Showing posts with label digital music news. Show all posts
Showing posts with label digital music news. Show all posts

Monday, October 24, 2011

SAME SONG: INSIDE THE PAYOLA, POWER AND CORRUPTION IN THE MUSIC


onair1

SAME SONG (EXCERPT)

INSIDE THE PAYOLA, POWER AND CORRUPTION IN THE MUSIC INDUSTRY

BY PAUL PORTER

Do you know Karen Kline? I do. And so do a lot of people in the music industry. She used to be a really good friend of mine. For a minute, I was in love with her, even though I knew the relationship could never last. Karen’s known and loved throughout the world of music, video and radio. She’s a jetsetter and she’s known for being reliable and dependable.

And Karen Kline has this incredible ability to be in many different places at theexact same time.

This Saturday morning, like many Saturdays for years, a truck will show up to the homes of many people in the music industry and Karen will be delivered right to their front door.

I met Karen while I was staying at the Hotel George in Washington D.C. (I’d heard of Karen for years but we’d never been formally introduced). It was 1999 and I had just been hired as the Program Director at BET, the fast growing entertainment channel. BET was then being broadcasted into over 48 million homes and my job would be deciding what videos would be played on the channel.

By this time, music videos had surpassed radio as the place to break a record. And the record labels were nervous. Was I going to change the format? Cut down the number of videos played? Pick and choose what kind of videos I would allow to be played? The answers were yes, yes and yes. But no one knew that yet.

It didn’t matter. My friends at the major record labels were not going to take any chances.

During my first week at BET, I set up the playlist, deciding which videos would be played and how often. I cut the playlist, from four hundred titles to a mere eighty. Some industry executives were elated; some were furious. The next weekend, a FedEx truck pulled up to the Hotel George with two packages for me.

Both packages were exactly the same, five thousand dollars in each, wrapped tightly in plastic wrap and tucked inside the FedEx envelopes. No return address; no instructions, just the name Karen Kline, a fictional woman that I loved like she was flesh and blood.

It’s called payola. And it’s as old as recorded music itself. Even the very word tells you how far it goes back. Payola is a contraction between the words “pay” and “Victrola,” the old-school phonograph that was used to spin the very first records.

Payola is firmly embedded in the music industry, deep in the grooves like tracks on a vinyl record. It’s been going on for so long that it’s hard to believe that people are still getting away with it. But they are. I know I did.

And it wasn’t just money. When I was working at BET, I was still coming up to New York City every weekend for my job as a DJ on WBLS. Every Friday, various record labels would fly me up to New York, usually first class, and put me up at the best hotels. Knick tickets, pricey restaurants, whatever I wanted—I would have because I was in a position of power. I had control. And if you were a record label executive, you needed to make sure I was happy.

Almost everybody in this industry takes money. If they have the power to put a song on the radio or a video on television, they’ve been offered money to do it—and they’ve taken it. Maybe it’s only been once or twice. But they’ve done it.

I turned down payola for years. I really did. But it’s impossible to turn down ten thousand dollars in cash when you know you’re going to play the song anyway and it’s from a friend you’ve known for twenty years. There’s just no way to turn that down.

So, I’m putting that out there right now. I’m guilty. I’ve taken money. And I’m not ashamed to admit it. But I’ve never been anyone’s slave. Legally, I could go to jail or maybe not. I think I could win my case. I’ve taken money. But I’ve never played a song or a video I didn’t like. I know I still have to live with my demons. And maybe I’ll have to pay the price for it. But I’m not alone. And my relationship with Karen Kline was a one-night-stand compared to how she’s operating today. Karen Kline is not just visiting people on Saturday mornings anymore. She’s married—to corporate America. And she’s bringing in more money than anyone could ever fit inside a FedEx envelope.

SAME SONG is an explosive look at the corruption that is running rampant throughout the music industry. From the desperate promotion departments at major record labels who will do anything to get their acts on the radio and on video to the greedy program directors who take cash, gifts and other luxuries,SAME SONG will explore how corruption is rearing its ugly head once again.

SAME SONG also examines “legal payola” and how corporations are now the major beneficiaries of under-the-table payments and pay-to-play.

With the Telecommunications Act of 1996, consolidation would forever change the music industry. It was a bill that was originally designed to stimulate the economy by loosening up the rules for selling goods on the Internet. But inadvertently, it gave license for communications companies like Clear Channel to start buying up radio stations like penny candy.

Before long, seven companies owned 70% of the radio stations in the United States. There were very few individual owners who could determine what would be played. This meant smaller, corporate-influenced radio playlists. There would be less variety and more of the same artists, over and over again. These new stations were like funnels and the only records that would make it through were the ones with the cash to push them out. If the record labels wanted to hear their acts on the radio, they would have to fall in line—and cough up major bucks.

