WEBVTT - Tech and the Music Industry

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<v Speaker 1>Welcome to Tech Stuff, a production from I Heart Radio.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I'm your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer with I Heart Radio.

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<v Speaker 1>And how the tech are You? I thought it might

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<v Speaker 1>be a good idea to do an episode or two

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<v Speaker 1>about the music industry, because how the industry works as

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<v Speaker 1>a business is really tightly tied to technology. In fact,

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<v Speaker 1>music itself is tightly tied to technology. It is the

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<v Speaker 1>product of technology in most cases. I mean, you can

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<v Speaker 1>you can sing, and I guess that's a good argument

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<v Speaker 1>to make a that that's a kind of music that

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<v Speaker 1>doesn't involve technology, but most music does. And the evolution

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<v Speaker 1>of tech has really affected music in numerous ways, for um,

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<v Speaker 1>the ability to record it, to new ways to create

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<v Speaker 1>different kinds of musical sounds, and all sorts of ways

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<v Speaker 1>to experiment with recording and music production and distribution. Even that,

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<v Speaker 1>you know, we we have to take all that into account.

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<v Speaker 1>It's not just the tech, it's not just the business.

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<v Speaker 1>They are tightly integrated. So from the tech used to

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<v Speaker 1>record music to the tech used to play it back

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<v Speaker 1>to the radio broadcasts to streaming over the internet, we

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<v Speaker 1>can really see how technology has shaped both art and business. Uh. This,

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<v Speaker 1>by the way, this whole idea of me doing these episodes,

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<v Speaker 1>which has taken me a long time to work on

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<v Speaker 1>because there's just so much to cover. It was really

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<v Speaker 1>prompted by the recent news that fans of certain artists

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<v Speaker 1>on the death Row Music label we're upset to discover

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<v Speaker 1>that some of their favorite albums and songs we're just

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<v Speaker 1>disappearing from the various popular music streaming services out there.

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<v Speaker 1>And this coincides with Snoop Dogg's announcement that he wants

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<v Speaker 1>to turn death Row Records, which he purchased not that

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<v Speaker 1>long ago, into the first major music label in the

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<v Speaker 1>metaverse and make it an n f T music label.

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<v Speaker 1>UM pretty extreme, but let's dial back the clock a

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<v Speaker 1>little bit. Before the early nineteen hundreds, musicians really only

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<v Speaker 1>had the option to making a living off their music

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<v Speaker 1>a couple of different ways. They could play live venues

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<v Speaker 1>and take a share of the box office, or they

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<v Speaker 1>could find themselves a wealthy or generous patron, whether that

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<v Speaker 1>was a specific person or maybe a government or whatever. Um.

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<v Speaker 1>Or they could compose music and they could then put

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<v Speaker 1>it onto sheet music and print sheet music and sell

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<v Speaker 1>that make money that way, But the emergence of recorded media,

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<v Speaker 1>which predated radio broadcasting, that would change everything. In nineteen

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<v Speaker 1>o four, the Victor Talking Machine company, which made phonographs,

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<v Speaker 1>also got into the business of producing music, because if

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<v Speaker 1>you don't have anything to play on your talking machine,

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<v Speaker 1>why would anyone buy one? Now? In the early days,

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<v Speaker 1>recording equipment was exceedingly scarce. Essentially, the companies that possessed

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<v Speaker 1>recording equipment were the same ones that were producing the

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<v Speaker 1>playback equipment. They were in the business of doing both,

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<v Speaker 1>and that meant from the very beginning you had gatekeepers

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<v Speaker 1>in the recorded music industry. There were no such things

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<v Speaker 1>as independent labels in the earliest days, just the larger

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<v Speaker 1>phonograph and grammophone companies, and so right from the start

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<v Speaker 1>we had a precedent in which a few powerful companies

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<v Speaker 1>determined what music would get recorded. So at that point

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<v Speaker 1>musicians had an opportun tunity to make money off recordings.

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<v Speaker 1>They could also count on these companies to market music

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<v Speaker 1>to a wider audience, so they'd reach people that otherwise

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<v Speaker 1>they never would have been able to. People would be

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<v Speaker 1>able to listen and enjoy their music and pay for

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<v Speaker 1>it more importantly that otherwise these musicians would never have

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<v Speaker 1>encountered and the company would only make money if people

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<v Speaker 1>were buying the recordings. So we quickly established this relationship

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<v Speaker 1>in which the musicians created the music and the recording

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<v Speaker 1>company did pretty much everything else, from committing music to

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<v Speaker 1>a physical recording to marketing the music, to sales and

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<v Speaker 1>distribution of that music. Now, according to a Wall, a

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<v Speaker 1>w a L is a company with an acronym that

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<v Speaker 1>stands for artists without a label. Uh, the nineteen o

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<v Speaker 1>four deal that Victor Talking Machine Company did would give

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<v Speaker 1>an artist four thousand dollars for a single song and

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<v Speaker 1>a cut of up to twenty to percent of each sale,

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<v Speaker 1>which is incredibly generous. And I'm imagining that four thousand

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<v Speaker 1>dollars has to have been adjusted for inflation, because otherwise

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<v Speaker 1>we're talking about more than a hundred thirty thousand dollars

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<v Speaker 1>for a single song, and there's just no way that

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<v Speaker 1>that's true. Heck, I find the four thousand dollars thing

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<v Speaker 1>hard to believe honestly, considering the time period. And again,

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<v Speaker 1>it wouldn't be four thousand dollars in nineteen four dollars,

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<v Speaker 1>but the equivalent of four thousand dollars today, but let's

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<v Speaker 1>just assume that it's all accurate and that a wall

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<v Speaker 1>adjusted for inflation. The Victor Talking Machine Company was one

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<v Speaker 1>of three major companies in the industry in those early

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<v Speaker 1>early days. The other two were the Columbia Phonograph Company,

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<v Speaker 1>and then you had the Thomas A. Edison Company, And

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<v Speaker 1>all three of these companies were making phonographs or phonograph

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<v Speaker 1>like devices, and so they all had a vested interest

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<v Speaker 1>in making sure that there was content to play on

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<v Speaker 1>those devices. They also each one had to dominate the industry.

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<v Speaker 1>They wanted to be the big player, so they would

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<v Speaker 1>each attempt to get exclusive deals with specific musicians and orchestras.

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<v Speaker 1>And early on you had competing formats in in the

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<v Speaker 1>record industry. So early early on, you had wax cylinders,

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<v Speaker 1>which not only didn't provide the best sound quality, but

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<v Speaker 1>they would also wear down unrepeated playbacks because they had

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<v Speaker 1>a wax coding and playing them would start to damage

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<v Speaker 1>the coding, so you know, after like a few dozen plays,

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<v Speaker 1>it would be really diminished quality. So even when the

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<v Speaker 1>industry moved from wax cylinders to flat record discs, which

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<v Speaker 1>were made from hard material like shellac. It would be

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<v Speaker 1>quite some time before the industry would move to vinyl,

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<v Speaker 1>but even when they went to disks, you know, the

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<v Speaker 1>flat disc format you had competing record disc sizes and

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<v Speaker 1>playback speeds of the playback speeds would range from sixty

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<v Speaker 1>rotations per minute up to more than a hundred thirty

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<v Speaker 1>rotations per minute, and the playback speed affected a lot

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<v Speaker 1>of other stuff, from how much audio you could commit

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<v Speaker 1>to a record to the actual playback quality of the music.

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<v Speaker 1>So generally speaking, the faster the rpm, the higher the rpm.

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<v Speaker 1>In other words, in the early days, the better the

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<v Speaker 1>sound quality typically was. Right like, if you were playing

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<v Speaker 1>back the record at a hundred thirty rpm, the quality

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<v Speaker 1>was better than a record that would play back at

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<v Speaker 1>sixty rpm. However, it also means that it takes much

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<v Speaker 1>less time for a stylist to go through the groove

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<v Speaker 1>of a record, uh, whether you're recording or playing it back,

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<v Speaker 1>which means you could only fit a smaller amount of

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<v Speaker 1>audio per side of a disc then you could if

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<v Speaker 1>you were doing it more slowly. So there were trade offs,

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<v Speaker 1>uh you know you and of course, if you played

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<v Speaker 1>the disc at the wrong speed, like if you had

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<v Speaker 1>to sixty RPM record, but you were playing it back

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<v Speaker 1>at at rpm. Everything would be super fast twice more

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<v Speaker 1>than twice as fast as what's supposed to be and

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<v Speaker 1>sold be it wold sound like the chipmunks got into

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<v Speaker 1>the coffee again. So the early days of the recording

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<v Speaker 1>industry were really a bit messy. I'm sure you're all

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<v Speaker 1>familiar with various format wars. I did an episode about

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<v Speaker 1>format wars last week. You know, it's easy for consumers

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<v Speaker 1>to hit limitations due to buying into a specific format

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<v Speaker 1>over and others. So you know, you buy you know,

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<v Speaker 1>if you were to buy the Victor Talking Machine phonograph,

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<v Speaker 1>then you might not be able to play anything from

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<v Speaker 1>any of the other companies. So the gramophones and phonographs

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<v Speaker 1>and turntables were pretty expensive in the early days. Most folks,

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<v Speaker 1>if they could even afford one, would have to make

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<v Speaker 1>a choice regarding which format they would buy into. Now,

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<v Speaker 1>eventually the industry would gravitate towards standardization, and you would

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<v Speaker 1>have three speeds that were really treated as as the standards.

