Sympathy for the Middle Man

The music busi­ness is a cru­el and shal­low mon­ey trench, a long plas­tic hall­way where thieves and pimps run free, and good men die like dogs. There’s also a neg­a­tive side.

- Hunter Thompson

It’s a ques­tion of extreme pric­ing and sale. If there is no indie retail to help build new bands, we are left with MySpace, the unfil­tered Inter­net, and ad/TV/movie place­ment to intro­duce peo­ple to new bands. Retail would be left to the Best Buy/Starbucks axis. That’s not too appeal­ing of a sce­nario to me.

- Patrick Mon­aghan, Pres­i­dent, CTD, Ltd.

Is there no alter­na­tive? The par­a­site’s only fear is the death of its host. Mairead Case’s arti­cle at Pitch­fork on Best Buy’s loss leader maneu­vers illus­trates how des­per­ate the record indus­try has become in recent years. But as I mouthed off at Her Jazz, not only is there a big­ger pic­ture, there are many pictures.

The music indus­try, along with oth­er facets of the enter­tain­ment indus­try, is at a cross­roads of prof­itabil­i­ty. With catch­phras­es like “flat is the new up”, it’s becom­ing more evi­dent that sup­ply and demand aren’t what they used to be. Well, at least demand isn’t. In recent con­ver­sa­tions with Chris Dahlen, it became clear­er to me that all the King’s men don’t even real­ly care about Hump­ty Dump­ty’s triage any­more. I mean, they know he’s cracked, but how exact­ly to put him back togeth­er again? Is it worth it?

Accord­ing to some, it isn’t. Even after cor­po­rate scan­dals like those at Enron and World­Com, share­hold­ers con­tin­ue to dic­tate the terms when it comes to man­age­ment deci­sions, not man­agers. That being the case, pub­lish­ing com­pa­nies are look­ing to find ways to liq­ui­date their unprof­itable hold­ings, music chief among them. What may hap­pen is that D.I.Y. may come to full flower as major labels find them­selves an unprof­itable, byzan­tine cul­tur­al bureau­cra­cy. The indus­try is still aligned against the artist, and acts like Clap Your Hands Say Yeah demon­strate that an ounce of media and mar­ket­ing savvy goes a long way.

This sort of mod­el undoubt­ed­ly fright­ens those per­sons ancil­liary to cul­tur­al pro­duc­tion, viz. any­one oth­er than the artists them­selves. But just as Michael Azzer­ad’s Our Band Could Be Your Life point­ed out, artists have long been in the micro-mar­ket avant garde, and it was their entre­pre­neur­ial spir­it that cal­ci­fied as matured into the indie label panoply and the pro­mo­tion­al orgies at SXSW and CMJ Fes­ti­val. Mr. Mon­aghan’s con­cerns are half well-found­ed crit­i­cisms of retail’s Evil Empire (see also Neighborhoodies/Amp Camp for fur­ther details) and half para­noid asser­tions that the “unfil­tered” inter­net is some­how all bad. In fact, it’s the lat­ter that pro­duces the most demo­c­ra­t­ic out­comes, those which are also most dif­fi­cult to iden­ti­fy and seg­ment into demo­graph­ics for marketing.
Busi­ness­es at all lev­els make bad deci­sions. Indies and the Big Four sign awful bands with unrea­son­able expec­ta­tions. Inde­pen­dent retail­ers make awful deci­sions too, most of which are made with an even clos­er eye on the bot­tom line than their seem­ing­ly mono­lith­ic com­pe­ti­tion. That trans­lates into pay­checks off the books, to go along with no health­care and no secu­ri­ty. Small busi­ness­es are used as con­ve­nient exam­ples to give big busi­ness a break (seri­ous­ly — no, seri­ous­ly).

Para­phras­ing what I wrote much more elo­quent­ly else­where: busi­ness is a rack­et, peri­od. Inde­pen­dent records stores have plen­ty of won­der­ful things; I would­n’t be lis­ten­ing to these two great Mar­ble Sheep discs if only Best Buy, Cir­cuit City and Tar­get exist­ed. But busi­ness is what it is — a frame­work where­in reac­tionar­ies and char­la­tans make bank. Best Buy scaled back its efforts after over­ex­pand­ing in the ear­ly ’90’s, and they may be head­ed back there before long. Let’s be hon­est: offer­ing goods with some elas­tic­i­ty (i.e. CDs, DVDs, con­sumer elec­tron­ics) has more appeal than inelas­tic white goods. If the enter­tain­ment mar­ket fluc­tu­ates as much as every­one says it is, their over­head costs alone will bury them.

