An Outsider Gets A Peek Behind The Scenes Of The Music Industry's Mindset: Optimism Into Denial
from the it-ain't-pretty dept
I'm writing this on the way back from MidemNet, where I had the chance to present a case study on why Trent Reznor's various experiments with business models represents the future of music. I know many people (both at the show and among the readership here) have asked to see a copy of the presentation, and the folks at Midem are working to get a full video of the presentation online -- hopefully sometime next week. I'll talk more about my presentation at that time, but it seemed to go over surprisingly well, with many of the later presentations making references back to it as a great example of optimism.That's the good news.
But, of course, we're talking about the recording industry, which has an amazing ability to turn optimism into denial. My presentation wasn't the only bit of "good news" either. The Midem organizers did an amazing job bringing in numerous positive examples of musicians and record labels who hadn't learned to just adapt, but thrive in this changed world. It was like a who's who of folks that we discuss here on a regular basis.
The Outsiders And The Innovators:
Jill Sobule talked about her experiment with getting folks to pay various "levels" to pre-finance her latest album. She said she expected only her mom to donate originally, but instead she raised nearly $90,000 in less than two months -- even more than her original goal. She was especially shocked that someone paid the highest level ("weapons grade plutonium") which she had intended as a joke. But the woman who coughed up that $10,000 got to sing on one of the songs on the album -- though, Jill noted that they had to use Autotune to make her sound good.
Mark Kelly from Marillion spoke about the business model experiments they've been doing as well. As noted in the past, they've been doing this for years and years. Back in 1993, some fans of the band suggested opening up a bank account and donating to a pool in order to allow the band to do an American tour (in that case, those who donated didn't get anything special -- they still had to buy separate tickets to shows). From there, the band kept experimenting, using their mailing list to fund new albums, rather than go with a record label. On the latest album, they decided to go with the free music model -- giving it away entirely, and offering various levels as well (including, like Sobule, getting someone to play on the album as well), and the end result was a huge jump in mailing list names, from which the band expects to derive future revenue.
JY Park, an entertainment mogul from Korea, gave a series of examples of massive success stories he's built in the Asian market, by forgetting about trying to charge for the music, but creating full entertainment brands, where music is just a part of it. He actually has a series of "academies" around the world where he's training the next international superstars -- making sure they know at least two languages, and then getting them involved in a multimedia smorgasbord, from music to TV shows to live concerts to sponsorships and many other things. It's already proving to be a huge success with artists like Rain and Wonder Girls, and there are more opportunities from there.
Terry McBride talked about the various experiments he's been running as well with the Nettwerk Label, to take artists and figure out new ways for them to connect with fans in a manner that helps them build an all encompassing business model that brings in plenty of money.
Martin Thornkvist, who runs an indie record label in Sweden called Songs I Wish I Had Written, and who's built up a coalition of indie labels in Sweden who embrace the internet, called The Swedish Model, talked about all of the possibilities the internet has created -- and why things like The Pirate Bay can be good for music and open up new opportunities. Last year we wrote about how Moto Boy, one of the artist's on Thornkvist's label, was assembling a virtual concert from fan footage. Another cool new thing he's doing with Moto Boy is that he created a little mechanical music box that plays one of Moto Boy's songs. You can place it on any surface and wind it and it plays the song. Moto Boy's music is available for free -- but the music box is a cool souvenir that Moto Boy's true fans are more than willing to pay for.
Nancy Baym showed just how much value there was in the fan community, and the fan's relationship with musical acts -- and how musicians that had learned to embrace their fans were doing amazingly well. For example, the most talked about bands on Usenet weren't necessarily the biggest album sellers -- but they did represent a who's who of the top concert earners. There's a reason for that.
There was a session on how the Chinese music model had evolved. Almost no one buys music there, but it's still a huge money maker for musicians. JY Park had mentioned this in his presentation -- his musicians make a ton of money from brand sponsorships in China -- but there were numerous other examples of musicians in China making plenty of money through mobile subscription services. For example, some musicians get fans to sign up for special subscriptions that represent the only way for them to potentially get tickets to see those acts perform live.