The same would happen in video as well. When Bob Johnson sold BET to Viacom for three billion dollars, it meant that MTV now owned it’s only major competitor. And getting your video on either channel would now cost you thousands.

SAME SONG is about how the digital age in the mid-90s exposed radio stations that frequently lied about how often they were playing the songs they were being paid by record labels to play; it’s about how the golden age of the trained broadcaster was soon replaced with interns, DJs and mixers who, for years, had been silent in the booth. SAME SONG explores how radio has become one of the few media outlets where salaries have plunged as profits have skyrocketed. AndSAME SONG will break down the shake-ups that will be happening very shortly. Much like Alan Freed’s payola trials in the 50s, and the pay-for-play scandals involving music men like Clive Davis in the 70s, the music industry is on the cusp of another huge investigation and many of the major players in the music industry may find themselves unemployed, at best and possibly, in prison.

And in many ways, SAME SONG is my story. Since 1976, when the busing riots in Boston sent me scrambling into the radio station at WRBB at Northeastern University, the music industry has been my life. During my very first stint in radio, I was Paul “Pure Love” Porter from midnight to three AM and I fell in love with the medium of radio and the impact I had on my community.

Radio introduced me to women. Radio introduced me to cocaine. Radio introduced me to some of my best friends. And radio killed some of them too.SAME SONG is a ride through my whirlwind of media jobs, working for and with some of the most colorful, well-known and scandalous players in the music industry.

I know that radio and video are influential in shaping young minds. And my experiences have changed my outlook. “Morality is not an option” is now my mantra. And there are people out there who won’t buy it. They’ll think I’m writing this book for revenge or just to make a buck. That’s fine. I can live with that. I can’t live with what’s become of the music industry. I’m partly responsible for bringing it to the depths it’s sunk to today. But I can also be responsible for exposing the ugliness and peeling back the layers for everyone to see.

Thursday, June 30, 2011

Which Are You? 14 Music Industry Dress Styles...


Wednesday, June 29, 2011

The days of dress codes and proper attire are long gone, at least in the music industry. But after close observation of music executives in their natural conference habitat, we've identified a few commonly-donned attires. It's a Digital Music News fashionista exclusive...

Wednesday, May 25, 2011

Don't Think Traditional Radio Matters? Then Read This..

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The first chart compares the number of songs streamed online to the number played across traditional airwaves in the US, specifically between the dates of January 3rd and May 1st of this year. The second weights those plays against the total audience for each play/spin. The data was compiled by Nielsen, and presented at the NARM conference in Los Angeles on Wednesday.

Friday, January 21, 2011

Major Layoffs at Universal Music Group; As Much as 50%...

Universal Music Group has just completed massive layoff round, according to information from roughly a dozen sources. A spokesperson for the label has also confirmed the round, though specific numbers were not revealed.

So who's saying what? One source pointed to a chop as deep as 50 percent 'across the board,' which seems a bit high, though another pointed to a similar percentage reduction at Interscope. Another high-ranking partner pointed to something "big, very big," and a distribution partner pointed to sales executive Mike Davis as "the first casualty". According to information shared, Davis was most recently Executive Vice President of Sales & Marketing for Universal Music & Video Distribution (UMVD).

The list of sources saying "huge" and "massive" goes on and on. Separately, both Variety and the New York Times are pointing to a chop of 60 in North America, though that seems only relevant to staff-level employees. Ongoing, Digital Music News is getting emailed with unconfirmed dribs-and-drabs, with most pointing to a rather extreme downsizing.

Tuesday, January 11, 2011

If Major Labels Are Bleeding So Badly, Why Are They Still Creating the Biggest Artists?

Do we have to talk about the demise of the major label system again? Perhaps this is just a four-car pileup that demands a slow-down and stare. The lights are dimming at EMI, political upheaval is tainting UMG and Sony, and WMG is often considered 'next' for the wolves. But if the majors are bleeding so badly, then why are they still creating the biggest artists? And, perhaps more importantly, why aren't indies and DIYers even close to taking the lead?

Sure, indies and DIY artists have more fan access and traction than ever before. And major label artists are selling less every year. But manufactured acts like Katy Perry, Bruno Mars, and Lady Gaga are still perched atop the charts, and casting a long shadow over anything with indie cred. This isn't the way it was supposed to work out, and it's harder than ever to blame some Soundscan skew.

