Downers

It is a new year, but the outlook for the music industry continues to look glum. In fact, recent indicators suggest things will only get worse from here. In the short term, the ongoing writers strike will have a serious financial impact on the many musicians who rely on lucrative studio work. This represents a lot of lost work for composers, orchestrators, copyists, and musicians, not to mention those employed by labels specializing in soundtrack releases. However, the more serious developments for industry are of a systemic nature.

Recently, radio insider/blogger Brian Maloney reported on hard times for broadcasting companies:

“So far in 2008, Wall Street has continued to slaughter broadcast industry stocks, sending several into official penny- stock territory (under $5/ share).”

Yet, he points to the continuing popularity of talk radio, as measured by Arbitron ratings. Maloney, a talk radio veteran, decries that radio belt-tightening has disproportionately affected talk formats, so far. Numbers are numbers, though, and it will not be long before executives come to the conclusion that Sean Hannity has:

"‘Music radio is going to be in trouble.’

So said radio talker and Fox News host Sean Hannity this week at Arbitron's consultant fly-in.’

In five years when every car has an iPod connection and you can listen to anything you want, what is music radio going to do?’”

Commercial radio said goodbye to jazz long ago, though I understand there are a few scattered survivors out there somewhere, servicing the Land of the Lost or the Bermuda Triangle. For the rest of the music industry, this would represent a major blow in terms of lost ASCAP and BMI clearances, as well as promotional exposure. Yet, with top 40 stations playing the same characterless songs in relentless rotation, can the industry be that surprised if they start to lose stations to talk and sports formats?

For jazz, a much more ominous note came in the announcement of Barnes & Noble’s holiday sales. It turns out music ruined their Christmas. According to PW:

“Holiday sales in the November 4 to January 5 period fell short of expectations with same store sales down 0.4%; B&N had expected same store sales to be up in low single digits. The retailer blamed the shortfall on music sales which it said were ‘significantly below forecast.’ Excluding music, comp store sales were up 0.8%.”

If one department can drag down sales increases throughout the rest of the chain, you can expect it to lose retail space in stores. Which niches genres will feel the brunt of the cuts?

Of course, the real problem is not with jazz. We are what we are. Everything else lately has just been bad. When was the last time you heard of people sleeping outside to be first in line for a new CD? When was the last time you rushed out to buy a new release on its on-sale date, rather than waiting to get it cheaper on-line?

Truly, the digital download revolution is an unresolved challenge that will continue to hang over the industry’s head. Yet, quality is a more fundamental issue that could actually be addressed. People do not want to buy a twenty dollar CD with only two decent tracks. They will just download them from i-tunes for two bucks.

Again, I would argue this does not apply to jazz. Jazz musicians by their nature are used to producing rewarding improvisations night after night, so they are better able to produce interesting takes in the studio than the more Pro-Tools-reliant pop acts. Since jazz artists are also expected to mix originals with standards, they are also better able to program balanced CDs. Of course, nobody is looking to jazz to save the industry. One just hopes our niche will not be cut any further, as they music business continues to contract.

Covering Costs

As I visit Denver from time to time, I have come to appreciate its jazz scene. Some excellent artists make their home there, including Fred Hess, Ron Miles, Pat Bianchi and Chie Imaizumi. While it can’t compare to the New York club scene, which features multiple headliners of international stature every night, it does have some reliable venues to hear live jazz. According to the Denver Post though, business is not great. Some club owners were pretty candid about their finances:

“Dazzle expects to pull in $1.3 million in revenue this year - but there won't be any profit. [Club owner Donald] Rossa said his sales only cover operations.

Jazz @ Jack's on the 16th Street Mall should take in $750,000 this year but is still paying off startup costs, said owner Sandra Holman-Watts. “

The experience of Denver club owners actually highlights one of the oft-overlooked positive aspects of the free enterprise system: the freedom to send good money after bad. Under socialized systems, government controlled resources would be allocated under the best case scenario to projects with the broadest utilitarian appeal. In practice, they go to those with political connections. Neither broad popular appeal nor political clout, have been strong suits for jazz as of late.

Jazz has been historically blessed with entrepreneurs who were content to eke out a living by making the music available to a loyal audience. Those campaigning for a government subsidized performance space should take a look at the local taxes and regulations which make it so difficult to do business in New York. Club owner Lorraine Gordon complains of “the board of health, the fire department, the I.R.S.—all the departments that run your business in New York City, whether you like it or not,” in her book Alive at the Village Vanguard. (p. 206) Rather than entitlements that could actually lead to real resentment for the music, jazz supporters ought to be advocating empowerment-zone style tax cuts and regulatory relief. Those like Rossa, who voluntarily chose to spend their capitol on the music, despite having better returns on their investments available to them, deserve a break.

Take Five Instead

Jazz may not have a lot going for it with the general public, but it does have a well earned reputation for independence. That’s why the well-intentioned campaign for a city subsidized performance space for experimental jazz is troubling. It may trade away a significant part of jazz’s cultural capitol for a government entitlement.

This campaign by the Alliance for Creative Music Action was largely spurred by the closing of Tonic, which certainly was a great loss. However, given the number of fantastic gigs I have been to in recent weeks that were only moderately attended, I question the efficacy of demanding space from the city for subsidized venue (particularly if its shows are sparsely attended). Regardless, it is highly unlikely that the city would provide such subsidized space. (I can’t make ACMA’s 8/21 meeting, but would definitely be interested in what is discussed.)

Frankly jazz needs larger audiences more than it needs entitlements. Instead of writing letters and demonstrating, those who support this music should try to bring five jazz outsiders (not your jazz hang-buddies) to a show each month. That is, expanding the audience by bringing five people who would otherwise not be attending jazz gigs at all. (I have tried this for certain events in the past, and yes, it is real hard, but the results are immediately measurable.) If 100 people actually did this for three months in a row, it would expose 1,500 people to the music, which could result in tangible economic benefits for musicians.

Sales of jazz albums were down 8.3% last year according to Nielsen Soundscan. Jazz is losing market-share within an industry trending down. However, it is not because of the quality of the music released in 2006. The music is still vital. In fact, much of what I have heard live and on CD recently has been truly fantastic. The problem is jazz has not been effectively marketing to new listeners. Its true believers need to evangelize more, not look to Caesar for a subsidy.