To be honest, it was great to see all of these examples of openness and business models that work on display at the event. The Midem folks certainly weren't shy about bringing in "outsiders" to highlight these things.
The Insiders And Denial:
But, then along came the insiders. There was an intensely frustrating two-part "debate" over how ISPs and the recording industry needed to work together. And, even as they referenced the various presentations and examples that we all made showing that things aren't nearly as grim as they make it out to be, they immediately jumped back to the "problem" of piracy. There were so many examples of artists showing that there were business models that were working today -- often earning musicians more than they ever made before without worrying about piracy, and record company insiders would say "that's a great example to follow..." and then immediately afterwards would say "but we must stop piracy."
Actually, I should clarify that. They seemed to have learned at least some of the lingo of "embracing" file sharing -- but they would say entirely contradictory things right afterwards. It was as if they'd learned a few buzzwords, but not bothered to understand what they meant. Over and over again we heard music industry insiders say that they had made a mistake attacking fans, and that they had to learn to embrace piracy... but then, they'd immediately make a statement about how they needed the gov't or ISPs to take responsibility to squeeze excess cash out of file sharers to make up for their "losses."
It's as if they weren't even listening to what they, themselves, were saying, let alone what others were saying. Here we all were, showing how musicians were making good money (often more than they made in the past) by adopting new models, and all the insiders could talk about was how much money they were losing on piracy. The most striking may have been Kenth Muldin from Sweden's STIM, the Swedish performing rights society, who literally said: "Nothing will drive P2P file sharing from the earth. Nothing. And that's why we need to have legal sanctions against it." If nothing will drive it from the earth, why not embrace it, rather than attack it?
Even worse, that whole session was kicked off by Keith Harris, of a think tank called "Music Tank," and he set the tone for the entire "debate" by noting that all of the important stakeholders were present -- except, of course, the consumers "because they can't afford to be here." To that, everyone laughed -- but it was quite telling. The industry still doesn't believe that the actual consumers really should be a part of the conversation. The idea that they would be there for this debate seemed laughable.
Feargal Sharkey, former punk rocker and now in charge of a group called UK Music that basically represents all of the different players in the UK recording industry, was equally as contradictory. He started out by saying that the industry had made a ton of mistakes and set up adversarial relations that needed to change. But it didn't seem that he meant the adversarial relationship with fans -- but with ISPs. He said that it was time to get past the emotional arguments, and focus on reasoned arguments. And, immediately following that, he launched into an impassioned emotional argument about how "the music is all that matters" and he was sick and tired of bogus outsiders with their "utopian visions" and who spout "wild rhetoric and innuendo," but now was the time to work out commercial agreements whereby the ISPs would finally take responsibility for file sharing and start licensing. In fact, he suggested that, in the UK, at least, such agreements are months, if not weeks away.
Then there was Peter Jenner, manager of various music stars like Billy Bragg, who is nothing if not outspoken. He started out making a decent point that the recording industry was dysfunctional and had a long record of making things more complicated, not easier, but then he went on a rant about how "as long as there are free riders, there's a problem" and demanded that the gov't needed to step in and set up blanket licensing, requiring ISPs to pay up. Apparently, he's absolutely blind to the fact that you can turn free riders into a benefit. It's that old (incorrect) mentality that every freely shared copy is a lost sale, rather than an opportunity.
In fact, he made the incredibly laughable claim that if the gov't doesn't step in soon, "we will see the collapse of the entire entertainment industry." That seemed odd considering all of the examples in other sessions of musicians and record labels doing quite well despite the lack of gov't intervention. Perhaps he was too busy screaming for gov't help to bother to attend those other sessions.
As a representative from the Isle of Man gov't said: "The problem is that this industry is so focused on how much it's going to lose, it never looks at the opportunities of how much money there is to be made."
Perhaps the most amusing was Howie Singer, from Warner Music. He piped up from the audience about how their main focus was on compensating the artist. You certainly could have fooled some of the artists on Warner Music who have noticed that WMG has done plenty to make it more difficult for them to get compensation.
