This is a guest post written by American artist and writer Refe Tuma, who is the founder of music blog Creative Deconstruction.

What Will It Take To Unite Artist, Industry and Fan?

It’s no secret that the music industry is fractured. The point was driven home once again in July 2009 when the RIAA - the main lobby group for the recording industry in the US - won their second high profile lawsuit against an individual fan accused of sharing music files online. Damages in the two cases [Capitol vs. Thomas and RIAA vs. Tenenbaum] totaled over US$2.5 million [AU$2.96 million].

The recording industry is bankrupting fans in court, technology is reshaping the marketplace faster than anyone can keep up, and fewer people than ever before are buying music. How did we get here? More importantly, how do we respond?

One of the biggest roadblocks in the way of healing is the industry’s unwillingness to let go of the past. So much has happened in the last 10 years: the consolidation of record labels, the digital revolution, the social web. Each new development has brought its share of challenges and opportunities, but the clock can’t be turned back. It’s time for the record industry to stop guarding our castles and throw open the doors to change. In order to make real steps toward a unified industry, progress must be embraced, not feared.

Unfortunately, this industry isn’t such a big fan of change. For decades, the record companies were riding a wave of incredible profits. In the 1990s, the cost of a CD peaked as high as US$19 [approximately AU$35 at the time]. People were willing to part with the cash because there was no alternative. The record labels had fans right where they wanted them, and they appeared to have convinced themselves that things could remain that way forever.

When Napster arrived on the scene in 1999, the limitations of the old system were brought into sharp focus. Music consumers ere tired of being overcharged and under-served. A new precedent for finding and sharing music was established.

Had the industry been willing, they could have recognized the new ways that fans were finding and interacting with music. Instead, they shut it down. But it was too late - the world had tasted the potential of digital distribution. While the major labels were still patting themselves on the back for their victory over Napster, a thousand smaller, more agile networks were already being deployed to take its place.

Years later, many industry leaders have since admitted that they missed a big opportunity in their handling of Napster. Geoff Taylor, head of UK major label trade group BPI penned a now-famous article for the BBC in June 2009, which expressed his regrets. Unfortunately, this concession has done little to affect the way the music business is run. Instead of learning from their mistakes, the major labels retreat further into protectionism. Today, nearly every new technology, service and alternative business model is met with litigation.

It’s time for the music industry to stop trying to protect what has already been lost, and to instead look forward at what the future might hold for the music business. The playing field has been leveled; now, artists have access to the marketing and promotion tools and channels that labels used once controlled . Has technology made record labels obsolete? Some believe so, but I disagree. Artists still have much to benefit from what a label can bring to the table. It simply won’t look like it did ten years ago. Both parties have the potential to go so much further if they come together as true partners, with the goal of creating an environment where quality music can thrive.

And that’s what this should really be about. There’s so much talk of money, business models and economics that it’s easy to forget that music remains at the heart of this industry. Where great music is produced, fans will emerge. They’ll even be willing to open their wallets if they feel that they are supporting the music and the artists they love. More music is being created now than ever before, and never in history has it been so easily accessible. It’s an opportunity that begs to be seized, and if we won’t do it someone else will. Because one thing is certain: the music will go on, with or without any of us.

Creative Deconstruction is the “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” It also happens to be a website dedicated to in-depth music industry news and commentary.

Refe Tuma [pictured right] is an American artist and writer, and the founder of Creative Deconstruction. He lives in Chicago with three beautiful women - one is a talented songwriter, and the other two will likely become talented songwriters sometime after they learn to use the ‘big potty.’ Contact him via the website or Twitter.