126 ..

ON RECORD
from organization theory to study the interrelation between music produe,
rion and the promotion of pop via the mass media-a concern that has
proved to be of increasingly empirical importance in understanding con-
rernporary pop mUSIc.
Peterson and Berger's highly influential study argues that pop production
is a cyclical process governed by organizational determinants which derive
from the competition between the major record companies and their smaller
rivals. Their study is interesting for its attempt to link organizational and
textual issues, since they conclude that musical diversity is related to the
breadth of marketplace competition-and vice versa. This view has been
challenged by some critics, and the debate is taken up elsewhere in this
colleerion, by Barbara Bradby.
\Y/a!lis and Maim explore the international perspective through the Con-
cept of "cultural irnperia.isrn." The debate about this approach is a key one
in modern pop studies,
1
and Wallis and Maim's study contributes to this in
being both empirically founded (upon the "Music Industry in Small Coun-
tries" research project) and open-minded in its judgment on the possible
effects of the internationalization of pop. Their concluding comments an-
ticipate the burgeoning world music (or world beat) movement that has
surfaced throughout the West in recent years. Once again, even in inter-
national perspective, the centrality of the mass media is stressed as a faeror
in understanding the workings of roday's music industry.
NOTES
I Dave Laing, "The Music Industry and the 'Cultural Imperialism Thesis,' " Media. Culture
& Soder, 8, No.3 (july 1986,.
From:
Frith, S. & Goodwin, A. (1990).
the written word. New York:
~
E Paul M. Hirsch
PROCESSING FADS
AND FASHIONS
An Organization-Set Analysis 0/
Cultural Industry Systems
197 2
o .. 0 .. 0 .. 0
DEFINITIONS AND CONCEPTUAL FRAMEWORK
C
ultu ral products may be defined tentatively as "nonmaterial" goods
direered at a public of consumers, for whom they generally serve
an aesthetic or expressive, rather than a clearly utilitarian, function. Insofar
as one of its goals is to create and satisfy consumer demand for new fads
and fashions, every consumer industry is engaged to some extent in the
production of cultural goods, and an)' consumer good can thus be placed
along the implied continuum between cultural and utilitarian products. The
two poles, however, should be intuitively distinct. Movies, plays, books,
art prints, phonograph records, and pro football games are prcdorninanrlv
cultural products; each is nonmaterial in the sense that it embodies a live,
one-of-a-kind performance and/or contains a unique set of ideas. Foods and
detergents, on the other hand, serve more obvious utilitarian needs. The
term "cultural organization" refers here only to projit-Jeekilly,!inlJ.r prodt/cin;
culttrra! products for natrona] distribut ion, Noncommercial or strictly local
organizations, such as university presses and athletic reams. respectively,
are thus excluded from consideration. A fundamental difference between
entrepreneurial organizations and nonprofit agencies is summarized by
Tomer:
fi,
In the non-profit sector the end-product is most frequently a live performance-
I ~
a concert, a recital. a play. [f [or purposes of ccouornic analysis we cons ider a
~ ..
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On record: Rock, pop,
Pantheon Books.
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128 ... ON RECORD
live performance cobe acommodity,we are immediatelystruckby thefact that,
unlike most commodities offered for sale in our society, this commodity is nor
standardized. It is nor macbine made. It isa handicrafred item....Contrast tbe
output of the non-profit performing arts with that of the record manufacturer.
He. too, sells what appears to be a performance. But it is nor. It isa replica of
a performance, a mass-produced embodiment of a performance....The book
publisber,ineffecr, does the same. The original manuscriptofthe poem or novel
reprcscnt s the author's work of art, the individual, the prototype. The book in
which it is subsequent!y embodied is a [manufactured] replica of the original.
Its form of production is fully in keeping wirh the level ofrechnology in tbe
surrounding society.'
Ourframe ofreference is the cultural industry system, comprised ofall
organizations engaged ill the processoffiltering new products and ideas as
they flowfrom"creative" personnelin the technical subsystem to the man-
agerial, institutional, and societal levels oforganizarion.? Each industry sys-
tern is seen as a single, concrete, and stable network of identifiable and
interacting components.The concept oforganization levels, proposed ini-
tially to analyze transactions within the boundaries ofa single, large-scale
organization, is easily applied to theanalysis ofinterorganizationalsystems.