In that discussion, about the only reasonable voice was Gerd Leonhard, who pointed out that a better solution was setting up a truly voluntary (not mandatory) licensing offer that could be paid in a variety of ways: it could be individuals. It could be ISPs. Or, most interesting, it could be brands. What if Pepsi paid to cover all your music file sharing if you bought a certain amount of Pepsi drinks? I still don't think any such license is really necessary given these other business models, but he was one of the few in the debate actually noting that you can't do a top down solution that tries to "control" users.
Surprisingly, Geoff Taylor from BPI was much more reasonable than I expected. While he definitely wants ISPs to "take responsibility" he avoided some of the more ridiculous suggestions made by the industry in the past. In fact, when someone in the audience claimed that ISPs had to give up liability "safe harbors" Taylor pointed out that wouldn't be productive at all, and such safe harbors were at the core of how ISPs worked -- and even raising it would set the discussions back tremendously.. He's right, but it's surprising to hear that from a recording industry guy.
Basically, though, the industry insiders are still so focused on "the piracy problem" that they're blind to the idea that it might not actually be a problem -- as was shown time and time and time and time again during the other sessions. All these guys were doing was focusing on "free riders" or finding others like ISPs and the gov't to "blame" for not stepping in to fix the "problem" rather than looking at all of the amazing opportunities that musicians and indie record labels are already embracing to tremendous success.
So, for all of the optimism presented throughout the event, it was somewhat disappointing and frustrating to see the old guard still totally focused on the wrong issue. The overall event was fantastic though -- to see the various players mixing it up in a discussion like this, rather than it just being a pure echo chamber. It was just frustrating to see so much of the focus from the existing players apparently missing out on all of the amazing success stories and opportunities laid out in front of them.
Hopefully, though, with this dialog started, over the next few years, these ideas will start to permeate more deeply.
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Filed Under: business models, jill sobule, jy park, marillion, midem, moto boy, music industry
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"peak" should be "peek"
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Re: "peak" should be "peek"
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Staying Positive
I truly enjoyed the beginning of your post. You focused on alternatives and expanding choices. All good. Then you regressed into rubbing the puppy's nose into the poop.
I have always been an enthusiastic supporter of alternative models. The more business models available, the better. Even more important, when you can show that alternative business models are gaining a steadily bigger portion of an industry, you also demonstrate that the alternatives will (may, to be more cautious) eventually become the significant models, and the current models may become minority models and potentially could be abandoned altogether. These are all good things.
The problem arises when you complain. Complaining is fine in moderation. However, complaining continuously about the same industry does little except make people think you are a whiner. Focus more on successes and pointing out that those successes are models for others and stop. Your point is made without keeping the puppy's nose permanently brown and stinky.
I stopped reading your post when I hit the denial part, because I knew I was going to hear the same thing I have already read in, what, dozens of posts from you? Hundreds? Does repetition of the same old complaints make anyone listen more intently? I was far more impressed by the positive examples you gave than the previous 100 complaints you have made about the RIAA and the MPAA.
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*shivers*
It's quite clear this issue isn't going away in my lifetime. Some of the presenters (and comment makers) have their head so buried up their ass, they'll never see daylight despite many clear examples.
I look forward to seeing the presentation.
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A fix
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Very nice post
Looking forward to the video of your presentation :)
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Death Rattle
The Chinese model of letting the consumer take on most of the time, effort, and cost of distribution while the musicians are making money on sponsorship and performances is probably more workable in Asia (better attitude toward new methods and larger population) but will work in the west too.
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Re: Staying Positive
Perhaps we could say the same to the record labels. If they ever learned or changed their tactics at all, perhaps Mike would have more positive things to write about, or different complaints.
That said, do you really even have a legitimate complaint here? First, you say you didn't read the second half of the article because you "knew what it was going to say." If you didn't read it, how do you know what you're even complaining about? Actually, the second part gave some pretty specific information about presentations from industry insiders, and not all were bad.
Second, what did you do in response to the complaining you claim to hate? You wrote a four paragraph post complaining about it. Good job.
