Connecting A Dot

David Byrne, in his Wired Magazine article, makes the following point:

So what happens when online sales eliminate many of these expenses? Look at iTunes: $10 for a “CD” download reflects the cost savings of digital distribution, which seems fair — at first. It’s certainly better for consumers. But after Apple takes its 30 percent, the royalty percentage is applied and the artist — surprise! — is no better off.

Not coincidentally, the issues here are similar to those in the recent Hollywood writers’ strike. Will recording artists band together and go on strike?

Musicians do not have a union, they do not go on strike. They might avoid a Baseball-like catastrophe to their product. But they also would miss out on the chance taken in big steps with each new contract. As a group, musicians have the opportunity to chose alternatives to record labels.

Consumers substitute. Consumers like better stuff. Consumers like cheaper stuff. The first part to moving away from record labels lies in the simple better+cheaper recipe.

Distribution and publicity are two remaining large needs to work away from labels. The internet is rapidly and radically changing the ability to either self-source or out-source those skills.