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<v Speaker 1>You had seventy eight RBMT, r PM and thirty three

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<v Speaker 1>and a third RBM with fort and thirty three ultimately

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<v Speaker 1>dominating the Space seventy eight kind of faded away. Well,

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<v Speaker 1>let's backtrack a bit to talk about what was going

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<v Speaker 1>on on the business side. And then when these companies

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<v Speaker 1>first started getting started, what followed was a pretty easily

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<v Speaker 1>predictable predatory era in which these you know, agents representing

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<v Speaker 1>these different companies like the Victor Talking Machine Company or

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<v Speaker 1>Columbia or whatever, they would go and scour regions for

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<v Speaker 1>talented musicians who otherwise we're unconnected. If you've watched the movie,

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<v Speaker 1>Oh Brother, Where art Thou, they kind of play around

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<v Speaker 1>with this idea. You know, you get that that statement

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<v Speaker 1>about a feller who's paying some folks to sing into

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<v Speaker 1>a can. Well, that kind of stuff was actually going

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<v Speaker 1>on in the early twentieth century. You had these agents

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<v Speaker 1>seeking out talent and paying them a nominal fee to

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<v Speaker 1>record a song. And for the talent, the fee might

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<v Speaker 1>be considerable, right, there might be a few hundred dollars

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<v Speaker 1>into the talent. That might be an enormous amount of money,

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<v Speaker 1>but it was like a one time payment, and then

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<v Speaker 1>the music company would have the use of that recording

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<v Speaker 1>for as long as they kept the recording, and they

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<v Speaker 1>could make some serious money. And world's turn on such things. Then,

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<v Speaker 1>in n nine, the US government passed a copyright Act

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<v Speaker 1>which would guarantee that writers and publishers of music would

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<v Speaker 1>get a cut of record deals. However, it left out performers.

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<v Speaker 1>So you might wonder, well, why the heck is that.

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<v Speaker 1>Why would the writer and the publisher get a a

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<v Speaker 1>guaranteed cut but the person who performed it doesn't. Well,

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<v Speaker 1>in the days of orchestral performances and chamber music and

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<v Speaker 1>that kind of thing, the general philosophy was that the

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<v Speaker 1>bulk of the creative expression didn't come from the performers. Like, yes,

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<v Speaker 1>you can have someone who is very skilled play and

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<v Speaker 1>they're gonna sound better than someone who doesn't know what

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<v Speaker 1>they're doing. But if you had two different people who

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<v Speaker 1>are really skilled, the general thought was it's going to

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<v Speaker 1>be exactly the same, and that the real creative drive

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<v Speaker 1>came not from the musicians but from the composer. The

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<v Speaker 1>composer would describe in excruciating detail how the music was

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<v Speaker 1>to be played in the sheet music, and the musicians,

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<v Speaker 1>at least according to the philosophy of copyright law, we're

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<v Speaker 1>just mirror vessels dedicated to bringing that music to life.

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<v Speaker 1>But the composer was ultimately responsible for the actual work,

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<v Speaker 1>the creative expression, and so the composer would get the

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<v Speaker 1>credit and the compensation. The US government followed that same

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<v Speaker 1>logic when they created this copyright law in nineteen o nine.

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<v Speaker 1>The Act also covered the innovation of recorded sound, which

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<v Speaker 1>was something that wasn't a concern before nineteen nine because

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<v Speaker 1>it wasn't really possible. And this would have an enormous

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<v Speaker 1>impact on the music business. If a musician has a

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<v Speaker 1>writing credit on a song, that musician is eligible for

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<v Speaker 1>songwriter royalties for the length of the copyright. By the way,

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<v Speaker 1>length of copyright was something that continually got longer and

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<v Speaker 1>longer when big companies like Disney would lobby to extend

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<v Speaker 1>the period of copyright repeatedly. So while originally the period

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<v Speaker 1>of copyright would last couple of decades, now it's like

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<v Speaker 1>the lifetime of the artist, plus I forget, like seventy

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<v Speaker 1>years something like that. But musicians who only had a

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<v Speaker 1>musician credit, they're not a songwriter, they're just a musician,

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<v Speaker 1>they would not qualify for those same royalties, which is

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<v Speaker 1>kind of awkward. Um, and this is like this continues

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<v Speaker 1>to be an issue today. This also meant that if

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<v Speaker 1>you wrote a real banger and someone else recorded it

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<v Speaker 1>like they covered it, then you would be do the

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<v Speaker 1>royalties from any sales or performances of that version, at

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<v Speaker 1>least songwriter royalties. And by performances, we're really talking about

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<v Speaker 1>stuff like you know, radio play or use in TV

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<v Speaker 1>or movies and things of that nature. So being a

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<v Speaker 1>songwriter is a good way to make money over the

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<v Speaker 1>long run, because as long as the stuff you write

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<v Speaker 1>is popular, you're going to have a continued payout. For

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<v Speaker 1>musicians who are not composers, that was a different story.

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<v Speaker 1>They can't depend upon that same revenue stream for you know, indefinitely. Now,

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<v Speaker 1>technically the Copyright Act should have curtailed some of the

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<v Speaker 1>predatory behavior that I was talking about earlier, but there

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<v Speaker 1>was an awful lot of exploitation of talent in those

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<v Speaker 1>early days. The recording industry then hit some really tough

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<v Speaker 1>times in the nineteen twenties and the nineteen thirties. The

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<v Speaker 1>Great Depression hit consumers very hard, so it became pretty

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<v Speaker 1>tough to sell you know, players and records because people

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<v Speaker 1>just didn't have the disposable income to do that. And

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<v Speaker 1>then we get to the evolution of radio and radio broadcasting.

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<v Speaker 1>So the early days of radio, we're all about live

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<v Speaker 1>performances over the air. It really wasn't a thing to

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<v Speaker 1>play prerecorded music for the most part. This was partly

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<v Speaker 1>because the recording technology was such that the quality of

0:14:30.160 --> 0:14:35.000
<v Speaker 1>recordings were far inferior to live performances, so it was

0:14:35.040 --> 0:14:38.800
<v Speaker 1>considered a pretty big step down to play a prerecorded

0:14:39.280 --> 0:14:43.920
<v Speaker 1>piece over the radio. So the early radio business was

0:14:44.480 --> 0:14:46.920
<v Speaker 1>just like the phonograph business, and that it was dominated

0:14:46.920 --> 0:14:51.240
<v Speaker 1>by companies that made radios. The companies that were making

0:14:51.320 --> 0:14:54.640
<v Speaker 1>radios were also the companies that owned radio stations. They were,

0:14:54.960 --> 0:14:57.080
<v Speaker 1>you know, in the business of broadcasting, because just like

0:14:57.120 --> 0:15:00.400
<v Speaker 1>the phonograph, a radio ain't no good to you unless

0:15:00.400 --> 0:15:02.720
<v Speaker 1>he got something to tune into, right, It doesn't make

0:15:02.720 --> 0:15:04.760
<v Speaker 1>any sense to buy a radio if there are no

0:15:04.800 --> 0:15:08.400
<v Speaker 1>broadcasts in your area. So the same companies that were

0:15:08.400 --> 0:15:11.240
<v Speaker 1>making radios were creating the broadcast stations, and some of

0:15:11.240 --> 0:15:15.680
<v Speaker 1>those stations were also companies that made record players. So

0:15:15.800 --> 0:15:21.640
<v Speaker 1>you had, you know, this this convergence of audio technology

0:15:21.760 --> 0:15:25.200
<v Speaker 1>all coming in at the same time. I'll explain how

0:15:25.240 --> 0:15:28.120
<v Speaker 1>that changed the music industry further when we come back

0:15:28.160 --> 0:15:38.520
<v Speaker 1>after this quick break. All right, we left off talking

0:15:38.520 --> 0:15:41.840
<v Speaker 1>about radio stations. Well, these stations would hire performers to

0:15:41.880 --> 0:15:46.080
<v Speaker 1>come in and play music live over the radio. Radio

0:15:46.160 --> 0:15:49.080
<v Speaker 1>sales eventually began to slow down, largely because the folks

0:15:49.080 --> 0:15:51.600
<v Speaker 1>who had been interested in radio and who could also

0:15:51.680 --> 0:15:56.880
<v Speaker 1>afford one, had bought one already. So there was a

0:15:57.000 --> 0:16:01.680
<v Speaker 1>steep rise in radio sales that then plateau. The technology

0:16:01.920 --> 0:16:04.520
<v Speaker 1>hit a really early saturation point, and that meant that

0:16:04.560 --> 0:16:07.960
<v Speaker 1>there needed to be a different source of revenue. This

0:16:08.080 --> 0:16:11.960
<v Speaker 1>is where radio broadcasts began to incorporate advertising. And the

0:16:12.040 --> 0:16:15.640
<v Speaker 1>early days of radio there really wasn't advertising, but that

0:16:15.800 --> 0:16:20.200
<v Speaker 1>changed pretty quickly. Um, and then advertising became the primary

0:16:20.240 --> 0:16:24.000
<v Speaker 1>way that radio broadcast stations would generate revenue. Now, on

0:16:24.040 --> 0:16:28.400
<v Speaker 1>the consumer side, listening to music on the radio was free.

