July 27, 2009 3:34 AM PDT

Broken record: Why labels want new album format

by Greg Sandoval
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Apparently, the digital download didn't kill the album after all.

Can Apple revamp the album format?

(Credit: Polydor/Jimi Hendrix: Bold As Love)

The four largest recording companies and Apple reportedly have plans to create what they hope is the next-generation album. Driving the efforts is the hope that music can once again deliver fat profits, instead of the scrawny margins earned on 99 cent downloads.

On Sunday evening, the Financial Times reported that Apple plans to entice customers to accept packaged music by throwing in "photos, lyric sheets and liner notes" and also enable consumers "to play songs directly from the interactive book without clicking back into Apple's iTunes software."

A music industry source told me the labels are working on their own interactive album format and they will offer it to Amazon and other music services. Apple and the labels are shooting to release their album versions in the fall.

Critics will undoubtedly say such plans are folly. For nearly a decade, digital technology has enabled music consumers to bust the CD into pieces and obtain only the songs they wanted. Even music industry execs have acknowledged that for too long, fans were forced to pay on the order of $15 to obtain 12 or so songs of which only two might be any good.

Whatever the next-gen album is, it can't be a vehicle that forces unwanted music on fans for premium prices.

But the music industry's dilemma was sized up candidly earlier this year by David Ring, executive vice president of business development for Universal Music Group's digital arm.

"If what we're trying to do is one-by-one downloads...that's not a business that can grow," Ring told EconMusic Conference attendees. "It won't be healthy for the industry."

What that means is that there's too little money in selling individual songs. The ailing music industry appears to be looking for ways to give people music and then entice them to dig deeper into their wallets for extras.

Earlier this month, EMI began selling the "digital 45" to mark the 60th anniversary of the vinyl 45 single. A 45 was a vinyl record that was smaller in size than the standard album and typically featured two songs, one tune on the A-side and another song on the B-side. To create a similar effect, EMI began bundling hit singles with B-sides in a download format.

When it comes to boosting margins, the labels have already achieved some success.

Last January, in an unprecedented move, iTunes maker Apple announced that it would allow the recording industry to charge something other than the traditional 99 cents per song.

Perhaps Apple and the labels can come up with content combos that people will find valuable. But the danger here is in trying to force the packages on consumers and possibly alienating them even more, which could send them sailing into new piracy waters.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 2 pages (57 Comments)
by solitare_pax July 27, 2009 4:06 AM PDT
Their argument does not hold water.

The ability to purchase single songs online, instantly at a low price has made me purchase more music over the past couple of years than I had been buying in CD format for the past decade. And you get to sample them, and decide if they are good enough to purchase - on not.

Perhaps the music industry should look for talent that actually plays music without obscenities laced into every other off-key song.
Reply to this comment
by Perry_Clease July 27, 2009 5:34 AM PDT
Same here, it is the single download feature that has resulted in me buying more music. I will create my own playlists.
by ducttape36 July 27, 2009 6:18 AM PDT
i do think the masses are tied to the idea of buying individual songs and making thei own playlists. however, fans of a particular artist will almost always buy the whole album, usually in a physical format. that may be more about building a library than just wanting to listen to the music though. case in point,vinyl sales are on the rise, especially if they include digital downloads.
by Super2online July 27, 2009 7:05 AM PDT
Me and my family have purchased a hundred fold more music (and videos) since joining the Zune service than I ever did in the previous 30 years. I never puchase whole albums, only singles. If this seems to make their point, that singles are killing the music industry, then they only have themselves to blame by not embracing the digital download until it was already well established by the computer industry.

I don't think they are going to get a whole lot of sympothy from most of us out her doing the purchasing.
by Random_Walk July 27, 2009 8:27 AM PDT
Agreed - I have zero use for 'filler', and maybe it's time the music industry realized that I'm certainly not alone in this sentiment.

If they're so eager to sell an 'album' digitally, maybe they could sell a download with 3-4 really decent songs on it for, say, $5, and include the 'filler' songs as part of the package for free?

"fans of a particular artist will almost always buy the whole album"

Depends... some artists, like, say Queensryche (e.g. Operation Mindcrime) or Dream Theater, you pretty much have to get the album since they try to tell a story arc across the entire thing. Sometimes, the artist is just that damned good, so you want the whole album.

OTOH, two things stand out - first, the vast majority of artists really aren't worth buying the whole thing for, and fans will buy the whole thing anyway, even if they have to do it one song at a time.
by regulas1 July 27, 2009 4:15 AM PDT
This is just concerning digital downloaded music, right? You are not implying they want to replace the CD?
Reply to this comment
by XiroMisho July 27, 2009 4:26 AM PDT
Just because you're purchasing more music doesn't mean you're making the record label any money. Those other 10 songs that are not bought are what they want to sell you and they're trying to add value.

