Globalization and the Music Industry

Introduction to an Independent Take Over

by Tatiana Simonian

[Ed. Note - This article was the result of a 30-page academic paper I wrote exploring the current effects of globalization on the music industry. The primary research question I went in with was very basic, it revolved around a simple desire to qualitatively assess whether globalization favors major labels or independent artists. Considering how globalization tends to be big business centered, I found it intriguing that there's almost a catch 22 in the music world seeing as how independent artists have more agency now as a result of technological conventions.

This was not an argument for or against globalization (despite the fact that the independently-owned nature of Anthem might cue you in as to our stance on the subject) but rather, a primary analysis and summation of its effects based on research involving over tens of secondary sources ranging from academic articles to news pieces. Thanks. ts 5/2006]

Globalization is a subject fraught with opposing views, there are arguments as to whether it is beneficial and opportunity-laden or whether it is inherently imperialistic and monoculturalistic. Critics are right to point out that there are many instances in which globalization can be negative, Wal-Mart and Starbucks taking over the landscape isn't exactly a pleasant sight for everyone. However for individuals striking out as independent artists (and entrepreneurs), globalization presents us with the challenge to either learn to deal with the changes and use them to our benefit, protest them and provide alternatives or ignore the subject altogether and sink to the bottom of the barrel. A thorough survey of the subject illustrates two things: the need for people in any profession to be incredibly well-versed in the ways that globalization affects their particular field. Secondly, turning a blind eye to the issue is incredibly dangerous unless you're in a highly specialized field with a niche skill or market. Globalization seems to point to the fact that what can be outsourced will be outsourced. One example of this is the outsourcing of disc jockeys. Los Angeles' 93.1 Jack FM (sadly, no longer the classic rock station Arrow 93) is a disc jockey-free radio station that includes the tagline of "Leading the industry in selling out" in their broadcasts. And while it seems unlikely that we'll see the extinction of radio disc jockeys, it does signify the possibility.

One of the most important aspects when dealing with globalization is not only thinking outside the box but thinking ahead as well. When it comes to music downloads for instance, years ago critics lamented, "Who will want to buy music off their computer, let alone listen to it?" Well, the iPod certainly changed that. In fact, Steve Jobs took it a step further and said, "Hey! They'll buy T.V. shows too!" The fact that a computer company has had most of the innovations when it comes to digital media really says a lot about how major record labels in the music industry dropped the ball. However, it isn't surprising. Recording technology history has seemed to illustrate a correlation between music technology and lawsuits. While consumers aim for faster, better and cheaper (or free), major labels have jockeyed for protected copyrights and secured profits and in the process, often sidestepped embracing advances in technology.

The popularity of a site like MySpace and even dating sites illustrate the public's desire for a sense of belonging. And consubstantiation has always been an integral part of the music world. 80s punk rockers signified their loyalty to the scene with safety pins, Mohawks and Docs, fans of bands such as Black Flag or Social Distortion get the band's logo tattooed on their arms and for the throngs of Latinos who consider cult rock icon Morrissey their neo-Elvis, you'll notice similar pompadours peppering the crowds at his shows. This real-life consubstantiation based on music tastes also extends into the Internet. The individual (or even collectivistic) desire to be aligned with a certain scene combined with the popularity of social networking sites and the ability to get music quicker and cheaper mean that there are new ways to show you identify with a particular artist.

Looking over the past few years, the mass layoffs, label closures and restructuring of the music world illustrate that major record labels haven't been at the forefront when it comes to globalization (and that they've never fared well with technological advances to begin with). And while the majors seem to have embraced the Internet when it came to marketing, they have been very slow to get into the whole digital download scheme. In the meantime, more independent firms have been able to establish online markets that majors have to compete against.

For independent artists, globalization means a wealth of opportunities. It's an irony, considering that in other fields, globalization tends to favor large corporations and snuff out mom and pop outfits. However, consider this: independent bands from countries all over the world can now contact venues in other countries, set up tours and distribute their own CDs all from the comfort of their own home. Before globalization, this process was extremely difficult. Bands absolutely had to have a booking agent and a publicist in order to do set up tours and promote CDs but in the flat world, this isn't the case. There are websites with information devoted to helping independent artists find their way around the industry. There are hybrid music/social networking companies where a band can set up a free profile, put four songs up for download, promote their upcoming shows and market their CDs without having to pay a cent.

