Gene Simmons of KISS “the record industry is dead.”

Gene Simmons: It really has. The thing that’s changed is the industry around it. It’s still basically the same — you’ve got people who’ve got something to say. Whether you’re a rapper and you do it with lyrics — because there’s no difference between "Wild thing, you make my heart sing" — it’s just spoken the same way a rapper does it. It’s a different message written by a different person for a different audience. The thing that’s changed is that there’s no industry. We’ve allowed the fox to come into the hen house and then we’re shocked that there are no eggs and no chickens left. Those college geeks that thought that they deserved to download stuff for free without paying for anything ruined it for everybody. So if you look around and there’s no record industry, it’s those guys, the same guys that METALLICA sued, we’ll sue ‘em right now, we’ll flush ‘em down the toilet. Anybody who thinks that they should have access to something that belongs to me deserves to go to war with me. Those guys ruined it for everybody.

Dave Navarro: And even if you agree to the iTunes thing now, people can pay and go and download, people are downloading songs.

Gene Simmons: It’s too late …

Dave Navarro: They’re downloading one song because they don’t buy albums anymore.

Gene Simmons: It’s too late because the record industry is dying to figure out a way to survive. It’s over, it really is. Less and less bands actually make any money making music anymore and have to go back to the old ways which is to go out and play live.

Dave Navarro: Here’s what I’m noticing is that a lot of bands, my last band, people close to me, is that because they’re not selling records, there’s not an immediate return on records, there’s not an immediate single — the companies are going to pull tour support.

Gene Simmons: Yeah, but whoever invented the idea that a record company should support a band? What lunatic ever expects that? Imagine being in a business where you have to pay money, an advance, cash, to a band. Record companies were the best friend you and I ever had. They give you a big advance, you never have to pay the money back. If it loses and it bombs, you never pay the money back. They’ll earn back their money, then they continue to pay you royalties. That’s the best friend you ever had. Then they have to go manufacture it, promote it, advertise it, PLUS they want to get you out on tour and they’ll pay you to go out on tour. They don’t participate in your licensing, your merchandising or your live ticket sales …

Dave Navarro: Now they have a piece of all of that — the new deals are with merchandising …

Gene Simmons: But they’re paying for you. Because you know why they’re doing that? Because they can’t make any money on records. It’s done — the record industry is dead.