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re: An Outsider Gets A Peek
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Re: *shivers*
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Re: Death Rattle
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Re: Staying Positive
Please note the truth: you have not been so enthusiastic when we pointed to alternative models that would impact your own industry.
The problem arises when you complain.
Pot, note the kettle.
Focus more on successes and pointing out that those successes are models for others and stop.
If you had actually read the post, you might have noticed that the very point was that we DID focus on the successes. All of us focused on the successes. The ones complaining were the insiders.
Your point is made without keeping the puppy's nose permanently brown and stinky.
If that were the case, then why were the industry insiders not getting it, but rather complaining about piracy?
I stopped reading your post when I hit the denial part, because I knew I was going to hear the same thing I have already read in, what, dozens of posts from you?
Actually, there's a lot of new stuff in there. But why bother reading it when you think you know what it's going to say?
Does repetition of the same old complaints make anyone listen more intently?
It's not the same old complaints, though. But, again, you know better, even though you admit you didn't read it.
I was far more impressed by the positive examples you gave than the previous 100 complaints you have made about the RIAA and the MPAA.
The article does not complain about either the RIAA or the MPAA.
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Re: re: An Outsider Gets A Peek
I don't remember the exact quote, but I believe it went something like: "she flew over to where we were recording and sang along, and she sounded really good... (pause)... with the help of Autotune."
It was just a joke.
But, by comparison, Mark Kelly from Marillion admitted that they had let a journalist perform on their album, playing a tambourine, but he was so bad, that even with pro tools they couldn't use his recording. Then he said "he doesn't know that... and thinks he's still on the album, so Jon, if you're here... sorry."
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80s/90s: "Let's screw customers by eliminating singles and force them to buy full overpriced CDs."
90s: "People are using the internet to share individual songs, let's sue Napster."
Early 00s: "Let's sue all the other P2P programs. Let's sue our customers."
Mid 00s: "Let's sue to shut down the Pirate Bay."
Present: "Damn, we can't sue ISPs, let's bribe them do our dirty work. Let's ask the government for handouts and protection."
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Re: A fix
:)
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Re: Staying Positive
Isn't this what lawyers do for their living ? You seem to think that those of us believe that IP Laws are harming rather than progressing innovation should just shut up or be ignored. Is the threshold for making a complaint against that, to earn a law degree ? Awfully biased of ya. I'd suggest you stop coming by this site, because we all know how slow the law moves in the US. You've probably got several more years of "whining" to observe before we stop.
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Generational Divide
The dichotomy between technophile consumers and troglodyte executives will erode.
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business model evolution
The recording industry has controlled entry to the ranks of 'stars' in the industry, often manufacturing talent to fill holes in the supply-side (a lack of 'artists' serving the 10-14 suburban pre-teen female mall market). The new business models depend on fans finding and identifying with artistic talent and spreading the word about quality themselves.
There's plenty of examples of industries falling out of step. The Swiss in their quest for accuracy invented digital watches but thought it was so useless (thought their hand-crafted mechanical watches were so permanent of a fixture and so alluring), they didn't bother patenting it. The Detroit auto industry didn't believe that econo-boxes would ever overtake their big sedans back in the '80s (they didn't see many on the roads of Detroit so how could the market share reports be right?).
Fundamental change has never come from the core, the 'insiders'. It won't here, either.
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Can they really change?
Feargal Sharkey has always struck me as one of the more progressive voices in the UK industry (even if it is somewhat ironic that a former punk rocker is now working to support 'the man'), but it seems from this that he's got stuck in the same trap as all the rest.
It seems like the record industry will never be interested in a new business model that can't be directly transplanted into its existing structures, and provide exactly the same revenue its been used too.
Perhaps it truly is impossible for these large companies to adapt? Maybe the only solution is to start again with lots of small companies with the ability to take risks and experiment?
What we really need is for a Government to step in and say 'Either you adapt, or you fail and someone else takes your place. That's the way the free market works'. Unfortunately I can't see that ever happening. I wrote to the MP that launched the 'Fake-Free London' dvd campaign, pointing out all the better methods that could be used to reach the same end. All I got back was a letter from a civil servant mentioning how many people the dvd industry employed and how much revenue it was worth.