In addition, film and television music supervisors use independent musicians relentlessly because they don't have to pay the steep royalties that they would have to pay when dealing with major label recording acts. That is just one example where we see how being on a major record label can actually hurt an artist, and those who have switched from major to independent could probably add a few more.

Of course, licensing songs brings up the issues of "selling out" and "indie cred." For some artists, use of their songs in a commercial or television show is unethical and an artistic travesty. Then there are those who look at it as a way to gain exposure and pay the rent. It's a topic that can cause vitriolic debates and one that illustrates some of the conflicts at the heart of globalization.

To be honest, I've sat on both sides of the fence when it comes to the idea of licensing music. I used to be adamantly against the notion of using songs in commercials however, the fact that I discovered a great band called the Pernice Bros. by, of all things, a Sears commercial (and a website devoted to identifying what independent acts are used in commercials), led me to believe that maybe it's time for independent artists to consider sacrificing or restructuring the notion of indie cred. The rise and fall of Factory Records comes to mind, the fact there will always be cheerleaders to root you on but not to pay your rent.

Coincidentally, as this goes to press I'll have heard a Portishead sample in a Victoria's Secret commercial, The Presets and We Are Scientists on The O.C. and Louis XIV...on a Payless Shoes commercial all in one week. Maybe the question artists should consider is not should you give your music away for money but who you give your music to. (The fact that Hummer has been turned down by numerous artists [both mainstream and indie] is one such example of exercising this artistic control.)

Globalization and Hybrid Rock

Music business executives have postulated that globalization would lead to a wider playing field in the kind of music heard and what resides at the top of the charts. While rock dominated mainstream charts for years, nowadays there are more kinds of music ruling the charts-not to mention, more charts. This wider playing field creates more opportunities for artists with a specialized sound. It also means there is more room for more people to be successful. Hopefully, it also means we can stop the onslaught of Joy Division rip-off bands that plague the airwaves as well.

Globalization won't lead to the extinction of major record companies by any means however, it does mean the stage is set for independent record companies and artists to take a bigger share of the pie. Let's face it, major record labels have a lot more money and if they want to step up to the plate when it comes to globalization they can start a little bit late and still wind up trouncing competitors. However, the trouble lies in the fact that new independent companies are constantly entering the market while the major record world is sleeping and suddenly there are twice as many competitors for them to deal with than before. In addition, bad business practices such as signing trendy and baseless acts as opposed to "legacy artists" who take more time to develop (i.e. Bob Dylan, Jeff Buckley) have led to a string of financial losses for the record industry in the recent past.

In the meantime, independent record labels are getting the benefits of having the freedom to sign whomever they choose, selectively teaming up with majors who can option their artists, viral marketing and the use of free promotional tools via consubstantiation-based social networking sites and email. Furthermore, these same factors benefit independent artists who can market themselves, book their own tours, recruit their own street teams, option songs for commercials and deal with music supervisors who are more than pleased that they don't have to go through the red tape of a major corporation for a thirty second spot.

Scan over industry and academic articles on globalization and the music industry and it seems there's some debate as to whether it will lead to more rock stars from the independent market or not, however most agree that it will afford more savvy, business-minded independent musicians the opportunity to make a living as a musician. And pause when you consider that phrase, "making a living as a musician," i.e., not a day job at the restaurant, gigs at night and crashing at your girlfriend's. The concept of making a livelihood as a musician is a revolutionary concept that's worth a lot more than improbable notions of being a rock star.

However, what is crucial for these musicians whether they're in South Africa or Los Angeles is a critical understanding of globalization. Knowing when to jump in on a new venture or experiment with a new digital music site could have an impact on your career. Like business students have to stay on top of trends in their market, musicians have to do more than simply know what is selling but also how it is selling. The fact that the major record world is so slow to adopt to these changes and winds up wasting so much time in frivolous lawsuits signals opportunities for musicians who are well-read, early adopters with a specialized skill set and the ability to think ahead as well as think outside the box. And while this sounds clinical and seemingly devoid of artistry, I can say for a fact, that the most successful musicians I've ever interviewed have been those who are not only incredibly talented but also those who are incredibly versed in music business practices.

In the end, I don't know if there is a particular formula that any musician can use to guarantee success since, everyone knows it's a volatile industry. However, it's safe to say that your chances of success are a lot greater if you're an artist or a label who knows not only what's going on the music world as far as sonic trends but also the technological world that is so inherently tied to it these days as well.

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