NYU/NMPA Forum

An NYU/NMPA Forum: The Music Business Invents Its Own Future

On November 13, 2003, NYU and the National Music Publishers Association hosted "The Music Business Invents Its Own Future" a forum for students and industry professionals to engage in dialogue about the future of the music business. In addition to the panel, participants from the college and the industry were seated at tables for the purpose of having discussions on topics posed by the panel.

Panelists:
Richard Bauer, President, Asterisk Entertainment (and alumnus of the NYU Music Business Program)
David Benjamin, Senior VP, Anti-Piracy, Universal Music Group
Matt Buchanan, NYU student and Washington Square News columnist
Rick Carnes, President, Songwriters' Guild of America
Rebecca Tushnet, Professor, NYU School of Law
Mark Fried, President, Spirit Music Group
Moderator:Charles J. Sanders, Senior VP, NMPA (and adjunct faculty in the NYU Music Business Program)

Here are some highlights from the table discussions:

We acknowledge the value and importance of people involved in the record production (songwriters, producers, artists, etc.), but we also recognize and understand the fact that consumers want to have access to technology.

Some in the industry feel that technology is an obstacle rather than an aid to distribution.

The record industry has to try and be humble enough to listen to consumers. We acknowledge that the industry has a lot of experience, but that does not mean that there other realities that should be ignored.

The messages the industry tries to send to consumers, students and other parts (We've been here for a lot of years, and know what we are doing, You don't know about the business and MUST learn from us) backlashes. Even if we agree with a lot of their issues, the recording industry's attitudes close the dialogue channels and leave everybody else with a feeling of We've been left out. This gets people mad and therefore, undermines the possible negotiations and solutions.

Analogy between technology and alcohol prohibition: It becomes a taboo and the industry overlooks the fact that there is a demand for it.

There is a need to listen to the music before we buy it--The tables had mixed feelings about the lawsuits against digital music downloaders.

Digital downloads should be in a standard technological format.

Are major labels the only force that can initiate change in distribution?

Due in part to illegal downloading and the financial strain it has put on songwriters, we're seeing the end of songwriting as a profession. The current technological environment is not advanced enough to support digital business.

Shutting down Napster has been helpful. It was a step that the industry was forced to take. In addition to cutting down illegal downloading, the action signified that the industry would not tolerate copyright infringement.

Lack of regulation is an issue. Regulation needs to be implemented that pleases both the music buyer and the music business. It could be argued that, due to illegal downloading and the negative impact it has had on the industry, the music business has been forced into a market it should not be in - digital technology. Rather than focusing its efforts on what it does best, creating good music and developing talented artists, the music industry is spending valuable creative and monetary resources on fighting illegal file sharing facilitators.

There needs to be additional education regarding the negative impact of illegal downloading and its affect on the "ordinary" people involved i.e. the songwriters, independent music publishers.

The music industry must continue to encourage the technology industry to develop new music downloading/streaming opportunities (ie: iTunes, iPod) by forming parternships with technology companies and allowing easy access to musical content.

Can education about the ethics surrounding intellectual property ownership stop people from illegally acquiring music?

Abandon the mindset of "we're not in that business" and possibly develop technology (websites) that provides the complete catalog of the record label at a competitive price point. Be less dependent on retailers to provide shelf space for their product.

FOLLOW-UP: Our goal in the NYU Music Business Program is to continue this dialogue and move toward solutions. We welcome YOU to contribute by reading these comments and adding to them. Send your e-mails to:

catherine.moore@nyu.edu

We were very gratified to hear from many in the industry that this was the first "digital future" event they had attended that (a) included a student on a panel with industry executives and (b) provided time during the event for all attendees to comment and have their thoughts recorded (see above).

Department of Music and Performing Arts Professions - 35 W. 4th Street, Suite 777 - New York, NY 10012 - (212) 998-5424