Snill not getting the right idea this industry insider just seems clueless
http://news.com.com/8301-10784_3-9770503-7.html?part=rss&subj=news&tag=2547-1_3-0-20A celebrated record producer who was recently named co-chairman of Columbia Records, Rubin made startlingly candid statements in Sunday's edition of The New York Times Magazine about the effects of the iPod, digital downloads and piracy on the music industry.
"Columbia is stuck in the dark ages," Rubin told the Times. "I have great confidence that we will have the best record company in the industry, but the reality is, in today's world, we might have the best dinosaur. Until a new model is agreed upon and rolling, we can be the best at the existing paradigm, but until the paradigm shifts, it's going to be a declining business. This model is done."
Another jaw-dropping revelation in the piece is that Columbia is flirting with the idea of asking artists to cut the label in on as much as 50 percent of their touring, merchandise and Internet revenue. Performers have typically been allowed to pocket concert and T-shirt money. As for revenue generated from digital downloads, I did a story recently about how a growing number of artists and music publishers want a larger share of Internet profits, not less, and are girding for a fight.
I cringed at some of Rubin's quotes. I appreciated his honesty but I'm guessing the suits at Columbia will probably castigate him for going public with his doubts.
While currently the record companies get approx 90% of the current pie they still want more and if its not the consumer who is hit its the artists, are we sure we want the middlemen and fat cats to ensure their own survival by sacraficing the real talent so they can afford more expensive homes and vehicles ?
The sooner artists move to a fully online digital delivery system and move away from the near extinct "dinosaur" business model, the sooner they will get the revenue streams they deserve.
