The music industry and the digital revolution

The music industry has come a long way since Radiohead allowed fans to pay what they wanted for an album. But there is still plenty of digital disruption going on. Tech companies such as Kobalt provide an alternative route for musicians to find fans and manage their money-without having to rely on a record deal. Click here to subscribe to The Economist on KZbin: econ.trib.al/rWl91R7
The Disrupters is an original series exploring how major industries-from music and cars to hospitality-are currently being disrupted by the latest wave of digital innovation. As well as enjoying privileged access into the world biggest tech start ups we show how industry giants respond when faced with such tech-driven innovation. Do they adapt-or die?
Check out Economist Films: films.economist.com/
Check out The Economist’s full video catalogue: econ.st/20IehQk
Like The Economist on Facebook: / theeconomist
Follow The Economist on Twitter: / theeconomist
Read our Tumblr: / theeconomist
Follow us on Instagram: / theeconomist
Check out our Pinterest: / theeconomist
Follow us on LINE: econ.st/1WXkOo6

[@NAJErEa91]

"TO BE ABLE TO MAKE MUSIC FULL TIME; YOU'VE MADE IT." I AGREE WHOLEHEARTEDLY!

[@neonvandal8770]

Prince is smiling from above - He knows the smart kids have learned his lessons.

[@Einnor084]

Neon Vandal They will Fentanyl dat azz. Datz whut I learned.

[@justaman9724]

Prince sold his soul to Satan. He's not up above.

[@oneaviatiorandminecraft]

@@justaman9724 :( How did you know?

[@justaman9724]

@@oneaviatiorandminecraft do your research on the industry. It's full of satanic symbols. In order to make it big you gotta sell out.

[@justaman9724]

@Sarabakesthebiscuits :} Lil Nas X?

[@haliec9759]

This has been so informative. Thank you!!!

[@franksantana9553]

Awesome work The Economist! Really enjoyed watching!

[@ryangalloway3107]

They had an artist that wasn't able to make a good song and had to teach them how to make a good song over an 18 month period? Frustrating and sad, lol.

[@Daneiladams555]

Ryan Galloway not believable

[@kereamohau]

It would have been someone with the right look and a great voice. But maybe that person has never written their own music before. It's more common than most people realize.

[@RustyEgan]

They had a writer who they taught how to write the music THEY wanted .The horrid crap they put out

[@quackcement]

this is crazy they claim they spend huge amounts of resources finding talent only to subject them to 18 months of making their music sound more mainstream in the first place, why even bother looking then. major record companies certainly won't be choosing what music plays at my wedding. i think most people are more then capable of looking beyond the charts

[@AMetalheadsJourney]

Yeah, and there are 1000s of artists who are ready and killing it, yet they don't get that shot!

[@ryanlee4639]

"we take all the investment" - capitol records dude. Ummm. What? The years of hard work, dedication, time, energy, money and persistence from the artists don't count as investment that should be considered, risked and rewarded?

[@jessefillmore]

He is told to say that cause they want all the profit . Record labels live off new cheesy Pop /Hip hop music and their back catalog . Cheap streaming is ruining the business . The quality of these streams are not as good as a new 180 gram vinyl record IMO . The problem is we have no "radio" or "MTV" type promotion anymore . It's a fucking free for all . Companies want to be the next "youtube" or "facebook" . A site that is the main source of everybody's news source or in this case the "what's good/new " in the music bizz . KZbin and facebook have turned into monopolies . They have no competition and they are so in bedded in the culture that it would be tough for a company to compete .

[@markportnoy6290]

And those investments are largely repaid by the artists.

[@BarryWarne]

Thinking of "Record Companies" as banks loaning you money is a good place to start. Rule 1: Never Sign Anything without first hiring a good Entertainment Lawyer

[@acharich]

Good spot.. lol

[@kayzweller_dj]

to be honest, the label think that they are the main power of industries. I think, it's still comeback to the artist itself 😅

[@cyberrik50]

Great article/video.

[@obiwantschernobyl5650]

8:48 finally found the glitch in the matrix

[@claude6407]

This ad is so amazing! They just give me the relative part of radiohead in this video.

[@peterlagroove6555]

it’s very rare to find bands that write and perform their own songs. Everything has largely been decoupled - songwriters write songs, producers produce / make the song, singers sing the songs, session musicians play the songs etc. Everything is in a silo.