Media empires are not banks, but it seems they are also too big to be allowed to fail.
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Re: Re: Staying Positive
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Re:
From what I gather from the original post, in the industry's own view, they are doing something about it. They think the actual answer is to try to force people into paying per download or for licenses. The answer is just to get more laws against the pirates, because it can't possibly help them. Which of course only lends more support to the statement that p2p will not kill them, they will kill themselves.
What they think is the right direction has only been shown time and again to be the wrong direction. And instead of learning from their mistakes and heading in a new direction (as many presenters showed can work), they keep repeating the mistakes thinking that if they try again, they can just do a better job this time.
Kind of reminds me DRM in general really. If they make some new DRM it will work this time. End result: Failure.
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Re: Re: Staying Positive
Please note the truth: you have not been so enthusiastic when we pointed to alternative models that would impact your own industry.
Not true. I am always enthused about alternative business models, as long as they are in addition to the existing business models. Do we need to eliminate the old business models in the recording industry? My answer: Why? If the new models are superior, they will win. Your post seems to indicate that the new models are starting to gain a significant foothold.
The problem arises when you complain.
Pot, note the kettle.
Yeah, yeah. Point taken.
Focus more on successes and pointing out that those successes are models for others and stop.
If you had actually read the post, you might have noticed that the very point was that we DID focus on the successes. All of us focused on the successes. The ones complaining were the insiders.
I read the first part of the post in detail. I was pleased to see that alternatives were gaining ground. Nothing like empirical data to show that alternatives can and are working. Then I started to read the second part of the post and wondered why you polluted such a wonderful post.
Suggestion: Perhaps keeping the positives in one post and then pointing out the other shoe in a separate post?
Your point is made without keeping the puppy's nose permanently brown and stinky.
If that were the case, then why were the industry insiders not getting it, but rather complaining about piracy?
You made your point. If you take out a sign in Times Square in thirty foot high letters outlined in high-intensity LED's, will the message be any better understood? How long did it take for the crew of the Titanic to realize the ship was doomed?
Again, I suggest you focus on the wins, the positives, point out that the industry is changing and those that embrace the changes are gaining increased sales and followers while the legacy industry continues to decline. Eventually they will get the message, or they will no longer be around.
I stopped reading your post when I hit the denial part, because I knew I was going to hear the same thing I have already read in, what, dozens of posts from you?
Actually, there's a lot of new stuff in there. But why bother reading it when you think you know what it's going to say?
Perhaps there was new stuff in the insider complaint portion. I was so upbeat about what you reported in the first part that I was unprepared to hear about how the recording industry was still not getting it and was clueless. End on a positive note.
I was far more impressed by the positive examples you gave than the previous 100 complaints you have made about the RIAA and the MPAA.
The article does not complain about either the RIAA or the MPAA.
My bad. I often equate the recording industry with the RIAA when you complain about them. I stand chastised.
Regardless, I still think the upbeat part of your post was better left by itself.
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Re: Re: *shivers*
Might work for inside-the-lines genres, but rock, punk, rap, or anything else even remotely counter-culture would view this as selling out, understandably so.
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Re: Re: Staying Positive
Seems awfully biased of you. Of course, I am not a lawyer, but that seems to be a narrow-minded opinion of lawyers.
You seem to think that those of us believe that IP Laws are harming rather than progressing innovation should just shut up or be ignored.
Wrong. Mike and others have made plenty of comments regarding IP laws and their potential harm. I have agreed with some of Mike's comments, and have even occasionally made a comment when has done so. However, in this case that was not the gist of his post. Mike did not mention copyright or infringement once, though piracy may be a close kin to infringement.
Is the threshold for making a complaint against that, to earn a law degree ? Awfully biased of ya.
I hope not since I complained and I do not have a law degree. Then again, that seems awfully bigoted of you to assume I do.
I'd suggest you stop coming by this site, because we all know how slow the law moves in the US.
I am unsure of how those things go together, but is that how you wish to stifle debate, by eliminating those with a different viewpoint? Awfully biased of you.