0:16:28.840 --> 0:16:33.840
<v Speaker 1>The radio sets themselves were prohibitively expensive for some folks. Um.

0:16:33.880 --> 0:16:36.000
<v Speaker 1>And really, when I say listening was free, I mean

0:16:36.040 --> 0:16:38.200
<v Speaker 1>it's free in the way that this podcast was free,

0:16:38.240 --> 0:16:41.600
<v Speaker 1>and that you know, you also had ads supporting the stuff,

0:16:42.240 --> 0:16:46.520
<v Speaker 1>but that was really the only cost of listening. Really,

0:16:46.720 --> 0:16:49.160
<v Speaker 1>I'm sure sounds very familiar to everyone out there, right.

0:16:49.800 --> 0:16:53.160
<v Speaker 1>And the radio also served as advertising for musicians and

0:16:53.200 --> 0:16:56.120
<v Speaker 1>songwriters because, of course, now we also had the ability

0:16:56.200 --> 0:17:01.400
<v Speaker 1>to record that music onto physical media UH and as

0:17:01.440 --> 0:17:04.560
<v Speaker 1>recording technology improved, there was a new interest in record

0:17:04.600 --> 0:17:08.560
<v Speaker 1>players and records, largely driven by teenagers. To be like

0:17:08.600 --> 0:17:11.359
<v Speaker 1>in the fifties or so, the kids would hear a

0:17:11.400 --> 0:17:13.240
<v Speaker 1>song on the radio, they would want to be able

0:17:13.240 --> 0:17:15.600
<v Speaker 1>to listen to that song whenever they liked so they

0:17:15.600 --> 0:17:18.560
<v Speaker 1>would rush out and by the record of that artist,

0:17:19.080 --> 0:17:21.639
<v Speaker 1>and the radio would become a key component in the

0:17:21.680 --> 0:17:26.719
<v Speaker 1>marketing of music. This would also shape music itself. In

0:17:26.720 --> 0:17:29.960
<v Speaker 1>the very early days, the limitations of recording meant you

0:17:30.000 --> 0:17:33.119
<v Speaker 1>could fit around four minutes of audio on a single

0:17:33.119 --> 0:17:38.159
<v Speaker 1>physical cylinder or disk, which meant that you couldn't write

0:17:38.560 --> 0:17:40.880
<v Speaker 1>music that would last longer than that, or you had

0:17:40.920 --> 0:17:43.600
<v Speaker 1>to write music that could be divided up into four

0:17:43.720 --> 0:17:47.720
<v Speaker 1>minute chunks, and then you might sell several discs for

0:17:47.880 --> 0:17:51.639
<v Speaker 1>longer pieces. But it meant that people started to settle

0:17:51.760 --> 0:17:55.680
<v Speaker 1>on a on a length for music of around four

0:17:55.720 --> 0:17:59.400
<v Speaker 1>minutes per song or less, which is why to this

0:17:59.480 --> 0:18:02.320
<v Speaker 1>day the way we listen to music, like a lot

0:18:02.320 --> 0:18:05.840
<v Speaker 1>of our songs fall into that general range. It was

0:18:06.040 --> 0:18:09.960
<v Speaker 1>a technical limitation of the time that created a cultural

0:18:10.960 --> 0:18:15.320
<v Speaker 1>UH standard really for like a standard length of a song.

0:18:16.160 --> 0:18:19.600
<v Speaker 1>There are obviously exceptions to this, right you have the Ramones,

0:18:20.000 --> 0:18:22.919
<v Speaker 1>where a four minutes song would be an epic and

0:18:22.960 --> 0:18:26.120
<v Speaker 1>then you have the late meat Loaf where a four

0:18:26.119 --> 0:18:31.240
<v Speaker 1>minute song would be the beginning of his fourteen minute song.

0:18:32.280 --> 0:18:36.439
<v Speaker 1>So there are exceptions, but generally speaking, like this is

0:18:36.480 --> 0:18:40.040
<v Speaker 1>what when I talk about how technology shaped music, this

0:18:40.080 --> 0:18:43.119
<v Speaker 1>is kind of what I'm talking about. The limitation of

0:18:43.200 --> 0:18:47.000
<v Speaker 1>only being able to record a few minutes of audio

0:18:47.080 --> 0:18:52.719
<v Speaker 1>per side is what shaped modern music and for songs

0:18:52.760 --> 0:18:55.840
<v Speaker 1>to be the length that they are now. As recording

0:18:56.000 --> 0:18:59.520
<v Speaker 1>techniques actually evolved, it became possible to record more content

0:18:59.720 --> 0:19:04.359
<v Speaker 1>per side of a record, so the limitation of four

0:19:04.400 --> 0:19:08.680
<v Speaker 1>minutes per side gradually faded away. This would end up

0:19:08.720 --> 0:19:12.160
<v Speaker 1>giving birth to the album because while you could record

0:19:12.240 --> 0:19:15.520
<v Speaker 1>a very long piece of music per side, and there

0:19:15.560 --> 0:19:19.560
<v Speaker 1>were people who did it, especially for things like classical music, uh,

0:19:19.840 --> 0:19:24.800
<v Speaker 1>you could also use this to create a collection of songs. However,

0:19:24.920 --> 0:19:27.560
<v Speaker 1>while that was going on, radio was swinging things back

0:19:27.560 --> 0:19:29.480
<v Speaker 1>to the early days of recording because you had the

0:19:29.480 --> 0:19:33.679
<v Speaker 1>new musical entity of the radio single coming out around

0:19:33.680 --> 0:19:36.560
<v Speaker 1>this time. Now, it was ninety nine when r C

0:19:36.680 --> 0:19:42.680
<v Speaker 1>A Victor introduced the forty five rpm seven inch record. Now,

0:19:42.720 --> 0:19:46.760
<v Speaker 1>these records, because of their size, the seven inch size

0:19:47.080 --> 0:19:50.000
<v Speaker 1>and their RPM speed of forty five revolutions per minute,

0:19:50.359 --> 0:19:52.679
<v Speaker 1>they could only hold a few minutes of music per side,

0:19:52.720 --> 0:19:56.080
<v Speaker 1>just like the early records of the era. And then

0:19:56.160 --> 0:19:59.600
<v Speaker 1>several things all kind of happened to make the forty

0:19:59.600 --> 0:20:02.879
<v Speaker 1>five popular. One was that, you know, you had a

0:20:02.880 --> 0:20:06.800
<v Speaker 1>lot of record players that could actually accommodate forty five. Uh,

0:20:06.840 --> 0:20:09.879
<v Speaker 1>they were less expensive than the larger thirty three and

0:20:09.880 --> 0:20:14.520
<v Speaker 1>the third albums. They also happened to come out just

0:20:14.880 --> 0:20:20.240
<v Speaker 1>before the rock and roll music revolution happened, and all

0:20:20.280 --> 0:20:25.600
<v Speaker 1>of that came together to completely reshape the music industry. Uh.

0:20:25.640 --> 0:20:31.760
<v Speaker 1>And that's really where we started seeing the focus on

0:20:31.960 --> 0:20:35.080
<v Speaker 1>singles to the point where you've got some folks who

0:20:35.280 --> 0:20:40.359
<v Speaker 1>bemoaned that, where it was potentially something that limited the

0:20:40.480 --> 0:20:44.080
<v Speaker 1>music industry. But it became a common practice to record

0:20:44.080 --> 0:20:47.679
<v Speaker 1>a musician or bands really popular song as the A

0:20:47.840 --> 0:20:51.240
<v Speaker 1>side of a forty five single, and then you use

0:20:51.320 --> 0:20:54.080
<v Speaker 1>the other side, the B side, to include a lesser

0:20:54.160 --> 0:20:56.680
<v Speaker 1>known piece from that band. So sometimes you might get

0:20:56.720 --> 0:20:59.880
<v Speaker 1>a demo version of a song, which is kind of cool.

0:21:00.359 --> 0:21:02.719
<v Speaker 1>Or you get a song that wasn't included on the

0:21:02.760 --> 0:21:05.960
<v Speaker 1>full album that featured the A side single. That was

0:21:06.000 --> 0:21:07.840
<v Speaker 1>really cool. It was like the only way you could

0:21:07.880 --> 0:21:11.360
<v Speaker 1>get those songs. Typically the fort would have the same

0:21:11.400 --> 0:21:14.919
<v Speaker 1>songs that we're getting widespread radio play on the A side,

0:21:15.359 --> 0:21:18.359
<v Speaker 1>So again the radio acted as kind of the commercial

0:21:18.840 --> 0:21:21.840
<v Speaker 1>for the music. The A side was the product, the

0:21:21.880 --> 0:21:25.800
<v Speaker 1>B side was some bonus material. Now, as the recording

0:21:25.800 --> 0:21:30.760
<v Speaker 1>industry evolved, certain companies consolidated, purchasing up smaller music labels.

0:21:30.840 --> 0:21:33.160
<v Speaker 1>R C A. Victor was one of those, with our

0:21:33.240 --> 0:21:36.640
<v Speaker 1>C A being famous for making radios and broadcast stations,

0:21:37.160 --> 0:21:41.080
<v Speaker 1>Victor being famous for phonographs. Then the two merged together.