[@rODIUMuk]

MANUEL XAVIER i quite like that

[@VIVEMusic]

Really informational video!

[@AlastairDodwell]

Great work. Passed the link to my music buddies. Thanks.

[@sunsetvlogs5500]

Alastair Dodwell you live very close to me I live in st Margaret’s

[@revealedbangla-8725]

Wonderful content and aslo editing.

[@DanyPurpleGirl]

What about bandcamp??

[@acharich]

Their cut seems to have increased.. I remember it being 10% before..

[@sergiomontesdeoca5955]

Nice job TE! good stuff

[@franksendler3805]

Great work and very insightful, Thanks Economist!

[@RajBeats]

great music! solid work

[@timotheusn.h.nakashona1001]

In say maybe 10 years time all the recording companies will die out thanks to streaming sites. Artists are now in charge of their art and they can sell it to whoever might be interested without the recording companies. Bandcamp is the best place to buy music from indie artists.

[@bassinblue]

11:40 watch from there. Is everything you need. The kid has excellent points.

[@spane5mixline]

Information is the simple difference between the rich and poor.

[@davidattali74]

What about the money?

[@cnote9401]

Connections help too

[@thabomonethi7426]

@@davidattali74 Information is money "Rich" and Money is "poor". A check is money you give an artist in cash...but if I own all the rights to your music forever.....do the math.

[@ayespeen353]

stop spewing your privilege on the internet idiot

[@thewaronrugs8493]

the capitol dude is everything that is wrong with majors.

[@itsMrNoble]

You can’t trust anyone that buttons up to the neck like that.

[@LafayetteHarrisJr]

Very informative. Thanks.

[@StamatisStabos]

8:50 😳

[@TheAadizookaan]

Stamatis Stabos same

[@jayjewelz3093]

creepy af!

[@DJPapzin]

"I don't see the disruption" That's very ignorant...

[@kehkeh92821]

ohhhh shiitttt- I just realized it always seems like an artist goes big and then falls off the face of the earth: it's because the companies that retain the rights keep pushing the old songs they still own to keep making money and basically try to edge out the newer songs.

[@macewbee]

Yep

[@nathanieI]

Anyone know of any documentaries focused on self publishing music?

[@traylingeriexoxo]

I love this, thanks for helping us artist keep our rights to our investments .

[@JustinDon]

love this video I wish I could watch it for the first time again

[@novakordz3928]

One of the best I have seen thanks for telling the truth! It means everything!

[@alexg3348]

Go Kobalt! Good work!

[@musicellaneous1909]

Brilliant video!! :)

[@lewisdavey466]

Love these

[@queenred.6159]

Yo this is a super dope concept ... I like it

[@dvdragon]

"You see the love of a pimp is different from that of a square." - Record Company

[@alexandreboulet5822]

what is the song playing in the background starting at 8:00

[@anoushkavariava3439]

What I feel is, both sides have their reasons for what they're doing. Record labels are just a third party system that wants to earn money too. The perks a record label provides is different from the perks an artist gains without a record label. For example, an upcoming artist who is new to fame and the spotlight and all the attention may not know how to handle it properly and may need some assistance or guidance. This is where a record label comes in. Vice versa works too when an artist is able to handle the fame and attention and do not need a third party to count their earning. Because see, why would a concept such as a 'record label' come in the first place? or why do artists have an option to choose whether to work in a record label or not? So it depends on what each individual thinks about this video as there is no wrong or right. This is my point of view.

[@flavours-music]

Big up Kobalt! Legends :)

[@renestjacques1]

Thanks to all in the music industry, investments and valued fans ..!!

[@jeff7037]

In China, it also has this phenomenal. There are some plain artist or a new self-creative song on the Youku channel, a really big and famous video uploading platform such as KZbin. Here I didn't mention the song style individually because of that the vegetable or radish there are always some one like one of it. I image my childish allowance on spending a artist CD record. Now, all of them are laid on the top of my bookshelf. It seems same as my mom's vinyl record and cassette. The current fashion artist contest is prevalent in every country's TV channel. But, the purpose is a little bit different to my childhood image's TV artist contest. The current plain artist is much easier than the past one that may possibly be primitive by a music company or studio. Thanks to technology to make people be easy to transmit what they want to spread musics on the internet. It is much more native and it must be responsive. This anti-conventional company seems owing a technology to analyze the data. The film show a pie chart. I just wildly guess.

