its highest peak in 2008 when the average price was an outrageous $67.33, but has declined over the past two years to $60.77. In July, pollstar.com reported the ticket pricing information for the top 100 North American tours of the first half of 2010. New York Times music reporter Ben Sisario, who responded to this report says that this recent drop is partially because ticket vendors are reducing service charges and offering discounted package deals. Concert promoters are still demanding high prices, but ticket promoters are forced to reduce their asking prices in order to appeal to those affected by the recession. With record sales at their lowest and concert tickets at an almost unsellable price, the music industry will have to compromise, most likely by adjusting ticket prices until the economy is more stable.

Adjusting ticket prices does not necessarily mean lowering them. Concert ticket prices depend on the artist's popularity, the extravagance of their performance, the location, and the number of shows the artist will play. The price to see little known artists will likely decrease to raise demand, and to bring in a more diverse audience. Tickets for already famous artists, however, rarely have problems selling at high prices. Popular artists who tour infrequently or arrange fewer concert dates per tour are especially in high demand, and loyal fans continue to pay exorbitant prices to attend these shows. According to pollstar.com, the band with the most revenue generated from concert ticket sales this summer was Bon Jovi, bringing in $52.8 million. They sold 560,000 tickets at an average price of $94 each. Paul McCartney was the fourth highest earner with $31.6 million from 243,000 ticket sales. McCartney's tickets, at an average price of $129.50, were the most expensive tickets of the summer. The top three grossing bands each played between 33 and 39 shows this summer, selling an average of 17,000 to 20,000 tickets per show. McCartney only had to play seven shows, selling about 40,000 tickets per show to come in fourth.

Well-known artists like Paul McCartney can actually generate more revenue with less effort simply by playing fewer shows. Of the top 100 North American tours, McCartney was by far the summer's leader in gross revenue per show, with an average of $6.3 million from each of the seven concerts of his tour. Second was Coldplay with $3.2 million for each of their four shows, and a combined Elton John and Billy Idol tour took third, playing 12 shows that earned an average of $2 million each. These artists may not have ranked high in total gross revenue, but they received more than their money's worth for the amount of effort they exerted. If this tactic continues to work for popular artists and their record sales continue to decline, concerts for big-name bands may become scarcer and more expensive. Fortunately, the media sharing technology which is partly to blame for our concert catastrophe could become an essential tool for emerging artists.

When Radiohead originally released their self-produced 2007 album, In Rainbows, no hard copies of the album were manufactured. The band released digital copies of the album on their website for whatever price the customer chose to pay. This was a bold move from the already popular band, and many record labels feared that it would be the start of a new trend, but not all artists are well-off enough to let the listeners decide what to pay for their music. Internet research companies estimated that about 62% of the people who downloaded In Rainbows in its first month chose not to pay anything for it. Even though many people obtained the album for free, Radiohead received a great deal of publicity, and likely gained many new fans from this stunt.

Since the use of personal recording and editing technology is becoming more widespread as the technology continues to become more advanced, we can expect to see many more self-produced artists emerge. Digital distribution of self-produced albums should become more common, as it removes the cost of manufacturing hard copies and allows free global distribution. While Radiohead dropped their record label to release In Rainbows digitally, many emerging artists could start off using similar strategies to gain popularity while trying to get a label to sign them. Radiohead's strategy wasn't exactly effective in generating revenue for the band, but it did make some money, and it definitely contributed to the band's popularity.

Despite the music industry's decade long downward spiral, we have seen a flood of new artists emerge as if out of nowhere. I believe that this is in large part because of the availability of media granted to us by the internet. New artists create music everyday, and we listen to them, but we no longer take the time to appreciate their art like we used to. Without our support, many of them will not go on to become great musicians. So if you love a song, the best way to show the artist some gratitude is to pay for it so they can keep playing what you want to hear.

Barefoot's Never Tasted So Sweet

Barefoot Wine & Bubbly, though not even a 50 year old company, has produced many award winning wines at affordable prices. What started as a small “garage wine” project has become a California wine empire, and their new Sweet Red certainly adds flavor to their selection.

Barefoot currently produces a total of twelve different wines and five champagnes. Their wines win hundreds of awards every year in the U.S., and in 2008 they were the most awarded California wine for under $15 a bottle. Since she became Barefoot's chief winemaker in 1995, Jennifer Wall has greatly increased the reputation and variety of their wines. In addition to handcrafting the wine recipes, she hosts a blog for Barefoot where she posts drink recipes, cooking recipes, and food and wine pairing suggestions.

For Wall, the art of wine making goes far beyond grapes, as she includes a mixture of fruits in her wines. Her whites contain honeydew, nectarine, pear, peach, apple, orange, lemon, and apricot, depending on the type. Raspberry, cherry, blackberry, boysenberry, plum, pomegranate, and even blueberry can be found in the reds. Barefoot's single blush wine is made with pineapple, peach, strawberry, and pear, in addition to the traditional grapes. As with her previous wines, Wall does not hesitate to use bizarre ingredients with her newest creation.

Sweet Red is Barefoot's newest wine, and is sure to be enjoyed by those who do not prefer wine. Unlike many red wines, Sweet Red is very moist, and, as its name implies, sweet. It is made with raspberry, pomegranate, and cherry, giving it a delicious cocktail of flavors. Its low 10.5% alcohol content and this fruity combination give Sweet Red an almost fruit punch taste.

True wine snobs will likely not appreciate Sweet Red because it is so very different from most other reds wines. Its fruity taste is not what traditionalists prefer, but for those who do not generally drink red wine it is a welcome change. Its taste, though very sweet, is not as overwhelming as many others, allowing it to go down more smoothly. Because of its moist medley of flavors, Sweet Red drinks more like a heavy white wine than most reds I have tasted, and is an excellent choice as a table wine with dinner.

The pairing suggestions listed for Sweet Red are “grilled vegetables, marinated flank steak, spicy beef kabobs, and all fiery treats.” I enjoyed a glass with some teriyaki pork tenderloin and white rice, and while not a suggested pairing, I think they complimented each other well. Though I normally prefer a beer with dinner, I found the Sweet Red an interesting change of pace. The food sat better in my stomach without the carbonation, and the wine's strong flavor left a refreshing taste in my mouth after every sip. I look forward to trying this wine with a spicier dish, as its sweetness must neutralize the hot food.

Barefootwine.com offers recipes for both foods and drinks that can be made using their wines. Some of these are posted by the company, but most are from fans who like to cook using Barefoot wines. Though Sweet Red is the newest of their line of wines, there are over 20 recipe submissions in which it is the preferred wine. The foods include desserts like blueberry crepes, pork, seafood, chicken, and steak recipes, salads, and a variety of dips, sauces, and marinades. The only drink recipe for Sweet Red is a Sweet Red Sangria, but this could easily be because there is no need to add to this wine. It already contains a strong mixture of different fruits, and its sweetness only intensifies the flavors.

Sweet Red is an excellent wine for those who do not enjoy the traditional dry red wines. It is a good dinner and desert wine, and would be a good choice for entertaining guests with a variety of tastes. Barefoot wines are usually sold for between six and eight dollars a bottle, making them a cheap wine, but they are definitely some of the best wines in their class. The only thing to be wary of with Sweet Red is overindulgence. Its juicy taste and low amount of alcohol will leave you literally thirsty for more, but its sugary content will give you one nasty headache if you're not careful.