Final­ly, col­lu­sive behav­iors are safe bets. Price wars are hell in retail. As in elec­tions, pre­dictabil­i­ty is key. When con­sumer spend­ing final­ly hits bot­tom — when cred­it indebt­ed­ness and inflat­ed mortages reach their peak (or trough, depend­ing on where you’re stand­ing) — we’ll see just what shakes out.

Mar­ble Sheep — “The Night of the Shoot­ing Star”

5 Comments

  1. entreat­ing “lit­tle” labels like mata­dor is kin­da like admir­ing marie antionet­te’s man­i­cure. it keeps grow­ing with con­temptible predictability.

    sure indies will die before the indus­try big­gies, but only as a por­tent. christ, we like cat pow­er’s new record! tab­u­la rasa is a com­pas­sion­ate ges­ture of euthana­sia. car­ole king’s tape­spy is now a punk ref­er­ence point; shake the cage and you’re liable to jos­tle the paisleys…poor del­i­cate paisleys!

  2. thanks for writ­ing this.

    and of course, i agree that there is a big­ger pic­ture. the goal of the pitch­fork arti­cle was not to state a per­son­al opin­ion; it was to (hope­ful­ly) alert some of these deep-pock­et/­post-nap­ster col­lege spenders to the tan­gle that is –to use yr phrase– the rack­et. of course, too, the piece was sub­stan­tial­ly edit­ed, both on amy’s part and mine.

    there are two points that i want­ed to make/underscore. one of ’em is hint­ed at in both posts above — not only is mata­dor not a “lit­tle” label, but it’s also not “tru­ly” indie (i apol­o­gize for the link’s misog­y­nist rhetoric– but it’s mmr; what can ya do?). and frankly, i adore the con­stan­tines, and lis­ten­ing to sub pop gives me more “cred” than, say, lis­ten­ing to colum­bia, but at the same time, even the plop has some rack­et in its blood. the only prob­lem, i think, is igno­rance in regards to the true source of your music — hence, hope­ful­ly and even­tu­al­ly, the pitch­fork article.

    the oth­er point is sim­pler — it’s a rant, pure and sim­ple. since when did “indie” become a genre? since when did it become code for a‑political, jan­gle-pop-zach-braff-changed-my-life-sparkle? damn you, steven malkmus …

  3. i think Stink’s com­ments allude to more of what i had in mind, viz. that there are peo­ple who are col­lect­ing a pay­check involved in this, not just lawyers, own­ers and con­sumers. i’m hope­ful that my inter­view with Steve Gor­don will atten­u­ate what has been up to present a pret­ty dehu­man­iz­ing, indeed crim­i­nal­iz­ing, por­trait of the Amer­i­can consumer/citizen, to say noth­ing of the impov­er­ished notion we have about the indus­try itself.

  4. the ener­gy if not my point (a rant about a rant is intrin­si­cal­ly dou­ble-irra­tional which makes this kind of rationalization–pun intended–a lit­tle dif­fi­cult) was orig­i­nal­ly direct­ed to the con­sumer end of the best buy issue. i have no good idea how big or small mata­dor records his–the quo­ta­tion marks encap­su­lat­ing lit­tle in that instance were meant to sug­gest that though quite large in terms of cap­i­tal, hold­ings, etc. they have the trap­pings, the air we’ll say, of being an inde­pen­dent label. i’m right in that obser­va­tion i think?

    even more to the point i so drunk­en­ly, pants­less­ly failed to express is that it’s, in my opnion a con­sumer issue. i view best buys sui­cide pric­ing (the term loss leader is painful­ly inad­e­quate) as in a way com­pa­ra­ble to buy­ing a boot­leg dvd, or speak­ers from the back of a van. the great price comes with the under­stand­ing that you’re rob­bing someone.

    like wal-mart before it best buy is in the busi­ness of underselling–which is legit­i­mate busi­ness prac­tice, but as with cof­fee from star­bucks, or a Colt twelve guage from Wal-mart you’re cut­ting out locals–the true indi­ies whom you can now count on your fin­gers and toes (an arthi­mat­i­cal feat recent­ly exe­cut­ed by the los ange­les time. proud to say our beloved a.k.a. was mentioned).

    we all got­ta do what we all got­ta do. but i think it makes per­fect sense, and is the hon­or­able thing to do, to buy local and indie as often as pos­si­ble. after all its our mon­ey best-buy buys its music with in the first place.

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