Artist ami mass audience are linked by an ordered sequence of events:
before it can elicit any audience response, an art object first must succeed
in (a) competition against others for selection and promotion by an entre-
preneurial organization, and then in (b) receiving mass media coverage in
such forms as bookreviews,radiostationairplay, and film criticism. It must
be ordered by retail outlets for display or exhibition to consumers and,
ideally, its authororperformerwill appearon television talk shows and be
written up as an imeresting news story. Drawing on a functionalist model
oforganizational control and Facilitation ofinnovations proposed by Bos-
koff, we view the mass media in their gatekeeping role as a primary "in-
stitutional regulator ofinnovation."
A number ofconcepts and assumptions implicit in this paper are taken
from thedevelopingfield ofinrcrorganizarionalrelationsand elaboratedon
morefully by Thompson.' Studies in this emergingtradition typically view
all phenomenafrom thestandpointoftheorganization underanalvsis. They
seldom inquire into the functions performed by the organization for the
social system but ask rather, as temporary partisans, how the goals ofthe
organization may be constrained by society. The organization is assumed
to act under norms ofrationality, and the subject ofanalysis becomes irs
forms of adaptation to constraints imposed by its technology and "task
environment."The term"organization-set" has been proposed by Evansas
analogous to the role-set conceptdeveloped by Merton!' for analyzing role
relatio nshi ps:
Insrcad of taking a particularstatusasthe unit of analysis, asMerton does inhis
rolc-scr analysis, I take ...anorganization,or a classoforganizations. and trace
THE ORGANIZATION OFTHE MUSIC BUSINE5S 129
its interactions with the network of organizations in its environment, i.e., with
elements of its organization-set. As a partial social system, a focal organization
depends on input organizations for various types ofresources: personnel, ma-
teriel, capital, legality,and legitimacy....Thefocalorganizationinturn produces
a product or a service for a market, an audience, aclient system, ere."
After examining transactions between the focal organization and elements
ofirs task environment, I will describe threeadaptivestrategiesdeveloped
by cultural organizations to minimizeuncertainty. Finallv, variationswithin
each industry will be reviewed.
INPUT AND OUTPUT ORGANIZATION-SETS
The publishing house, movie studio, and record company each invests
entrepreneurial capital in the creations and services ofaffiliated organiza-
rions and individualsat its input(produceselection)and output(marketing)
boundaries. Each affects volume sales by linking individual creators and
producerorganizationswithreceptiveconsumersandmassmediagarekeep-
ers. New material is sought constantly because ofthe rapid turnover of
books, films, and recordings.
Cultural organizations constitute the managerial subsystems ofthe in-
dustry systems in which they mustoperate. From a universeofinnovations
proposed by "artists" in the "creative" <technical) subsystem, they select
("discover") a sample of cultural products for organizational sponsorship
and promotion. A distinctive feature ofcultural industry systems at the
present time is the organizational segregation offunctional units and sub-
systems. In the production sector, the technical and managerial levels of
organization are linked by boundary-spanning talent scouts-for example,
acquisitionseditors, record "producers," and film directors-locatedonthe
input boundary ofthe focal organization.
Tothis point, cultural industriesresemble theconstruction industry and
other organization systems characterized by what Srinchcombc calls "craft
administrationofproduction."Thelocationofprofessionalsin the rcchnical
subsystem, and administrators in the managerial one, indicates that pro-
duction may be organized alongcraft ratherthan bureaucratic lines."Inthe
:j
cultural industry system, lower-level personnel (artists and talent scouts)
:1
!)
are accorded professional status and seldom arc associated with any one
I
I
focal organizationfor longtimeperiods. Althoughcompanyexecutivesmay ,jl
tamper with thefinal productoftheircollaborations, contractedartists and ,I
talent SCOUtS are delegated the responsibility ofproducing marketable cre-
I
ations, with littleorno interferencefrom thefrontoffice beyond thesetting
!
ofbudgetary limits." Due to widespread uncertainty over the precise in-
gredienrs of a bestseller formula, administrators are forced to trust the
.1
professional judgment of their employees. Close supervision in the pro- !
