If it's true then it really, really sucks. The music industry executives are really trashing the whole industry because they're trying to make as much money as they can, since nobody buys music today.
And this is happening in all industries.
Executives/Investors are not necessarily smart just because they make a lot of money. They make money because they abuse profit ratios. But time and time again I see Executives make bad decisions because they chase paper so hard they cannot see the obvious benefit of their current process.
I personally have seen it 3 times.
1 - I used to work for this company called Bowne. They were the first company on the New York Stock Exchange. They are Financial Printers. If you own stock, the prospectus report you get and the Annual Reports you get are usually put together by Bowne. Well, everyone knows PCs are waaaaaaaay cheaper than Macs. But Macs have the Design market on lock. Well.... the fukn GM of the branch comes in and says... can you do the same thing you do on a Mac on a PC? Well we all sort of pause because we know exactly what his dumb ass wants to do. We explain that the conversion to PC will be almost impossible because a large percent of our clients owns macs and will not be able to open the files on their PC. And even in the cases where you can open files there is a horrible conversion and there are usually all kinds of typos and stuff. So the GM responds with... "But you can do the same thing on a PC right?"
He wants to save money by buying cheaper computers.
So they order a a shit load of PCs and a year later guess what? All of the employees now have to use PCs and Macs and have literally doubled their workload because you simply could not get rid of the mac. Now all the money they saved buying Dells is gone because of all the overtime they have to pay employees because the workload doubled. Good job mister General Manager.
DUMBASS
2 - I used to work for this place called ADVO. They decide they want to lay off their graphics department? This was sort of like saying... I can make more money in my restaurant if I didn't have to pay the chefs. I am gonna fire all the chefs. Or better yet... i can make more money on my music of I didn't have to pay a producer. I'll just get rid of my producers. What? How you gonna make a decent album without a producer? How you gonna make good food without a chef?
Dumb.
So they try to lay us off and give us a year long severance package. I tell the COO to his face that the layoff doesn't make sense and will not work. All the ladies are in the office crying. All the guys come shake my hand for standing up to the man... but hey, I was just stating the obvious. I even make the prediction that they will reverse the decision and everyone will keep their jobs. Well guess what... they were cooking the books. What they did was, they were in the process of selling the company, so to make the company look really good to the buyers they tried to fire people to make the overhead cost look small so it increases the profit margin. So Valassis, the company that was going to buy ADVO, finds out what they did and sues ADVO. They negotiate a lower price. Everyone in my department keeps their jobs... I bounce.
Here you go.....
http://www.allbusiness.com/retail-trade/food-stores/4262985-1.html
3 - Last but not least... my wife's company. Sparring you all the details basically this is what the CEO did. Imagine you are selling your CD in every music store in all the malls. You are making decent profit. Then..... the CEO comes up with this idea. "Hey! If we stop selling our CD in music stores and start selling them in Circle K's and Quickimarts we can potential sell millions more because for every music store in the mall, there are 30 gas stations in the same area.
Dumb
People can barely afford gas and they damn sure ain't gonna buy your CD for 15 bux after they just dropped 30 bux on a tank of gas. So instead of making the money you were getting in the music store, you are losing all kinds of money with your CD sitting next to a box of beef jerky on the counter of a gas station. The CEO then says... "I kinda feel like I am personally responsible for the decline of the company." Bitch what? Let the record show... you changed the revenue model.... of course you are responsible bitch!
...since nobody buys music today.
And this is where I will fuk everybody up right here. This statement Fade make is so true. And now we are seeing the effects of it. We steal and don't pay our fair share so industries suffer. The music industry has to try and make up for the money they are losing from people pirating their music. So in a way... the people who do not pay for what they steal are causing the industries to react the way they are.
But you know why we don't buy stuff?
I'll take it a step further... it is not our fault we don't buy things and end up stealing audio... it again.... is the Investors' fault because they abuse the profit ratio. They do not share their profits with their work force and people do not have the money to then be strong consumers...
So we have to steal.
This is why GREED is the problem.
It is not the greed of the consumer. You will here news reporters and pundits say all of this is caused by people living beyond their means. Nooooooo... It is the greed of the investor who wants as large a profit as possible. So they continue to lay people off... deny cost of living raises, etc. to make as much money as possible but at the same time weaken the strength of the consumer... hence the possible collapse of capitalism.
And this is done in the face of profit...
What I mean is.... ADVO would deny us bonuses during years when ADVO would make RECORD PROFITS. They would claim it was a losing year because they didn't make as much money as they thought they would... even though it was a record profit. And this is legal because in the Capitalism model a company is legally obligated to make money for its investors... not its employees. So while working Americans are getting shafted... a few dumb decision making Investors/Executives are getting gwap.
Buuuuuuuuuuuuuuuushiiiiiiiiiiiiiiiiiiit!
I will leave you with this.... Find an Executive or Investor and then try and figure out if they are a Republican or Democrat.
Sorry for the lengthy response. I just don't hear enough people saying what it obvious.
