The New Music Business Whether you like it or not.

[sventvkg]

I tend to believe it and I'm arming myself with the tools necessary to go forward.

 

http://online.wsj.com/article/SB10001424052748703727804576017592259031536.html?mod=ITP_fridayjournal_0

[Next Direct]

Great article that.

 

So now, instead of bands all chasing the carrot that is the record contract from labels, they're going to be looking for the new kind of investor. Still though, there are only so many corporations and businesses out there with advertising money to spend. Like always, only the bands who put in the work and have the appeal will get any offers. But yeah, it's certainly the next step in financing your band.

 

Of course, it might take some level of popularity to be generated first before unknowns can start putting together bonus editions (where they do a meet and great, or play home gigs) as it's the cult of celebrity factor at play here. The idea of having a semi-famous band play at your house, or flying out to meet them and hanging out will work, but only for bands who actually have fans who have put them up on that kind of pedestal, which ironically, is what media attention and social validation usually does. People, typically, only become status figures when they are on TV, magazine covers and everyone is raving about them. To get to that level, will take time.

[BlueStrat]

"We are living in the future

I'll tell ya how I know

I read it in the paper

15 years ago

Now we're all drivin' rocket ships

And talkin' with our minds

Wearin' turquoise jewelry

And standin' in soup lines."

 

-John Prine

[sventvkg]

 

"We are living in the future I'll tell ya how I know I read it in the paper 15 years ago Now we're all drivin' rocket ships And talkin' with our minds Wearin' turquoise jewelry And standin' in soup lines." -John Prine

 

Yes!

[daddymack]

make sure you arm yourself with having been on a major label a year ago...I would find this more of a true harbinger had these guys done it to get on the label, not after they had gotten off...

 

see, it always sounds so simple, but these guys had a label backing them, helped get them out to where they had name recoginition...I seriously doubt that the Joe Schmo Band from Idunno, Iowa can get adequate 'sponsorship/investment' to mount the video productions and stage production one needs. I know there are solo artists and bands trying to get this working, but in general to little benefit.

 

And I truly believe that where investment $ is involved, sooner or later, someone outside the band will want to exert creative control, because they are footing the bill....there just are not enough philanthropists or altruistic investors on the planet to make this viable at present.

[Scafeets]

These are smart guys, but they don’t know their history.

“We're just moving out of the brief period—a flash in history's pan—when an artist could expect to make a living selling records alone”

---I don’t know when this time was, but it sure as hell wasn’t the 60s, 70s or 80s. The average band can’t expect to make as much $$ on record sales when people aren’t buying. But even in the hey-day of plastic, no band saw record royalties as the central revenue stream. It was then, as now, all about performance money.

What Kulash fails to acknowledge is that the record company launched their performance career by investing in them, thus making them viable and providing the notariety to become video and live performance artists.

Back in the 60s, record companies insisted on a piece of the publishing because there wasn’t enough volume from record sales to recoup their initial investments. When the industry blew up in the late 60s/early 70s, there was so much money coming in – and so much competition among labels – that they had to change their business model.

Suddenly, successful artists were demanding higher royaslty rates, picking their own producers, getting control over liner notes and cover art, and keeping their publishing. Typically this happened in option years after some success – sort of like free agents in baseball.

This worked out to the benefit of everyone, since the record companies now had a vested interest in finding new artists that they could make some serious $$ on during the first few years. Record companies expanded their staffs to include artist development people, product managers, more and better promo and PR people with actual skills, and better, more efficient distribution methods. Tour support, video production and a host of other services became the norm for new artists in the 70s because the money was there to make it happen.

After 4 years of working on their craft in relative obscurity, OKGo put out their debut album on Capitol, with a top notch producer, recording studio, engineer, art designer, etc. The massive investment by the label did not result in the kind of sales they expected, but they did invest in a second album 2 years later. I would suggest that Capitol never made much on their investment, but the band benefited greatly. The fact that the band is still making a living after 12 years is a testament to their talent and fortitude. However, I‘m not ready to take business advice from a guy who thinks he achieved success through dumb luck and a few clever YouTube videos.

[Ronan Murphy]

 

make sure you arm yourself with having been on a major label a year ago...I would find this more of a true harbinger had these guys done it to get on the label, not after they had gotten off....

