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Donald Passman says you can still make money in the music business - if you know the facts

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"If it's a band that's in a niche and they're comfortable with that niche and they know their commercial potential is limited and they only want to appeal to their hardcore fans, then they probably don't need a major-label deal. They might even make more money without one because they'll keep a bigger piece of the pie and they won't have to give up any 360 rights.

"But I will tell them, they have to fight harder for every dollar and every fan. They have to do their homework and keep moving. They can't be complacent because there's so many other bands fighting to be heard. They're in business for themselves, and they have to treat their bands like a business.

"Understand, though, that I don't see a lot of new, young bands anymore. But if they're looking to get their music shopped, I try to help them. I'll also try to help them get a good manager. And I'll help them try to find a distributor, whether it's a major or an indie. Or if they don't want to go the physical route, I'll help hook them up with a digital distributor like TuneCore."

What's your opinion of artists like Radiohead - a client of your firm - and Trent Reznor who have said 'See ya later' to the majors and sell their music on their own?

"The good news is, it's now very easy to get your music out to the public. The bad news is, it's very easy to get your music out to the public."

"If they get to that position to do it on their own, hey, more power to 'em. They're able to make more money that way, even if their sales are 40 to 50 percent of what they would have done with a record label.

"It's harder for mid-level bands to do this because they still need the kind of exposure and promotion that labels can give them."

Where do you see delivery systems headed?

"One of the main models is what I call a cross-platform subscription: you pay a monthly fee and you get your music anywhere you want it, whether it's on a computer or a connected device like an iPod, but also in your car stereo or even in a plane. When we can deliver that, it's a real business. Unfortunately, we're not there technologically, and we're certainly not there legally - it'll be a very complex business model to put together."

What about the way music is actually formatted? Do you think the album is dead?

"The album is dead. I think we're in the 1950s and we're in a business of singles."

"Ultimately, yes, I think the album is dead. I think we're in the 1950s and we're in a business of singles. Other than a handful of artists who make coherent albums with beginnings, middles and ends, I think records are collections of singles with added cuts - that's what albums used to be and we're right back to where we started.

"I don't see how albums can survive if that's the format. Back in the '60s, labels would put singles on an album as a way to get you to buy the album. Now, however, you can just buy a single on iTunes or wherever. I'm even hearing that retailers are pushing for EPs - releases with only five or six songs on them - because they know that the public has lost interest in full albums."

So this all goes back to the 360 deal, where a label has a piece of the whole pie: publishing, touring, merch.

"Yep. That's where things are headed. We're pretty much there now. Artists have to get used to that fact and understand how to make the system work for them. It can be done. You can still have a fabulous career as a musician. I wouldn't be doing this stuff if I thought all hope was lost."

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