The current methods for marketing and distributing music in america have only existed for the last 50 to 60 years. Some important flaws can be found be studying the changes in mainstream music and how the economy was doing at the time.

Currently there are only 6 record companies (that matter) in america. They each have lots of subsidiaries. And currently they have a tight grip on what music gets played on mtv, radio stations and even regular tv shows. They do this by pouring money into the hands of the people that control these mediums. Some of this money is handed out through promotions like free concert tickets which get given away to fans. But larger sums of money are handed out to companies that have no real purpose in life than to avoid the legal problems of handing money to radio stations. Pay for play laws prohibit paying the radio stations directly. Instead record company pays -> middleman pays -> radio station. Additionally these big record companies pay a ton for commercials and general advertising.

Well as the economoy goes up and down so does the amount of money they pour out. When a recession hits or general economic slowdowns occur the record companies cut their promotion budgets back to somewhat reasonable sizes. This allows much more even competition.

At these times it is very common for smaller bands to have huge success on small labels. This is why during each economic slowdown in the last 20-30 years there has been a major shift in popular music:

c. 1992 - Nirvana, on the subpop record label brings us grunge music.
c. 1981 - New Wave
c. 1974 - Punk Music
c. 1963 - British Invasion

As the economy stays strong new music continues on the same course. Mining the same boring territory and spawning thousands of look-a-like and clone bands. Its only when the economy dips does the direction of music go on to new ground.

- Thanks for the words below from Mother Jonez. I would only like to add that pain and misfortune is always being experienced by musicians. In a world of drugs, constant unemployment and alternative lifestyles musicians live interesting lives. Many interesting musical movements didn't make it into mainstream america because the Major labels have a death grip on music. The grunge is dead comment - denies the success of bands like creed and days of the new. I think that we're still waiting for the next big thing or a depression. ;-)
I would argue that it's more the old argument that real art comes from pain, from misfortune. Think of the Blues, think of Jazz, think of Gospel--all born of the oppression of African Americans. Think of early Rock n Roll--same thing. Even the whites who latched onto rock were either poor (Elvis) or emotionally unstable (John Lennon).

Great art is born of pain. Think of Ulysses--brilliant, dealing with oppression (Irish under English), racism (Jew under Christian), adultery (both Blooms), and twenty-something angst (Stephen Dedalus), written by a jealous alcoholic. Think of Huckleberry Finn--a reaction against the Guilded Age, and a response to Reconstruction, written by a man who suffered from severe depression and self-doubt.

Think of the Sixties--great music. Why? Civil Rights, Vietnam, assassinations, you name it. Think of punk--the Seventies and Eighties were economically near a depression. Think of the early Nineties--same deal.

And notice that grunge died with the expanding economy. It's not just the record labels cutting acts. It's the mood of the populous. People are less willing to think when things are good. They don't march in Prada, they march in Chuck Taylors.

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