Music Format Wars

Music Distribution Format Wars:
What’s Coming Next?

Image of WinAmp Audio-Video Player
WinAmp® the bestest desktop audio-video player of all. It really whips the Llama’s ass.

Like many of us, my love for music began as a young boy when I bought my first vinyl audio recording. Bob Dylan’s (1969) recording was one of my first.

Bob Dylan
The vinyl recording was the first format used to distribute music commercially.

 Record albums were pressed in “vinyl” in those days, a material which nearly went extinct when other formats came along; formats which were less expensive to manufacture, less expensive to distribute and perhaps most importantly to be considered –more convenient– for people to buy and use.

Them rascally automobile manufacturers never figured out how to put a record turn table in a car so when we took our sweethearts to the drive-in we had to settle for eight track tape players.

I’ve heard it said Waylon Jennings gave Conway Twitty the nickname “Mr. Panty Dropper.” I’ve been playing guitar and trying to sing like Conway Twitty for decades but I’m telling you, back in the day they called boys like me hoods and we were way hipper than jocks because hoods knew the secret to hitting a home run with a girl was an Elvis tape.

Picture of Elvis eight track tape inserted into automobile tape player
The 8-track tape in homes and automobile tape players disrupted the vinyl recording format.

The 8-track tape format had its day and tried to hold on for dear life. Capitalism and the ever present pursuit of the better mouse trap brought us the audio cassette tape format invented by Lou Ottens a Dutch audio engineer.

Picture of the inventor of cassette tape
Lou Otten’s audio cassette format disrupted and replaced the 8-track tape format.

Not to be left behind the Japanese took the world by storm with the SONY Walkman® becoming a huge success as the way to playback audio cassette tapes as we roamed far and wide taking our music with us. I actually still have a Walkman and use it when occasionally taking walks to ponder my navel.

Picture of the Sony Walkman cassette player
The SONY Walkman® audio tape cassette player circa 1979. Portability. Convenience. Social status. What’s not to like?
The audio cassette format was inexpensive to manufacture and distribute but the tape itself was prone to bind in the playback machines giving everybody one big pain in the ass. The march of progress had its way and the Compact Disk (CD) emerged.

 

Picture of the Layla And Other Assorted Love Songs CD
The CD (Compact Disk) format disrupted and replaced the audio cassette tape format.

The CD format kicked ass and has remained viable for quite a long time. Easy to manufacture and reproduce, every band in the world that had not yet made it into retail began selling their self-produced CDs at every venue they performed at. The bands wasted no time learning to market their own product selling it direct to the customer. If they can do that they can retake control of monetizing their music. All it takes is the same effort using a new distribution format.

However, not unlike Little Miss Muffet who sat on her tuffet most musicians have been sitting on their asses and when the spider(s) came to sit down beside them the spiders took all the profits from them.

The spider was “streaming” an “access anytime and anywhere” distribution format by means of the Internet, the World Wide Web, and the “freemium” business model that not only disrupted CD it radically changed the quality of the audio consumers of music got indoctrinated into liking and it hasn’t changed. 

If you want better audio quality you buy the CD. If you want the best audio quality you buy vinyl. If you want free or nearly free music you stream it.

People traded audio quality for convenience. Listening to music on a cellphone is not unlike going back in time and listening to music as if one were listening to AM radio with little teeny earphones on.

No tangible format like tape or plastic disks were needed anymore thank you very much; just pay a monthly streaming bill after the door swings shut on the free stuff.  

Picture of streaming audio video service providers
Streaming Media Services HDTV streaming media services disrupted and replaced analog CRT-TV broadcasting.

Streaming media brought to all of us by convenience hacked our human behavior by exploiting our tendency to want something free. The freemium business model has proven to be a successful  means of providing instant gratification.

Although vinyl recordings and other distribution formats remain in retail their sales have taken a big hit. After all, it is very difficult to compete with bits and bytes that are given away free as the means to lure customers to the download button.

That’s the reason the pusher man gives away the first hit of heroin; he knows it will get you hooked and you’ll be paying from then on.

Picture of an NFC tag surrounded by logos of many streaming audio video service providers.

The streaming audio services that disrupted the CD format are becoming disrupted by the emergence of Near Field Communication (NFC) that can distribute or stream music direct to anybody with a simple (((tap)))® of their cellphone putting monetization back into the hands of creators.

Even the pusher man has competition and the streamers are vulnerable to better mouse traps. The mouse trap that is slowly and surely tripped to fall on the neck of streaming companies and many other unsuspecting mice is a technology 60% of Americans are using since it was brought to America in 2014: Near Field Communication (NFC.)

The ability to tap-and-pay with a cellphone  has opened up a world of possibilities to those who asked “If I can tap-to-pay what else can I tap on?”

All that stands in the way is time and the understanding by song writers and musicians –creators– that the use of NFC can, will and is disrupting the streaming business model. NFC can and will put the power and financial rewards of what is created back into the hands of the creators themselves.