 

 

He admits to that in the article as well. Even Amanda Palmer that he mentions making $6000 auctioning stuff from her apartment is in a band signed to the same label as Nickleback.

[flatfinger]

I would use David Bowie to illustrate a point;

 

Way back then he changed his spots and choreography and kept his fans on the edge of there seats wondering what he'd do next . That was the "experience" part of it .

 

BUT , He could pen songs that held there own ( not just three chord tricks either...) and had a real singers chops .

 

What seems to be the examples held up in this article is that if you start first and foremost with the multi-media assault ( always seeking the next man bites dog spectacle/Video/ "Viral " event), then somehow the song craft and musical ability can take a back seat and promotion and marketing will carry the water.

 

 

The problem : Video cameras and you toobe are no different than a DAW in every pot syndrome .

 

Dilettante hordes who Know they are entitled to be a star and don't want to be bored with the facts that beyond what you can throw together with a H.D. full of loops , you might have to study and work at being a competent musician.

 

( But if being competent isn't rewarded than we'll have none of that so the mob can just entertain themselves on the web with endless garage band tripe , and , all live happily ever after )

 

 

 

( not that I give a crap either way anymore:bor:)

[flatfinger]

 

He admits to that in the article as well. Even Amanda Palmer that he mentions making $6000 auctioning stuff from her apartment is in a band signed to the same label as Nickleback.

 

 

 

Well since were having two threads about it and you mentioned the uncompably talented M. Palmer ........................

 

 

 

 

 

 

 

 

 

That article makes a reference to Amanda Palmer ( formerly of "The Dressden Dolls") and a very cursory reference to a stunt she pulled this summer by selling some "exclusive " T shirts for $50 each and made a killing . ($50 T shirts ??? Trust fund babys?? Quite a dichotomy between the pirates who take music for nothing and fans who pony up that much for swag !!!!!!!! )

 

 

 

 

Someone in another forum held her up as a shining example of how the Indie artist has to "think outside the box " and come up with innovations to "monetize" their career.

 

 

I previously Did'nt Know of her , so I did a little research; here is some re- postings of what I found out .

 

..............................................................................................................................................................................................................................................................

 

From;

http://mikeking.berkleemusicblogs.co...tter/#comments

 

Richard Edward Horner Jun 23, 2009 at 4:46 pm I’m sorry but this story really misrepresents some major facets of reality. I know many truly independent musicians and if they did this, they would not make anywhere near this kind of money. It’s the same deal with Trent Reznor being able to make a lot of money with his alternative distribution model. She states, ‘total made from my huge-ass ben-folds produced-major-label solo album this year = $0′ but, really, the prior exposure, touring and marketing form these major releases is what made this possible. I’m not saying this post is without merit or that it doesn't’t make a very important point, it’s just that it draws attention to the wrong one. The post is titled ‘How an Indie Musician…’ and makes a direct comparison of total dollars supposedly made from a major label album and then from hanging out on Twitter. This framing is highly misleading and ignores the facts that if you’ve ever put out an album on a major label, you’ve had major label visibility (and in this case, a following from it) and thus this sort of thing is mostly inapplicable to the vast majority of independent musicians.

 

 

Seems to be 2 camps in the comments...

 

Lots of folks chimed in to defend her , saying essentially that she toured and did lots of shows so thats why the label picked her up (chicken and egg stuff) .... Pretty much saying what they think they need to defend her and saying that she didn't benefit for the labels marketing and promotion of her ....

 

I think I'd be more impressed with this story if she wasn't one of the many who did have a period of success whilst being with a label .... How do you know how popular they would be without it ??? Just a guessing game trying to nail that fact down ; isn't it ???

 

 

 

I love how this person lets the cat out of the bag ;

 

 

Brad Aug 3, 2009 at 2:43 pm ur not supposed to read this and think you should do the same thing, ur supposed to be inspired to come up with your own creative way to make money. Like it or not, music is now free for everyone which is how it should be. Let the record industry die and allow the music industry to thrive. Its up to you to find ways to get people to pay for the EXPERIENCE, not the music.

 

 

"find ways to get people to pay for the EXPERIENCE, not the music"

 

 

 

O.K. then, It's more about the scene, Being a part of a clique , and , quite frankly , reading a bit over at the girls site , she's got a serious, serial/continous publicity stunt going on with "I'm battling the evil big label " story line ... Great stuff .. pulp fiction/soap opera theater at it's worst . Really quite ingenious to piggy back onto the techy mis-direction play . People can't get enough of label hating;

 

Well played ...smart girl .