0:21:41.520 --> 0:21:44.560
<v Speaker 1>Some other really big recording companies shut down. The Thomas

0:21:44.680 --> 0:21:50.120
<v Speaker 1>Edison Company dissolved its recording division back in n UM.

0:21:50.200 --> 0:21:52.160
<v Speaker 1>That was, you know, right at the Great Depression, so

0:21:52.680 --> 0:21:54.399
<v Speaker 1>you know, it was kind of it was coinciding with

0:21:54.440 --> 0:21:56.560
<v Speaker 1>a time where people just didn't have the money to

0:21:56.640 --> 0:22:00.600
<v Speaker 1>purchase that kind of stuff. The burgeoning film industry also

0:22:00.640 --> 0:22:04.880
<v Speaker 1>got into the music industry. There were some smaller independent

0:22:04.960 --> 0:22:07.480
<v Speaker 1>labels that were establishing themselves around this time as well,

0:22:07.560 --> 0:22:12.240
<v Speaker 1>so starting to get really interesting. By the nineteen sixties, however,

0:22:12.359 --> 0:22:15.240
<v Speaker 1>the bigger labels were gobbling up all the smaller ones.

0:22:15.520 --> 0:22:19.080
<v Speaker 1>Um because there's always a bigger fish. So CBS, which

0:22:19.160 --> 0:22:22.960
<v Speaker 1>started off as a network of radio broadcast stations, acquired

0:22:23.000 --> 0:22:26.119
<v Speaker 1>Columbia Records, which again was one of the big three

0:22:26.200 --> 0:22:31.159
<v Speaker 1>early early on that also acquired the American Record Corporation.

0:22:32.000 --> 0:22:36.000
<v Speaker 1>Warner Brothers ended up purchasing ABC Records and also had

0:22:36.080 --> 0:22:41.840
<v Speaker 1>Warner Records. Then the company bought seven Arts and Reprise, Uh,

0:22:42.000 --> 0:22:47.240
<v Speaker 1>then Atlantic, then Elektra Records labels. So yeah, you had

0:22:47.280 --> 0:22:52.040
<v Speaker 1>these big companies getting bigger, massive corporate corporations that were

0:22:52.080 --> 0:22:56.560
<v Speaker 1>shaping how the music biz worked, really fortifying themselves. Now,

0:22:56.600 --> 0:23:00.879
<v Speaker 1>for decades, musicians were pretty much limited by either the

0:23:00.960 --> 0:23:04.520
<v Speaker 1>huge conglomerates or they could work with a few smaller

0:23:04.560 --> 0:23:08.600
<v Speaker 1>independent labels if they wanted to record their music. Recording

0:23:08.640 --> 0:23:15.200
<v Speaker 1>required specialized equipment, mixing expertise, dedicated space. It required the

0:23:15.240 --> 0:23:18.520
<v Speaker 1>ability to actually create a master recording and then to

0:23:18.720 --> 0:23:23.400
<v Speaker 1>duplicate that master recording onto copies. So it just wasn't

0:23:23.440 --> 0:23:26.440
<v Speaker 1>practical for most musicians to do all of this themselves.

0:23:26.520 --> 0:23:29.760
<v Speaker 1>Remember this isn't the days of physical media like there

0:23:29.800 --> 0:23:32.600
<v Speaker 1>was no digital approach here, You could not have a

0:23:32.640 --> 0:23:37.760
<v Speaker 1>file representing a song, so you you really did need

0:23:37.800 --> 0:23:42.399
<v Speaker 1>to lean on actual organizations to do this because they

0:23:42.440 --> 0:23:46.159
<v Speaker 1>had the capital to get all this equipment and expertise together.

0:23:47.640 --> 0:23:49.960
<v Speaker 1>Then you actually had the process of taking recording and

0:23:50.000 --> 0:23:54.040
<v Speaker 1>mass producing copies of it for sale, again well beyond

0:23:54.040 --> 0:23:57.440
<v Speaker 1>the reach for individual performers. Then you had the marketing

0:23:57.440 --> 0:24:02.000
<v Speaker 1>and distribution side, like actually pro oding the material and

0:24:02.040 --> 0:24:05.680
<v Speaker 1>getting the material out to points of sale, another big

0:24:05.720 --> 0:24:08.119
<v Speaker 1>limiting factor. Most people would not be able to do

0:24:08.160 --> 0:24:11.680
<v Speaker 1>that on their own. So the symbiotic relationship between musicians

0:24:11.680 --> 0:24:15.120
<v Speaker 1>and record labels really solidified in this era. Uh and

0:24:15.280 --> 0:24:18.520
<v Speaker 1>I do say symbiotic, but depending upon the musician you

0:24:18.600 --> 0:24:22.679
<v Speaker 1>might hear it was more parasitic. The record labels had

0:24:22.680 --> 0:24:24.600
<v Speaker 1>a lot of the power, and unless you reached a

0:24:24.640 --> 0:24:28.000
<v Speaker 1>particularly high level of fame, you probably didn't have a

0:24:28.000 --> 0:24:33.600
<v Speaker 1>lot of leverage to lend yourself a really lucrative deal. Um. Now,

0:24:33.640 --> 0:24:35.560
<v Speaker 1>one way you could make money is to perform at

0:24:35.600 --> 0:24:39.040
<v Speaker 1>live shows. Typically artists get a cut of the gate

0:24:39.400 --> 0:24:42.919
<v Speaker 1>that is, the box officer ticket sales. They might also

0:24:43.200 --> 0:24:47.000
<v Speaker 1>set up merchandise or merch tables. They typically get most

0:24:47.080 --> 0:24:49.320
<v Speaker 1>of that as well, they have to pay out the

0:24:49.320 --> 0:24:53.080
<v Speaker 1>people who are working the tables, but otherwise, um, that's

0:24:53.240 --> 0:24:58.320
<v Speaker 1>that's cash in the pockets of the performers. This particular

0:24:58.760 --> 0:25:03.080
<v Speaker 1>approach also requires a out of investment anyway, because you

0:25:03.160 --> 0:25:06.040
<v Speaker 1>gotta get booked, right, you have to. You have to

0:25:06.200 --> 0:25:09.960
<v Speaker 1>establish a relationship with the venue and get an agreement

0:25:10.000 --> 0:25:14.320
<v Speaker 1>to perform in a certain date and arrive at the

0:25:14.320 --> 0:25:18.080
<v Speaker 1>the the divide like how much of the ticket sales

0:25:18.119 --> 0:25:22.120
<v Speaker 1>goes to the venue versus the band. And then once

0:25:22.160 --> 0:25:24.680
<v Speaker 1>you start talking about bigger venues than you also are

0:25:24.800 --> 0:25:27.320
<v Speaker 1>usually talking about a booking agent, someone who is just

0:25:27.800 --> 0:25:32.720
<v Speaker 1>specifically focused on getting that stuff sewn up, because that

0:25:32.800 --> 0:25:34.680
<v Speaker 1>at by itself is a full time gig. I don't

0:25:34.680 --> 0:25:38.000
<v Speaker 1>know how many of you out there have jobs or

0:25:38.040 --> 0:25:40.960
<v Speaker 1>activities that involve having to schedule stuff with other people,

0:25:41.680 --> 0:25:44.159
<v Speaker 1>but you, if you have had to do it, you

0:25:44.200 --> 0:25:47.720
<v Speaker 1>know that that is an enormous amount of time committed

0:25:47.760 --> 0:25:51.119
<v Speaker 1>to getting that to work. Just imagine doing that for

0:25:51.720 --> 0:25:55.719
<v Speaker 1>a big band that's traveling, say across the United States

0:25:55.720 --> 0:26:00.560
<v Speaker 1>and establishing venues where they're going to perform, knowing that

0:26:00.600 --> 0:26:05.520
<v Speaker 1>the really big ones typically get uh gobbled up pretty early,

0:26:05.560 --> 0:26:07.880
<v Speaker 1>so you have to plan this out, you know, more

0:26:07.920 --> 0:26:11.399
<v Speaker 1>than a year in advance in some cases. And of course,

0:26:11.440 --> 0:26:14.680
<v Speaker 1>over the last two years, the live performance industry took

0:26:14.720 --> 0:26:18.160
<v Speaker 1>a d an enormously heavy hit. Tons of venues were

0:26:18.160 --> 0:26:21.080
<v Speaker 1>shut down during the pandemic for months at a time,

0:26:21.200 --> 0:26:24.960
<v Speaker 1>so for about a year the revenue stream was essentially gone,

0:26:25.000 --> 0:26:28.440
<v Speaker 1>and even after that it was you know, it was

0:26:28.480 --> 0:26:31.160
<v Speaker 1>all dependent upon where you were. And since the vast

0:26:31.200 --> 0:26:34.040
<v Speaker 1>majority of musicians make their living by playing live shows,

0:26:34.440 --> 0:26:39.840
<v Speaker 1>things got really tough for musicians. Now. Of course, record

0:26:39.880 --> 0:26:43.400
<v Speaker 1>contracts earned musicians money too, It's not like they're recording

0:26:43.440 --> 0:26:47.160
<v Speaker 1>for free. The big way to earn money through records

0:26:47.680 --> 0:26:52.400
<v Speaker 1>is through royalties. Now this gets pretty complicated, particularly since

0:26:52.440 --> 0:26:55.359
<v Speaker 1>there are different kinds of royalties, Like you know, I