Clinton Gallagher has become an –NFC expert– that got started learning how to make it happen in 2016. 

If you’re one of the aforementioned 60% of Americans (or an early adopter from another nation) that analysts reported as of Q4 2022 have begun using their cellphone and contactless credit/debit cards to (((tap)))® and pay you will understand the time has come to put NFC to use for you…you might even get the clues in this blog leading the way to make it happen for creators.

No App. Just (((tap)))®

You’ve just read Clinton Gallagher’s explanation of the facts of life as they have become.

Follow up with this embedded video created by Rick Beato who explains why he thinks the record labels are no longer relevant to musician’s wanting to monetize the music they create…

Play Video

The Next Big Thing: Contactless SmartCard Music Sales and Distribution Format.

Like most of us, my love for music began as young boy when I bought my first albums; Zimmerman’s was one of my first.

Record albums were pressed in “vinyl” in those days, a material which nearly went extinct when other formats came along; formats which were less expensive to manufacture, less expensive to distribute and perhaps most importantly to be considered –more convenient– for people to buy and use.

Them ol’ automobile manufacturers never figured out how to put a record turn table in a car so when we took our sweethearts to the drive-in we had to settle for eight track tape players.

I’ve heard it said Waylon Jennings gave Conway Twitty the nickname “Mr. Panty Dropper.” I’ve been playing guitar and trying to sing like Conway for decades but I’m telling you, back in the day they called boys like me hoods and we were way hipper than jocks because hoods knew the secret to hitting a home run with a girl was an Elvis tape.

Eight track tape player with Elvis tape

Tape formats stayed with us for a long time. In fact the cassete tape that replaced the eight track tape format is still on the shelves this year of 2019 but it was the CD and the DVD formats that followed tape and really kicked shit into a higher gear as some of us who play the most famous riff in rock know all too well…

Layle and Other Assorted Love Songs CD

I bet you thought I was going to start talking about Stairway to Heaven? Well yea but I still have the Bell Bottom Blues, I’ll alway have the Bell Bottom Blues. I literally wore out the first Layla and Other Assorted Love Songs CD I purchased long ago and I’m working on the second CD. One of my guitars is named Layla so go figure.

So I do figure and I figure its time to comment about the new digital formats that do not wear out. More importantly to comment about the physical media that is used to distribute the digital music and what is about to become the way music will be sold and distributed.

Like CD and DVD we’re still talking about a type of plastic media to distribute music but we no longer need to buy and use an electronic device to play the music. The plastic that is about to change the music industry is a format called SmartCards and the electronic device most frequently used to purchase and play music is called a SmartPhone; that doohickey many of us on the planet carry around every day and night.

The SmartPhone has become a phenomena. Late night comedy shows make big money joking about them. Students writing their PhD thesis write about them. Parents wonder if they did the right thing buying their 12 year old daughter an iPhone. You get the picture?

The number of global SmartPhone users grew from 2.1 billion in 2016 to around 2.5 billion in 2019 and continues to grow by leaps and bounds.

As the big boys who own and control the global financial payment markets know a phenomena is a terrible thing to waste. So they wasted no time developing the means to use a SmartPhone to buy shit. Lots of shit in fact. Anything and everything that can be purchased can now be purchased using a SmartPhone.

The big boys wasted no time making financial transactions faster and more convenient. They know human behavior. They know human beings salivate like Pavlovian dogs and will do just about anything for instant gratification. So what did “they” do? They adopted contactless payments that they first rolled out in Europe and other “not USA” nations. Voilà! instant gratification.

Contactless payments is slowly but surely sweeping across America. Its here and its here to stay. The era of tap-to-pay will eventually do to the plastic credit card what the plastic credit card did to the paper checkbook. How do I know this?

I know this because that’s what the big boys want and in America what the big boys want the big boys get and the big boys get what they want because people in America have become Pavlovian dogs.

So you might be wondering, “if I can use my SmartPhone to tap-to-pay what else can I tap on?” Well, the answer is lots of stuff. The Near Field Communication (NFC) wireless cellular network communication protocol which makes tap-to-pay possible is a global networking standard. That standard is available to any and all of us smart enough to learn to use. All it takes is that “vision thing.”

So as the founder of tapABILITIES I have the vision thing. What I’m going to tell you by wrapping up this way too long blogged commentary is the fact that plastic is still with us and will be for a long time to come.

The vison fairy told me that plastic contactless SmartCards will be the way music is sold and distributed.

Like the ~$127 billion gift card industry selling and distributing music with plastic is all about BIG MONEY. Selling and distributing music will follow the same proven business models as gift cards have. Pavloa says so. Keep your eyes and ears open boys and girls because any day now you will be using your SmartPhone to (((tap)))® on a piece of plastic to buy, download, and playback your favorite tunes…

Waylon Jennings Classic Country Music Catalog