What if Gene Simmons was right?

Here in the new music industry, the paradigm is shifting. There’s a clear lack of synergy between the next-gen music makers and the major label gatekeepers. As a result, there’s a clear lack of revenue caused by and resulting from illegal file-sharing by the disenfranchised youth movement. While some may claim a certain Luddite pretense by those in control of the industry, it’s easier to claim that they’re disconnected and reluctant to embrace new technologies.

Maybe you’ve heard this bullshit before? I thought so.

Personally, I’m really fuckin’ tired of hearing BOTH sides of this argument. The major labels are losing money because they’re putting out increasingly irrelevant, low-quality product designed to make a quick buck. And they’re losing money because technology has made it easier to get more music for less (or no…) money, faster. Love iTunes or hate it, the 99-cent download isn’t nearly as profitable as the $12.99 compact disc — including manufacturing, distribution, and all the other related costs that labels love to include. You just can’t split the 99-cent pie into enough pieces to satisfy all the payouts necessary.

Then along comes Gene Simmons. This quote grabbed me by the biscuits: “The music industry was asleep at the wheel and didn’t have the balls to go and sue every fresh-faced, freckle-faced college kid who downloaded a clip, so now we’re left with hundreds of people without jobs…”

The more I think about it, he’s right. Take this into any other industry, and it’s not even up for debate. If you run a grocery store/clothing store/liquor store/car dealership, and someone finds a way to help themselves to your inventory for free — you’d do something about it. Fast. They’re stealing your product!

If in this same example you wanted that to happen, that’s different. Then you’re complicit in the act, and it’s permissable. The more people steal my t-shirts, then my designs get out to the public, and maybe people will buy my shirts. Hey, that’s cool. It’s a bit subversive, but whatever — free market economy, right?

Gene’s point is completely different though. He’s saying that the head honchos didn’t do enough when they could. They failed to plug the file-sharing dike, and now the floodgates are opened wide. Stealing is stealing if someone takes something they don’t have permission to steal. It’s not an issue of corporate greed, self entitlement, or “they’ve made enough money.”

And while I’m on it, how ridiculous is that statement? I heard someone say that “Metallica made enough money. They don’t need anymore, so I don’t mind downloading their music.” C’mon, seriously? I told this kid that I was gonna take $50 out of his next paycheck, ‘cuz he’s making enough money. That $50 won’t matter to him. He got really pissed. Said I have no right to do that. But it’s the same thing, isn’t it? There’s no limit to how much money you can make, so long as you’ve done the work to earn it. Metallica made the music, they get the right to earn from it.

But back to the matter at hand. The major label system, for all its greed and excess, gave us some pretty impressive music. Their system pushed it out around the world, put it in our hands, got us to concert halls, and soundtracked generations. From Gershwin to the Beatles, to Madonna, to NWA, to Jay-Z, and so on, they’ve established themselves as the gold standard for music. OK, they’ve had some misses too — no arguments here. But the point is, for a long time, they shaped a cultural consciousness.

I’m thinking Gene would agree that over time, they got lazy. They wanted the “old ways” to persevere. And as the folks who created those massive mega-albums/talents aged, they got … old. And they got complacent, and they needed new blood to take over.

A quick glimpse at the age of a few major label and key industry folks:

Clive Davis – 78
Jimmy Iovine – 57
Bob Lefsetz – ??
LA Reid – 54
Robert Stigwood – 76
Berry Gordy – 80
David Geffen – 67
Jann Wenner – 64
Edgar Bronfman – 55
Tommy Mattola – 61
John Kalodner – ?? (Retired)
Russell Simmons – 53
Rick Rubin – 47
Phil Spector – 70 (and in jail, and kinda weird…)
George Martin – 84
Mutt Lange – 61
T Bone Burnett – 62
Chris Blackwell – 73
Richard Branson – 60

And before you get all up in my face, I know this list isn’t complete. And sure, I’m missing the folks running a lot of stuff today, but these’re the guys who went from NOTHING to massive success. Today’s execs just inherited a business that they’ve quickly destroyed. It could be argued that the old guard hung on (is hanging on?) too long. Still though, Gene Simmons point is valid: they fell asleep at the switch.

For all the wonderment and amazement and opportunity and upside and exposure of YouTube, Facebook, Twitter, MySpace, where’s the next big thing that’s gonna hit a home run out of our newly level playing field? So far, the biggest sellers are still major label: Lady Gaga (Interscope), Taylor Swift (Big Machine/Universal), Emimen (Interscope), Katy Perry (Columbia/Capitol), and so on.

Kiss sold over 100 million albums, and even Gene Simmons would agree that some of ’em aren’t the greatest. But nobody has come close to that without the major label support. We can bitch and moan about their excesses, and that they “just don’t get it” anymore, but until the indies start putting up the same stats, you can’t argue with the numbers.

Had the major labels stopped illegal file-sharing when it started, they could’ve altered the course of music and music technology. They could’ve proven that music (even in digitally recorded form) has value, and as a product it should be just as guarded and protected as any other physical item. But they didn’t do that. They were old, tired, and too entrenched in the old business methods to change. That happens when your average exec is grandfather.

If the major labels are truly to blame, then they’re guilty of allowing the product to become devalued. If it’s no longer worth anything, why pay? You could argue it’s the “responsible” thing to do, but doing the right thing and purchasing the 99-cent, or $1.29 single, or the $12.99 CD seems silly when it’s just as easily available for free — and often with better (FLAC) quality and availability.

So I’m gonna put it out there: Gene Simmons was right. The major labels are crying the loudest, ‘cuz deep down they know that they started the landslide that’s leading to their own demise. But the indies and DIYers can’t claim victory yet — not ’til they can match the power/infrastructure that majors provide.