[@dcupmusic]

10:13 "Mould" being the operative word. Dont F*ck with majors if you have any talent. You'll get on MTV once and be broke within a year.

[@philgowmedia]

To the video editor of this film: You are missing iFrames in this video. Did you cut this in an h.264 timeline (FCP7?)? You need to convert all the footage to pro res first then reconnect the footage and you won't have the problems you're having at 3:20 and 17:15 for example.

[@EclecticoIconoclasta]

I actually enjoyed those moments. It shows how the big labels have melted

[@ReyBeats]

i was about to say the same thing

[@HyperSpace-App]

plaftorms like synereo, steem and singular dtv is going to change everything

[@Hi_Ceejay]

What radiohead song was playing I loved it

[@ancientmartianunderground6413]

"In the music business, nothing is more important than the music itself..." 👍 ...good video but where was Prince in this story? ...Prince laughed at the labels

[@BATATADJ]

THE BEST!!!!

[@DarkReapersGrim]

9:50. To be fair, that's not the strongest points of labels either. It used to be labels took unknown artists and developed them. That's what A&R divisions in record companies (which stood for "Artists and Repertoire") used to do before record companies cut them for more profit. They don't do that anymore and haven't done so in like 20-25 years. Instead what they have done is go to KZbin and other major sites and search for the next act who already has talent so they don't have to expend as much or many resources in putting him/her on the main stage. They've gotten so recordish to where they wait until the artist has a respectable following to swoop in and profit and capitalize off of that as if they've earned a piece of that artist's success. So, no, you guys don't do that either.

[@TheXComputerXDr]

10:11 He says that they can mold and develop artists, this is exactly what is wrong with music, you cannot get genuinely good music when the artist doesnt have full creative crontrol. If the artist doesnt sound good upon there own volition, it is a fraud, and thus will be repetitive and sound like every other mainstream artist in its desiginated genre...

[@davidellis5141]

The Decline & Fall Of The Record Industry . A painful , slow process of death.

[@phillipchristoffersen3632]

I like that... nothing is more important than the music itself.

[@eseluh]

OH MY GOSH YASSS JACOBBBB

[@ifixyourmix]

The artists make the labels possible. The music is what moves the hearts of the masses. The digits are not the heart and soul of the sound. The gifts that we have as musicians are now here to be shared fairly. Now that NFT's are here, let's see how music can unify the hearts of the masses to a world with love for music.

[@AMetalheadsJourney]

The other problem today is there are so many artists out there. For example, I've never heard of the guy they talk about here that had two big US tours, yet he is big? Where do these guys come from and where do they go after their 15 min of fame?

[@danjethrojamoyot3861]

That's why you should own your masters when you're an artist one thing that Prince, The Beatles and Taylor Swift going to do.

[@Terrahoskins]

I think Barry Gibb fought that battle for The Bee Gees. Which was important....They have a massive catalogue

[@kbhmagjor]

I like the Sony guy's shirt.

[@dxlphdayana8360]

Can't wait to see his as the norm in 10 years

[@riellymorton]

8:50 when you think of all the money you're losing

[@TheWalkatourChannel]

record companies just want the big chunk of the money.

[@michaeldavis2585]

Regardless of what you pay capitol record 's you help them they help you I like there model

[@marcuschetwood]

Does anybody know who Moby is from the start and end of the video? Would really help me for my university essay. Please, thank you.

[@friendlylaser]

Wow, such flashy advertisement.

[@IrwinWhitesidesFan]

YES JACOB

[@MrTwoFox]

what song is the intro?

[@YariBeatsMedia]

Brutal truth.

[@jm-je4tl]

What's that Guy's name? Jacob who?

[@bgimusic]

interesting video!

[@paulcann2613]

"We signed artists, in the past, that didn't have one song that we liked". It's not about what you or your staff like, it's what we like. If we'd let record companies dictate musical tastes to us then 'Bohemian Rhapsody' would never have seen the light of day. Do what David Geffen did. You do your job by taking care of business and let the artists do theirs. I understand the financial risks to the label but if we let them make decisions on what we might like then the evolution of music is over.

[@StratMatt777]

10:57 And now you know why Tommy Mattola killed Michael Jackson!

[@acharich]

👀👀👀

[@ronaldpires7205]

as taylor once said music is valuable and should be consumed by albums and albums should be consumed with art !!!

[@vasarian]

If you are talking of Taylor Swift she no doubt would have a great outlook on music. She could always afford it.