0:26:55.400 --> 0:26:58.800
<v Speaker 1>mentioned their songwriter royalties for example, but there are lots

0:26:58.800 --> 0:27:02.880
<v Speaker 1>of different types of royalty. Now, what a royalty is Essentially,

0:27:02.960 --> 0:27:05.760
<v Speaker 1>it's a payment made to the rights owner of a

0:27:05.760 --> 0:27:09.560
<v Speaker 1>particular work for the licensed use of that work. The

0:27:09.640 --> 0:27:12.439
<v Speaker 1>licensed use can include all sorts of stuff. It can

0:27:12.480 --> 0:27:16.399
<v Speaker 1>include radio airplay, it can include the use of music

0:27:16.440 --> 0:27:20.680
<v Speaker 1>and television or movies. It can include recording, it can

0:27:20.720 --> 0:27:24.280
<v Speaker 1>include streaming um with artists who have signed with labels,

0:27:24.320 --> 0:27:26.360
<v Speaker 1>we're talking about a percentage of the fee that gets

0:27:26.400 --> 0:27:29.479
<v Speaker 1>paid to the label in return for the use of

0:27:29.520 --> 0:27:32.440
<v Speaker 1>that music. So, in other words, the way this works

0:27:32.440 --> 0:27:36.040
<v Speaker 1>as whoever wants the music, whether it's a person walking

0:27:36.080 --> 0:27:40.479
<v Speaker 1>into an old school record store or you know, the

0:27:40.480 --> 0:27:43.760
<v Speaker 1>person who's trying to fill out the the soundtrack to

0:27:43.800 --> 0:27:47.080
<v Speaker 1>the next Quentin Tarantino movie, they go to the record label,

0:27:47.480 --> 0:27:49.439
<v Speaker 1>they pay for the use of that music, and then

0:27:49.440 --> 0:27:52.520
<v Speaker 1>the record label takes a cut of this, and then

0:27:52.560 --> 0:27:56.000
<v Speaker 1>a percentage of that amount that was paid to the

0:27:56.000 --> 0:27:58.840
<v Speaker 1>record label then gets paid out to the rights holder

0:27:58.960 --> 0:28:02.359
<v Speaker 1>or artist. But it doesn't really get as simple as that.

0:28:02.520 --> 0:28:05.840
<v Speaker 1>Usually artists get what's called an advance. This is a

0:28:05.880 --> 0:28:09.320
<v Speaker 1>sum of money that's paid to the artist upon some deliverable.

0:28:09.400 --> 0:28:12.080
<v Speaker 1>For example, it could be when an artist signs a

0:28:12.160 --> 0:28:16.000
<v Speaker 1>contract or completes an album recording. Then the artist gets

0:28:16.000 --> 0:28:20.920
<v Speaker 1>a payout, but that payout is actually counted against future royalties,

0:28:21.480 --> 0:28:24.159
<v Speaker 1>and royalties are a percentage of each individual sales. So

0:28:24.200 --> 0:28:27.119
<v Speaker 1>before you start earning lots of royalties, you first have

0:28:27.240 --> 0:28:29.920
<v Speaker 1>to recoup the money that the label spent on you.

0:28:30.200 --> 0:28:33.439
<v Speaker 1>With the advance. This is way easier to understand if

0:28:33.440 --> 0:28:37.399
<v Speaker 1>we actually use hypothetical example. So let's say that my

0:28:37.520 --> 0:28:40.960
<v Speaker 1>band Johnny and the tech Heads gets a ten thous

0:28:41.160 --> 0:28:44.600
<v Speaker 1>dollar advance on our new album, So that ten grand

0:28:44.720 --> 0:28:47.640
<v Speaker 1>is ours to keep unless we've done something really silly

0:28:47.720 --> 0:28:50.080
<v Speaker 1>like signed a contract that requires us to pay back

0:28:50.120 --> 0:28:53.480
<v Speaker 1>in advance if we don't recoup the expense. No one

0:28:53.520 --> 0:28:57.520
<v Speaker 1>should ever agree to do that. There's a reason why

0:28:57.520 --> 0:28:59.840
<v Speaker 1>it's good to get a lawyer to look over contracts,

0:28:59.840 --> 0:29:02.160
<v Speaker 1>but where you assigned them. But let's say our royalty

0:29:02.200 --> 0:29:05.720
<v Speaker 1>payment is a nickel per unit sold, so five cents

0:29:05.800 --> 0:29:08.640
<v Speaker 1>every time they sell a unit, and it doesn't matter

0:29:08.640 --> 0:29:10.280
<v Speaker 1>to me what the unit is in this case. This

0:29:10.360 --> 0:29:14.720
<v Speaker 1>is just a hypothetical example. Now, we don't actually earn

0:29:14.760 --> 0:29:18.400
<v Speaker 1>any royalties until we've recouped the amount of money the

0:29:18.480 --> 0:29:22.520
<v Speaker 1>labels spin on us in its advance. That means we're

0:29:22.640 --> 0:29:26.120
<v Speaker 1>kind of paying off that ten thousand dollars one nickel

0:29:26.240 --> 0:29:28.400
<v Speaker 1>at a time. That means we would have to hit

0:29:28.440 --> 0:29:32.320
<v Speaker 1>two hundred thousand units sold before we started earning royalties,

0:29:32.720 --> 0:29:35.840
<v Speaker 1>and we would start earning royalties starting with copy two

0:29:35.920 --> 0:29:39.400
<v Speaker 1>hundred thousand and one. So Once the advance is recouped,

0:29:39.680 --> 0:29:43.920
<v Speaker 1>the royalty checks can start coming in. Also, ten grand

0:29:44.080 --> 0:29:45.920
<v Speaker 1>is a lot of money, but you're usually talking about

0:29:45.920 --> 0:29:48.760
<v Speaker 1>splitting that with a bunch of different people. There's the band,

0:29:49.240 --> 0:29:52.760
<v Speaker 1>You probably have a manager, Uh, there's a producer that

0:29:52.920 --> 0:29:55.520
<v Speaker 1>usually you have to pay the producer's royalty out of

0:29:55.560 --> 0:29:58.680
<v Speaker 1>your own royalties. And of course we're talking about payments

0:29:58.720 --> 0:30:01.800
<v Speaker 1>that don't have tax with holdings. So that means that

0:30:01.840 --> 0:30:04.000
<v Speaker 1>you really need to be holding onto that cash because

0:30:04.000 --> 0:30:05.960
<v Speaker 1>you're gonna be spending some of that to pay taxes

0:30:06.000 --> 0:30:08.880
<v Speaker 1>because nothing was withheld, so you're gonna owe it at

0:30:08.880 --> 0:30:11.440
<v Speaker 1>the end of the year. Uh, That ten grand or

0:30:11.480 --> 0:30:14.080
<v Speaker 1>whatever gets willed down pretty quickly. So that's one of

0:30:14.120 --> 0:30:16.520
<v Speaker 1>the really big reasons that a lot of bands go

0:30:16.600 --> 0:30:20.360
<v Speaker 1>on tours and do lots of live shows. The albums

0:30:20.400 --> 0:30:23.120
<v Speaker 1>can get fans, Fans come to the shows, and that's

0:30:23.120 --> 0:30:26.080
<v Speaker 1>where the musicians really typically earn a lot of cash,

0:30:26.560 --> 0:30:29.920
<v Speaker 1>plus of course they can connect with their fan base.

0:30:31.000 --> 0:30:32.719
<v Speaker 1>In most cases, the record label is going to keep

0:30:32.720 --> 0:30:36.600
<v Speaker 1>around or more of the revenue from albums and songs sold,

0:30:36.640 --> 0:30:40.000
<v Speaker 1>with the artists getting the rest in royalties. Again, once

0:30:40.040 --> 0:30:43.920
<v Speaker 1>the advance is recouped In return, the record label handles

0:30:43.960 --> 0:30:46.480
<v Speaker 1>all the distribution and marketing for the musicians, and that's

0:30:46.520 --> 0:30:49.000
<v Speaker 1>the big trade off, all right. When we come back,

0:30:49.040 --> 0:30:51.760
<v Speaker 1>we'll talk about how the music industry has changed even

0:30:51.800 --> 0:31:03.400
<v Speaker 1>more in more recent years. So with the rise of

0:31:03.440 --> 0:31:06.440
<v Speaker 1>the Internet, a lot of new ways to earn money

0:31:06.600 --> 0:31:11.560
<v Speaker 1>have emerged for musicians. Musicians can make use of tools

0:31:11.640 --> 0:31:16.840
<v Speaker 1>like band camp or Patreon. They can sell music directly

0:31:16.880 --> 0:31:20.560
<v Speaker 1>to their fans or invite their fans to help support

0:31:20.680 --> 0:31:25.040
<v Speaker 1>their work. Patreon can be done in a way where

0:31:25.040 --> 0:31:31.400
<v Speaker 1>people are subscribing monthly to an artist, or Patreon can

0:31:31.440 --> 0:31:33.880
<v Speaker 1>be done so that every time something new is released

0:31:34.480 --> 0:31:38.360
<v Speaker 1>then the supporters can paid have access to that thing.

0:31:39.120 --> 0:31:43.719
<v Speaker 1>So it creates a more direct pathway between artists and

0:31:43.920 --> 0:31:47.680
<v Speaker 1>audience and bypasses a lot of the other stuff that

0:31:47.720 --> 0:31:51.280
<v Speaker 1>you would typically have to go through. Uh. Musicians can

0:31:51.280 --> 0:31:56.520
<v Speaker 1>also try to bankroll a recording by launching a crowdfunding campaign.

