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There’s nothing like gloom & doom to start your New Year out right. The news is filled with tidy gifts of depression, ranging from the stock market meltdown, driven by the prospect of a U.S.-led recession, to the continued demise (death?) of the music business - poor Warner Music won the dubious distinction of being the #5 worst stock in the WORLD on Thursday, plummeting another 8.61% on (unexpected?) news that the music business isn’t all that great these days.
Every media source in the world is citing another 9.5% decline in album sales for 2007, vs the 1.2% decline we saw in 2006 (that’s a factor of 8 for those of us who like numbers). Ouch.
But within stress and depair lies opportunity for those able to spot it. I can’t claim to possess unusual insight into the future of music, but a few things do stand out. Live events had a great year, especially if are fans of aging rockers. Digital downloads zoomed up, on a percentage basis, but nowhere near enough to balance the lost revenues from CDs; it’s a great business if you can record and promote for free, and don’t need to sleep or eat much. And wear free t-shirts.
Fortunately, I’m grateful to be working with some of the finest musicians around who have worked for a decade (on average) to establish their careers, build a fan base and form enough relationships to carry them through this rough period. It’s going to be tough for the next generation of artists — is there any hope? — but these things have a way of working themselves out over time. I don’t see my label signing any new, unexposed or emerging artists anytime soon but we are planning some great releases from within our current roster. It will be interesting to see how the market responds as compared to their previous sales levels.
The one bright spot in my world is the formation of Palo Duro Presents, a live entertainment company. We have been active in several festivals, music cruises and other live events over the past several years, and frankly they have been both fun and very successful. You can’t steal live music, and the digital download just doesn’t replace the experience of personally being immersed in a festival environment. It’s a unique product that can’t be duplicated, and also happens to be one of the only growth categories in the business.
Our first produced event will be the Chattahippie Music Festival (www.chattahippie.com) to be held in September, 2008 on a 50+ acre riverfront venue outside of Chattanooga, TN. It’s a terrific location, and we’re busy slotting nearly three dozen acts for the 3-day weekend of great Americana music. I love outdoor events, and spending a weekend near the water listening to terrific bands is going to rock my world - I can’t wait.
The irony here? The major label system is over; without CDs to sell through Mega-Mart at a million units/month, the big machine is busted and music has returned to it’s hippie origins — grassroots, indie movements and fan festivals. Come rediscover where it all started, and be involved in the next generation of music. Peace, Love & Music.
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