Major label executive doesn't like being called evil

My wife Jan and I run Magnatune, and she tends to speak her mind. A major label executive stopped by our booth and chatted with Jan (I was off somewhere at the time). The conversation they had is both humorous and enlightening, so I asked Jan to type out a transcript of it, and reproduced it below.

-john

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Transcript of a conversation at Midem 2004 (in Cannes, France, end-of-January 2004) between Jan Hanford (Mrs. Magnatune) and a major record company executive (who will remain un-named) who noticed our "We are not evil" stand.

Major Label Executive walks up to Magnatune booth:

Exec: (pointing to trade show booth logo) "We are not evil." That's not very nice.

Jan: Why not?

Exec: Well, you're saying we're evil.

Jan: No we're not. Only you can be the judge of that.

Exec: (snicker, frown)

Jan: Depending on how you treat your musicians, you may or may not be evil. How do you treat your musicians?

Exec: Well, I think we treat them pretty good.

Jan: Do they make any money?

Exec: Um… well, you know. It varies from contract to contract.

Jan: You mean that there could be a contract where a musician would not receive any money? That's evil. (giggle)

Exec: (frown) No, it isn't. So you really think this idea of yours will work?

Jan: Yea, we do. Everyone's really excited and many of the musicians are already making money.

Exec: Well, I don't see how this business model can work in the long term.

Jan: From what I read in the press your business model isn't working out too well.

Exec: (smirk) But mergers like BMG and SONY are going to have an impact.

Jan: Oh good, then they can go bankrupt together instead of separately.

Exec: (frown)

Jan: I mean, your whole industry is based on stealing people's music. It's like running a restaurant and not paying the cooks. Eventually you're going to run out of food and then the customers will stop coming. It seems they already have stopped.

Exec: Yea, ha, you're funny. Well, it's been interesting talking to you. I mean it, really interesting. No hard feelings, ok?

Jan: (shaking hands) No problem, have fun at MIDEM.

Comments

[d]

mwahaha.

brilliant.

[Lukas]

I dunno, if a label spends a shitload to promote someone, and then they don't sell any albums, I wouldn't feel bad about not paying them. Like, if my startup doesn't sell anything I don't expect my VC to send my kids to college.

I guess the difference is ... if you want to play the lottery, where option 1 is becoming a star and option two is going into debt, the major labels can help you. If you want to have a small, loyal fanbase and just make a reasonable amount, Magnatune and other "non-evil" labels are the way to go.

[foo]

surfed here from enorgis.com. First time i've heard of magnatune

But it seems if magnatune didn't sell and records, they wouldn't pay the artist either. It's about sharing the risk, and the benifits.

[Jason]

This is one of the greatest conversations I've heard. I pleased to hear what someone in the record industry might say about Magnatune. Thank you for sharing it!

[atariboy]

Hah.. That's great!

You should have a picture of BOTH of you on the side of this blog :)

[ross]

that was absotlutely classic. it's good to see the words printed on the screen come out of the mouth of a co-founder. and tactically, at that!

[ross]

that was absotlutely classic. it's good to see the words printed on the screen come out of the mouth of a co-founder. and tactically, at that!