As a matter of fact, record labels DO get it. That's why the panic regarding the RIAA.
Technology has been the great leveller in this industry and it won't be long before ALL artists take control of their own product by creating, packaging, and marketing the goods without the backing (or need, for that matter) of multi-national entertainment conglomerates.
I see this happening in stages. The first stage will occur in the retail sector. One way to combat digital downloading of product would be to provide the freedom of choice for the consumer. The biggest bone of contention (aside from price) is the dearth of quality material per CD release.
It won't be long before you find 'audio kiosks' in retail outlets that allow you to select each track from a variety of artists and instantly burn it to a disc, replete with printed insert. You don't even need an attendant to manage this as it would all be done via machine. Payment could easily be managed in much the same way by swiping your credit/debit card into the appropriate slot.
These machines would be connected via fibre optics to all of the major record labels. By distributing their product in this fashion, shipping costs would be reduced to nothing. Manufacturing costs would be negligable, at best. Idealy, this savings would then be passed on to the consumer. Voila! Not only do you have choice, but you now have economy of scale!
Soft consumables could then be slowly phased out of the equation, much like the phonograph record, cassette tape, and 8 track cartridge (remember those hideous things?). At the same time, the retail sector would not be entirely decimated by the onslaught of this new paradigm, provided that they are able to afford to install the new hi-tech machines. The great thing for retailers is they no longer have to maintain inventory as each point of sale becomes a direct download from the distributor. Parity for all...
The final stage that I see, is when the artist takes direct control. It's already occurring. This new direction took hold back in the early 90's when digital technology made major headway into the entertainment industry from a production stand point. Until the turn of the that decade, it was pretty much a rich man's play toy.
When the Macintosh computer was introduced as part of a Musical Instrument Digital Interface, the industry was stood on its ear. In an instant, composers were able to mimic 40 piece orchestras, all at the control of a keyboard. Soon after, digital recorders (tape based) were popping up like no tomorrow. Alesis brought the house down with the introduction of the ADAT recorder. Prices came crashing to the floor. Hard disc recorders soon followed, and at a much cheaper price.
Now, every Tom, Dick, and Harry was able to produce studio-quality demo recordings, all in the comfort of their basement, apartment, or garage. Other technological inovations soon followed and home 'project studios' became the rule as opposed to the exception. This is what spear-headed the hip-hop/rap movement. Artists began to experiment more and it no longer cost you your first born to produce a CD.
When I built my first studio, it cost me approximately $75,000 in gear. A scant 5 years prior, to build the same set-up (audio quality) would have cost me at least a quarter of a million. Today, you could pull it off for less than 50 grand.
All that being said, the need for the record label has out-lived its usefulness. Artists no longer require a million dollar cash advance to produce a CD. Juxtopose this with the fact that artists have been bending over for those said advances since time immemorial (in the form of high interest rates and gross penalties on what they consider promotional give-away's), and you've obviously got a serious revolt on your hands.
The internet provides the final piece to the puzzle. Without the need for a label's cash advance, all that the artist requires is a means to get the product to the people. Kazaa and the like have already acclimatized the majority of consumers with the idea of downloading music off the net. Artists simply have to set up their own websites to accomplish the same thing. Bottom line? Say goodbye to the middleman/rack jobber. And say goodnight to the fat-cat record exec.
All that remains is the need for a filter of sorts to separate the wheat from the chaff. Perhaps radio may still have a job after all! lol
