The Major Label Music Business Model Is Theft
Wednesday, November 30th, 2011For those of you who don’t follow Bob’s newsletter, but want a little insight into the music business, read the piece below that Bob published yesterday. I am republishing it here because its just that TRUE! Not only are artists not familiar with how they are getting screwed, fans and general consumers are also feeling the shaft.
Bob Lefsetz was a motivating factor for establishing HSK by giving me reason to breakdown what the bought and paid for media won’t tell you. It’s a longer than normal piece for HSK, but well worth the read.
P.S. Click the “SOPA” image above to learn about how the SOPA act will change the internet landscape for ever. A website could seized without trial, inquiry or even and proof of wrong doing.
“So (the big music chain’s strategy was) not about trying to excite the customer. To extract value from the labels seemed to be the pursuit. In essence, there was a lot of value available because not very much of that value (from the product being sold) was flowing to the artists. (Retailers and labels) would be sitting there on a $10 wholesale (CD) item, and it was basically $9 available to be thieved.
If Best Buy could grab $2 of it on a mark-down, the label could use the rest for car service and fancy meals; I guess that worked for a long time.”
Mike Dreese of Newbury Comics, as told to Larry LeBlanc: http://bit.ly/aQpmuY
The major label business model is theft. Continue Reading…












