GrindEFX

I almost wasn’t going to post this, in the couple of weeks we’ve heard so many positive stories of artists finding a business model that works for them, it’s a shame to have to sit and write about record executives still barking up the wrong tree. But my job is to report on the news, good or bad, so that is what I shall do.

Okay so here’s the story; Antonio “L.A.” Reid, CEO of Island Def Jam Music Group, has decided it would be a super idea to plaster ads all over Mariah Carey’s new CD in an attempt to reduce costs. These ads will appear in a 34-page mini magazine, co-produced with Elle, right beside the lyrics and linear notes. The ads are said to reflect Mrs Carey’s image, brands such as Elizabeth Arden, Angel Champagne, Carmen Steffen’s, Le Métier de Beauté and the Bahamas Board of Tourism will make an appearance in the booklet.

“The idea was really simple thinking: ‘We sell millions of records, so you should advertise with us,’” Antonio “L.A.” Reid, chairman, Island Def Jam Music Group told Brandweek. “My artists have substantial circulation—when you sell 2 million, 5 million, 8 million, that’s a lot of eyeballs. Most magazines aren’t as successful as those records.”

Apparently Mr Reid has been in a coma for the last 5 years and isn’t aware that nobody is selling 8 million CDs anymore, much less Def Jam. As far as I’m aware Mariah didn’t manage even 2 million on her last effort.

This whole concept is ridiculous to me, rather than diving into new and exciting business models that could potentially save their ass, major labels are still attempting to eke out every last penny they can from an old, dying business model. Year-to-date album sales were down 13.9 percent for the week ending July 19, 2009, compared with the period last year, according to Nielsen SoundScan (227 million units vs. 195.5 million units).

These ads might cut some manufacturing costs, but at the end of the day, Island Def Jam are still pushing a product that nobody wants. Ads aren’t gonna sell records. Consumers don’t want CDs, what will covering them in advertising do to change that? Nothing. And that’s what major labels should be focusing on right now, trying to find ways to survive for the future. This is a short term solution to a never ending problem, major labels are buying umbrellas for the storm whilst many independent artists are building houses, who’s still gonna be here in the morning?