Digitizing LPs -- the hidden cost

RCA's answer to BS&T, ca. 1969. Do I really need to
have this on my iPod? (probably)

I own some LPs that are not likely to be available either on CD or (legal) digital downloads anytime soon -- if ever. That was OK - I figured I would eventually get a turntable with USB output and make the conversions myself.

I had an opportunity to do that recently, and on the whole the system worked fine. What I had forgotten about, though, was that the transfer process had to happen in real time. If the total playing time of the LP was 40 minutes, then the transfer time would be 40 minutes.

After doing two or three of the albums, I started to do some serious evaluation of my analog-to-digital project. I have about 100 albums that have no digital versions available (let me stress again, legally). So with an average playing time of about 35 minutes a platter, that's about 58 hours -- or almost two and half straight days -- of transfer time. And then I have to do some work on the tracks, which take about another 30-40 minutes per album, so make that about 116 hours. That's a little over two 40-hour work weeks.

Hmmm. This will have to be an extremely long-term project, and/or I'll need to seriously re-evaluate how many of these long-lost gems I really want to add to my digital library.

RIAA - Really Imaginary Accounting Adventures

Two recent news stories that should give one pause (but probably won't because the subject matter's too esoteric). First, AfterDawn reports that the Government Accounting Office has taken a hard look at the numbers the RIAA and MPAA have quoted for years. Numbers documenting how much they lost to piracy. Numbers showing how file-sharers are destroying their livelihood. Numbers that were totally made up.

In the second story, TorrentFreak shows that -- according to their own numbers -- piracy seems to have little impact on the growing digital download market. According to the numbers, it looks like a simple case of market shift. CDs -- which are very profitable -- are declining in sales, while digital downloads -- low margin items -- are on the rise.

So what do these two stories mean taken together? At the very least, it means that the entertainment industry is not just in deep denial -- it's delusional. Instead of adjusting to a changing market, they're placing the blame on a minor problem by making it a major one.

So the MPAA and the RIAA have gone to war. People have been dragged into court, and hefty fines levied -- based on made-up numbers. Legislators have been stampeded into passing draconian laws that trap the innocent -- based on made-up numbers. Countries are being strong-armed into complying with the Anti-Counterfeiting Trade Agreement (ACTA) -- based on made-up numbers.

As the laws continue to become more severe, more former innocent (and legal) acts are becoming grounds for prosecution. Have you copied a CD to your computer? Used to be legal -- RIAA claims it isn't anymore. Loaned a DVD to a friend? You're doing some unauthorized distribution, friend.

And what happens when everyone becomes a criminal (and liable for arrest, prosecution and fines)  -- based on made-up numbers? What happened to alcohol consumption during Prohibition?

 - Ralph

Another Look at the Thousand True Fans

The Information is Beautiful Blog posted a wonderful graphic illustrating how much musicians earn online.It examines income streams from all of the different venues available, and looks at independent artists vs. those signed with labels. For many, the chart prompted despair -- 1.5 million plays on Last.fm, for example, earns a solo artist $1,160 -- the monthly minimum wage.

I suggest looking at it in a different light, though. Kevin Kelly's articulated the concept of the One Thousand True Fans as a way for independent artists to achieve success. Basically, if you can connect with one thousand fans who are willing to spend $100 on your downloads/albums/merch/concert tickets, then you can make a decent living catering to a niche market.

So let's look again at the numbers from our chart, and instead of looking at minimum wage, look at what happens if those One Thousand True Fans voted with their dollars and each made a purchase.

Self-pressed CD @$9.99 -- $8,000 to the artist
CD Baby Album @$9.99 -- $7,500 to the artist
CD Baby iTunes Download @$0.99 -- $570 to the artist

Look what happens when the artist signs with a label.
Retail album CD @9.99 list -- $2,000 to the label, $300 to the artist
iTunes album download @$9.99 list -- $6,290 to the label,$940 to the artist
Amazon MP3 download @$0.99 -- $630 to the label, $90 to the artist

Notice anything?

Traditionally, the advantage to signing with a label has been that the resources of the label could be used to boost the artist's profile, increasing their fan base. But look at it from the artist's perspective. To match the income ($8,000) from a self-released CD, the artist now needs 26,000 fans to by the album at retail. OK, that's not impossible. And when those 26,000 fans purchase, the label will make $52,000.

How about downloads? In order to net the same $570 you netted as an indie artist from your One Thousand Fans, you only need 8,220 folks to download your song -- and make $5,186 for the label in the process.

Now of course, labels measure success in terms of hundreds of thousands of fans. So if you had 250,000 of them (sort of the bare minimum), you'd then have $22,500 coming to you from your downloads -- while the label pockets $157,500.

Hmmm. Maybe it's best to keep those One Thousand Fans to yourself.

- Ralph