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Charleston Library Conference

(R)Evolution in the Information Industry: What the Information Industry Can Learn from the Music Industry

Amy Elliott Boise State University, [email protected]

Follow this and additional works at: https://docs.lib.purdue.edu/charleston An indexed, print copy of the Proceedings is also available for purchase at: http://www.thepress.purdue.edu/series/charleston. You may also be interested in the new series, Charleston Insights in Library, Archival, and Information Sciences. Find out more at: http://www.thepress.purdue.edu/series/charleston-insights-library-archival- and-information-sciences.

Amy Elliott, "(R)Evolution in the Information Industry: What the Information Industry Can Learn from the Music Industry" (2009). Proceedings of the Charleston Library Conference. http://dx.doi.org/10.5703/1288284314791

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1 The information industry is perhaps difficult to define, yet to say publishing industry is misleading. The information industry certainly includes the publishing industry, but it also includes database vendors, libraries and universities. It also necessarily contains some elements of the technology industry. It may be useful, however, to note that this paper concerns itself primarily with the scholarly communication sector, scholarly journals in particular, of the information industry. However, this sector surely is not isolated in the issues it faces. Many of the technological challenges it faces also affect the larger publishing and information industries, hence the inclusive terminology. 2 Technology has been around forever. Books were once a technology, an improvement over scrolls. However, for this paper technology primarily means digital technologies, those technologies surrounding computers and the ŝŶƚĞƌŶĞƚ͕ŽƌǁŚĂƚŚƌŝƐŶĚĞƌƐŽŶĐĂůůƐƚŚĞ͞ďŝƚƐĞĐŽŶŽŵLJ͟ŝŶŚŝƐƐĞĐŽŶĚŬFree : The Future of a Radical Price (New York: Hyperion, 2009). 3 This is not entirely true, but they may be considered the original two. It can be argued that all of the industries protected by copyright (art, architecture, drama, dance, music, movies, videos, works of literature, and in this new ƚĞĐŚŶŽůŽŐŝĐĂůĂŐĞ͞ĐŽĚĞ͟ͿŵĂŬĞĂƉƌŽĨŝƚďLJŽďƚĂŝŶŝŶŐƚŚĞƌŝŐŚƚƐƚŽŽƚŚĞƌƐ͛ŝŶƚĞůůĞĐƚƵĂůƉƌŽƉĞƌƚLJ͘,ŽǁĞǀĞƌ͕ŵŽƐƚ movies start as either a script or a story board or both and so I would argue that they begin as works of literature and/or art. Music derived its copyright from writing. Protecting copies of written works was the origin of copyright. Monks had been making copies by hand from manuscripts for years, but it was the invention of the printing press that served as the impetus for creating a law regarding making copies of intellectual works. For more on the history of copyright see Alex Guindon, "A Very Short History of Copyright: Adopting the User's Perspective," The Canadian Journal of Information and Library Science. 30.3/4 (2006).

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4 It is worth noting that copyright does not protect ideas, but the expression of them. For a good review of copyright law see chapter five of Heather Morrison, Scholarly Communications for Librarians (Oxford: Chandos, 2009). 5 This is grossly over simplified for the purposes of illustration and discussion in this paper. There are actually many different payment models within the music industry. There are many excellent texts that explain the intricacies of the music business. See M. William Krasilovsky, Sidney Shemel, John M. Gross and Jonathan Feinstein, This Business of Music : The Definitive Guide to the Music Industry (New York: Billboard Books, 2007) or Steve R. Gordon, The Future of the Music Business : How to Succeed with the New Digital Technologies : A Guide for Artists and Entrepreneurs (San Francisco: Backbeat Books, 2005). 6 The tenure debate is a problem of its own, but one that exacerbates the digital publishing question at hand because universities have yet to find an effective model for evaluating digital scholarship and publication as part of the tenure granting process.

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7 Today at least there is not. At one time, there were printing and shipping costs associated with delivering manuscripts to reviewers, but today it is done digitally. 8 Production costs for an album routinely amount to thousands, if not millions, of dollars ($80,000 was a norm in the late 1990s) for professional production in a studio. By 2007, an artist could produce a professional quality album on his or her computer for around $2,000 (Krasilovsky et al. 417). 9 The current rate for mechanical royalties, the amount the songwriter receives per song per album, for a song running less than five minutes is $0.085 (Gordon 5). So an artist who wrote (without a co-writer) every song on a CD containing ten songs, will earn $0.85 per album sold. The record company keeps the rest of the wholesale price to make a profit aŶĚ͞ƌĞĐŽƵƉ͟ƚŚĞŝƌŝŶŝƚŝĂůŝŶǀĞƐƚŵĞŶƚĨƌŽŵƚŚĞĂĚǀĂŶĐĞƉĂŝĚƚŽĂƌƚŝƐƚƐƚŽŵĂŬĞƚŚĞĂůďƵŵ͘ 10 There are a number of good books available on this topic, including: Steve Knopper, Appetite for Self-Destruction : The Spectacular Crash of the Record Industry in the Digital Age (New York: Free Press, 2009), Greg Kot, Ripped : How the Wired Generation Revolutionized Music (New York: Scribner, 2009), Bruce Haring, Beyond the Charts :

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Mp3 and the Digital Music Revolution (Los Angeles, CA: JM Northern Media LLC, 2000), and David Kusek, Gerd Leonhard and Susan Gedutis Lindsay, The Future of Music : Manifesto for the Digital Music Revolution (Boston: Berklee Press, 2005). 11 Digital natives are all born after 1980 and only know a digital world. For more on digital natives and their impact on the music business (among other things) see John G. Palfrey and Urs Gasser, Born Digital : Understanding the First Generation of Digital Natives (New York: Basic Books, 2008). 12 This is imƉŽƌƚĂŶƚďĞĐĂƵƐĞƚŚĞĨƵƚƵƌĞŽĨƚŚĞŵƵƐŝĐŝŶĚƵƐƚƌLJƚŽĚĂLJŝƐ͞ůĞƐƐŽĨŵŽƌĞ͕͟ĂƐŶĚĞƌƐŽŶŽƵƚůŝŶĞƐŝŶThe Long Tail.

