Creative Destruction and Major Labels
Capitalist philosophers like to prate on about the glories of “creative destruction,” the process by which one sort of business is replaced by another, more efficient sort of business. Working capitalists also champion the process, right up to the moment when their particular business appears to be in danger of being “creatively destroyed,” at which point said capitalists convert to “central planning” and go looking for government assistance to save their butts – and their profits. So it is with the major record labels, which are being “creatively destroyed” at the moment by the new models of digital distribution of music, rendering the CD model obsolete. The labels, which for many years relied upon and, indeed, bribed radio stations to play their music for free are now demanding that the government change the arrangement and make radio pay performance royalties as well as the traditional songwriter royalties. The labels now claim that radio has been getting a free ride and that radio airplay does not generate CD sales. They pull a thin blanket over their hypocrisy by claiming that they are doing this to ‘benefit the musicians.’
It is to laugh – they screwed musicians for years, tried suing their customers, which proved to be a very poor idea, and now seek government help, which, if provided, might have the unintended effect of damaging the radio industry and resulting in less airplay. If you are a musician, try to stay out of the way of the falling elephants.