By Sean Condon
Executives at major record companies are up in a sweat and independent artists are getting heard beyond their basements.
MP3s are causing a revolution that is threatening to turn the music industry on its head. Depending on what side of the table you’re sitting at, this means either the beginning or the end of an era. MP3s are digitally compressed versions of songs that have CD quality sound and are stored on a computer’s hard drive. Special software allows users to copy a CD onto their computer and since the file size is very small, users can easily distribute the MP3 songs as data to anyone they choose.
Major record labels insist that MP3s violate piracy and copyright laws. But what terrifies the executives is the loss of control. A typical recording contract gives an artist a mere 10 to 15 per cent royalty, while the label retains total ownership over the master recording.
Yet independent musicians, who finance and distribute their own recordings, have begun to use the Internet and MP3s as the obvious alternative. By bypassing the costly middle men, artists are learning they can make a profit without the blockbuster sales.
MP3s give artists exposure that was otherwise unthinkable before its conception. This becomes an even more important factor for artists who come from smaller markets. Artists can also use MP3s to test out songs on an audience before spending money on releasing them in other formats. More importantly, artists retain 100 per cent control over the rights of their music.
After several years of denial record companies have finally woken up and decided it’s time to cash in before they completely miss out. Major labels have now begun to sell MP3s through their Web sites, while working on technology that would make it difficult to distribute and reproduce.
MP3s offer artists greater exposure, but there is no guarantee of getting paid for the downloaded songs. While most artists say they simply want their music out in the public, this view will likely change in the very new future. As the technology gets cheaper, MP3s will become a common household feature. Ironically, I suspect that major labels and artists will be fighting together in order secure a system that guarantees some form of payment for MP3s.
Major labels will not disappear; they will be needed as an outlet for users to help sort through the millions of MP3s that will be available. Record shops might also be a little nervous, but then again, people still buy vinyl