A New Paradigm
I think we are at a crossroads, right now in 2010. A confluence of the model the music industry used for about 50 years collapsing due to applications of the digital age being used to record (going on for about 10 years, now,) distribute and sell music, and the current global economic recession (entering it's 3rd year, at least) has really taken the wind out of the sails of the traditional record labels. I am actually quite optimistic about the long-term results of this, for the smart musician. When the dust settles, I think the new landscape will look something like this (it actually already does look quite like this, so maybe most the dust already has settled.)
Smart Musician (SM) has the chops to make his own music, and uses digital technology to record it, as best his abilities and budget allows. The results are always less than stellar, so SM finds and contracts with...
Smart Engineer (SE), who has the chops and facilities to either clean and dress up SM's recordings, or to do it over without the mistakes and limitations SM had. SE retains rights to his music, and gets a distribution-ready master copy from SE. SE gets paid and moves on to helping the next SM.
SM contracts with Smart Duplicator/Distributor (SDD) who uses digital technology to reproduce SM's music AS IT IS CONSUMED, thus reducing distributing cost and waste. Much of the actual production cost is shifted to the Smart Consumer (SC), but he does not mind, as the real cost to him is much less.
Now, I know, all this is old hat. But wait, there's more...
Smart Label (SL) pops up, as a nurse-maid to the whole process. SL is a clearing- and networking-house, and hooks up SM, SE, SDD and SC so that they all find a good fit between themselves. SL conducts open houses, mixers, parties, releases, other events that SM's, SE's, SDD's and SC's all may attend, to compare notes and find each other. SL is ready and able to do as much or as little (to a point) of the coordination, as SM's, SE's and SDD's choose to contract with SL.
SM gets paid for creating the music, and "cashes the check" when SC buys SM's music on-line.
SE gets paid for recording the music in such a way that it sounds it's best, and is paid by SM, up-front.
SDD gets paid by taking an agreed-upon cut of SM's take.
SC gets her music for about 1/3rd what it would have cost under the old "label" model.
SL gets paid by taking an agreed-upon cut for as much, or as little, as they do.
Now, this model may appear to be like the old label model, but the difference is that it thrives on cooperation, rather than exploitation. Any player makes his or her own decision as to how much control they retain or relinquish. This "democratization of the industry" is ushered in by the digital technology that makes it possible to record, remix, master, reproduce and distribute music on a small, targeted scale not before possible.
Of course, technology is no substitute for hard work- a musician still needs to do the grunt work- still needs to "labor to create," ("Genius is one percent inspiration and 99 percent perspiration." -Thomas A. Edison) still needs to work the trenches, etc. I know a woman who mis-read the new paradigm, and thought she could record her own music, throw it up on a few websites, not have to play out to anyone, and the money and influence would just start rolling in. Guess what didn't happen. And, technology can become a distraction, instead of a tool. For instance, I have already spent too much time sitting at this computer, this morning. So, I am OUTTA HEAH, siging off so I can go get some work done...