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130 ... ON RECORD
duction sector is impeded by ignorance of relations between cause and
effect. 10 A highly placed spokesman for the recording industry has stated
the problem as follows:
We have made records that appeared to have all rhe necessary ingredienrs-;
artist, song, arrangemenrs, promotion, etc.-to guarantee they wind up as best
sellers .... Yet rhey fell flat on their faces. On the other hand we have produced
records fcrr which only a modest success was anticipated that became runaway
best sellers. _.. There are alarge number of companies in our industry employing
a large number of talented performers and creative producers who combine their
ralenrs, their ingenuity' and their creativity ro produce a record that each is sure
will captivate the American public. The fact that only a small proportion of the
output achieves hit status is not only true of our industry.... There are no
formulas for producing a hit record.. just as there are no par answers for
producing hit plays, or sell-our movies or best-selling books.II
Stinchcombe's association of craft administration with a minimization of
fixed overhead costs is supported in the case of cultural organizations."
Here we find, for example, artists (i.e., authors, singers, actors) contracted
on a royalty basis and offered no tenure beyond the expiration of the con-
tract. Remuneration (less advance payment on royalties) is contingent on
the number of books, records, or theater tickets sold after the artist's product
is released into the marketplace. In addirion, movie-production companies
minimize overhead by hiring on a per-picture basis and renting sets and
costumes as needed, I> and publishers and record companies frequently
subcontracr out standardized printing and record-pressing jobs.
The organization of cultural industries' technical subsystems along craft
lines is a function of (a) demand uncertainty and (b) a "cheap" technology.
Demand uncertainty is caused by shifts in consumer taste preferences and
patronage; legal and normative constraints on vertical integration; and wide-
spread variability in the criteria employed by mass media gatekeepers in
selecting cultural items to be awarded coverage. I; A cheap technology en-
ables numerous cultural organizations to compete in producing a surplus
of books, records, and low-budget films on relatively small capital invest-
ments. Mass media exposure and volume sales of a single item generally
cover earlier losses and yield additional returns. Sponsoring organizations
tend to judge the success of each new book or record on the basis of irs
performance in the marketplace during the first six weeks of its release.
Movies require a far more substantial investment but follow a similar
pattern.
These sources of variance best account for the craft administration of
production at the input boundary of the cultural organization. It is inter-
esting to note that in an earlier, more stable environment, that is, less
heterogeneous marketS and fewer constraints on vertical integration, the
production of both films and popular records was adminisrered more bu-
THE ORGANIZATION OF THE MUSIC BUSINESS'" 131
reaucratically: lower-level personnel were delegated less responsibility,
overhead ~ t S were less often minimized, and the status of artists resembled
more closely the salaried employee's than the freelance professional's. lS
At their output boundaries, cultural organizations confront high levels
of uncertainty concerning the commercial prospects of goods shipped OUt
to national networks of promoters and distributors. Strarificarion within
each industry is based partly on each firm's ability to control the distribution
of marginally differentiated products. Competitive advantage lies with firms
best able to link available input to reliable and established distribution
channels.
The mass distribution of cui rural items requires more bureaucratrc or-
ganizational arrangements than rhe administration of production-for ex-
ample, a higher proportion of salaried clerks to process information, greater
continuity of personnel and ease of supervision, less delegation of respon-
sibility, and higher fixed overhead.!" Whereas the building contractor
produces custom goods to meet the specifications of a clearly defined client-
set, cultural organizations release a wide variety of items that must be
11
publicized and made attractive to thousands of consumers in order to suc- 1
ceed. Larger organizations generally maintain their own sales forces, which 1
may contract with smaller firms to distribute their output as well as the *1
parent company's.
The more highly bureaucratized distribution sector of cultural industries
is characterized by more economic concentration than the craft-adminis-
tered production sector, where lower costs pose fewer barriers to entry.
Although heavy expenditures required for product promotion and mar-
keting may be reduced by contracting with independent sales organizations
on a commission basis, this practice is engaged in primarily by smaller,
weaker, and poorly capitalized firms.
Contracting with autonomous sales organizations places rhe entrepre-
neurial firm in a position of dependence on outsiders, with the attendant
risk of having cultural products that are regarded highly by the sponsoring
organization assigned a low priority by its distributor. In the absence of
media coverage and/or advertising by the sponsoring organization, retail
outlets generally fail to stock new books or records.
