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BMG President's Harsh Words for Digital Music
Posted by Heidi Chambers on July 1, 2000 at 4:14 AM   (printer friendly)

This past Thursday, Strauss Zelnick who is BMG Entertainment president and chief executive, said digital music companies will never "displace" the major music labels. Mr. Zelnick also stated that Michael Robertson of MP3.com was wrong to assume record companies would not fight in order to protect their copyrights. "It was a very costly mistake," he said.

That is true on Zelnick's part, it was indeed very costly for MP3.com to settle their copyright infringement suit. Although exact financial terms of the settlement were not disclosed, sources say that BMG is to get between $15 million and $25 million. Under the terms of the deal, MP3.com will pay an undisclosed fee each time the label's CD is registered by a user and another fee each time a user accesses one of its songs.

Zelnick also thinks that acts like Courtney Love, who plan on dropping their traditional record label and heading to the Web, are few and far between. "In most cases, superstars would rather take our money and mitigate the risk than take the risk themselves," he said.

Lastly, Zelnick took another shot at MP3.com by saying that no wants to listen to hundreds of unknown artists. "The Web will never become a place where undiscovered bands or established artists regularly bypass record companies to reach consumers directly."


User Comments (These do not necessarily reflect the beliefs of this site)

nontoxic  
Date: July 1, 2000 @ 11:52 AM
Well Mr. Zelnick, you are truly a moron and should shut up. First of all, no name artists? Yes. No good? NO. There are SOME VERY VERY good artists on the web (some of which are here on dmusic). It seems as if the record industry truly is in denial and this really shows it. I'm not really sure if the music industry is really moving toward the web but the business model MUST change. Wether subscription is the new thing or not there needs to be a change.

Heidi  
Date: July 1, 2000 @ 12:56 PM
nontoxic, I have to agree with you on the idea that there are some very good artists on MP3.com ... but at the sametime there are some not-so-good artists too.

That's not the point though, the point is that Mr. Zelnick has proabably never even visted MP3.com and has no idea what he is talking about.

~Heidi

P.S. - Ska Daddyz r0ck!

DR  
Date: July 1, 2000 @ 6:02 PM
Yeah... Ok... So BMG is slowly losing control of the music buisness. Going to continue, 'cause bands and artists can reach listeners without the big labels. And sure there is some not so good music in the indie stuff.. but there is also some bad stuff that is under the BMG unbrella as well.. so what.. the good stuff will surface... and will without BMG.

Sorry Mr. Zelneck.. you may think you're right but the stats are in.. and counting.

Anonymous  
Date: July 1, 2000 @ 6:25 PM
Unfortunately Zelnick is right.

And the reason why everybody will still sign on with labels as soon as they get a chance is because they won't be able to make any money on their own thanks to Napster, Gnutella, D.Music, MP3.com and other free music leeches who exploit independent artists.

The model WILL NOT CHANGE.
Acts that make it big do so because they are being showed down people's throaths by big corporate marketing machines. There aren't nearly enough people willing to look through all of the MP3.com crap wasting hours just to MAYBE eventually find one good artist.
So if you think you are going to make it by being promoted [ I use word promote and laugh at it at the same time ] through MP3.com or D.Music type site you must be retarded.

He's absolutelly right. If you want to make it big nothing has changed.

How many A.DiFrancos do you think there are and she's not really all that big.
You have a much better chance of being struck by lightning while receiving a blowjob from Britney under George Washingtons cherry tree than to follow in her footsteps.


Anonymous  
Date: July 1, 2000 @ 11:04 PM
I think he needs to shut up so much!!! You are so busy fighting off new technology!!! GET OVER IT!! OUT WITH THE OLD, IN WITH THE NEW!!!!

