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I don't object to any effort that pries away the grip that creepy record companies have on musicians and fans and a new model is necessary. However, would NIN and similar brands be able to replicate their financial success using the model promoted by the "fan" behavior emerging recently? I say; unlikely.
Never cared for Gene Simmons, but setting aside his easily criticized antics; the underlying argument around the economic model rings true.
I'd have to agree with Gene on this...the digital age has destroyed music. From the quality of the music in mp3 format to the file sharing. Sure, I download for free to get a taste of what's to come BUT, if its quality product...I go and purchase the cd.
1, to support the artist BECAUSE I'm an artist myself
and
2, because I want the quality sound of a .wav format. (If I can find it in vinyl...EVEN Better!)
I believe if you're a true fan...you'll rather see the artist performing their tunes over mp3 or .wav any day.
Thats just my take on it.
The music industry's gravy (greed) days are over, and the sooner they go bankrupt and re-emerge from the ashes as a promotion machine - nothing more - the better. This inherently means there will be fewer mega-popular bands out there like Radiohead, but removing the middleman arguably lowers the bar for everyone else to make and consume music.
Labels need to reinvent themselves as promoters who do not get the copyrights, but are paid for their distribution/airplay expertise.
Most average americans are still exposed to new music through repetitive play on terrestrial radio and television. The web is a SECONDARY source for most- where they go after the Tonight Show appearance to find out more about that band they just saw. Sure. you have niche sites like Pitchfork or other music blogs that cater to a small sliver of indie-rock types- but on a mass scale- I'm still waiting for that watershed moment.
Artists will always need a source of funding and human resouces to help them promote their content. That is the core competency of the music business. It's really not going anywhere as a whole, although the players may change.
What the Demon doesn't seem to get is that he's all about moving "units" of tangible product. It's now about monetizing consumption without purchase.