 

I love the part about how she's all miffed cause they edited out the mid-drift shots out of her video and thats like , just so unnerving !!! ( jesus , I guess I'm supposed to start giggling like a little girl when I read half of the "messages " in the twitters, but half way was enough to make me want to puke instead !!) Honestly, what was I reading about there ; FASHION ; she's having a mental breakdown and waging a full scale WAR with her label about how her appearence is edited and presented on a video ........

 

The one fan admitted it wasn't first and foremost about the music , it was about the"experience" .

 

It's not like it's a new thing , to make the stickk more like musical theater... more sizzle than steak ! ( on a side note ; According to Alexia ....http://www.alexa.com/siteinfo/amandapalmer.net# it looks like she hasn't been stiring up enough {censored} latley..... after the big spike up to.012 percent daily reach in late july , the dramas seems to have subsided a bit ..... 150k traffic rank is good ?, or not ?????

 

 

Is this the new frontier for all the new Indie/Internet movement ??

All doing whatever publicity hog , attention getting stunts they can so as to sell some T-shirts ??? ....

 

 

It's also interesting that some of the fans were loving how "open " and "real" the artist was ..... Reminds me of what one of the blogger/guru guys said .. you have to "muster the hubris" . Translation ..."PIMP IT"

It's funny cause one of the recording mags (E.Q. I think ) had a editorial where the autor was saying he thought it was a shame that we knew everything about the artist now ( including what the had for breakfast !!) And he kinda missed the mystery that surrounded some artist . different strokes I guess.

 

 

 

 

The sad thing is , that after taking twenty minutes and visiting several of the related sites , I never saw anything prominent that talked about the qualities of her music .... no descriptions or discussions about the possible merits or what it was like ....Only headline stuff about the circus that is her professional career/soap opera!!

 

What about just creating really compelling music ??? Oh , That would take too much time !!! And it looks like In many cases , it wouldn't be enough of a spectacle in and of itself to get todays consumer interested !

[sventvkg]

 

make sure you arm yourself with having been on a major label a year ago...I would find this more of a true harbinger had these guys done it to get on the label, not after they had gotten off... see, it always sounds so simple, but these guys had a label backing them, helped get them out to where they had name recoginition...I seriously doubt that the Joe Schmo Band from Idunno, Iowa can get adequate 'sponsorship/investment' to mount the video productions and stage production one needs. I know there are solo artists and bands trying to get this working, but in general to little benefit. And I truly believe that where investment $ is involved, sooner or later, someone outside the band will want to exert creative control, because they are footing the bill....there just are not enough philanthropists or altruistic investors on the planet to make this viable at present.

 

 

Cory Smith was never on a label. But I do agree most of these people doing it now were on a label once so they had $$ to help them make a name and get known.

[daddymack]

I will bet, though, that Smith worked his ass off for years regionally to build his 'brand'.

I don't think he just showed up one day saying, 'hey look, if you give me your money, I will get you a decent return on it'...business does not generally operate like that...at least not for long

That is still the course; the way to get the labels to recognize you, but as we say too often, by that point, you don't really need the labels.

Point being, there are no real shortcuts unless you have serious connections. You need to use the tools available to you to the best effect, be it youtube, free downloads, constant touring, whatever it takes. It is a commitment, as I know you are well aware, and there just is not a real 'blueprint' to follow.

[BlueStrat]

 

Cory Smith was never on a label. But I do agree most of these people doing it now were on a label once so they had $$ to help them make a name and get known.

 

 

Yes, and Corey Smith was that rare guy who had the right product and the right look and the right skills at the right time in Internet history. Could he do it all over again starting out today? I doubt it. Pointing to internet success stories like his are ultimately pointless, because there are so many other factors that go into his success than the method by which he used to achieve it. It's a bit like saying that anyone could be a Michael Jordan or Michael Jackson if they just worked hard enough at it and did the same things they did.

[flatfinger]

It should also be understood that whilst these "musicians Coaching" services (A.K.A snake oil salesman!) are springing up in droves, there ultimate motivation is to "monetize" whatever can be wrung out of the web , and that in and of itself is a real barrel of monkeys . Don't expect to find allot of integrity in there musings.

