Well, you may think this is an unreasonable title to discuss music industry issues. The truth is: the current state of the music industry has less logic and monetization avenues than common prostitution and both actually operate under similar schematics.
In both sex and music (the goods) there is pleasure and enjoyment with a payment in the end – and the payment is the part where the Music Industry fails big time! In the sex business, both the pimp and the prostitute usually get paid!
In the Music Industry, “bulk pimps” like Shazam, Soundhound, or other lyric ID guys (with Google being the biggest one) will line you up with new pieces of music – totally free of charge. Afterwards, you can go to one of the pirate download sites or just YouTube the song, and once again, totally free of charge, become a satisfied music consumer and “owner”! To give the Music Industry some credit, approximately 1 in 20 music fans dealing with these “bulk pimps” are honorable customers and go to one of the certified establishments to purchase the music for just $0.69 to $1.29 on iTunes, Amazon, or Google.
Otherwise, the biggest music pimp, Shazam, and the biggest music bordello, YouTube, work for nothing – vending other people’s music for free!
A closer look at Shazam reveals that as they pass on music IDs for free, they earn cash from advertising products / brands like eBay or Capital One Visa!
Even after 13 years in business, Shazam still has never turned a profit. Such a great child of the Music Industry with over 350 million users had little over $30 million in revenue in 2012, recognizing a loss of almost $5 million. They gross less than $0.10 per registered user for providing billions of song IDs that typically convert to theft. Can they legally process someone’s intellectual property and not even gain much out of it!?
RIAA must react NOW! 90-95% of the time, Shazam and other music ID entities process digital music solely for the benefit of pirates.
Shazam actually has the nerve to value themselves at one billion dollars in current IPO preparations.
The net result? Mismanagement and misallocation of great NEW resources in the Music Industry. This is a situation where all the goods are free and openly available basically anywhere, like in bars or inside your car, with Shazam being the one giving it out to everyone for free. The Music Supermarket with no walls and all ID services removing the goods into the parking lot and neighborhood streets for a total pleasure of all 24/365!
So what state is the Music Industry in? The best description is equivalent to hundreds of naked prostitutes running around town with a sex hungry man observing the webcams. This uncivil fellow is just one click away from a “Shazam courtesy delivery” of whomever he chooses. Both Shazam and the prostitutes will not see any cash from this bad guy. As the Shazam guy knocks on the door to deliver, a proud Capital One logo will be displayed on his shirt and the girl will have a McDonalds tattoo on her chest!
To some of us the situation actually might resemble a gang rape in the public square. Shazam grabs the girl and delivers her to Spotify or YouTube users. Moments latter, to get more satisfaction, they press a “similar tune” button to receive instantly and for free all other, similar looking girls. All of it is propelled by degenerated parents of music, the labels, who started and continue to deliver their best kids in to this madman rape arena.
To be blunt, this is only proper assessment of current situation in the Music Industry.
Time to finish those desperate giveaways and start Discovery Moment Monetization.
Time for billion dollar Shazam music store!
… and a five billion IPO will follow!