Interview with Universal CEO Doug Morris: Coming to Grips With The Digital Frontier
New York, NY (November 28, 2007) – We’ve been talking for a few months now about the music industry’s business model, DRM-protected music, artists, labels and the ubiquitous problem of digital thievery. But nothing more succinctly captures the essences of these issues and gives them perspective like this article at Wired Magazine by Seth Mnookin.
Wired sat down recently with heavy-handed Universal Music Group CEO Doug Morris to talk about how the industry got itself into its current predicament and what sort of exit strategies are available to possibly rectify the situation. The article is a surprisingly candid account of how the industry as a whole seemingly made little (if any) acknowledgment of the looming digital dilemma in it’s infancy, and paints a stark picture of Morris as an unabashedly analog player in a digital world.
UMG’s solution is one that’s had the hotwires humming for a while, and it centers on the idea that consumers will buy into a DRM-free monthly subscription-based service. The bold print makes it look like the artist is winning and getting paid, but it’s ultimately a shot at Apple, iTunes and their tidily-dressed, iPod-domination of the mp3 format as we the consumer knows it.
To supplement the article, I’ve included two others that you should check for. The first is a rebuttal from former Reprise Records founder Howie Klein, detailing how his efforts to sell DRM-free music were initially rebuffed by the same executives (like Morris) that are now up to their necks in hot water and hailing the model as a savior. The second is from the folks over at Silicon Valley Insider, defending Morris’ position and his seeming lack of knowledge about technology.
Very interesting stuff. The questions put forth here and the answers still being devised will define the music industry as you know it for the next five years. Whether any of it sticks is up to the consumer and how fast said solutions can keep pace with technology. Should it not work, the next step might just be government intervention.