Fox Business Channel Interview, Jan 2008:
Music Business Singing A New Tune"

Interviewer: Jim, bottom line is, for the moment, it’s a lot easier to make money selling a CD than selling a download, isn’t it?

Jim: Definitely…

Doc McGhee: (interrupts him) It definitely was… (and gives his 5c)

Jim: (looks on, amused)

Interviewer: Jim! I wanna go to Jim McMorman [sic!], the point is that the profit margin from the CD that’s so much bigger, you get so much more per CD than per download, so how do you make money with that profit margin so much lower?

Jim: That’s the million dollar question, that’s what everybody is trying to figure out. I mean, the one good thing that I see, or… one of the many good things that I see, which is kind of cool for me as an artist and somebody who plays for other artists is… it feels like this is forcing record companies and everyone who works in the music business to  be creative again. We’ve kinda been trudging along doing the same policies for years and years and years and now it’s forcing the heads of labels, forcing music managers and artists to start thinking again, thinking, “What can we do that’s different?” So… But nobody knows the answer, that’s why the music industry is in the state that it’s in. 

Interviewer:  Jim McMorman, [sic!] the bottom line, the harsh bottom line reality is: the cash is still not flowing out of these new internet solutions.  

Jim: Weeeeell, that…. 

Doc McGhee: (at the same time) The business model is a bit… 

Interviewer: Hold on! Go ahead Jim. 

Jim (laughs) : Hey Doc! What are you doing over there? Doc and I go a way back, just so you know!

What I was gonna say, you know, that’s why the record companies are now  looking into touring and merchandising other avenues where musicians have always made money; where the record company never used had a piece of that; they are all now starting to get these 360 deals, where everyone… they are including everything, you know… It’s a problem…. It’s a big problem how people are gonna make money from the actual sale of music. Cuz there are so many kids today that don’t even know… that never even bought any music!

Doc McGhee: … Under the 360 deals, they work for a big person, that wants to cash in for 300 million dollars, but when you’re talking about bands out there that are working, like everyone else – it doesn’t work for them.

Jim: (rolls his eyes)

Interviewer: So, Jim it sounds like we have no magic bullet yet Jim.

Jim: Oh. I… By no means am I suggesting that that’s what works. I am saying that’s what a lot of these labels, I think,  would like to do, because that’s just one way that they are trying to figure out how they can get the peace of everything… Look. People are still going out to concerts, people are still buying merch. What people aren’t buying are CD’s. So, it  only makes sense for them to try to get in    on things that are actually making revenue now! So…