A functional equivalent of direct advertising for cul rural organizarioris is
provided by the selective coverage afforded new styles and titles in books,
recordings, and movies by the mass media. Cultural products provide "copy"
and "programming" for newspapers, magazines, radio stations, and tele-
vision programs; in exchange, they receive "free" publicity. The presence
or absence of coverage, rather than its favorable or unfavorable interpre-
tation, is the important variable here. Public awareness of the existence and
availability of a new cultural product often is contingent on feature stories
1
in newspapers and national magazines, review columns, and broadcast talk
:1
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132 .. ON RECORD
shows,and,for recordings, radio stationairplay.Whilethe total numberof
products (0beawarded mediacoverage may bepredicred in the aggregate,
theestimationofwhich ones will be selected from the potential universe is
problematic.
The organizational segregation of the producers of cultural items from
their disseminators places definite resrrictions on the forms ofpower that
cultural organizations may exercise over mass mediagatekeepers to effect
the selection ofparticular items for coverage. Widely shared social norms
mandate theindependenceof bookreviewedirors,radio stationpersonnel,
film critics, and otherarbiters ofcoverage from the special needsand com-
mercial interestSofculturalorganizations.
l
? Thus,auronomousgatekeepers
presenttheproducer organizationwith the"conrrol" problem offavorably
influencing the probability that a given new release will be selected for
exposure to consumers.
For publishing houses and record firms, especially, it would be uneco-
nomicalto engagein direct,large-scaleadvertisingcampaignsto bringmore
than a few releases to public attention.
Record companies are dependent on radio...to introduce newartistsaswell
asto inuoduce newrecords ofallartistsand toget themexposed to thepublic.
...[We1 cannot expose their performances becauseit'sjustongroovesandthe
public will not know what they sound like. (Q.) "Would it be fairto saythat
radioaccounts for 7), or 90 percent of the promotion ofnew releases)"(A.) I
think your figuresareprobably accurate, yes.I"
For bookpublishers, record companies, and, to alesser extent,movie stu-
dios, then, the crucial target audience for promotional campaigns consists
ofautonomousgatekeepers,or "surrogateconsumers"suchasdisc jockeys,
film critics, and book reviewers, employed by mass mediaorganizations to
serve as fashion experts and opinion leaders for their respective con-
stituencies.
The mass media constitute the institutional subsystem of the cultural
industry system. The diffusion 0/part iculI'fads and fashiollJ is either blocked
or facilitated at this strategic (he(kpoilzt. Cultural innovations are seen as
originating in the technical subsystem. A sample selected for sponsorship
by culturalorganizationsin the managerialsubsystemisintroducedinto the
marketplace. This output is filtered by mass media gatekeepers serving as
"institutional regulators of innovation." Organizations in the managerial
subsystem are highly responsive to feedback from institutional regulators:
styles afforded coverage are imitated and reproduced ona large scale until
the fad has "runits course."19
We see the consumer's role in this process as essentially one of rank-
ordering cultural styles and items "preselecred" for consideration by role
occupants in the managerial and institutional subsystems. Feedback from
THE ORGANIZATION OFTHE MUSIC BUSINESS" 133
consumers, in the form of sales figures and box office receipts, cues pro-
ducers and disseminators ofcultural innovations as to which experiments
may be imitated profitably and which should probably be dropped. This
process is analogous to the preselection ofelectoral candidates by political
parties, followed by voterfeedback at the ballotbox. Theorderlysequence
ofevents and the possibility of only two outcomes at each checkpoint
resemble a Markov process.
This model assumes a surplus of available "raw material" at the outset
(e.g.,writers,singers,politicians)and pinpointsanumberofstrategiccheck-
points at which the oversupply is filtered out. It is "value added" in the
sense that no productcan enterthe societal subsystem (e.g., retail outlets)
until it has been processed favorably through each ofthe preceding levels
of organization, respectively.
ORGANIZATIONAL RESPONSETO
TASK-ENVIRONMENT UNCERTAINTIES
Myanalysissuggests thatorganizationsat themanagerial levelofcultural
industry systems are confronted by (1) constraints on output distribution
imposed by mass media gatekeepers and (2) contingencies in recruiting
creative "raw materials" for organizational sponsorship. To minimize de-
pendenceon theseelementsoftheirtask environments,publishinghouses,
record companies,and movie studios have developed three proactivestrat-
egies:(1) theallocationofnumerouspersonnelto boundary-spanningroles;
(2) overproduction and differential promotion ofnew items; and (3) co-
optation ofmass media gatekeepers.