0:31:56.560 --> 0:31:59.800
<v Speaker 1>There's something like Kickstarter or indie go Go. And the

0:32:00.000 --> 0:32:03.480
<v Speaker 1>aliferation of digital recording equipment and software has really opened

0:32:03.520 --> 0:32:06.240
<v Speaker 1>up the opportunity for musicians to take on a lot

0:32:06.280 --> 0:32:10.760
<v Speaker 1>of traditional recording work themselves. Um So, in other words,

0:32:11.600 --> 0:32:14.360
<v Speaker 1>the things that we're limiting factors back in the early days,

0:32:14.520 --> 0:32:17.480
<v Speaker 1>the fact that only these big companies had access to

0:32:17.640 --> 0:32:21.120
<v Speaker 1>recording equipment. That's no longer the case, right, you can

0:32:21.160 --> 0:32:25.920
<v Speaker 1>go out and buy it's fairly decent recording equipment for

0:32:26.040 --> 0:32:28.720
<v Speaker 1>not that much money. Not in the grand scheme of things.

0:32:28.720 --> 0:32:30.840
<v Speaker 1>I mean, it still is going to cost you probably

0:32:30.880 --> 0:32:33.480
<v Speaker 1>a few thousand dollars, which, don't get me wrong, that's

0:32:33.520 --> 0:32:36.600
<v Speaker 1>a lot, but it's peanuts compared to what it was

0:32:36.640 --> 0:32:39.800
<v Speaker 1>back in the old days, where there just wasn't that option.

0:32:40.320 --> 0:32:43.760
<v Speaker 1>So you can do a lot of this stuff yourself,

0:32:43.840 --> 0:32:48.200
<v Speaker 1>although it does still require expertise and skill in you know,

0:32:48.480 --> 0:32:53.360
<v Speaker 1>executing it, and that goes from everything from the playing

0:32:53.400 --> 0:32:58.280
<v Speaker 1>of the music to the recording process through the mixing process.

0:32:59.160 --> 0:33:01.760
<v Speaker 1>All of that wires a lot of work. So it's

0:33:01.760 --> 0:33:06.400
<v Speaker 1>not like it's uh, plug in blay, but it's a lot.

0:33:06.760 --> 0:33:09.360
<v Speaker 1>It's a lot more within reach than it used to be.

0:33:10.280 --> 0:33:13.200
<v Speaker 1>But the technology that really has dramatically disrupted the music

0:33:13.240 --> 0:33:17.640
<v Speaker 1>industry over the last decade or so is definitely streaming.

0:33:18.640 --> 0:33:22.920
<v Speaker 1>So let's talk about what streaming actually is. Essentially, it's

0:33:22.960 --> 0:33:26.560
<v Speaker 1>accessing media in real time. Although we could pick some

0:33:26.640 --> 0:33:29.479
<v Speaker 1>knits with that definition and the use of the phrase

0:33:29.520 --> 0:33:33.000
<v Speaker 1>real time, but it gets across the meaning. So instead

0:33:33.000 --> 0:33:36.640
<v Speaker 1>of downloading a song to a device, you use some

0:33:36.680 --> 0:33:39.479
<v Speaker 1>sort of service. It could be an app, maybe a

0:33:39.480 --> 0:33:43.680
<v Speaker 1>browser based service to listen to music streaming from a

0:33:43.720 --> 0:33:48.360
<v Speaker 1>web server somewhere out there to your local device, and

0:33:48.760 --> 0:33:51.200
<v Speaker 1>your device receives the music in the form of digital

0:33:51.320 --> 0:33:54.720
<v Speaker 1>data sent pretty much like any other data that would

0:33:54.720 --> 0:33:57.520
<v Speaker 1>be sent across a computer network. So it's kind of

0:33:57.560 --> 0:34:02.120
<v Speaker 1>like radio, but it's on demand and it's not using

0:34:02.120 --> 0:34:05.960
<v Speaker 1>traditional over the air radio broadcasts and instead it's using

0:34:06.480 --> 0:34:11.239
<v Speaker 1>essentially zeros and ones coming from a server to your device. Now,

0:34:11.239 --> 0:34:13.439
<v Speaker 1>there are a lot of places where we could start

0:34:13.480 --> 0:34:17.680
<v Speaker 1>our story about streaming. For example, way back in when

0:34:17.920 --> 0:34:21.560
<v Speaker 1>pretty much most of the population really didn't understand what

0:34:21.600 --> 0:34:26.040
<v Speaker 1>the heck the Internet was, you had the Internet Underground

0:34:26.200 --> 0:34:30.040
<v Speaker 1>Music Archive or i u m A. This was created

0:34:30.040 --> 0:34:32.640
<v Speaker 1>by some students at the University of California, Santa Cruz.

0:34:33.400 --> 0:34:37.279
<v Speaker 1>They launched an organization to give independent artists away to

0:34:37.320 --> 0:34:41.200
<v Speaker 1>get their music two fans. So again, like if you

0:34:41.239 --> 0:34:43.480
<v Speaker 1>didn't have a deal with a big record label that

0:34:43.520 --> 0:34:47.400
<v Speaker 1>could distribute and and market your music. This was a

0:34:47.400 --> 0:34:51.040
<v Speaker 1>way where you could bypass all that. This was one

0:34:51.080 --> 0:34:54.239
<v Speaker 1>of those very early demonstrations of how the Internet can

0:34:54.360 --> 0:34:59.799
<v Speaker 1>democratize content distribution and bypass the traditional model which has

0:35:00.440 --> 0:35:05.160
<v Speaker 1>massive media companies, you know, being the gatekeepers. Which you

0:35:05.239 --> 0:35:08.480
<v Speaker 1>might guess that massive media companies weren't super crazy about

0:35:08.480 --> 0:35:11.560
<v Speaker 1>this idea, and you'd be right, because it turns out

0:35:11.600 --> 0:35:15.120
<v Speaker 1>if if you know, if you end up accumulating a

0:35:15.120 --> 0:35:19.359
<v Speaker 1>lot of power, you're not crazy about giving that up. Now.

0:35:19.400 --> 0:35:23.200
<v Speaker 1>I find the I U M A story really impressive

0:35:23.239 --> 0:35:26.360
<v Speaker 1>because this was before the MP three format had really

0:35:26.400 --> 0:35:31.680
<v Speaker 1>taken off. Uh. You know, MB three is a type

0:35:31.760 --> 0:35:37.560
<v Speaker 1>of of audio file where you're using compression to reduce

0:35:37.680 --> 0:35:42.799
<v Speaker 1>the file size. Um not audio compression but file size compression.

0:35:42.920 --> 0:35:46.120
<v Speaker 1>Two different things here, although there can be audio compression

0:35:46.120 --> 0:35:48.439
<v Speaker 1>as part of it, because the way it B three

0:35:48.480 --> 0:35:52.920
<v Speaker 1>works is that, at least philosophically, the way it works

0:35:53.719 --> 0:35:55.400
<v Speaker 1>is that there's there are a lot of things in

0:35:55.520 --> 0:35:59.839
<v Speaker 1>sound that humans cannot directly perceive. Are are a bill

0:36:00.040 --> 0:36:05.000
<v Speaker 1>need to hear has limitations, and so the philosophy behind

0:36:05.080 --> 0:36:08.920
<v Speaker 1>MP three is that you drop any sounds that humans

0:36:08.960 --> 0:36:12.200
<v Speaker 1>would not be able to hear. Anyway, and then you

0:36:12.239 --> 0:36:16.279
<v Speaker 1>can reduce the file size that way. I'm oversimplifying, but

0:36:16.360 --> 0:36:19.720
<v Speaker 1>that's generally the thought process behind MP three. It's a

0:36:19.719 --> 0:36:26.520
<v Speaker 1>psychoacoustic approach to figuring out what information is most necessary

0:36:26.600 --> 0:36:29.040
<v Speaker 1>so that you keep that and you get rid of

0:36:29.080 --> 0:36:33.800
<v Speaker 1>everything else anyway, Because the MP three had not really

0:36:34.480 --> 0:36:38.879
<v Speaker 1>become a big deal yet. In the files were often

0:36:38.880 --> 0:36:42.560
<v Speaker 1>in formats like wave or ai f F and those

0:36:42.600 --> 0:36:45.560
<v Speaker 1>can be much, much, much bigger than MP three files.

