What Happened

WHAT HAPPENED?

In 2001, the industry was just beginning to feel the effects of “e” and free commerce as it emerged as a possible threat to the existing business models. Over the course of the next five years “all hell broke out” and the mantra for most young music lovers became “why pay when I can get it for free.”

Records companies had several chances to design alternatives to the free music model, however, early attempts at solving their problem were ill advised and most everyone into downloading songs and peer to peer sharing did not buy into any of it.

Then two significant events occurred. The Recording Industry Association of America (RIAA) began suing individuals for copyright infringement, and Steve Jobs and Apple Inc. unveiled the iTunes store and the iPod. Almost overnight the virtual world of free music became legitimized and standardized with the 99 cent per song legal download. Although the subscription model was already being tested and in place, it took the per-song business to get people excited about going legit.

Presently, legal downloads are still a fraction of music downloading, however, as the CD continues to lose market share, the digital selling of music is keeping the business of selling recorded music product alive. Because of this, record companies, concert promoters, management firms, and production houses are inventing new revenue sharing business models. Whereas the record company was once the “engine” that drove the business, it is now only part of the revenue sharing mix, and this new model has helped established artists gain greater control. Today, it’s all about building a fanbase. Touring “that’s where the money is.” A recent Billboard Magazine article (March 27, 2010) back cover acknowledging Brad Paisley’s Tour says it all (see below).

BRAD PAISLEY

AMERICAN SATURDAY NIGHT TOUR 2009-2010

BY THE NUMBERS:

1,196,312 FANS

1,151,880 MILES

340,000 WATTS OF POWER

230,376 GALLONS OF DIESEL FUEL

80,000 LBS TOTAL SHOW FLYING WEIGHT

41,000 TOTAL BOTTLES OF WATER

34,000 TOUR PHOTOS TAKEN (400 KEPT)

17.955 MEALS SERVED

12,840 GUITAR PICKS

4,165 LOCA TOUR PERSONNEL

3,550 AA BATTERIES

1,056 PACKS OF STRINGS

924 HOTEL ROOMS BOOKED

855 PEOPLE WHO TOOK BACKSTAGE TOUR

840 NINE VOLT BATTERIES

836 SQ FEET OF VIDEO

240 ROLLS OF GAFF TAPE

214 PAIRS OF DRUMSTICKS

95-MINUTE SHOW

74 SHOWS

74 COWBOY HATS

45 STAGE JUMPERS

12 SEMI TRUCKS

10 TOUR BUSES

9 PEOPLE ARRESTED FOR LEWD BEHAVIOR IN CHARLOTTE

8 PEOPLE ARRESTED FOR LEWD BEHAVIOR IN TAMPA

7 PEOPLE ARRESTED IN SEVERAL CITIES (YOU GET THE PICTURE)

2 BIRTHS

1 LAS VEGAS WEDDING

I LARGE BRUISE