‘The internet is an alien life form’: how David Bowie created a market for digital music

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This album by David Bowie, titled “Hours…”, may not be his greatest work or even his best album of the 1990s. However, it holds great significance as the first major artist’s release on a major label to be available for download before its physical release.

In August 1999, prior to its September launch, Rolling Stone described the album Hours… as a “cyber-coup,” continuing Bowie’s interest in releasing music digitally, starting with the release of the single Telling Lies in 1996. Bowie had also enthusiastically embraced internet broadcasting and even created his own internet service provider, BowieNet, in 1998. At the time, Bowie expressed his satisfaction with being able to move the music industry towards making digital downloads the norm rather than the exception. He acknowledged that the majority of people did not have access to broadband opportunities yet, and expected the experiment to result in hundreds rather than thousands of downloads. However, he compared this small step to the initial introduction of color television broadcasts and home video tapes, which eventually led to the expansion of consumer use in those industries. Bowie hoped that this small step of digital music downloads would eventually lead to greater choices and easier access to music for consumers.

Artwork for David Bowie’s Hours…

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In the early months of 1998, the music label Virgin Records/EMI decided to release Massive Attack’s album Mezzanine for online streaming at the same time as its physical release. This was done gradually, with a preview of each track over a span of several weeks. The British Phonographic Industry (BPI) expressed concern about this method, believing that streaming could lead to piracy and unauthorized duplication of the album by tech-savvy individuals. However, this did not deter other major labels and artists from testing out similar streaming methods. Def Leppard and Red Hot Chili Peppers, for instance, both allowed their most recent albums, Euphoria and Californication, to be streamed in its entirety on June 4th, 1999 – four days prior to their official release. Bob Merlis from Warner Bros, the label for Chili Peppers, stated, “Airplay is airplay, regardless of how it’s defined. We felt confident in this approach since the music was not available for download.”

The release of Bowie’s album was intended to be a significant advancement. In 1999, he gave an interview to Jeremy Paxman on BBC Newsnight where he discussed his career, art, and the internet. This 16-minute interview can still be found on the BBC’s website and is often shared, especially after Bowie’s death in January 2016, as proof of his prophetic insight into the impact of the internet on art, politics, and society. Bowie stated, “I believe we have only scratched the surface,” when speaking to a pessimistic Paxman, and continued, “I believe the potential of the internet, both positive and negative, is beyond our imagination. We are on the brink of something both thrilling and terrifying.” Paxman, in his typical fashion, suggested that the internet was simply “a tool,” prompting Bowie to respond, “No, it’s not. It’s an entirely different life form!”

He continued to explain that the internet will drastically alter how we consume media: “The relationship between the user and the provider will be so harmonious that it will revolutionize our understanding of media platforms.”

Paxman, who was off-camera, likely made a facial expression in response, but Bowie’s viewpoint was ultimately proven correct. He was not the original person to express these sentiments, but, just as he had consistently done in his career, Bowie was merging ideas from the fringes and bringing them to the mainstream. As an example, as part of the promotion for the Hours… album, Bowie held a contest for fans to assist in completing the lyrics for the track What’s Really Happening?. The demo version of the song was released online and 20-year-old fan Alex Grant from Ohio was named the winner. The final recording of the song was streamed online, using a 360-degree camera. Grant received a songwriting credit alongside Bowie and Reeves Gabrels. Bowie commented, “The most satisfying part of the evening for me was being able to empower Alex and his friend Larry to sing on the song that Alex had written. It was a fantastic way to wrap up the session.” This was referred to on Bowie’s website as “the first of its kind cyber-song”.

Andrew Pollock, the vice president of marketing for HMV North America, carefully stated that the company would rather continue using traditional methods. However, he acknowledged that this new approach is the future and that everyone should begin preparing for it.

Before the physical release, the only way to access the album in the US was through digital platforms. However, British retailers were worried that this could harm their sales. Brian McLaughlin, who is the chairman of Bard (a trade body for music retailers) and also the managing director of HMV Europe, emphasized the need for UK labels to communicate with their international counterparts about the possible disruptive consequences of internet initiatives that can be accessed in the UK. He also stated that while this is an exciting development, it should be handled in a manner that benefits everyone involved.

While there were heavy hints about a retailer boycott of labels or artists if they tried something similar in the UK, much of this was posturing. In the Netherlands, however, the chain Free Record Shop claimed it would pull all his albums from its shelves. In the US, meanwhile, Carl Singmaster, founder of the Manifest chain, claimed releasing an album as a download two weeks ahead of the physical disc is “driving customers to online and teaching them stores are not cool and [are] passé”.

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“I regret to say this, as a devoted Bowie fan, but it was disappointing in terms of business,” states Glen Ward, CEO of Virgin Entertainment Group, who was focused on establishing the Virgin Megastore brand in the US in 1999. “I understand his motives – pushing boundaries and raising awareness – but from a business perspective, it was frustrating to say the least.” Matt Black, one half of Coldcut and co-founder of Ninja Tune label, was an early adopter of digital technology and a proponent of the possibilities of the internet. However, even he understands the frustration of traditional retailers who saw this as a major betrayal. “If I were a vinyl record shop owner, probably a devoted Bowie fan, working hard to promote that album, I would have been very upset.”

The release of the Bowie album occurred during a time when the internet was not commonly used for shopping. In 1998, research from the Computer Industry Almanac found that 147 million people worldwide accessed the internet at least once a week. This number had more than doubled from 61 million in 1996. However, despite the increase in internet usage, many people were still hesitant about paying for online content in 1999. This was partially due to the belief that everything online should be free, but also because of concerns about sharing bank information with website owners.

Bowie performing on a promotional tour for Hours…View image in fullscreen

According to an article in the November 13 issue of Billboard, journalist Ed Christman suggested that Bowie’s predictions were grandiose and lacked evidence. EMI/Virgin disclosed that during its two-week period of exclusivity, Hours… only sold 989 downloads, compared to 29,000 physical copies in its first week in US brick-and-mortar stores. Christman expressed doubt in the number of customers willing to pay for downloads, estimating it to be between 1,000 and 2,000. He questioned if even that number was accurate, and proposed that a significant portion of the 989 download sales may have come from music industry professionals who were simply exploring the new technology of downloading.

Jay Samit, former senior vice president of new media at EMI Recorded Music, reflects on the album Hours… twenty-five years later. He praises Bowie for being ahead of his time and a pleasure to work with. However, one misstep was the title of the album, which coincided with the average download time for an album during that era. According to EMI, only 23.9% of buyers were able to download the album without technical difficulties, although they were anticipating a higher percentage. Samit also mentions the challenges of downloading music during that time, such as interruptions and having to restart the download process. Despite generating significant media attention, many people were still unfamiliar with the process of downloading an album.

However, he claims that this was another example of Bowie foreshadowing what the future held. He wanted to inform fellow artists and ensure that tech companies in Silicon Valley would invest in digital music businesses, allowing for continued experimentation. Samit believes that Bowie was successful in educating the music industry and venture capitalists.

Simon Wright, managing director of Virgin Retail UK says Bowie “understood his customer. He was catering to his customer demand. And he was the one with the foresight. If the record industry had had the mindset of David Bowie, it may have been able to ride this whole period much better.”

Looking back from the year 2024, the anxieties and blame surrounding an album being sold as a download in 1999 now seem outdated. However, this album and its release method marked a shift in traditional practices and served as a benchmark for the music industry. Will you choose to fast forward to the future, or continue to dwell in the past until it becomes overwhelming?

Source: theguardian.com

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