0:36:45.600 --> 0:36:47.239
<v Speaker 1>And you have to keep in mind that this was

0:36:47.320 --> 0:36:50.080
<v Speaker 1>also back in the day when folks were using dial

0:36:50.160 --> 0:36:54.680
<v Speaker 1>up internet. You know, it was pretty limited bandwidth. Heck,

0:36:54.760 --> 0:36:58.680
<v Speaker 1>just getting an image to load could take the better

0:36:58.719 --> 0:37:02.200
<v Speaker 1>part of a minute. So this was not streaming. This

0:37:02.280 --> 0:37:04.240
<v Speaker 1>was not the days of streaming. This was all about

0:37:04.280 --> 0:37:07.440
<v Speaker 1>downloading files. Nick could take a really long time to

0:37:07.480 --> 0:37:10.240
<v Speaker 1>download a single file. But this was a stepping stone

0:37:10.440 --> 0:37:15.000
<v Speaker 1>toward streaming. Another really big stepping stone was the development

0:37:15.000 --> 0:37:18.399
<v Speaker 1>of Napster. In fact, a later service with the name

0:37:18.440 --> 0:37:21.400
<v Speaker 1>of Napster would become a streaming music service, but the

0:37:21.400 --> 0:37:25.719
<v Speaker 1>original incarnation of Napster was not streaming. It was a

0:37:25.800 --> 0:37:30.600
<v Speaker 1>peer to peer file sharing network that specifically focused on

0:37:30.640 --> 0:37:33.719
<v Speaker 1>sharing music files. Now by this time, by the time

0:37:33.840 --> 0:37:36.600
<v Speaker 1>Napster came around, which was the late nineties, the MP

0:37:36.719 --> 0:37:39.680
<v Speaker 1>three format was established, which was great because it allowed

0:37:39.760 --> 0:37:42.600
<v Speaker 1>users to compress audio files down to a fraction of

0:37:42.640 --> 0:37:45.640
<v Speaker 1>their raw size, and that made it much easier to

0:37:45.719 --> 0:37:49.200
<v Speaker 1>transfer those files over networks. Also, we were starting to

0:37:49.239 --> 0:37:52.560
<v Speaker 1>get better connections to the Internet. Not everyone had it.

0:37:52.640 --> 0:37:54.800
<v Speaker 1>I had a dial up Internet connection for a really

0:37:54.840 --> 0:37:59.319
<v Speaker 1>long time, but eventually we got there. Of course, if

0:37:59.360 --> 0:38:02.279
<v Speaker 1>you really impressed music a lot, like if you use

0:38:02.360 --> 0:38:05.000
<v Speaker 1>a very strong file compression, you could affect the sound

0:38:05.080 --> 0:38:08.960
<v Speaker 1>quality to the point where it was noticeable. But you know,

0:38:09.120 --> 0:38:11.440
<v Speaker 1>if you were careful, you could find the right balance

0:38:11.480 --> 0:38:16.960
<v Speaker 1>between file size reduction and uh, not affecting the quality

0:38:17.080 --> 0:38:20.960
<v Speaker 1>too much. Now, peer to peer systems are not inherently wrong,

0:38:21.280 --> 0:38:25.560
<v Speaker 1>they're not inherently illegal, But it was impossible to deny

0:38:25.640 --> 0:38:29.280
<v Speaker 1>that the majority of the file transfer traffic across Napster

0:38:30.160 --> 0:38:34.040
<v Speaker 1>was with copyrighted music files, and that the people who

0:38:34.120 --> 0:38:37.239
<v Speaker 1>were sharing them didn't have the right to do so.

0:38:37.239 --> 0:38:40.360
<v Speaker 1>So folks might use a computer to rip music files

0:38:40.360 --> 0:38:42.400
<v Speaker 1>from a CD. They put a c D and a

0:38:42.480 --> 0:38:45.920
<v Speaker 1>CD ROM drive, use a program to pull the music

0:38:46.000 --> 0:38:49.480
<v Speaker 1>off the c d rum drive, convert them into MP

0:38:49.640 --> 0:38:53.480
<v Speaker 1>three file formats, and then store them in a Napster

0:38:53.640 --> 0:38:56.279
<v Speaker 1>folder and then make them available for other people on

0:38:56.320 --> 0:38:59.920
<v Speaker 1>the peer to peer network to download those files. Meanwhile,

0:39:00.400 --> 0:39:02.440
<v Speaker 1>the people who were doing this, we're also looking for

0:39:02.640 --> 0:39:06.720
<v Speaker 1>music that was available on other people's machines. Napster became

0:39:06.760 --> 0:39:10.680
<v Speaker 1>a haven of music trading and theft. Now in some cases,

0:39:10.680 --> 0:39:13.200
<v Speaker 1>folks were using it to find songs that you literally

0:39:13.239 --> 0:39:16.480
<v Speaker 1>could not find in other places, Like you could not

0:39:16.600 --> 0:39:19.520
<v Speaker 1>go out and buy this music because it wasn't available

0:39:19.560 --> 0:39:23.640
<v Speaker 1>for purchase. So things like bootleg albums and live recordings

0:39:23.680 --> 0:39:27.600
<v Speaker 1>that otherwise didn't exist commercially, those were getting a lot

0:39:27.640 --> 0:39:30.000
<v Speaker 1>of trade there too. Now, just because something is not

0:39:30.040 --> 0:39:34.680
<v Speaker 1>available commercially doesn't mean that you have the right to

0:39:34.680 --> 0:39:38.200
<v Speaker 1>to seek out recordings of it. But still, like you

0:39:38.200 --> 0:39:41.279
<v Speaker 1>could see why people would justify it, right. They literally say, like,

0:39:41.280 --> 0:39:43.040
<v Speaker 1>there's no way for me to buy this, and I

0:39:43.080 --> 0:39:45.840
<v Speaker 1>really wanted I wasn't able to experience it in person,

0:39:46.760 --> 0:39:48.640
<v Speaker 1>So this is what I'm going to do. I can

0:39:48.719 --> 0:39:52.840
<v Speaker 1>understand that philosophy. Heck, I've done it myself in the past. Um,

0:39:52.920 --> 0:39:55.880
<v Speaker 1>it's very frustrating experience to be in. But a lot

0:39:55.920 --> 0:39:58.120
<v Speaker 1>of folks, you know, they were using it just to

0:39:58.120 --> 0:40:00.839
<v Speaker 1>get hold of a song, or an album, or even

0:40:00.880 --> 0:40:03.920
<v Speaker 1>an entire music library without having to pay for it.

0:40:04.160 --> 0:40:07.480
<v Speaker 1>I'm not saying everyone who used napster was stealing music

0:40:07.880 --> 0:40:11.000
<v Speaker 1>left right and center, but enough people were to make

0:40:11.040 --> 0:40:16.000
<v Speaker 1>it a real problem. This happened to coincide with a

0:40:16.080 --> 0:40:21.440
<v Speaker 1>dip in music sales, and that sent the recording industry

0:40:21.440 --> 0:40:24.640
<v Speaker 1>into a frothy rage. I was gonna say a tizzy,

0:40:24.680 --> 0:40:28.799
<v Speaker 1>but it was way more than a tizzy. Now, was

0:40:28.880 --> 0:40:32.200
<v Speaker 1>that causation or just correlation? I think there was a

0:40:32.239 --> 0:40:35.080
<v Speaker 1>lot of correlation here. I don't think it was pure causation.

0:40:36.040 --> 0:40:40.880
<v Speaker 1>But again, when you've got a multibillion dollar industry and

0:40:40.920 --> 0:40:45.120
<v Speaker 1>they see a dip, they want very quickly to identify

0:40:45.239 --> 0:40:47.840
<v Speaker 1>the cause of that dip and to eliminate it, because

0:40:48.120 --> 0:40:51.600
<v Speaker 1>you know, corporations are all designed to make as much

0:40:51.600 --> 0:40:55.040
<v Speaker 1>money as they possibly can. So in this case, you

0:40:55.120 --> 0:40:59.200
<v Speaker 1>had a dip in music sales and a rise in

0:40:59.239 --> 0:41:02.799
<v Speaker 1>the use of peer to peer networks, specifically Napster, and

0:41:02.880 --> 0:41:06.080
<v Speaker 1>the conclusion was, Napster is killing the music industry, so

0:41:06.120 --> 0:41:08.960
<v Speaker 1>we must nuke it from orbit, because it's the only

0:41:09.040 --> 0:41:14.120
<v Speaker 1>way to be sure. So before long, Napster and a

0:41:14.160 --> 0:41:17.920
<v Speaker 1>lot of its users were the targets of multiple lawsuits,

0:41:17.920 --> 0:41:22.680
<v Speaker 1>some of which alleged that Napster had caused massive revenue losses. Now,

0:41:22.760 --> 0:41:24.800
<v Speaker 1>I would say that that is an argument that is

0:41:24.840 --> 0:41:29.520
<v Speaker 1>impossible to support in any quantifiable way. Uh. I mean

0:41:29.600 --> 0:41:32.080
<v Speaker 1>you could you could say that, yes, it had to

0:41:32.120 --> 0:41:34.440
<v Speaker 1>have some sort of impact. I mean, it's common sense

0:41:34.920 --> 0:41:38.279
<v Speaker 1>that folks getting access to music for free is going

0:41:38.360 --> 0:41:42.080
<v Speaker 1>to hurt music sales. But it's impossible to actually put

0:41:42.120 --> 0:41:46.080
<v Speaker 1>a quantifiable number on that because you have no way

0:41:46.120 --> 0:41:48.600
<v Speaker 1>of knowing how many of those folks would have actually

0:41:48.680 --> 0:41:52.640
<v Speaker 1>bought an album or a single in the first place

0:41:52.680 --> 0:41:55.839
<v Speaker 1>if there had been no Napster. You know, there's there's

0:41:55.880 --> 0:41:57.880
<v Speaker 1>no way of saying. You can't say, oh, well, if

0:41:57.960 --> 0:42:00.880
<v Speaker 1>they hadn't stolen this music, they would have bought a