Pro life r (I t j 0 /J of C0 IJ t a ct AIe n
Entrepreneurial organizations in cultural industries require competent
intelligence agents and representatives to actively monitor developments
at their input and output boundaries. Inability to locate and successfully
market new cultural items leads to organizational failure: new manuscripts
must be located, new singers recorded, and new movies produced.
Boundary-spanning units have therefore been established, and a large pro-
portion ofpersonnelallocated to serve as "contactmen,"!"with titles sueh
astalent scout, promoter, press coordinator, and vice-president in charge
of publicrelations.Thecentralityofinformationon boundarydevelopments
tomanagers and executives in cultural organizations is suggested in these
industries' trade papers: coverage ofartist relations and selections by mass
mediagatekeepers far exceeds that ofmatters managed more easily in a
. "F"
L.
1
,
:11
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134 A ON RECORD
standardized manner, such as inflation in warehousing, shipping, and phys-
ical productioncosts.
Contact men linking the cultural organization to the artist community
contractfor creativeraw materialon behalfofthe organizationandsupervise
its production. Much oftheirwork is performed in the held.
Professional agents onthe input boundary must be allowed agreatdeal
of discretion in their activities on behalfofthe culrural organization. Suc-
cessful editors, record "producers," and film directors and producers thus
posecontrolproblems for thefocal organization. In fields characterizedby
uncertaintyovercause-and-effectrelations,theirtalenthas been"validated"
by the successful marketplace performanceof "theirdiscoveries"-provid-
ing high visibilityand opportunitiesformobilityoutsideasinglefirm. Their
value to the cultural organization as recruiters and intelligence agents is
indicated by high salaries, commissions, and prestige within the industry
system.
Cultural organizations deploy additional contact men at their output
boundaries, linkingthe organization to (1) retail outlets and (2) surrogate
consumers in mass media organizations. The tasks ofpromoting and dis-
tributingnew culturalitemsareanalyticallydistinct,althoughboundaryunits
combining both functions may be established. Transactions between re-
tailersand boundarypersonnelat the wholesalelevelare easily programmed
and supervised. In terms ofThompson's typology ofoutput transactions,
theretailer's"degreeofnonmemberdiscretion"islimited to asmall number
offixed optionsconcerningsuch matters as discount schedules and return
privilegesY In contrast, where organizations are dependenton "surrogate
consumers" for coverage ofnew products. the latter enjoy a high degree
ofdiscretion: tactics employed bycontactmenat this boundaryentailmore
"perso influence"; closesupervision by the organization is more difficult
nal
and may be politically inexpediel1t. Further development ofThompson's
typology would facilitate tracing the {low of innovations through organi-
zation systems by extendingthe analysis oftransactions "at the endof the
line"-that is, between salespeople and consumers or bureaucrats and
clients-to encompass boundary transactions at all levels oforganization
through which new products are processed.
A high ratio ofpromotional personnel to surrogate consumers appears
to be a Structural feature of any industry system in which (a) goods are
marginally differentiated;(b) producers' access to consumermarkets isreg-
ulated by independent gatekeepers; and (c) large-scale, directadvertising
campaigns are uneconomical or prohibited by law. Cultural products are
advertised ;ndirecily to independentgatekeeperswithin the industrysystem
inorderto reduce demanduncertaintyoverwhichproductSwill be selected
for exposure to consumers. Where independentgatekeepers neither filter
information normediate between producerand consumer, the importance
THE ORGANIZATION OF THE MUSIC BUSINESS A 135
of contact men at the organization's output boundary is correspondingly
diminished. Inindustrysystemswhereproductsare advertisedmoredirectly
to consumers, the contact man is superseded by full-page advertisements
and sponsored commercials, purchased outright by the producer organi-
zation and directed at the lay consumer.
Ouerp r o du cti on andD'iffe r e nti a l
Promotion ofCuLtural Items
Differential promotion ofnew items, in conjunction with overproduc-
tion, is a second proactive strategy employed by cultural organizations to
overcome dependence on mass media gatekeepers. Overproduction is a
rational organizational response in an environment of low capital invest-
ments and demand uncertainty.
Under these conditions it isapparently more efficient to produce many
"failures" for each success than to sponsorfewer itemsand pretesteachon
amassive scaleto increasemediacoverageand consumersales. Thenumber
ofbooks, records, and low-budgetfilms released annually far exceeds cov-
erage capacity and consumer demand for these products. Fewer than 20
percent ofover6,000 (45 rpm) "singles" appear in retail record ourlets.:':'
Movie theaters exhibit a larger proportion ofapproximately 400 feature
filmsreleased annually, fewer than halfofwhich, however, are believed to
recoup the initial investment. The production of a surplus is facilitated
further bycontractsnegotiatedwithartistson a royalty basis and othercost-
minimizing features ofthe craft administration ofproduction.
