Hip Hop Stars Understand The Real Business Models For The Music Industry
from the making-all-the-scarce-goods-valuable dept
It's funny every time we hear someone say that the music industry is in trouble. There's very little evidence that's true. More music is being produced today than ever before -- and plenty of people are still making a ton of money in the music business. What's actually in trouble is the traditional recording industry, which is quite different than the music industry. When we point out business models for musicians, we seem to get a lot of pushback, but there's more and more evidence that artists are successfully embracing the model we've put forth -- and they're raking in the cash doing so. Forbes just came out with a report about how much money the top hip hop artists are making, and they're doing quite well. However, it's not because of just the music, but how they've used the music to sell all sorts of other things.It's exactly the model we described (though, many could probably do even better if they further embraced freeing their music). The music itself is an infinite good and can be used to the musician's advantage to make scarce goods much more valuable. As Lea Goldman, the associate editor at Forbes who put together the story notes: "they are smart enough to know that it's not just about selling albums. That'll keep you going for maybe two, three years tops. It's about building an empire and plowing those earnings into lasting businesses that will generate income long after the music stops selling." For some artists, that means branching out into totally different businesses. When people attack the business model we've described, they snicker at "selling t-shirts." However, the article notes that hip hop artists are creating full lines of clothing that sell well and sell for a premium because of their association with the artist. Also, the successful hiphop stars all seem to recognize one of the key "scarce" resources they can sell: an association with themselves. Many of these musicians took in millions by doing sponsorships, by producing other musicians albums or simply by appearing on other musicians' recordings. So, can we now set aside the myth that the music industry is in trouble? It's only in trouble if you're solely in the business of selling plastic discs -- and that's because those discs are increasingly obsolete.
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Filed Under: business model, hip hop, music, scarcity
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Bout damn time...
Bad Boy...
G-Unit...
Say what you want about the rap industry but when comes to using their money wisely they have shining examples as well as failures. Most people are so caught up in trashing today's rap (which I agree has gotten progressively worse in the last 10 years or so) that they don't realize that these people have their hands in much more stuff than their next album.
And as for the recording industry to the devil with them.
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Makin Dat Cheese
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We used to call that...
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Re: We used to call that...
On a side note, I regged a new site, not sure what I should put up, suggestions??? http://fuckyoumyspacefriend.com
Cheers
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i'll say it again... if i as a musician want to only sell my music, you don't have the right to rip me off!!!
you do have the right to completely ignore my songs! you also have the right to tell me that i'm going to slowly descend into poverty/homelessness... you don't have the right to just go copy my music, and give it to 10,000 of your closest friends...
peace...
ps... the fact is, the vast majority of people in the music world don't have the music fan base to do any significant revenue outside the actual music...
Jayzee, Prince, and maybe 100 others can do it.. but that's out of how many music persona!
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where the hell did anyone say that? sure, it will happen, but no where in this article or in any article previous has that been said?
you also have a right to get a real job, which is a right that you should probably exercise since selling music is a doomed proposition.
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Sam, I've said this to you probably 100 times already, and I'm not entirely sure why you still insist I'm saying something I haven't.
I have NEVER said that it is okay to copy someone else's work if they don't want it copied. I haven't. So please stop assuming that every time I say it makes sense for the creator of the content to let it go free that that means that anyone should just have the right to take it for free. I have never said that.
It might make me take you a bit more seriously if you could understand that simple fact.
Second point: copying is not "ripping off". But, we've gone over that before too.
you do have the right to completely ignore my songs! you also have the right to tell me that i'm going to slowly descend into poverty/homelessness... you don't have the right to just go copy my music, and give it to 10,000 of your closest friends...
We agree. That's exactly what I've said before. Why do you think I've said something else?
Jayzee, Prince, and maybe 100 others can do it.. but that's out of how many music persona!
This is what I find to be funniest of all. Whenever I point to no name artists doing this, people tell me "it'll never work for the big name artists." Whenever I point to big name artists doing it, I'm told "it only works for big name artists."
Sam, I've pointed to a bunch of small no name artists that are using this EXACT business model. So, you're wrong. It does work for others. In fact, it works great, because the music is more likely to get discovered and stand out, rather than hoping someone will pay for it.
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They need to pay their artists properly... theres a shit load of money flying around in the industry WITH THE NEW TECH. They are just fugging the artists and the songwriters as THEY ALWAYS HAVE!!!
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Good Copy Bad Copy
http://thepiratebay.org/tor/3700777/Good_Copy_Bad_Copy_-_XviD
This is a VERY interesting documentary about the music industries in other countries and how they actually use P2P and street retailers to get their music out and make the money from shows and merch.
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And so by having a genuine ROLEX watch on your wrist and dressing nicely says nothing about the person's tastes or gives any clues as to the person's financial status?
...maybe it doesn't, but they would have you to think that it does since nice clothes and an expensive watch are not worn by everyone.
What i do know is that if someone was wearing a t-shirt with a rare band which I to like, I am more likely to stop that person and chat up a conversation with them... and possibly even create a new friendship - someone to take to the next concert to share details of, "hey - thats a cool shirt! where'd you get it?"
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Now the original Forbes article does give the impression that hip/hop artists started this trend the people here at techdirt merely stated that hip/hop artists have started to learn how to make money in ways other than music.
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I guess everybody is right - you're an industry shill, which means you couldn't distinguish real music from a horse fart.
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http://video.google.com/videoplay?docid=-2564343931011486236
I think most people are missing the point of the article entirely. This has very little to do with mp3s and downloading songs, and everything to do about marketing. The mentioned artists market themselves in a way that whole other genres of music are just failing to do.
How many nightclubs does Greenday own?
How many appearances does Britney make on albums that aren't her own?
Sure, there's a few clothing lines here and there in the rock/pop world, but the hip hop scene seems to just have hit the nail on the head.
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Analog is great for stereo listening only. But, digital gives you surround sound(DTS). Now if a cd or music dvd is mastered for surround sound, analog can take a backseat. Just to let you know there are cd players that output analog signals(pricey).
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And not just Hip Hop
http://www.cnn.com/2007/SHOWBIZ/Music/08/17/music.porters.revival.ap/index.html
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free ip
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Very Funny
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Don't neccesarily agree...
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To the guy who thinks this will work with only top
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my website is the new music industry business model
Thanks,
Marv P
info@mododi.com
Myspace.com/mododi
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