The sound of silence

‘People writing songs that voices never share,’ sang Simon & Garfunkel ... they might as well have been singing about Malaysia’s music industry that is beset by consumers who aren’t buying CDs and don’t want to pay for digital music.

MAKING music will no longer be sustainable if Malaysians continue to insist on free entertainment.

The less money there is, the less likely record labels are willing to invest, Recording Industry Association Malaysia chief executive officer R. Ramani Ramalingan says.

“As a result, music quality and quantity drop. You’ll hear synthesisers instead of live musicians. Artists are less keen on recording because they make more doing other stuff. Record companies are investing less money in new acts.

“We used to send our artists to sing in world renowned venues like Royal Albert Hall and perform concerts abroad. Not anymore,” he says, explaining the knock on effect in an ecosystem that comprises thousands of individuals and businesses.

The music industry here, he feels, has tremendous potential but it’s under serious threat. Consumers just aren’t paying for music’s “actual value”.

If this continues, Malaysia won’t be able to produce talents like P. Ramlee, Ahmad Nawab, Sharifah Aini, Sudirman, Alleycats, M. Nasir, Search, Wings, Sheila Majid, Zainal Abidin, KRU, Siti Nurhaliza, Raihan, Jaclyn Victor, Mawi, Yuna and Shila Amzah any more.

These performers created soundtracks for our lives, Ramani recalls. Their music cuts across races. Remember Man Bai’s Kau Ilhamku? he asks.

He explains that if our performers aren’t getting their dues, we will be left importing K-pop music and Western acts like One Direction instead of producing and promoting our own music.

When artists and musicians start dabbling in business, they have little time to be creative.

“I know guys in the industry who run burger stalls to supplement their income. And some artists borrow money from their parents to produce their own music.

“Once I asked a famous artist when the next album’s coming. The response was: Why should I record when I will end up losing money?”

Malaysian Artistes Association president Datuk Freddie Fer­­nandez says investors are staying away because there’s no solid revenue model, especially for digital music.

Calling on fans to support their favourite artists, he says it only costs a few ringgit to download a tune.

Downloading is so much cheaper than getting a CD, yet people still won’t pay. For less than RM15, you get unlimited songs compared to RM40 for a CD, he points out.

He says local artists are caught in a vicious downward spiral because when fans don’t pay for music, record companies are reluctant to invest, and their careers can’t grow.

“That’s why besides performing, local artists are forced to do whatever it takes to survive.”

Recording Performers Malaysia (M) Bhd chairperson Datuk Sheila Majid says it’s not just the new artists who find it tough. Even the established ones are facing hard times.

Free Internet downloads, the lack of platforms on which they can hone their skills, and no access to artiste management and development expertise are just some of the challenges.

There’s no support from listeners – they expect a quality product but don’t want to pay for it, she says.

Music is one of the fundamentals of life yet we don’t value the arts and have no respect for them, unlike in the West, she laments.

She dismisses the perception that local artists are rolling in cash like their US counterparts. Being famous here and having thousands of adoring fans does not necessarily translate into dollars and cents.

“This is not Hollywood. This is Malaysia.”

Here, acting and singing alone cannot make ends meet. Albums don’t sell any more, so artists venture into other businesses.

Passion keeps the veteran performer going but that alone won’t result in anything of quality without the financial backing, she says.

“You pay peanuts, you get monkeys. Nothing is free. If we invest in quality work but people just want it cheap or free, how do we get our investment back to put out more quality works? It’s a no brainer.”

Without support from the Government or music fans, the local industry will be mediocre, she feels.

“We can’t even compete with our neighbours. People compare us with international artists but do nothing to support our craft.

“When I do concerts, people ask me for free tickets. Yet if it’s an international act, they’re willing to pay.

“When it’s to help campaign or create awareness for a cause or raise funds for charity, who do they call?”

This Malaysian mentality must change before the local industry can progress. Educating listeners to value and understand that music is an art is a vital part of changing attitudes, says Sheila, adding that “Music can introduce people to our culture and heritage. It’s not just some slapstick entertainment.”

Ramani, who’s also Public Performance Malaysia Sdn Bhd chief executive officer, says finding new ways to monetize the industry is a big challenge. Holding more concerts, exploring merchandising opportunities, and getting consumers to pay for digital music are some ways to boost revenue perhaps, he says.

This month, music industry players are gathering for a brainstorming session to ensure the industry’s survival, he says.

“We’re not whining because the profits aren’t big enough. The fact is that even breaking even for some is a challenge,” he says.

In 2004, revenue from the sales of cassettes, CDs, VCDs, and DVDs exceeded RM100mil. It’s fallen to just over RM8mil this year.

Technology, changing music consumption trends, and piracy are among the main reasons for the staggering drop, he feels.

But despite embracing digital technology, the music industry is still struggling, he sighs.

Ring back tones have been a major part of digital sales growth but with the booming popularity of group chats like WhatsApp, Viber and WeChat, calls will get rarer, he predicts.

And new music streaming and download services are being introduced every other day.

“Everything is free. Money from advertisement-supported streams is very limited.

“How are performers going to earn anything? How many people can generate a hit like Gangnam Style?” he asks.

The music video for South Korean artist Psy’s song Gangnam Style garnered more than two billion views, forcing YouTube to upgrade its maximum view counter.

“Per stream on YouTube is US$0.001. So even if you get a million views, it works out to US$1,000 (RM4,400) only. You won’t even be able to cover your cost,” he points out.

When it comes to digital music, Malaysians prefer “freemium” over premium. Unlike ad-free premium music streaming, freemium versions are free but you have to put up with the advertisements.

Also, Malaysians, he observes, prefer file sharing over paid downloads.

There’s a need for greater accountability on the Internet and enforcement of intellectual property rights for music to survive in this digital age, he feels.

While YouTube and social media have helped Internet sensations like Yuna and Zee Avi, he says there’s still a need for an ecosystem to groom, polish and promote the artist.

“How many artists are like them? Technology has changed and yes, anyone can put their music out but in the end, you still need a big record label to take you to the next level. Costumes, make up, hair and music videos aren’t cheap.”

A decade ago, putting out a KRU album, which included recording, music videos, marketing, advertising, and promotions, cost about RM200,000 but recently, local act Thomas and Jack spent over RM100,000 on one music video alone, Ramani claims.

Warner Music (Malaysia) Sdn Bhd managing director Darren Choy says recording companies these days “spend smart”. He says companies are “extremely selective” of who they invest in – which usually translates into less local music produced.

If this continues, record companies may pull out of the domestic market altogether.

The cost to get a record out has quadrupled compared with 10 years ago, he says. A 10-song album can cost between RM300,000 and RM400,000 to record and market nowadays.

Choy, who’s also the Public Performance Malaysia Sdn Bhd chairman, says the bulk of the revenue comes from shows and merchandising. Physical sales like CDs make up 20%; only 10% to 15% of revenue comes from digital music advertisements.

And no, record companies are not rolling in cash, he insists.

“In the next five years, there probably won’t be any CD shops around any more – everything’s going virtual.

“Unlike the previous generation, youngsters don’t want to own physical music but going digital shouldn’t mean that you don’t have to pay.”

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