Cultural organizations ideally maximize profits by mobilizing promo-
tional resources in support ofvolume sales for a small number of items.
These resources are not divided equally among each firm's new releases.
Only a small proportion of all new books and records "sponsored" by
culturalorganizationsarc selected by company policymakersfor large-scale
promotion within the industry system. In the record Industry:
Thestrategy of massive promotion isemployed bypolicymnkersinanattempt
toinfluencethecoverage of their product bymediaover whichtheyexert little
COntrol. They must rely on independently owned trade papers to bring new
recordsto theattention of radioprogrammers anddisk jockeys,and upon radio
airplay and journalists to reach the consumer market. For this reason, selected
artists are sent to visit key radio stations, and parties arc arranged in cities
throughout thecountry to bring together the artisrand t hisadvancedaudience.
It seems likely that if .. policymakers could better predict exposure for
particular releases, then fewerwould be recorded....Records arc released (1)
withno advance publicity, (2) with minimalfanfare, or ell only after 3 Lirge-
scaleadvancepromotional campaign. Theextent ofarecord's promotioninforms
136 .. ON RECORD
the policymakers' immediate audience of regional promoters and Top 40 pro-
grammers of rheirexpectationsfor, and evaluation of, their product. In thisway
the company rank orders itsown material. The differential promotionofrecords
serves tosensirize Top 40 programmersto thenamesofcertain songsandartists.
Heavily promoted records are publicized longbefore their release through full-
pageadvertisementsinthetrade press, specialmailings,andpersonal appearances
by the recording'sartists. The program director ismadefamiliarwith the record
long before he receives ir. It is"expected" to be ahit. Inthis way,though radio
stations receive records graris, anticipation and "demand" for selected releases
arc created ....The besrindicator of arecord's pc)(ential for becominga hitat
this stage isthe amount of promotion it isallocated,"
Most cultural items are allocated minimal amounts for promotion and are
"expected" tofail. Suchlongshotsconstituteapoolof "understudies,"from
which substitutes may be drawn in the event that either mass mediagate-
keepersor consumersrejectmore heavily plugged items. I see the strategy
ofdifferential promotionas an attemptby culturalorganizationsto "buffer"
their technical core from demand uncenainties by smoothing out OUtput
transaerions. 24
Co-optation of "[nstitutiOllal Regulators"
Mass mediagatekeepers reportawidevariety ofmechanismsdeveloped
by cultural organizations to influence and manipulate their coverage deci-
sions. These range from "indications" by the sponsoring organization of
high expectations for particular new "discoveries" (e.g., full-page adver-
tisements in the trade press, panies arranged to introduce the artist to
recognized opinion leaders) to personal requests and continuous barrages
of indirect advertising, encouragingand cajolingthegatekecperto"cover,"
cndorse, and otherwise contribute toward the fulfillmcnt ofthe organiza-
tion's prophecyofgreat success for its new product.
The goals ofcultural and mass media organizations come into conflict
o\'er two issues. First, public opinion, professional ethics, and, to a lesser
extent, job security all requitc that institutional gatckecpers maintain in-
dependentstandardsofjudgmcntandquality ratherthanendorseonlythose
itcms which cultural organizations elect to promote. Second, the primary
goal ofcommercial mass media organizations is co maximize revenue by
"delivering"audiences for sponsored messages rather than to serve as pro-
motional vehicles for particular cultural items. Hit records, for example,
are featured by commercial radio stations primarily to sell advertising:
Q: Do you playthis music because it isthe most popular'
A: Exactly for that reason .... We use the entertainment part of our prDgramming,
which ismusic,essentially, to anract the largest possible audience, sothatwhat
THE ORGANIZATION OFTHE MUSIC BUSINESS" 137
else we have ro say...interms of advertising message...[is} exposed ro the
largest number of people possible-and the wayto get the largest number ro
tune in is ro play the kind of music they like ..so that you have a mass
audience at the orherend.
Q: If, let's say that by some freak of nature, a year from now the most popular
musicwaschamber music,would you be playing that?