[@deathlarsen7502]

Nobody has ever heard of that Jason who?? Anyone can but FAKE TWITTER FOLLOWERS. Twitter followers doesn't mean squat. Everyone knows who Springsteen and Madonna is. Lol never heard of that punk kid. That said it appears he can make a living singing in the Holiday inn lounge.

[@jameshall9402]

Barbra Streisand was smart enough to insist on total artistic control in 1962. She was the pioneer...not Capitol, not Kobalt, not Scooby-Doo, or anyone else. Barbara Streisand owns "Barbra" Streisand.

[@samuelfrench9665]

why would i want the record company to mold me into their image and not mine..............

[@ranielpangilinan727]

I love the British music industry.

[@sunsetvlogs5500]

12:08 never heard of him

[@ahzootube]

Maybe you are older compared to his target listener profile?

[@acharich]

Bruh..

[@PXNDOR]

Never heard of him

[@antoniobutcher]

spotify?

[@YariBeatsMedia]

I'd sign up to Kobalt if I didn't need the advance. Otherwise I can dig working for the man no matter how temporarily.

[@DJR-NZ]

Disruptor, more like destroyer. Destroyer of artists income. Artists make a pittance from recordings and now have to tour non stop to make an income. The people now making the money in 2019, Spotify and big labels (yet again). Big labels get a better % from Spotify than artists. They made cosy deals between themselves. Digital has not been good for musicians. These people talking in the documentary, now in 2019 they have done sweet f all. All hot air bs.

[@rabissenseicomprende7994]

Hmm

[@bonzodog67lizardking15]

Tell that to Van Halen. They sold millions of records, and toured their butts-off only to find they owed millions of dollars to Warner Bros. and more records for their trouble. If their tour manager hadn't managed to trick Warner into letting their contract renewal lapse, the band would have been indentured slaves to the label in perpetuity. Only after Warner could lose them to another label was a just contract -- lucrative for both parties -- finally crafted.

[@Karma-vy9rj]

This is why Taylor Swift is fighting back against the system. It’s disgusting how the music industry lets artists put their blood, sweat and tears into their music and then take it away as soon as the contract is up.

[@TheSideProject]

Yes but the man STOLE HER DISCOGRAPHY!

[@MalikEmmanuel]

3:40 "we make all the investment in terms of skillset and money" WTF??? I have never seen a label dude play an instrument, EVER. What skill set?

[@whogivesadamn9313]

1:44 XD This made me laugh

[@alexdavinci9533]

I like what's happening to the music industry. Now they won't take advantage of the people that really keep them going, i.e., the artists.

[@imanal2543]

True,and you don't have to controlled

[@KillerBill1953]

Record companies used to spend time and money nurturing artists, they could produce two or three poorly selling albums but the company would give them chance to mature. They don't do that now. The first album has to be a commercial success or you're out. There's also the fact that artists can sell well and still make no money because of how the revenue pie is cut up. The bulk of the money goes to people who do nothing but take. BTW who would take on someone who can;t write a sellable song in 18months? I very much doubt that happens.

[@michaeldavis2585]

Capitol record 's would be my best option 's ,I would lov a deal with them

[@kirstinstrand6292]

This is from 2016.. How is the music industry faring 10/2018?

[@sarahs9031]

I would like to know as well

[@RustyEgan]

Capital Records bought out Ujomusic will steal the concept and control once again

[@nealdahlgren8141]

You have to remember that Radiohead gained a massive amount of attention and fans because of their first single ‘Creep’ which they reluctantly hated but the label pushed hard for. If it wasn’t for the song Creep, OK Computer wouldn’t have had the success that it did I. OK Computer put them in the stratosphere. It gave them the audience to then do what they wanted. It’s a give and take. The label has always been a bank full of money. Get a good entertainment attorney and if you want a deal then fight for more ownership. If they pass then find a team that’s gonna fight for your music to get out there.

[@alexh.361]

Source?

