CD settlement not a fight consumers can win
February 18, 2003
There’s a scene in the movie “Fight Club” in which the two main characters, played by Brad Pitt and Edward Norton, are discussing oxygen masks on airplanes, and how their real purpose is to keep the passengers subdued before a crash.
“Oxygen gets you high. In a catastrophic emergency, you’re taking giant panic breaths. Suddenly you become euphoric, docile — you accept your fate,” says Pitt’s character, Tyler Durden. “Emergency water landing, 600 miles an hour, blank faces, calm as Hindu cows.”
Unfortunately, this analogy relates a little too well to the outcome of the antitrust case that Iowa, along with 42 other states, has filed against several major music distributors for over-pricing albums during that time period. Obviously, the outcome of the lawsuit isn’t a life-or-death situation, but the metaphorical crash of the music industry that could result is certainly a reality.
Iowa Attorney General Tom Miller is encouraging all Iowans who purchased recorded music between 1995 and 2000 to file a claim for a portion of the settlement by March 3. The payout will range from $5 to $20, based on the number of people who file a claim. If too many people file claims and the pay out drops below $5 per person, the entire settlement of more than $75 million will be donated to nonprofit groups with music-related purposes.
In theory, the settlement sounds like everyone — excluding the music distributors who have to pay out — will win, no matter where the settlement money ends up. Most consumers would probably be more than happy with an extra $20 in their pocket, and it’s doubtful the involved nonprofit organizations would be upset by a $75 million donation. But in reality, any money that the “big five” record labels pay out will end up back in their hands.
Take the events following Sept. 11, for example. After the economy of New York began to falter, celebrities began appearing nationwide, urging the public to take in all the entertainment the city had to offer. In essence, convincing consumers to spend more money would help stimulate the economy of the city and the nation.
If everyone who receives money from the CD settlement saves their minuscule payout, the record companies lose. But most of these same consumers who cared enough about buying music to file a claim in the first place will simply buy more albums. To paraphrase Tyler Durden in another part of the movie, we’re selling rich women their own fat asses back to them.
If anything, the lawsuit implies that music is now required to be sold at a lower price. A visit to Sam Goody will quickly prove that an $18 album is still pretty easy to find. The recording industry is still clutching to its antiquated and unrealistic belief of beating, rather than joining, the music download revolution.
The effects of overpriced music stretches far beyond the already thin wallets of the deficit-weary consumer. More money for the major labels will reinforce a marketing scheme that already supports sub-par but vastly popular teen idols. If the money left the labels’ collective hands for good, talented musicians might actually have a chance at mainstream success. But by pumping cash back into the system, popular music will continue to be based on MTV’s TRL crowds, rather than the music itself.
As long as the less-informed customer continues to pay more than his or her share for an album, lesser-known musicians will earn pennies on the dollar, well-known “artists” like Avril and Britney will be touted as the most talented performers music has to offer, and label higher-ups will still drive their Bentleys home to their MTV “Cribs”-worthy homes.
It’s called a changeover. The movie goes on, and nobody in the audience has any idea.
Aaron Ladage is a junior in journalism and mass communication from Tripoli. He is the assignment arts and entertainment editor of the Daily.