A: Absolurely , and the year after that, if it's Chinese madrigals, we'll be
playing rhern.:"
Goal conflict and value dissensus arc reflected in frequent disputes among
cultural organizations, mass mediagatekeepers, and public representatives
concerning the legitimacy (or legality) of promoters' attempts to acquire
power over the decision autonomy ofsurrogate consumers.
Cultural organizations strive to controlgatekeepers' decision autonomy
to theextentthatcoveragefor newitemsis(a) crucialfor buildingconsumer
demand and (b) problematic. Promotional campaigns aimed at co-opting
institutional gatekeepers are most likely to require proportionately large
budgets and illegitimate tactics when consumers' awareness ofthe product
hinges almostexclusivelyoncoverageby these personnel. As notedearlier,
cultural organizations areless likely to deploy boundary agentsorsanction
high-pressure tactics for itemswhosesale isless contingentongatekeepers'
actions.
VARIABILITY WITHIN CULTURAL INDUSTRIES
Up to this point, I have tended to minimize variability among cultural
organizations,culturalproducts,and the marketsat whichtheyarcdirected.
Mygeneralizations applymainly to themostspeculative and entrepreneurial
segments ofthe publishing, recording, and motion picture industries: that
is,adult trade books,popularrecords,and low-budgetmovies. Withineach
ofthesecategories,organizationssubscribe,invaryingdegrees,to normative
as well as to the more economic goals I have assumed thus far. Certain
publishing houses, record companies, and movie producers command high
prestige within each industry system for financing cultural productsofhigh
quality butofdoubtfulcommercialvalue.Totheextenttheydonot conform
to economic normsofrationality, theseorganizations should be considered
separately from themoredominantpatternofoperationsdescribedearlier.
Coveragein theformof radiostationairplayisfar morecrucialin building
consumer demand for recordings ofpopular music than for classical selec-
tions. Control over the selection ofnew "pop" releases by radio station
programmersand disc jockeys ishighl y problematic. Recordcompaniesare
dependentonradioairplay as theonlyeffectivevehicleofexposurefor new
pop records. In this setting-where access to consumers hinges almost

1 38 ON RECORD
exclusivelyoncoveragedecisionsbyautonomousgatekeepers-institution-
alized side payments ("payola") emerged as a central tactic in the overall
strategy ofco-optation employed by producer organizations ro assure de-
sired coverage.
Radio airplay for classical records is less crucial for building consumer
demand; the probability ofobtainingcoverage for classical releases is also
easier to estimate. Whereas producers and consumers ofpop records are
often unsure abouta song'slikely sales appealormusical worth, criteriaof
both musical merit and consumer demand are comparatively clear in the
classical field. Record companies, therefore, allocate proportionately fewer
promotionalresourcesro assurecoverageofclassical releasesby mass media
gatekeepers, and record company agents promoting classical releases em-
ploy morelegitimate tactics to influencecoveragedecisions thanpromoters
ofpop records employ to co-opt the decision autonomy of institutional
regulators.
Thompsonhas proposedthat"whensupportcapacity isconcentratedbut
demand dispersed, the weaker organization will attempt to handle its de-
pendence through coopting."Z(, In my analysis, cultural organizations rep-
resent a class of weaker organizations, dependent on support capacity
concentratedin mass mediaorganizations;demandisdispersedamongretail
outlets and consumers. While all cultural organizations attempt ro co-opt
autOnomous consumer surrogates, the intensity of the tactics employed
tends rovary withdegreeofdependence.Thus,culturalorganizationsmost
dependent on mass mediagatekeepers (i.e., companiesproducingpop rec-
ords) resorted to the most costly and illegitimate tactics; the institutionof
payola may be seen as an indication oftheir weaker power position.
NOTES
, Alvin Tofiler. The c"lllIrc COIIJUlIItrJ (Baltimore Penguin, 1')()5).
.'Talcott Parsons. Slr",r,,,,, al/(I P)'O(eJJ in Modern Sorieties(Glencoe, Ill.: Free Press, 19()O).
\ Alvin Boskol'f. "Functional Analysis as a Source ofa Theoretical Repertory and Research
Tasks ill the Study ofSocial Change," in George K. Zollschan and Walter Hirsch (eds.),
Exploretions ill Social (Boston: Houghton Mifflin, 19(,4).
'JamesD. Thompson. Orga"izatiolls in Aeriol! (NewYork: McGraw-Hill, 19(,7).