In a way this is a very bad sign - Record companies getting desperate isn't a good thing for artists or aspiring artists. In the end, these are the guys that pay the bills for our artists... granted the actual money from albums doesn't go to the artists, that goes to the label... which is why the label is trying to bundle this stuff together...

on the other hand though, I've gotten plenty of albums and after giving the whole thing a listen to, found that there are good songs on there the radio doesn't play... so... maybe buying a whole album is a good idea.
Reply to this comment
by celticbrewer July 27, 2009 5:26 AM PDT
It's a bad sign for record companies. Artists now have a vast arsenal for selling their music to the public- not just on blank tapes sold out of the back of their cars after a show. Plus, they get too keep most (or all if they know what their doing) of the profit.

As a musician (we do covers, so I don't plan on selling songs), if I wanted to sell an album, I sure as hell wouldn't be interested in signing with a label. My friend's band (who DOES do originals) just gives out free CDs- they make their money bringing people into shows.
by Lerianis3 July 27, 2009 6:52 AM PDT
celticbrewer hits the nail on the head. This is a bad sign for record companies, but a good sign for artists.
by Random_Walk July 27, 2009 8:31 AM PDT
"Those other 10 songs that are not bought are what they want to sell you and they're trying to add value."

...err, what if I don't want to pay for those 10 songs because I think they suck (but still want the one or two decent songs on that album)? I shouldn't be forced to purchase 10 manure nuggets just to get the one pearl that's resting in the same bag.

I understand the trying to add value part - cover art, lyrics, and such is pretty cool to have sometimes. OTOH, I don't see them as making up for the obvious stuffing and the (anticipated) price hike.
by gerrrg July 27, 2009 4:31 AM PDT
Just when you thought Apple couldn't make a mistake.
Reply to this comment
by protagonistic July 27, 2009 7:19 AM PDT
You probably were one of those who said the same about the iPod and the iPhone, right?
by dascha1 July 27, 2009 4:31 AM PDT
Let's get practical and pair the usability of real business demand with digital music today. I say why not put everything on tubes the size of a toilet paper roll. Then if you don't like any song from the album you can sync your own personal needs (mother nature calling) to simply rip off that part of the roll and use it as you normally would. Otherwise, I'm sure Apple is innovative enough to debut a player for this type of software that really makes sense if you think about it in terms of how much revenue is generated in the paper industry for this type of application; which as far as I can tell will still be with us for a long time.
Reply to this comment
by ZetaZeta_ July 27, 2009 4:44 AM PDT
I wish we moved to audio DVDs or something almost a decade ago so that by now I'd be able to listen to 9 or so hours of trance/progressive mixes in my car without changing the disc.

Of course had we done so, the record labels would have had to produce an additional dozen or so filler trackers per album, or add useless content that uses all the added space on the disc.

In fact, what exactly is happening here?

>>"Apple plans to entice customers to accept packaged music by throwing in "photos, lyric sheets and liner notes" and also enable consumers "to play songs directly from the interactive book without clicking back into Apple's iTunes software."

I've seen photos and lyrics sheets on some albums in physical stores. Interactive book, though? So it's a digital copy of the leaflet thrown into CD albums. ? That's doesn't seem too revolutionary, most people can just Google the lyrics, photos of the artists/band, watch YouTube videos... You're already on your computer, so why not use it? The added information seems kind of... useless. Now, I could see where if you had a visualization playing in, say, Windows Media Player or Center, it could have an option called "Album Slideshow" that shows the cover, photo, or page art for each album/song, and maybe even scrolls the lyrics at your option, or if you burn the album to a CD, it stores album cover data or lyrics data on the disc so when you play it on a modern player, it shows the art or lyrics with the music. Now THAT would be cool.

>>"A music industry source told me the labels are working on their own interactive album format"

Interactive album. Apple's doing that, you said, and I have confidence they'll probably do it well (as well as it can be done, even though I might not buy it). If they labels do it, it won't be as good. It'll probably be something like a PDF of the album book (with photos, lyrics, and notes) + playing music while you read it. Which would be useless since I listen to music while reading something else or playing games, etc.

Final point: I think the only reason someone would buy one of these (at least from what I'm speculating the product will be) is if you're a fan/collector or something on those grounds. At which point you'd likely buy the physical disc anyway. Just my 2 cents here.
Reply to this comment
by UpajOs July 27, 2009 4:52 AM PDT
"It won't be healthy for the industry."

These music industry twits have apparently never heard the adage, "The customer is always right."

