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The Lefsetz Letter

Sales

by Bob Lefsetz

The dream is over.

According to hitsdailydouble, "Dreamgirls" didn't even break 60,000 this week. In a few hours the SoundScan numbers will be in, with the statistic that sales are off in double digits once again.

This is not a Levy and Munns problem. This is not an isolated circumstance. This is a fucking DISASTER!

Blame it on vapid music. Blame it on bad radio. But first and foremost blame it on a failure to deliver the tunes the way the people want them, in a mix and grab collection that is vast in quantity, but low in price.

These are all public companies, these majors are. They can't sit by like an independent and wait for better times, they've got shareholders, they've got to DELIVER!

Sue more file traders?

That didn't seem to stanch the bleeding.

CD extras?

Who wants the CD?

Single track sales for a buck at the iTunes Store?

It's not the copy protection that's limiting sales, but the price. Yes, in a world where so much is sold for a flat price, an all you can eat price, music SEEMS expensive. The key is to get more money from EACH individual and give them more in return. Make EVERYBODY a music customer instead of the few now partaking.

Every day people e-mail me YouTube links. The best ever has been this, from Harold Bronson:

www.youtube.com/watch?v=b0P_XaWvp2M

People are excited about music videos. They used to be excited about the music itself, when Napster lived, the ORIGINAL Napster. When people are excited about music, everybody profits, the label, the performer, the writer, the concert promoter, the trickle down effect is stunning!

The spigot must be turned on again. People do want music, just not the way those in control are selling it to them.

Think about it, if the iPod is almost every owner's most treasured possession, isn't that because of the music it contains? What's a car if you can't drive it?

No one with any power is making any changes. It's never too late to save your business, to save an industry. Recorded music must live. People should pay for music acquisition. Just start charging them for what they're already doing, trading P2P. Or else watch your stock sink in a death spiral.

Bob Lefsetz, Santa Monica-based industry legend, is the author of the e-mail newsletter, "The Lefsetz Letter". Famous for being beholden to no one, and speaking the truth, Lefsetz addresses the issues that are at the core of the music business: downloading, copy protection, pricing and the music itself. His intense brilliance captivates readers from Steven Tyler to Rick Nielsen to Bryan Adams to Quincy Jones to EVERYBODY who's in the music business. Never boring, always entertaining, Mr. Lefsetz's insights are fueled by his stint as an entertainment business attorney, majordomo of Sanctuary Music's American division and consultancies to major labels.

While Rhino may occasionally disagree with some of Bob's opinions, we certainly agree with his right to state them. At the bottom of each column we give you, the reader, the opportunity to respond and we encourage you to do so. We will post select comments.


LET US KNOW WHAT YOU THINK.

A word about submissions: We post what you give us, so please don't include your email address or any personal info. Your comments reach Rhino, not necessarily the writer, so don't expect a reply from them (or us, see our help section for contact info). We gather and post your submissions in batches, so do expect a short delay. And don't get bent if we edit your comments. We probably won't, but we reserve that right.





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