 

Most of the publisist will chant the mantra that " There is no bad exposure " and chortle and giggle about things like the 50 or 60 year oldish members of KISS again donning the Black and white face paint to sell soft drinks ..................

 

 

Should you take advice and council from folks who see this kind of crass cash grab/ sell out as a some sort of fantastic " $ victory $" ?

[Matximus]

Awesome post!!! This dude knows what he's talking about.

 

Most interesting thing he said is how there is no replacement for the the startup costs provided by the record cos - that was the most important point he made. Who is going to assume the risk and make that investment to break through all the chatter??

[Poker99]

120,000,000 youtube views = 600,000 albums sold

 

[flatfinger]

120,000,000 youtube views = 600,000 albums sold

 

 

 

LOL!

 

Marketing and promoting ANYTHING is the most inexact "science" in the history of man ;

Do you believe that anyone in their right mind would have predicted the ascent of the pet rock ????

 

 

One thing these new age bozo's are starting to realize is that there simply has to be a filter ( or as is the hot new buzzword in the bloggosphere , "curators":rolleyes:)

 

Even in the previous guard the most talented bands in the world had absolutely no guaranteed outcomes . AND that was before all this ridiculous dilettante wave , noise floor at 100db "progress" .

 

Everybody who worked at a label can haul out dozens of examples of stellar albums that went nowhere despite critical acclaim and all of the promotion one could ever hope for.........

 

 

 

 

It's a total crap shoot . Always was , and always will be . The sooner you accept that and have enough sense to make contingency plans , the better.

[Poker99]

Yeah I know, I just hate it when someone who had success with a gimmick comes around saying they have the answer.

[sventvkg]

I have to agree with Bob Lefsetz that ownership of music is going out the window. That model is through. It's going to a streaming model. Check it out:

 

http://lefsetz.com/wordpress/index.php/archives/2010/12/31/spotify-2/

[flatfinger]

Lefsetz is becoming more and more irrelevant ..............( he must know it too because the comments on that article are closed !!! I guess he isn't interested in any opposing viewpoints !)

 

 

 

That article doesn't even focus on ( in fact totally SIDESTEPS) the root problem :

 

How to separate the wheat from the chaff.

 

Capitalism had a mechanism in place to filter out the mediocre. The new system consist of a huge amalgamation of the good the bad and the ugly all rolled up into a {censored} sandwich presented to the consumer who wisely declines it !

 

The initial filtering or "curation" is gone and, that's why, as he put it

 

People don’t know they want it because they don’t know what it is.

 

 

They don't know because they don't have the time or infinite patience to dig through a stack of needles looking for a needle !!

 

In the article linked, Lefsetz again resorts to using painfully wide and sweeping generalizations like ...

 

 

The future is never about blocking an activity, it’s about providing a better solution

 

 

 

Oh really ? I seem to have heard that during the 1930's there was a depression and that there was a little man with a funny mustache who provided a better solution to the unemployment problem in a country up in the north part of Europe.....

 

Some folks didn't seem to have a problem with "blocking that activity":facepalm:

 

 

 

Mr.Lefsetz, here's another cute little platitude for you to ponder...

 

Sometimes the cure is worse than the disease !!!!!!!!!

 

 

Filthy rotten thieves and the tech masters now tell me the only solution is for me to rent or lease entertainment one play or view at a time instead of making a one time purchase and enjoying it anywhere anytime without any possible connection issues.

 

Thats "PROGRESS" for ya !!!!!!!!!

 

 

 

Thanks so F'ing much:mad:

[sventvkg]

Oh I agree that there are some wide generalizations but I still think for better or worse he is correct. I would be on it because the other paradigm is gone.

[richardmac]

A few comments.

 

Regarding the article - I though it brought up some decent points. However, it's tiring to see the same old examples, over and over again. The reason for that is simple - there aren't very many examples, so we need to keep bringing up those few.

 

Regarding Lefsetz - He's had comments turned off for a long long time. Half the time I read him I think he's dead on, and the other half I think he's an idiot. I'm still not buying into the idea that the subscription model is in everyone's future. I just don't see it. It's been tried here and the companies who have tried it have not been super successful with it. Lefsetz is also another one of those "give it away and make money elsewhere" guys. But concert sales are down, people are spending less money on entertainment because the economy still sucks, no one wants to buy your band's t-shirt, and getting your music used on a TV show or commercial is difficult and does not pay what some people think it does.