We can avoid buying albums, or any music at all, for that matter, than the industry can hold out financially, as long as they insist on only selling the music on their terms. Now, how unhealthy is THAT for the industry?
Reply to this comment
by Lerianis3 July 27, 2009 6:53 AM PDT
Or, the people who refuse to buy a bunch of 'filler' music will get their music 'illegally' and the record company will see NO money. That's even MORE unhealthy for the industry.
by UpajOs July 27, 2009 4:54 AM PDT
"It won't be healthy for the industry."

These music industry twits have apparently never heard the adage, "The customer is always right."

We can avoid buying albums, or any music at all, for that matter, longer than the industry can hold out financially, as long as they insist on only selling the music on their terms. Now, how unhealthy is THAT for the industry?
Reply to this comment
by alegr July 27, 2009 3:56 PM PDT
The correct adage is: "The paying customer is always right".
by blobbles32 July 27, 2009 4:56 AM PDT
Finally they are doing something smart. If they do this right, it will change the whole music game. You could make scrolling lyrics, karaoke style song without the singer, bundle some music vids with the album, interviews with the band, song introductions... the oppourtunities of what you could do abound. If they made it so you could select your content (i.e. song only, album with interactive art, song only with karaoke lyrics, karoke versions of the songs themselves with lyrics....), they will be onto a game changing winner. People will pay $20 for an album if it includes bells and whistles like this, I know I sure as hell would.

Imagine RIAA actually embracing digital content. I never thought I would have seen the day...
Reply to this comment
by Lerianis3 July 27, 2009 6:55 AM PDT
No, people will NOT pay 20 dollars for an album if it includes USELESS bells and whistles like these. These companies are just going to have to realize: DIGITAL DOWNLOADS ARE THE WAY OF THE FUTURE, and their 'business' is a decaying dinosaur about ready to kick the bucket.
by leighpatrick July 27, 2009 5:07 AM PDT
Artists don't need these major record labels to make money. The digital age has allowed them to self publish.
Cunsumers don't want the major record labels business model because it doesn't allow the freedom to choose the artists and songs they want to listen to.
The fact is, these are the death-throes of an obsolete industry that has had their boot-heel on the necks of musician and consumer alike for far too long.
Reply to this comment
by scarryjerry July 27, 2009 5:11 AM PDT
Let's talk about the crap they put on these records/CD/DVD/ etc. The code word for adding content, is they want to give you crap and charge you, once again, way too much for the product, for what ??? So the big wigs can make money hands over heels and the artist get nothing ? What happened to the old days when the 'A' side had some really good tracks and the 'B' side was for the less popular songs ( most of the time). We had a WHOLE side of fgood tracks. Now we barely get one good track on the who set ???

Also I am tired of the same old script. Find somehot/sexy/upbeat/edgy artist, put a studio band behind them, do lots of publicity, and bang !, the record companies make millions. Don't whine about the time and money spent 'cultivating', scehduling, baby-sitting the artist, so you can make your money, this is the path you chose. Live with it.

Embracing digital media is just a marketing effort. How about the collusion of these RIAA memebers getting together to creating theis 'lock-out' media format ???
Reply to this comment
by wperry1 July 27, 2009 7:11 AM PDT
[quote]creating theis 'lock-out' media format[/quote]

I think you hit the nail on the head there. All this "extra" content is just a smokescreen that they hope will distract you while they send out a new music format with some sort on restrictive DRM.
by 9104man July 27, 2009 5:12 AM PDT
The industry has lost sight of what matters. One loop of a drum track and a bass line that would fracture titanium does not music make. Overproduction and minor talent doesn't either. Way too much dross and nobody looking for actual ability. Elvis, the Beatles, and countless others had no problem getting people to buy their products. Having 3 thousand "artists" in your stable of which NOBODY wants to hear is not ever going to generate profit no matter how much lipstick you put on that pig. I own more than a thousand CD's - very few of which have been made in the last 10 years. I don't buy much music simply because hardly anybody's making any, and nobody seems to be looking for actual talent.
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by alegr July 27, 2009 3:57 PM PDT
"Elvis, the Beatles, and countless others had no problem getting people to buy their products". Given that was the only way to get their music...
by Ken_Boucher July 27, 2009 5:15 AM PDT
I think the "music industry" has forgotten there's a second music industry out there with all the great bands that never signed a major label willing to sell you DRM free copies of their songs without middlemen. There are no shortage of bands like the Reducers, the Red Elvises, and Anvil that have great songs that Clear Channel doesn't play.

