Trent Reznor recently spoke to Tunecore.com about the collapse of the music industry and its future. An excerpt from the extensive interview can be found below:
"I started my career in the late eighties, where the template was: sign on with a record label. That’s you’re ticket to admission. You have to have distribution, they have it tied up – promotion, all the team in place. And then just try to work as hard as you can, and over time, what I was hearing when we were first getting signed was, by your third or fourth album if you get your audience, that’s what we’re aiming for, and we look at you as a Prince type character, with a career like The Cure, or Depeche Mode or bands that’ve been around for a long time and that will continue to be around. Ok, all right, I’m ready. I’m in for the long haul; I’m ready to do this.Then you start to learn as you see contracts. Wow, whoever went along with this contract originally, it’s not a very fair contract. Let’s see, you as a record label lend me some money to make a record, and then I have to pay you back all that money. And after I pay it back, you own it forever. Wow. And then I get to make this little sliver on top of that, if I’ve recouped. But you get to control how much I spend on marketing and other things I have to pay you back for. So, wait a minute. I could sell this many records and still never recoup? And you do all the accounting? And then when you don’t pay me, ever, then I have to spend twenty-five grand to audit you, for you to then tell me “Oh, yeah, we do owe you this much.” That kinda sucks. And then [there’s] the mysterious, purposefully convoluted and tangled world of publishing, and how confusing that is. And a lot of musicians, myself included, that just wanted to work on music, and hoped someone had figured that out.
And you realize – just what you said – some of the unfair business practices and precedence that’s been established. And I’m not saying that no one should benefit from songs I write, or that I do all the work and I should make all the money. But I should make some money, and I should be able to clearly see where that money is coming from, if I did all the work, essentially. I wrote the song, I came up with the idea.
But then when you see the industry start to collapse, which means you’re kinda happy to see some of it collapse, but then you’re sad because also my livelihood is in danger, and I think how am I going to support myself and a family in an industry where we’re essentially making typewriters, you know? Nobody wants typewriters anymore. Everybody will reads, and everyone still writes, but they don’t use these clunky machines and, ah shit. OK.
I think the promise, and what I would hope more than anything, is that when we get to this new business model, whatever that is, on the record label side and also on the publishing side, [is] that somebody is strongly speaking up for artists’ rights when that starts to get figured out. And that in an age of potential transparency, that the actual content creator has a seat at the table, and it’s not ALL the things glomming on to it that are carving off their parts. Now, what have we seen happen? Is the iTunes payout model fair to artists? Not in my opinion. What I consider, from a consumer point of view, the next good business model, the next thing that makes sense, is if there were mass adoption of music subscription services, like Spotify. I think in an age of broadband connection being everywhere, everyone having powerful computers in their pockets, this sense of feeling- normal people feeling comfortable with the idea of the cloud, and their data’s somewhere but it’s is secure, it’s somewhere, and they have access to it, having all the music available in the world available to you at your fingertips, anywhere you want it all the time, that’s pretty cool. That requires some education on the part of those companies, to help people to understand what that is. But I think that could make sense. But is it fair to the artist? Not really. Look at the checks you’re getting paid from those services. It’s not an inspiring amount, and it certainly doesn’t replace lost revenue.
But I think what you’re doing is a huge step in the right direction. On the publishing side of things, shining lights in those dark corners, and transparency, and the always-painful overhaul of when it’s time to shift business models. When something becomes outdated, there’s a lot of resistance to the painful realization that things have to change."