[@danielwofford275]

Record companies talk of taking risks by making investments but when you can mathematically predict how its going to go its not much of a risk. People do it everyday by making a budget. lol

[@derekirons2615]

SOMEONE INTELLIGENT PLEASE COME FORWARD N BE OUR COLLECTIVE ARTISTS VOICE NOW! -WE NEED TO CONVINCE EVERY DAMN ARTIST KNOWN N UNKNOWN TO PULL ALL SONGS FROM EVERY STREAMING SERVICE THEY ARE ON NOW!! WE NEED TOO SHUTDOWN ALL STREAMING FOR GOOD!! WE WILL FINALLY STAND TO MAKE A GOOD LIVING BY FORCING MUSIC LOVERS TO BUY FROM US DIRECT OR THRU ITUNES AMAZON WHOM EVER- THIS IS FAR BETTER THEN A FITH OF A PENNY PER STREAM!! WE CAN DO THIS FELLOW MUSICIANS!! POWER TO THE MUSICIANS!! PASS THIS ON NOW!!

[@Boreslav777]

To be an Artist does not required education, ... just a talent. How not to use them! Let them jump - freedom of expression is all what they need :-))

[@chist2190]

misleading doc. radiohead were not the first band to sell their music online without a label in 2007. many have been doing it or atleast attempting to do it. this gives the impression that they did something that had never been thought of before and set a precedence.

[@StuntcatTV]

Those girls in the audience are nuts.

[@andreamai]

Paid downloads was fine. But streaming doesn’t make sense for artist revenues. Artists barely make anything from streaming. Music streaming is exploitation. The idea that an artist gets exposure and therefore making money through ticket sales is flawed. Well that forces them to have to tour, and touring is not always profitable. This is why concert tickets are so expensive now. And what happens when an artist gets older and is too tired to tour? They should still get money for their music via royalties.

[@AudioPervert1]

Mainstream culture has very little 'space' for addressing extinction, instead dancing away to the death march of acquisition and consumerism. Most pop-artists, major record labels, music festivals and popular blogs remain silent or oblivious about the subject. A large part of their content is instead looping on brand hype, icon-worship, merchandise, tickets and discounts, as seen on twitter, instagram and facebook. 'Rock and Roll Gods' and 'high-profile Divas' have voiced solidarity for the protection of the environment, however it mostly serves their public-image and career, sans any real sacrifice or tangible effects. 95% famous DJ's and EDM superstars flying around the world are 'mute' or clueless about climate-change. World Tours and tens of thousand watts running on fossil fuel economy. The 'petro-billionaires' keep counting their profits.

[@EasyBreather000]

Audio Pervert - your comments are very interesting observation in my opinion. Much of what you say here has been floating around my head for a long time and I personally sense there is so much to be genuinely concerned about. As you say, "most of the major 'players' in the 'music industry' remain silent or oblivious (to the potential material reality of any approaching catastrophe) whilst 'fans' dance away to the death march of acquisition and consumerism" : this is profoundly expressed. I've sometimes thought in recent years that 'the world' probably wont be able to continue supporting all the touring that seems to currently be one of the largest money spinners for the artist etc.. I hate to say or think it (being a guitarist at times myself) but the giddy ride of success and stardom may grind to a halt for many industry people, successful or otherwise, due to various environmental, technological, economic and geo-political factors currently developing in society and on this planet (not to mention the spectre of war...). What more can I say being that you put it so well? I welcome any further comments you have about this subject (and others) and maybe we can enter into a short dialogue. Who knows. Bests, EB

[@blaumausfrau]

and what does Raphael mean by "DEVELOPMENT?". NO group or artist wants a label to TELL THEM HOW TO FREAKING DEVELOP. Having someone help you with ideas is one thing but a label who tells you WHAT to play or what songs to play is your enemy not your friend.

[@privacyIsKing]

Well...why do we keep relying on the labels? I've been offered some kind of recording and I always say no. I'd rather own my music even if its just me doing everything than having people live off my work

[@jaguarandi2]

Where are the women?

[@spane5mixline]

they are giving birth

[@diregremo]

Making sandwiches

[@auntieantebellummyblacktra229]

Apparently they don’t exist

[@SuperGiantgaming]

In the kitchen... (Just a joke)

[@kjetilbirkeland1]

08:51

[@frankmannino2752]

iam over here got to find a better way to find the artist not going to find on your phone hahaha i didnt no this great vid i love music iam the next big thing i would love to get to meet any 1 who is in this buis it fits me great people saving the music bottom line here

[@patrickbritt-brousseau2813]

Advert for Kobalt...

[@077di6]

Radio head first rip off their "best" debute song and also the reasone they succeed is because someone invest them at first place.

[@thesefran1286]

blatnat propoganda for record companies - They LITERALLY allowed the capitol smarmy ceo ' nice guy' to view and directly reply to the radiohead band members criticisms lol