Anonymous  
Date: July 2, 2000 @ 1:41 AM
sheep

Anonymous  
Date: July 2, 2000 @ 4:42 AM
Oh, the bastards who grabbed the music industry by the balls and stole it off its rightful owners (people who actually like music) are scared cause the powers returning. YOU GUYS SOLD OUT THE MUSIC INDUSTRY music isnt even music anymore, its pathetic, britney spears is an ugly slut who cant sing, and she has monotonous synthetic music in the background, major labels suck just like any other money making organisations, i hope you all ROT IN FUCKING HELL.
Punk Rock Forever

Anonymous  
Date: July 2, 2000 @ 4:43 AM
oh yeah, and suck my black dick

Anonymous  
Date: July 2, 2000 @ 4:55 AM
I like to PLAY QUAKE3

RyanS  
Date: July 2, 2000 @ 5:05 AM
Hmm..some harsh words there, but you have a point

Anonymous  
Date: July 2, 2000 @ 8:01 AM
I think the trick is, if artists want the FAME, they should sign with a major label. Whoever mentioned the major corporate marketing machine, was absolutely right. Half (or more!) of the acts out there that make it big, do so because there's a huge marketing machine behind them paying for their radio placement and their prominent shelving placement in the record stores - to say the least. But the major labels aren't run by people who care about the MUSIC anymore. They're run by businessmen. (Yes, MEN. Let's face it, grrls.)

If artists actually want to take home some MONEY in their pockets when all is said and done, however - and want to do so after their first album rather than their second or third (and with the majority of their dignity intact), the indie way, while possibly a lot more work, is a lot more consistently rewarding. It takes a heck of a lot less sales on the net through indie sources to actually have some money in pocket if you're an indie, as apposed to be with a major label. So yes - you may not ever be as big. But you can just BET A.DiFranco is enjoying her life a HELL of a lot more than Britney Spears right now. Poor kid.

If you want to see some indies in places other than MP3.com, etc., check out http://www.musesmuse.com/songhome.html. Some truly fantastic musicians and songwriters there that deserve recognition and stand out from the crowd. There may be a lot of dross out there - but there's some absolutely fantastic stuff too - if you're willing to listen.

Thanks for reading.

Anonymous  
Date: July 2, 2000 @ 10:47 AM
THE DOOR IS OPEN. Way too late for people in the RIAA to shut it now. I personally will make sure i help as many people to free music as i can.

B00MER  
Date: July 2, 2000 @ 10:19 PM
Anyone who wants to make any type of real money off their music, I'm sure would go for a wanting a large label like BMG, but for people like myself and others who do the music for themselves and others. maybe to get something out of the track is enough for me to continue what I do. I've had numerous emails and comments from people on the work I do. I am an artist. Once money becomes involved it totally changes your aspect.

For example, I do alot web design/flash work to support myself. When I create something like www.molotovbliss.com It is all me and my thoughts/idea's etc. However 9 times out of 10 when working with clients who are paying for the work, Will give you lots of "THEIR" input into it. Sometimes no matter how hard you fight for your idea, they win, why because they are waving money in your face.

Anyhow, I'll crawl back into my humble hole.

Anonymous  
Date: July 2, 2000 @ 10:50 PM
I must agree with whomever said "sheep"

Anonymous  
Date: July 3, 2000 @ 10:52 AM
hey Melnick, people DO want to listen to bands on mp3.com. I found two great punk rock bands there, he is a total asshole for assuming that the web will never be a place where bands bypass record labels. Wake up! It already has! Have you ever heard of a little band called "Fisher"? Probably not. Retard.

Anonymous  
Date: July 3, 2000 @ 10:54 AM
as a follow up to my post I spelled Zelnick wrong. sorry.

Anonymous  
Date: July 3, 2000 @ 11:50 AM
"Acts that make it big do so because they are being showed down people's throaths by big corporate marketing machines. There aren't nearly enough people willing to look through all of the MP3.com crap wasting hours just to MAYBE eventually find one good artist."

I dunno, there are plenty of people willing to sit through hours and hours of corporate-rock crap on the *radio* to MAYBE find one good artist... PLUS they have to deal with the mindless jabber of DJs and the incessant blaring of commericals...if you're a music fan, downloadable music is clearly superior.

Maybe an artist in the new millenium won't make it *as* big as the brain-dead ogle-me-please Britney-gum pop artists we have today, if they rely on the DIY style of promotion that the Web and Napster so ably allow...but it seems to me they'll do *just fine*.

And even if they're not taking home a jillion dollars, neither will they be forced into debt or humiliating, soul-destroying promotional gimmicks by their friendly neighborhood multinational conglomerate. They can control their own destiny AND have a chance at creating a fan-base the way it was MEANT to be created. From the bottom up.