How often do we all throw down ten bucks on a lousy footlong combo meal at Subway, complain that it isn’t very good, and proceed go about our day never to give it a second thought?
On the flip side, somehow the spawn of the digital music age made us all feel like we didn’t need to pay the same ten bucks for the hard work of our favorite musicians. Why? The logic’s fuzzy here.

If our friend owned the Subway, would we want that free too since we got the hookup? If nobody was working at the Subway and we could take one for free without them knowing who did it, would it be another story? Is the fifteen minutes of enjoyment of eating Subway actually worth the ten bucks, whereas the hours of enjoyment we get from the music is not?
In all seriousness, this is not meant to be a high horse ride, as we’re all guilty to some extent; however, since we try to stay on the forefront of the issues here at Hidden Track and do our parts where we can, we thought an article regarding the dire state of being in the recorded music business seemed apropos. Thus, today we have assembled a “virtual panel” consisting of Kevin Calabro, General Manager of Hyena Records and Royal Potato Family as well as Frank Woodworth, General Manager of Eleven Seven Music. Frank also recently hosted a panel at CMJ called Small Efficient Record Label – Big Results. Welcome Fellas.
Hidden Track: Of the various new forms of online distribution for album sales, such as subscription download services like eMusic, subscription streaming services like Rhapsody, or straight up online sales like iTunes, which do you think makes the most sense long term?
Kevin Calabro: It’s really tough to say. Right now, by far the most profitable form of online sales is iTunes. This is the only facet of online sales where any profit is being made. We see a lot less from subscription models like eMusic, but it’s still better than streaming.
The money artists are seeing from streaming services like Rhapsody is virtually nil. I’m not sure of the exact rate, but it’s something like ¼ of penny for every stream and it just does not add up. I suppose if everything goes to the cloud and everybody begins listening to music on demand via stream, and we see a subscription fee built into ISPs then maybe that’ll start to make the difference. But right now streaming is a scary notion for someone like myself who’s trying to fund records and then consequently spend money to promote them. Currently, there’s just no way the money being earned from streaming can sustain the costs of making and promoting records.
READ ON for more of our Virtual Panel with Kevin and Frank…