0:42:00.960 --> 0:42:04.640
<v Speaker 1>legit copy. You don't know that it's possible that they

0:42:04.680 --> 0:42:08.920
<v Speaker 1>just would have gone without. But it was still plenty

0:42:09.040 --> 0:42:11.440
<v Speaker 1>enough for the music industry to go nuclear on not

0:42:11.520 --> 0:42:13.879
<v Speaker 1>just Napster, but all the folks who had been using

0:42:14.640 --> 0:42:18.640
<v Speaker 1>UH services like Napster to download music illegally and it

0:42:18.719 --> 0:42:21.640
<v Speaker 1>was a really really ugly time. Napster itself, in its

0:42:21.680 --> 0:42:27.160
<v Speaker 1>original form anyway, shut down by two thousand one. The

0:42:27.200 --> 0:42:30.200
<v Speaker 1>brightest stars burned out the quickest, I guess. So. In

0:42:30.239 --> 0:42:33.279
<v Speaker 1>the early two thousand's we saw the first emergence of

0:42:33.440 --> 0:42:37.160
<v Speaker 1>legitimate digital music stores, you know, ones where you could

0:42:37.160 --> 0:42:41.440
<v Speaker 1>actually purchase a song and uh and money would go

0:42:41.840 --> 0:42:46.560
<v Speaker 1>presumably to the record label behind that song. In the

0:42:46.600 --> 0:42:48.759
<v Speaker 1>early early days, most of these were operated by the

0:42:48.800 --> 0:42:52.439
<v Speaker 1>individual music labels. It would be a little bit later

0:42:52.520 --> 0:42:56.200
<v Speaker 1>before we would get the iTunes store. Uh. The iTunes

0:42:56.239 --> 0:43:00.120
<v Speaker 1>Store didn't actually launch until two thousand three, and there

0:43:00.160 --> 0:43:02.080
<v Speaker 1>was no denying that this was, at least in part

0:43:02.160 --> 0:43:04.560
<v Speaker 1>a response to the problems that the industry had seen

0:43:04.560 --> 0:43:08.279
<v Speaker 1>with services like Napster. Apple was stepping in saying, you

0:43:08.320 --> 0:43:11.719
<v Speaker 1>don't want people just stealing your music, but people do

0:43:11.840 --> 0:43:15.319
<v Speaker 1>want access to digital copies of your music. How do

0:43:15.360 --> 0:43:18.000
<v Speaker 1>you manage this? Tell you what, Let us manage it

0:43:18.080 --> 0:43:22.760
<v Speaker 1>for you. And this was like a huge, huge step

0:43:22.800 --> 0:43:24.759
<v Speaker 1>forward for Apple. It would end up being one of

0:43:24.800 --> 0:43:28.759
<v Speaker 1>their most brilliant ideas they came up with when it

0:43:28.760 --> 0:43:33.320
<v Speaker 1>comes to ways to make more money. Now. Initially, these

0:43:33.600 --> 0:43:36.920
<v Speaker 1>music label stores they didn't offer any streaming capabilities either.

0:43:37.160 --> 0:43:40.759
<v Speaker 1>Customers would go to the stores purchase specific songs or

0:43:40.800 --> 0:43:44.319
<v Speaker 1>albums and then download those files to their computers or

0:43:44.360 --> 0:43:47.880
<v Speaker 1>other devices. Of course, in the earliest days, we're mostly

0:43:47.920 --> 0:43:51.040
<v Speaker 1>just talking about downloading to computers. Then you would have

0:43:51.080 --> 0:43:55.200
<v Speaker 1>to actually use a physical cable to connect something like

0:43:55.239 --> 0:43:58.120
<v Speaker 1>an MP three player, you know, like an iPod to

0:43:58.280 --> 0:44:01.719
<v Speaker 1>your computer, and you would transfer or music over the

0:44:01.800 --> 0:44:05.400
<v Speaker 1>cable that way primitive, right, you know, this was again

0:44:05.440 --> 0:44:08.920
<v Speaker 1>before you had these devices that had WiFi capability or

0:44:08.960 --> 0:44:12.560
<v Speaker 1>cellular capability built into them. Oh and by the way,

0:44:12.640 --> 0:44:14.200
<v Speaker 1>to get off on a little bit of a tangent,

0:44:14.320 --> 0:44:16.640
<v Speaker 1>this was also the time where you learned very quickly

0:44:16.680 --> 0:44:21.239
<v Speaker 1>that Apple was great at creating a uh AN experience

0:44:21.280 --> 0:44:24.560
<v Speaker 1>that worked within a specific ecosystem. So if you had

0:44:24.600 --> 0:44:28.120
<v Speaker 1>a Mac computer and an iPod and you used iTunes,

0:44:28.440 --> 0:44:31.120
<v Speaker 1>it was all pretty seamless. It was easy to do.

0:44:31.239 --> 0:44:34.400
<v Speaker 1>It was easy to update your iPod. Like if you

0:44:34.440 --> 0:44:37.760
<v Speaker 1>bought new music on iTunes and it went to your computer,

0:44:38.320 --> 0:44:41.040
<v Speaker 1>you could update your iPod pretty easily by connecting it

0:44:41.120 --> 0:44:44.560
<v Speaker 1>to your Mac. If, however, you owned a PC and

0:44:44.680 --> 0:44:47.080
<v Speaker 1>you used iTunes for PC and you had an iPod,

0:44:47.600 --> 0:44:50.520
<v Speaker 1>it was a nightmare. Speaking of someone from who you

0:44:50.560 --> 0:44:54.799
<v Speaker 1>know had that experience, it was terrible. Um and and

0:44:54.840 --> 0:44:57.520
<v Speaker 1>you learned very quickly that the ecosystem was going to

0:44:57.600 --> 0:45:00.520
<v Speaker 1>be a big deal in the future or of tech.

0:45:00.600 --> 0:45:03.640
<v Speaker 1>And that is another one, right the getting caught in

0:45:03.680 --> 0:45:08.680
<v Speaker 1>a specific ecosystem where if you want to kind of

0:45:08.719 --> 0:45:13.840
<v Speaker 1>explore beyond it, you end up getting punished for it. Anyway,

0:45:14.400 --> 0:45:16.800
<v Speaker 1>as digital music stores were taking shape, you had a

0:45:16.880 --> 0:45:19.719
<v Speaker 1>few different groups working on pieces of tech that collectively

0:45:19.800 --> 0:45:23.759
<v Speaker 1>would allow for music streaming. Uh. And that is where

0:45:23.800 --> 0:45:26.480
<v Speaker 1>we're going to leave off when we come back for

0:45:26.520 --> 0:45:28.959
<v Speaker 1>our next episode. In this we will start picking up

0:45:29.000 --> 0:45:33.280
<v Speaker 1>at the birth of musical streaming, how that got started,

0:45:33.800 --> 0:45:37.120
<v Speaker 1>and then how that in turn had a big impact

0:45:37.239 --> 0:45:40.799
<v Speaker 1>on the music industry and how people make money. We're

0:45:40.800 --> 0:45:44.320
<v Speaker 1>going to explore issues like is there money in streaming.

0:45:44.360 --> 0:45:48.440
<v Speaker 1>You've probably heard people complain that they're getting pennies on

0:45:48.480 --> 0:45:52.200
<v Speaker 1>the dollar because of streaming, and that their revenue has

0:45:52.239 --> 0:45:54.440
<v Speaker 1>taken a huge hit in the wake of streaming. So

0:45:54.440 --> 0:45:56.600
<v Speaker 1>we're gonna look at that and see what's going on there.

0:45:57.320 --> 0:45:59.919
<v Speaker 1>We're gonna take a look at the big streaming serve

0:46:00.040 --> 0:46:03.799
<v Speaker 1>us is out there and how they are performing, and uh,

0:46:03.960 --> 0:46:06.439
<v Speaker 1>maybe even start talking about what's next. I mean, we've

0:46:06.440 --> 0:46:09.760
<v Speaker 1>have seen kind of a resurgence in interest in physical media.

0:46:10.440 --> 0:46:14.319
<v Speaker 1>Is that going to be more of a thing or

0:46:14.440 --> 0:46:17.280
<v Speaker 1>is it just a little, you know, a little interesting

0:46:17.280 --> 0:46:19.920
<v Speaker 1>flash in the pan. Those are things we will talk

0:46:19.960 --> 0:46:23.240
<v Speaker 1>about in our next episode. For now, we're gonna wrap

0:46:23.320 --> 0:46:25.760
<v Speaker 1>this up. If you have suggestions for topics I should

0:46:25.760 --> 0:46:28.080
<v Speaker 1>cover on future episodes of tech Stuff, please reach out

0:46:28.080 --> 0:46:30.600
<v Speaker 1>to me. The best way to do that is on Twitter.

0:46:30.800 --> 0:46:33.400
<v Speaker 1>The handle for the show is text Stuff hs W.

0:46:34.320 --> 0:46:43.160
<v Speaker 1>I'll talk to you again really soon. Text Stuff is

0:46:43.200 --> 0:46:46.320
<v Speaker 1>an I Heart Radio production. For more podcasts from my

0:46:46.480 --> 0:46:50.080
<v Speaker 1>Heart Radio, visit the i Heart Radio app, Apple Podcasts,

0:46:50.200 --> 0:46:52.160
<v Speaker 1>or wherever you listen to your favorite shows.