More Perfidious Goodness...

The thrust of the article is that Sony has made Rick Rubin the co-Head of Columbia Records, in the hopes of injecting a little of that wyld-ass energy he’s got into the proceedings, and in the process transmogrifying the ailing Industry into something leaner, meaner, and more efficent at siphoning money into the pockets of shareholders.

Now, there’s nothing whatsoever wrong with that, really. The job of a corporation is, indeed, to “maximize shareholder value.” So good luck with that. But check out some of the “hot” “new” “ideas” that Rubin and his co-Head, a middle-aged run of the mill British record exec named Steve Barnett

(I once worked for a sharp and dapper gentleman, a young pretty thing and a rising force in the Industry, who had a taste for shiny suits, expensive haircuts, and the saddest upscale parties I’ve ever been near, lame affairs where the lower echelons sucked down furious premium cocktails on the company dime while a D-list hipster celebrity like Tricky or the guy who played drums on that Bjork record lurked sulkily in a padded banquette until enough minutes had crawled past that he could reasonably said to have performed the favor of appearing. This particular person had a penchant for arranging the firings of underlings who, in his estimation, were not partying hard enough at company outings. This man had executive power and the trust of a wealthy aging blowhard who once was a person of some consequence in music, at least until he was let go.

...but at least let go more gracefully than the one who was sacked after refusing to leave his hot tub to take an urgent call from the CFO, with an unfortunate sequence of words by way of instruction to his minion, such words being unfortunate due to their inference as to the character and moral standing of the CFO, and their audibility in the conference room at the other end of the line, the minion having failed to put his hand over the mouthpiece of the phone…

... the wealthy aging blowhard mentioned two paragraphs prior recently being heard to remark an interview, “I love iPod. I think iPod is great...")

...a run of the mill British record executive named Steve Barnett have cooked up to save Columbia, save Sony, and save the World.

This summer, Columbia Records began a program called Big Red. The company invited 20 college students from Harvard, Penn State and the University of Miami to work on various music projects. The interns concentrated mostly on the digital marketing and promotions departments in Columbia’s offices in Midtown Manhattan, which are on Madison Avenue in a granite skyscraper designed by Philip Johnson.

At the end of their paid internships, the students took part in focus groups that were closely observed by Steve Barnett, Rubin’s co-head at the label, and Mark DiDia, whom Rubin brought in as head of operations, as well as by other Columbia executives. The focus groups may have been the real point of Big Red — Barnett and the New York executives, especially those who had been at Sony for years, wanted to try to take the pulse of the elusive music audience. “The Big Red focus groups were both depressing and informative, and they confirmed what I — and Rick — already knew,” DiDia told me afterward. “The kids all said that a) no one listens to the radio anymore, b) they mostly steal music, but they don’t consider it stealing, and c) they get most of their music from iTunes on their iPod. They told us that MySpace is over, it’s just not cool anymore; Facebook is still cool, but that might not last much longer; and the biggest thing in their life is word of mouth. That’s how they hear about music, bands, everything.”

Well, duh. But wait! There’s an idea here!

At Rubin’s suggestion, [Barnett] has also set up a “word of mouth” department, which will probably employ some members of the Big Red focus group along with dozens of other 20-somethings. The “word of mouth” department will function as a publicity-promotional arm of the company, spreading commissioned buzz through chat rooms across the planet and through old-fashioned human interaction. “They tell all their friends about a band,” Barnett explained. “Their job is to create interest.”

Wow. Damn. The secret to rescuing one of the greatest labels in the history of the world, and the flagship of one the big five… four… three sir! record companies is, pay some teenagers to go on the internet and pretend to give a shit about bands to their friends.

Shit! If only someone’d tried that eight years ago, set up a guy as, I dunno, the “internet marketing manager” and given him money and access to interns eager to tell their buddies all about the next big never-gonna-be, an’, an’, indie companies that you could pay to get content on dorm-room televisions, an’, an’ on campuses and into high schools and skate parks! If only every label in the world had tried that exact strategem back at the advent of the decade, the ship mighta been wrenched around by that critical arc minute to swing it juuuuust wide of the iceberg!

Oh, wait. They all screaming goddamn well did.

Brilliant, gentlemen.

But what else have they in mind?

Rubin has a bigger idea [I bet he does (-Johno)]. To combat the devastating impact of file sharing, he, like others in the music business (Doug Morris and Jimmy Iovine at Universal, for instance), says that the future of the industry is a subscription model, much like paid cable on a television set. “You would subscribe to music,” Rubin explained, as he settled on the velvet couch in his library. “You’d pay, say, $19.95 a month, and the music will come anywhere you’d like. In this new world, there will be a virtual library that will be accessible from your car, from your cellphone, from your computer, from your television. Anywhere. The iPod will be obsolete, but there would be a Walkman-like device you could plug into speakers at home. You’ll say, ‘Today I want to listen to ... Simon and Garfunkel,’ and there they are. The service can have demos, bootlegs, concerts, whatever context the artist wants to put out. And once that model is put into place, the industry will grow 10 times the size it is now.”