Right now people are going through Amazon and through iTunes. How long does the record industry think it will be before it becomes common for bands or small labels to do the same thing themselves?
Reply to this comment
by pjhud July 27, 2009 5:18 AM PDT
not a smart move- When are they going to realize that the only way to revive the music industry is to significantly lower the overly inflated cumulative expense of producing albums. A mix-mash of MP3's on anyone's player is here to stay.
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by Lerianis3 July 27, 2009 7:04 AM PDT
DING! DING! DING! We have a winner. The fact is that albums are SERIOUSLY overpriced for the cost of making them. I mean, even including the cost of making the music, transporation to the stores, pressing, etc...... a CD only costs about 50 cents to make..... yet they are charging 20 bucks for one? I don't know any other business where a 2000% profit isn't enough!
by beehive808 July 27, 2009 5:20 AM PDT
Give me a BREAK! If the Big Four hadn't stuck their heads in the sand and up their %$# for the last decade, they wouldn't be ailing. Remember when the Big 3 of Detroit (now it's the Big 1 and the small 2...lol) wanted to shove just as expensive as gas hydrogen cell fuel down our throats as a substitute for full electric? Where did that get them? Nowhere.

In this economy, they are trying to make a broken old model work? Hah. Guess again, consumers no longer have to kiss the *&* of these idiotic corporations and their mediocrity.

They had a model begging to be monetized TEN years ago called Napster. They had a chance to SAVE the music industry and all they did was alienate the very hand that feeds them with RIAA sue jobs of children, senior citizens and corpses. Napster could have been a cash cow, but noooo....they wanted to stay in the 20th century...

All they did was make fools of themselves.

The day of the mega rock star is dead. Just like the era of the two newspaper town is dead. Technology and the people have moved on. When will these dinosaurs get it? Give us what we WANT and we will give you ALL of our money. Shove it down our throats...well remember a little thing called Windows Vista? Remember how successful the mightiest, wealthiest high tech company in the world was at shoving it down our throats? Yeah, that's right. The biggest, most expensive flop in Microsoft history.

A $300 MILLION dollar media blitz, Jerry Seinfield, Bill Gates doing the Robot and a half baked ripoff of the I'm a Mac/PC couldn't get, people to budge to buy that pOS.

The economy sucks guys. Big time. If you really think we're going to buy crap, you can really take a long hard look at your long term survival. Music companies aren't eligible for Federal Bailouts last I checked.
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by robnyack July 27, 2009 5:22 AM PDT
The music industry suits are just laughable. When will they get a clue? Instead of embracing this new age of instantaneous music with freedom of choice, all they have done is focused on how to put the genie back in the bottle. IT CANT BE DONE.

If people want to pick and choose the songs they want to buy, then embrace it...work with it...enhance the buyers experience under that format. Don't sit there and try to devise ways to force the consumer to buy music the way YOU want them to buy music.

freaking dinosaurs......and they dont even see the meteor coming.
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by pjhud July 27, 2009 5:23 AM PDT
I Agree with beehive808
Reply to this comment
by lpelaez1 July 27, 2009 5:26 AM PDT
who cares about all the junk they trying to sell you ,all i want is to listen to the music i downloaded that is what i pay for so if they take my 99 cents song away we will find another way to obtain the music .i thing is time for the artist to open their own website put their music there and we will pay strait to them.You see how much money they will generated or how good their music are
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by Johnny_vacation July 27, 2009 5:34 AM PDT
If they want to make more money they need to sell more music.
If they want to sell more music they need to produce good music.
It's about the music.
Too simple?
Reply to this comment
by man_w_balls July 27, 2009 6:35 AM PDT
It's not too simple, for the consumer. But industry executives have analysts and all these other suits whose jobs are to find complex answers to all their problems. Too many people are barking up the wrong tree.

Consumers, the important factor deciding where the money is spent, just want good music. Where is the latest groundbreaking new artist producing something like "Axis, Bold As Love" ??? Not on pop radio or American Idol, that's for damn sure. This 21st Century music industry sucks.
by -BC July 27, 2009 5:35 AM PDT
The record industry has for a while been pretty much following the US auto industry in terms of corporate behavior: churn out as much faddish junk as they can, and screw coming up with actually good product that will sustain them in the long run. They use to somewhat balance off their copycat/fad stuff with A&R support for good, promising musicians and bands, but as with US auto industry R&D, they've let their A&R deteriorate to pretty much a forgotten afterthought. Some stellar young musicians may be playing the type of music you really like every Tuesday at some a little club with cheap beer just a short drive from where you live, but you would never know it: radio support of local/indie music is gone, newspapers are fading, you now need to be a search expert with Google to sort through all the ever increasing scams and bogus/useless info, and the labels would rather sue and/or come up with new ways to package junk rather than be genuinely supportive of their own industry at large.
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