"... CD sales are down. WAY down, 20% so far this year alone -- that translates into at least $300 MILLION dollars in gross revenues lost... I've been hearing it from my label folks for a while "Yeah man! We got a top-5 track at radio, but we're selling 100,000 single downloads and only 15,000 CDs a week!" OUCH! Let's do the quick math on that: 100,000 singles might yield $60,000 to the label, whereas 100,000 CDs (old math) would have netted the label at least $600,000 -- that's half a million dollars, per title, per week, gone....when your marketing costs stay the same and your revenues get smaller, it doesn't take a rocket scientist to figure out that things aren't so good."
"... Label and distribution staffs have been cut in half as their release rosters have doubled, and quite honestly, it's making a bigger mess than the one we're already in. People are losing
their focus, and it's really starting to affect how business gets done..."
"Forget about the old days of artist development -- bringing a band into an office to play, getting the entire staff to go to the mat for a single band, sticking with that release for 6-12 months, and reaping the rewards of watching them blow up bigtime? Not happening so much these days. Unfortunately, as much as every label would like to be about artist development, people turn into Lucy & Ethel at the chocolate factory after another half dozen new titles come out the next week..."
Read the full text of Scott's open letter after the jump and check out his New Music Tipsheet.