So the 1990s was like the golden era of recorded music.
Record companies were making money hand over foot
by reselling the music on CDs that people had already
purchased on wax and on cassettes.
They were buying it all over again in the 90s.
The cost of the CDs were very high, even to the point
that record labels stopped releasing singles and they made you buy albums.
And the record companies were making money from selling records.
Of course, the songwriters were making money
because a lot of the filler songs that were on albums
were being paid mechanical royalties.
So it was just a golden time for everyone.
So record companies had no interest in participating
in any of the other revenue streams then exploiting the recordings.
It was wonderful.
And then of course, Napster came.
Wow, what a blow.
And I first became aware that record companies
were trying to change their tune in about 2001 and 2002.
Because at that time, the sales were really
starting to nosedive of recordings.
Songwriters were concerned.
Record companies were concerned about their revenues.
They started laying people off.
They started cutting acts.
It was kind of a scary time.
But I remember during that time I called up the record company
that my clients who were hit artists in the 1970s
and still performing and selling out concerts wherever they went.
And after I interviewed them at one time when we had a meeting,
I got the feeling that they might have contributed to the songs
that they weren't giving credit for back in the 70s, by throwing in some ad libs
that I thought might have been important.
So I called the record company and I spoke,
which happened to be owned by the producers
and songwriters of those great hits that the act had in the 1970s,
a making of superstars.
And I said to the attorney, I said you know
I think my clients, who are artists, actually contributed
to some of those songs back in the 70s.
And they were never given credit.
And he became a little incensed and said, wait a minute,
are you trying to say that now you want my clients who were the hit song
writers that wrote those great songs, that provided the music, that allow
the OJ's to continue to work and go on the road
and make money from touring, which we don't participate in, you want
to cut into their songwriters money?
I said, well, I think they deserve credit.
He said, well, wait a minute John, let me say this,
we have never participated in any other sources of revenue by your clients.
They've been on the road, singing these hit songs
that my clients wrote and produced all of these years.
You know, John, maybe we should think about asking
you to allow us to participate in some of the live revenue.
And that was a shock.
It was unheard of at that time.
I said, no, you're out of your mind.
Forget about it.
But that was my first thought, that record companies
might be entering into a new phase.
And then it was just the following year after that that Robbie Williams entered
into that first 360 degree deal.
And of course as the century has progressed,
we've seen that that type of deal has kind of become standard, particularly
with major record labels.