Why? For starters, Soundscan isn't the only chart barometer anymore. Take a gander at the BigChampagne Ultimate 100, and a somewhat-similar list of big-label priorities emerges. In fact, the latest Ultimate 100 lineup has less indie cred than a Celine show in Vegas. On the latest ranking, the top ten artists were Bruno Mars, Katy Perry, Rihanna, Ke$ha, Eminem, Daft Punk, Taylor Swift, Black Eyed Peas, Lil Wayne, and Enrique Iglesias, in that order.

But how can that be? After all, BigChampagne is blending a broad number of online, offline, traditional, interactive, non-interactive, and physical elements into its rankings. Yet it still regularly produces chart toppers like Jason Derulo and Katy Perry, not Pomplamoose and Amanda Palmer. In fact, most of the top 100 are serious major label priorities.

Maybe the fantasy was that somehow, a total chart upheaval would result from all of this digital disruption. That big bullhorns like terrestrial radio wouldn't matter anymore, or that do-it-yourselfers would rise to superstardom without any serious backing. That artists like Corey Smith were dyed-in-the-wool DIYers, not musical careerists. Or, that the idea of big, mainstream artists would somehow vanish.

How naive we were.

-pr.

Join the early discussion at
http://digitalmusicnews.com/stories/011011majorlabels

Monday, December 13, 2010

EMI TO BE RAN BY CITIGROUP

Reports in the NEW YORK POST andSUNDAY TIMES of LONDON say that GUY HANDS has been telling investors in his TERRA FIRMA to prepare for lender CITIGROUP to take over EMI.

HANDS reportedly is warning his backers that he may lose control of the label after losing a legal battle with CITIGROUP over TERRA FIRMA's claim that the lender had duped it into buying the label. TERRA FIRMA may retain a small percentage of the company but would cede operational control to CITIGROUP.

TERRA FIRMA bought the label in 2007 for $6.7 billion, taking out a loan from CITIGROUP to finance the deal. HANDS has had to get investors to put $156 million into EMI to avoid default, and faces another debt deadline in MARCH.

Tuesday, November 30, 2010

Want Serious Success? Then Start Losing Everything, Right Now...



What will we be laughing at five years from now? The notion that somehow, direct-to-fan connectivity means that fans will care or connect. That somehow, just having a straight fan connection is more important than writing incredible music. Or, the idea that millions of other artists aren't getting the same exact memo on direct-to-fan channels.

The idea that skipping a label and giving $50 to Tunecore is what makes a career. Not even Corey Smith believes that. Do you?

The numbers are telling a completely different story, over and over again. So which is better, a fairy tale or a realistic assessment of the terrain? "I feel like there are a lot of people in my position frankly - in the software space - who just said 'yeah, you're going to make it,' and it's definitely statistically untrue," Ian Rogers recently told an artist audience in Santa Barbara.

How untrue? Rogers himself revealed a stat showing that less than 30,000 artists are actually making a living. Soon thereafter, the UK-based Musicians' Union revealed that 87 percent of its members are making less than $25,000 a year. Earlier this year, Tom Silverman found that roughly a dozen DIY artists (if that) were selling north of 10,000 albums.

If you're a hobbyist, then enjoy the considerable fruits that come from musical composition, performance, and direct distribution. Music is one of the greatest pleasures in life, whether performing, listening, mashing-up, or discussing. But pretending to pursue a professional career - while actually living the life of a hobbyist - is a tragedy.

So if your statistical chances of making it are close to zero, what's the better approach? It's not a romantic, DIY, Long Tail-inspired game plan. It's slogging it out on the road for 200-plus dates a year, sleeping in the van, getting your stuff stolen, finding it again, getting ripped off by the club owner a day later, fighting with your bandmates.

It's sitting in a room for hours writing incredible music. And recording, performing and perfecting thatmusic every day. Even on Thanksgiving.

It's saying goodbye to comfy nights on the couch with your girlfriend, a round of beers with your buddies, or two-week vacations. And the same thing goes for the team, which needs to be equally committed to sacrifice and total success.

Why not just get a real job? It's also explaining to everyone - including your family - why you're barely surviving, why your art takes precedence over everything else in your life. And this is not a modern-day reality: artists have struggled for centuries to make ends meet. The numbers have always been stacked against musicians, internet or not.

And then, when all of those sacrifices are made, when you cut out all the comforts you think you're entitled to... then what? You get a lottery ticket, to possibly become self-sustaining and even wildly successful.

And if your number comes up, what happens then? If you actually get substantial traction, if you can fill 200 rooms a year, then you're now ready to work some more - a lot more. To expand the base, structure partnerships with professionals, distribution partners, management agencies, and even labels. Because even total control needs to be sacrificed at some point.

Thoughts by Paul Resnikoff, Publisher. Written while listening to Mozart, Sepultura, Daft Punk, Icepick, and Hatebreed.