 

Regarding the lack of filters - Really it's a lack of GOOD filters, because there are tons and tons of web sites out there that play new music, and I think that in time a few of them will rise up and become very well known. Or maybe not. Who the hell knows.

 

As a music fan, I want someplace that I can go to that will play me some great artists that I've never heard before, and I want to be able to go to a concert and have it cost LESS than a day at the Magic Kingdom. There are millions of bands out there and I'm sure I'd love some of them if I could hear them. And as a musician, I want more gigs and more fans. Might help if I got off this damn computer and tried to write a new song.

[sventvkg]

 

A few comments. Regarding the article - I though it brought up some decent points. However, it's tiring to see the same old examples, over and over again. The reason for that is simple - there aren't very many examples, so we need to keep bringing up those few. Regarding Lefsetz - He's had comments turned off for a long long time. Half the time I read him I think he's dead on, and the other half I think he's an idiot. I'm still not buying into the idea that the subscription model is in everyone's future. I just don't see it. It's been tried here and the companies who have tried it have not been super successful with it. Lefsetz is also another one of those "give it away and make money elsewhere" guys. But concert sales are down, people are spending less money on entertainment because the economy still sucks, no one wants to buy your band's t-shirt, and getting your music used on a TV show or commercial is difficult and does not pay what some people think it does. Regarding the lack of filters - Really it's a lack of GOOD filters, because there are tons and tons of web sites out there that play new music, and I think that in time a few of them will rise up and become very well known. Or maybe not. Who the hell knows. As a music fan, I want someplace that I can go to that will play me some great artists that I've never heard before, and I want to be able to go to a concert and have it cost LESS than a day at the Magic Kingdom. There are millions of bands out there and I'm sure I'd love some of them if I could hear them. And as a musician, I want more gigs and more fans. Might help if I got off this damn computer and tried to write a new song.

 

 

Richard, I suspect you have never used Spotify which makes sense because it's not in this country. I have used it and just like Lefestz says in his article, once you use it you instantly get it. I think as soon as you use it, you'll change your position 180 degrees. I did. Spotify is a game changer, like Youtube, Like MTV etc...Wait and see and remember I said it.

 

I checked out Facebook when it blew up in Europe but wasn't widely known here outside of some colleges. It was however a phenomenon in Europe so while I was gigging over there I started using it and was hooked. Everyone was still on Myspace back home but I got a profile on Facebook and just waited. A Year later it was BLOWING up in the USA. Same thing here. Trust me buddy.

[richardmac]

Well, I definitely respect your opinion, so if it ever does get approved in the US, I'll check it out. It's hard to imagine how it can succeed while the others failed, but God knows I've been wrong before - I thought rap was a temporary fad, I thought Madonna would never stick around, and I thought the iPod would be a flop.

 

The questions are, will it get approval in the US, and if so, when?

[richardmac]

You know, thinking about this some more... will Spotify help or hurt unknown artists? Assuming it arrives, and assuming it has a huge impact? If I can have the entire history of recorded music in my pocket, and I want to listen to some music, my options become... every song ever recorded. Or close to it. How is an unknown artist going to ever compete with that?

 

Or maybe the point is moot. Maybe the only way to sell music now is at gigs.

 

What impact, if any, will Spotify have on unknown musician's decision to sell or give away their music?

[sventvkg]

Spotify doesn't help you discover new and unknown artists. I can't think of anything out there that does. I discover new stuff from Paste, American Songwriter, The Boot and many other websites and articles. Also, from Friends and friends of friends. A Service like Spotify will let you find things you are looking for very fast and listen. You may know of one tune or have heard one song from an artist but you can then listen to it all when the different tunes come up from that artist thereby expanding your immersion! BTW, I don't know how but I'm on Spotify..OF course I put my name in the search and I was there:)

 

Again, Spotify is not about getting anyone out there. The other methods of building a buzz through gigging, word of mouth, and organically building a following are the same and really I think, the dominant ways to get the word out. However with spotify, once the word is out, people can get it! This is really a service for the fans more then the indie musicians but rest assured, our stuff will be on there for those of us who have anyone who wants to hear us!!