, \Villiam M. Evan, 'Toward aTheory ofInter-organizational Relations," Management Science
11 (19(,)I,pp. B21L,O;reprintedinJamesD. Thompson(ed.),ApproachestoOrgalliuriollal
Desigll (PittSburgh: University ofPittSburgh Press, 1')(,6).
" Robert K. Merton, Social Theory aud Soc;al Structure, rev. ed. (Glencoe, 111.: Free Press,
J957).
"Evan,"Inter-organizationalRelations," pp, 1
77-79.
, Arthur L Stinchcornbe , "Bureaucratic and Craft Administration of Production: A Com-
par,Hive Stud!,," Adlllillist"alir'eSciellce Quarterl)' 4 (September 195')), pp. \68-87.
')Richard Peterson and David Berger, "Entr eprcneurship in Organizations: Evidence from
thePopularMusic lndustrv," Administratil'eSrienQuarterly 16 (March (971),Pl' 97-\07.
H' "Production" here tefers to the performances or manuscripts created by artists and talent
THE ORGANIZATION OFTHE MUSIC BUSINESS'" 1 39
scouts for later replication in the form of books, Ii 1m-negative prints, and phonograph
records. The physical manufacture ofthese goods is sufficiently amenable to COntrol as to
be nearly irrelevant to this discussion.
IIHenry Brief, Radio and Records: A Presentation by tbe Record lndmtrv Associalioll 0/Am"';ca
at the 1964Regrona! MeelillgJ 0/the National/issociat ion 0/Broadcastrrs <New York: Record
Industrv Association ofAmerica, 1')(,4).
11 "Bureaucratic and Craft Administration"; and Construcring Svcia! Theories
(New York: Harcourt, Brace & World, 19(8).
J'>Srinchcombe, COllJfru{Iillf, Soria! Tbeories,
Jol Paul M. Hirsch, The Structure ojthe Pop,dar MUJic IlIdll.l'/l') IAnn Arbor: Survev Research
Center, University ofMichigan, 1')(,')1.
I') Roger 1. Brown, "The Creative Process in (he Popular Arts," l nternat rona] Social Science
jOlintal20, No.4 (1')681, pp, ()l3-24; Peterson and Berger. "Entrepreneurship."
Ii, Srinr hcombe, "Bureaucratic and Craft Administration."
P Public reaction to the "payola" scandals in the late I 95()s dcrnonsrrarc.i a Widespread belief
that the disseminarorsofmass cultureshould be independentof its producers. DISC jockeys,
book reviewers, and film critics are expected [0 remain free from the lnduence or manip-
ulationsof recordcompanies, book publishers,and moviestudios. rcspecuvely. Thisfeeling
is shared generally by members ofeach indusrry system and is embodied as well in our
legal system.
IH Clive Davis, "The Truth about Radio: A WNEW Inquirv." mimeograph (New York:
WNEW, 19(7), p. 5. This is a transcript ofan interviewwith the general managerofCBS
Records.
19Boskoff,"FunctionalAnalysis";Rolf Meyersohnand Elihu Katz, "Noteson aNaturalHisrory
ofFads," /vmrr uanjournal0/Sociology 62 (May 1957), pp. -sol.
20 Harold Wilensky, ["tel/eeruals in Labor Unions (Glencoe, Ill.. Free Press, 1956).
21 JamesD. Thompson,"Organizationsand OutputTransactions,":'I",nicalljoumalo/Sociology
68 (November 19(,2), Pl' 309-24. Sponsoringorganizations that lack access ([)established
channels of distribution, however, experience great difiiculry in obtaining orders for their
products from retail outlets and consumers. Thompson's typology ofinteraction between
organization membersand nonmembersconsists oftwo dimensions: degreeofnonmember
discretion, and specificity oforganizational control over members in ourpur roles. Ourpur
roles are defined as those that arrange for the distribution of an organization's ultimate
product (or service) to otheragents in society.
11 Sidney Schemeland M. William Krasilovsky, Tbi: Busillm0/Music<New York: Billboard)
1964.
23 Hirsch, Popular Music Industry, pp. 34, %.
24 Thompson, Organizations in /\.ttioll.
"PeterR. Strauss, "TheTruth about Radio: A WNEW Inquiry," mimeograph (New York:
WNEW, 1')6(,).
16 Thompson, Organizatio, in /vction, p. -'0.
I