WASHINGTON -- As digital file sharing, webcasting and other new technologies proliferate, artists and industry officials meeting here said the music business is in jeopardy unless artists, record companies and consumers stop fighting and start compromising.
"People are always looking for what side to be on, and there isn't just one side," said Jenny Toomey, executive director of the Future of Music Coalition, which sponsored this week's policy summit.
"I think we're looking for a kinder, gentler, more equitable model where more people can make a living off of this stuff," Toomey said.
While consumers want easier access to music over the Internet and on multiple devices, artists and record companies are seeking compensation for use of their material.
The tension between those goals has led to lawsuits and bad blood between consumer advocacy groups and industry trade organizations that some say have slowed the introduction of new technologies that could, potentially, solve the dilemma.
One oft-cited example is webcasting, which has been mired in disputes over royalty collection and other matters now before the U.S. Copyright Office.
"The parties are going to have to get some consensus on it," said David Carson, attorney general of the U.S. Copyright Office.
Disputed, among other things, is what technology to use when collecting data on digital streams, as well as how to deal with retroactive royalties, especially considering that many webcasters have never recorded their playlists.
Artists at the conference had mixed views on the file-sharing phenomenon.
"You all decide what it's worth," said musician/songwriter Bob Mould, who fronted the rock band Hüsker Dü. "If at the end of the day you think it's free, then make it free."
Said rock veteran Patti Smith, "For me, I don't really care. The people have spoken. That's what they want to do."
But musician/songwriter Vernon Reid, who led the rock group Living Colour, said more artists need to impress upon their fans that taking music without permission is morally wrong.
"We're experiencing a seismic shift," Reid said. "The artists have to speak to consumers and say, 'Hey, I wrote that song. I did that.'"
Others said the explosion of new music -- partly driven by digital music production technology and the Internet -- has made it easy for bad music to proliferate throughout cyberspace.
"There's an incredible amount of mediocrity," said musician/songwriter Eric Bazilian, formerly of the rock group The Hooters.
John Flansburgh of They Might Be Giants said although record labels are fun to bash, they help filter music. Now consumers must do much of that work themselves.
"It's ironic that we'll miss the majors when they are gone," Flansburgh said.
In any event, panelists said the glut of new mediums such as the Internet has created a cultural perception that music has little value.
"If we don't address the quality and character of music, people will continue to steal it because they don't want to buy it," said music attorney Londell McMillan.
In addition, retailers in attendance said the increasing availability of music on the Internet -- along with the prevalence of CD burners and affordable blank media -- has led to massive price cuts on music products.
Some predicted that most record stores will close within the next decade, leaving only mass retailers like Target and Wal-Mart.
"When all these stores close in the next few years, what's going to happen to the music business?" asked Michael Hausman, president of SuperEgo Records, which is owned by independent artist Aimee Mann.
Others, however, said sanctioned downloading and burning is on the rise, suggesting the Internet could more than make up the gap created by closed retail outlets.
Already, Listen.com offers song downloads for 99 cents each -- the lowest price the labels will allow.
"It should be 50 cents, if not 25 cents, per burn," said Tim Quirk, Listen.com's director of editorial/music programming, noting that internal surveys suggest sales would increase 400 percent at those levels. "Within the next year, you're going to see these prices come down."