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13 dŚĞŐĞŶĞƌĂůƌƵůĞŽĨƚŚƵŵďĂďŽƵƚƚĞĐŚŶŽůŽŐLJ͛ƐƌĂƚĞŽĨŐƌŽǁƚŚŝƐďĂƐĞĚŽŶDŽŽƌĞ͛Ɛ>ĂǁĂŶĚƐĂLJƐƚŚĂƚƚĞĐŚŶŽůŽŐLJ capacity doubles every two years in effect halving the price. See Chris Anderson, Free : The Future of a Radical Price (New York: Hyperion, 2009). 13, 77, 82-84. 14 Only most of the consumer market because the digital divide, or rather the economic divide which prevents the poorest from acquiring and accessing digital technologies, has always and will always exist, and whether we think of it or not, those who have access to digital technologies, personal computing, and the like are privileged. 15 For more detail on the P2P lawsuits see Kot, Ripped : How the Wired Generation Revolutionized Music, Krasilovsky, Shemel, Gross and Feinstein, This Business of Music : The Definitive Guide to the Music Industry, Knopper, Appetite for Self-Destruction : The Spectacular Crash of the Record Industry in the Digital Age, and Gordon, The Future of the Music Business : How to Succeed with the New Digital Technologies : A Guide for Artists and Entrepreneurs.

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16 One of the first examples of an artist circumventing the record companies to exploit digital technologies is ZĂĚŝŽŚĞĂĚ͛ƐŶŽǁĨĂŵŽƵƐIn Rainbows album. For details see Anderson, Free : The Future of a Radical Price. 153- 154 and Knopper, Appetite for Self-Destruction : The Spectacular Crash of the Record Industry in the Digital Age. 244-245. 17 For more on the different proposed models see chapters nine, fourteen, fifteen, and sixteen of Gordon, The Future of the Music Business : How to Succeed with the New Digital Technologies : A Guide for Artists and Entrepreneurs. 18 For a good explanation of creative commons licensing and a primer on copyright law see chapter five of Morrison, Scholarly Communications for Librarians. 19 /ŶƚƌƵƚŚƚŚĞ͞ƐĞƌŝĂůƐĐƌŝƐŝƐ͟ŚĂƐďĞĞŶĂƌŽƵŶĚĨŽƌĚĞĐĂĚĞƐ͕ĂƚůĞĂƐƚƐŝŶĐĞƚŚĞϭϵϳϬƐ͘&ŽƌĚĞƚĂŝůƐƐĞĞ National Enquiry into Scholarly Communication and American Council of Learned Societies, Scholarly Communication : The Report of the National Enquiry (Baltimore: Johns Hopkins University Press, 1979).

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20 ^ĞĞƚŚĞ͞,ĂŶĚůŝŶŐDĞĚƵƐĂ͟ƐĞĐƚŝŽŶƐŽĨAgainst the Grain, edited by Linda Defendeifer, for September and November 1999 for both sides of this argument: Mark J. McCabe, "The Impact of Publisher Mergers on Journal Prices: An Update," Against the Grain 11.4 (1999). And John Cox, "Mergers in Publishing: Do They Matter?," Against the Grain 11.5 (1999).

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21 /ƚ͛ƐƚŝŵĞƉƵďůŝƐŚĞƌƐĂŶĚǀĞŶĚŽƌƐĂĚĚƌĞĂůǀĂůƵĞƚŽƐĐŚŽůĂƌůLJĐŽŵŵƵŶŝĐĂƚŝŽŶ͘WƵďůŝƐŚĞƌƐůŝŬĞůƐĞǀŝĞƌŚĂǀĞĂƌŐƵĞĚ for years that they add value to the information faculty create through the process of peer review, typesetting and the like; however, many are skeptical of this statement including Deutsche Bank who in an equity report claimed ƚŚĂƚůƐĞǀŝĞƌ͚͞ĂĚĚƐƌĞůĂƚŝǀĞůLJůŝƚƚůĞǀĂůƵĞƚŽƚŚĞƉƵďůŝƐŚŝŶŐƉƌŽĐĞƐƐ͙ŝĨƚŚĞƉƌŽĐĞƐƐƌĞĂůůLJǁĞƌĞĂƐĐŽŵƉůĞdž͕ĐŽƐƚůLJ and value-ĂĚĚĞĚĂƐƚŚĞƉƵďůŝƐŚĞƌƐƉƌŽƚĞƐƚƚŚĂƚŝƚŝƐ͕ϰϬйŵĂƌŐŝŶƐǁŽƵůĚŶ͛ƚďĞĂǀĂŝůĂďůĞ͕͛͟ƋƵŽƚĞĚŝŶGlenn S. McGuigan and Robert D. Russell, "The Business of Academic Publishing: A Strategic Analysis of the Academic Journal Publishing Industry and Its Impact on the Future of Scholarly Publishing," Electronic Journal of Academic & Special Librarianship 9 (2008), .

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