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“The internet is like radio for us”
Posted By Barry Ritholtz On November 17, 2004 @ 6:03 am In Music | Comments Disabled
Man, is that a money quote, or what? It comes from the Wilco  front man Jeff Tweedy.
Conventional wisdom (i.e., within the music industry) says that file sharing hurts the odds for commercial success of any CD or single. Wilco front man Jeff Tweedy disagrees; He doesn’t believe every download is a "lost sale." In fact, he realizes that with radio fading as a medium for introducing new music , P2P is the new promotional mechanism replacing FM (shocker!)
In fact, after Wilco was dropped from Reprise Records in 2001 (there was a battle over creative control of Yankee Hotel Foxtrot ), they decided to stream what would become their new CD online — for free.
The album’s subsequent release on their new label (Nonesuch ) was their highest chart debut ever. Thus, P2P acted as a successful promotional mechanism for them, instead of the Label. Note that the labels have traditionally had as one of their reasons for existence the job of Album promotion; Its how they justify (at least in part) the exhorbitant fees they charge for CDs. Not only has that model been challenged by P2P, but its pretty clear that artists (i.e., U2  and Enimen ) have figured out that labels, as the preferred way to promote new releases (and the subsequent recoupable expenses the labels lay out on behalf of artists), are now superfluous.
Disintermediation  in action!
Here’s an excerpt of Jeff Tweedy’s interview in Wired :
"If they succeed, it will damage the culture and industry they say they’re trying to save.
What if there was a movement to shut down libraries because book publishers and authors were up in arms over the idea that people are reading books for free? It would send a message that books are only for the elite who can afford them.
Stop trying to treat music like it’s a tennis shoe, something to be branded. If the music industry wants to save money, they should take a look at some of their six-figure executive expense accounts. All those lawsuits can’t be cheap, either.
A piece of art is not a loaf of bread. When someone steals a loaf of bread from the store, that’s it. The loaf of bread is gone. When someone downloads a piece of music, it’s just data until the listener puts that music back together with their own ears, their mind, their subjective experience. How they perceive your work changes your work.
Treating your audience like thieves is absurd. Anyone who chooses to listen to our music becomes a collaborator.
People who look at music as commerce don’t understand that. They are talking about pieces of plastic they want to sell, packages of intellectual property.
I’m not interested in selling pieces of plastic."
This perspective is gaining traction; I suspect its only a matter of time before the industry adapts to the new reality . . .
‘Music Is Not a Loaf of Bread’ 
Wired, 02:00 AM Nov. 15, 2004 PT
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2004/11/the-internet-is-like-radio-for-us/
URLs in this post:
"The internet is like radio for us.": http://www.wired.com/news/culture/0,1284,65688,00.html
 Wilco: http://www.wilcoweb.com/
 radio fading as a medium for introducing new music: http://bigpicture.typepad.com/comments/2004/07/clear_channels_.html
 Yankee Hotel Foxtrot: http://www.amazon.com/exec/obidos/tg/detail/-/B00005YXZH/ref=ase_thebigpictu09-20/102-7131547-9942524?v=glance&s=music
 Nonesuch: http://www.nonesuch.com/
 U2: http://bigpicture.typepad.com/comments/2004/11/was_u2s_p2p_rel.html
 Enimen: http://bigpicture.typepad.com/comments/2004/11/no_coincidences.html
 Disintermediation: http://www.webopedia.com/TERM/D/disintermediation.html
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