A Fractured Music Business Fairy Tale

Once upon a time a vinyl record album cost about eight dollars. Once upon a time a vinyl 45 cost one dollar (for two songs). Then technology changed and we were told the new format was better, it may be expensive to begin with but eventually prices will come down. That technology was the digital compact disc or CD. Suddenly vinyl records disappeared and became collector's items. Suddenly turntables and cassette decks vanished. Overnight entire collections of music became obsolete.

The new technology had taken over and we were forced to do three things: 1) replace the vinyl records with CDs; 2) buy new hardware to listen to the CDs; 3) pay the inflated price for CDs because the labels thought the public forgot that they promised to lower the price once the CD became popular.

Then the technology changed again much to the dismay of the record labels. The music business was becoming more democratized. Computers and the Internet changed the rules. The labels panicked. There was much hand-wringing and many predictions of doom. The sky was falling. Chicken Little was running around with no head.

Eventually the labels realized the potential of the new technology and the Apple store was born. The people rejoiced and bought one song. The record labels were suspicious, but the money changed their minds. But it was a Pyrrhic victory. Sales of the old new technology plummeted.

The labels had the answer. Remember, we forgot they promised to lower the prices of CDs to vinyl album prices once the CD caught on. Remember, the labels know we forgot. Plus, they claimed we should be happy with CDs, after all there are more songs on a CD than on a vinyl record, ergo that is justification for the inflated cost. But we were not happy. We complained about crappy music. We continued to buy one song.

And now, in a vain attempt to recapture what was lost, the record labels are testing, for a short period of time, selling CDs for ten dollars or less. In other words, vinyl album price. But we should not rejoice. We should feel sorry for them. After all, they are losing buckets of money and this price slashing is their version of a drowning man reaching for a life preserver.

It's a pity he can't swim.

It's a pity the labels didn't keep their promise.