So, say I’m somewhere like, I dunno, my buddys fire pit in Northeastern Ohio. We got a bale of primo bud and a cooler full ale. And we wanna rock the fark out to Motorhead. All we gotta do is… wait… dude, do you get broadband out here?

But at least Barnett sees reason here:

Steve Barnett is nervous about the subscription model. “Smart people have told me if the subscription model is not done correctly,” he said, “it will be the final nail in our coffin. I’ve heard both sides of the argument, and I’m not convinced it’s the solution to our problems. Rick wants to be a hero immediately. In his mind, you flick a switch and it’s done. It doesn’t work like that.”

So, what you’re sayin’ is, your highly paid guru who has no office, no shoes, no phone number you can reach him on, and an oracular perspective on the Future of the Industry, is halfway fulla shit.  Noted.

But this is where the antics spill over into full-on Larry/Curly/Moe madness. Check this shit out!

Barnett has other ideas, which he is discussing with Rubin. For instance, asking Columbia artists to give the record company up to 50 percent of their touring, merchandising and online revenue. This is unprecedented — even successful artists like the Dixie Chicks make a large percentage of their income from concerts and T-shirts.

So let’s break this down good so even the dim kids in the back of the class get it. Artists signed to major labels get this much money from album sales:

Zero.

If they go reaaaaaaly far, shift a few million units, that number can rocket all the way up to

A little.

Artists, every artist, from the overly earnest hairy-legged songbird down at your local coffe joint, to Buckethead’s wife’s excellent band, to Cheap Trick, to the Rolling Stones, Prince, and Barbra herself, make money in these ways:

Touring and appearances

Merch (t-shirts, keychains, beer coozies, etc.)

Whatever b.s. online revenue streams they can dig up.

If the artist also happens to be a songwriter, or to control their own publishing, they may also get decent to spectacular paydays off of that as well, and forego some of the above. (The rap and electronic worlds also have their alternate revenue streams, but at the end of the day they amount to a new flavor of touring, merch, online B.S., publishing, or songwriting.)

So, basically, leaving aside songwriting and publishing which are separate pillars of the business, with their own contracts, deal structures, and support agencies, the magic bullet that’s gonna save Sony/Columbia from disappearing up their own anii while simultaneously collapsing in a fiery heap while offstage a muted trumpet plays “waaah-waaah” is, WE’LL FIND OUT WHAT MONEY OUR ARTISTS ARE EARNING, AND MAKE THEM GIVE IT TO US INSTEAD!!!

(While, one presumes, twisting their moustaches in glee and twisting their monocles deeper into their eye sockets, the better to see the young immigrant boys they hired straight off a plane at JFK for a nickel wrestle each other to their deaths. Sweet suffering Jesus; there’s villainy, and then there’s incompetent cartoon villainy.)

So, while the money man is looking at grade-skool level larceny as a viable corporate survival strategy, what’s the GURU up to, Stu?

[Rubin is] always on a quest to find just the right thing, whether it be a book or a building. Recently, he hunted down the brand of water that claims to have the greatest level of purity (Ice Age); he pored over architectural manuals to determine what kind of hinge would have been used in 1923 (for his house); and when Johnny Cash was ailing, Rubin discovered a kinesiologist whom Cash credited with extending his life. And so on. Rubin has always been passionate, even compulsive, about his interests.

Gentlemen, I say with mingled regret and pleasure that you all deserve everything you get.

[Wik] Oh, and another thing about that “Big Red” focus group? Isn’t it a truism that kids these days (kids these days!!) have finely tuned bullshit detectors that can see right through most forms of marketing known to man and many which haven’t even been invented yet? And a bunch of teenagers on the intarnets getting paid in free.... what.... free CDs??? Free “subscriptions” to whatever music download service Sony pukes up?... are going to somehow outwit their peers?

I’ve seen it a hundred times. Pimping music is wonderful and even fulfilling when you can really believe in the quality of the record you’re working. Then it’s no so much like whoring, and more like evangelizing. But nine times out of ten, you’re actually getting paid to pretend that some giant steaming turd is really a tasty sandwich, when everyone from Prague to Paducah can see the difference. And that not only sucks the soul right out of you, it’s how record companies and their hacks become hacks. The stink of hack clings to the hacky hacks like cigar smoke and drug store perfume clings to the upholstery in the $20 lapdance room out at the Moonlight on old Route 11. And you don’t really come back from that.

Too Goddamn Much Perfidy...