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Re: business model evolution
Amen. The recording industry panders to specific markets. I long for the days when dozens of independent artists started small and worked their way up, causing a huge explosion in musical variety. Everything seems so sterile, corporate and boring. Good artists are out there, but it is harder to find them because they are typically not played on MTV, VH1 or pop radio stations.
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Re: Re: re: An Outsider Gets A Peek
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Re: Re: Re: Staying Positive
Basically you start any civil case with either a petition or a complaint. One states, I don't like this please change it in this way. The other says, I don't like this please compensate me.
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Re: Re: Re: Staying Positive
That was convincing.
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Re: Re: business model evolution
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A Better World Without Whiners
"The problem arises when you complain. Complaining is fine in moderation. However, complaining continuously about the same industry does little except make people think you are a whiner. Focus more on successes and pointing out that those successes are models for others and stop."
Other noted complainers:
- Mohandes Ghandi
- MLK
- Suffragettes
Yeah! Wouldn't the world be a much better place if people just stopped complaining? I don't think so.
There's definitely forms of productive complaining. People that organize civilized dissent are changing minds, and starting movements. That's critical work.
Mike is not whining, or just complaining to get it off his chest, or pining for free MP3s. Geez, I'm sure the guy has cheaper ways of getting a music collection than complaining until it gets offered for free! Mike is trying to change the current mindset on patents, copyright, and the general notion of ownership of ideas. He does it as a writer on his blog, and speaking out at events. There is an honorable tradition of using the pen and the pulpit as progressive forces for change. The prose should be one part frustration, and one part inspiration. I think we can credit Mike with both.
On repetition: Educating people takes time. Different people will read different Techdirt posts, and some points bear repeating. Also, there are always new angles made by the current industry execs, and these deserve rebuttals here. And any teacher can tell you one of the keys to learning is repetition.
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Re: Re: Re: Staying Positive
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Excellent coverage, thanks
Well done.
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Re: A Better World Without Whiners
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Lonnie
In normal life, most people I meet are not aware of the almost constant attacks on freedom and technology on the part of the entertainment industry in its fight to "make bits uncopyable" aka, "stop water from being wet".
This blog is a great resource for educating people, as Mike and his group continue to expose the ignorance, greed and panic exhibited by the proponents of a business model whose time has passed.
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Re: A Better World Without Whiners
Mohandes Ghandi was never a complainer. In fact, he firmly acted in a positive way.
It is not hard to find real complainers if you are looking for them, but those two gentlemen, and most great men, typically addressed problems rather than complaining about them.
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Re: A Better World Without Whiners
Yes, the old rule of thumb is three times for retention. Every repetition after that loses students.
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Re: Re: A Better World Without Whiners
No offense, Lonnie, but I find this incredibly insulting. You are suggesting that I am not "addressing problems."
I believe that the difference you have established between "complaining" and being "constructive" is whether or not you agree with the message. Complaints can be quite constructive.
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Re: Re: Re: Re: Staying Positive
My real suggestion, which perhaps I should have kept with and eliminated the complaints, was that Mike had a wonderful positive message that I found intriguing and interesting. Everything after the positive message could have been left for another post. It was the equivalent of "look at all the good things that happened, BUT, we most of the old-timers are saying the same old thing, so..." A lot of positive things have been happening in intellectual property for the last several years, and the beginning of the post above was the most positive thing I have seen about the recording industries in...years?
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Re: Re: A Better World Without Whiners
Funny, then, that we've repeated points to you more than 3 times, and you still haven't been able to retain them. :)
Sometimes it takes more.
And, to be quite clear, I do not repeat for the sake of repetition. I use new examples or discuss new things that are being said. The post here described the "new thing" that the industry is focused on, and it's quite different than older discussions.
And, again, I don't see it as "complaining" or whining or anything of the sort, but making it clear what's being said and why it doesn't match up with reality.
Just because YOU happen to have a different opinion, doesn't make it complaining.
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Re: Re: Re: Re: Re: Staying Positive
But, the point was *they're NOT* saying the same old thing.
Perhaps, in the future, before complaining that we complain too much, it would help to first READ what you think (incorrectly) is our complaint.
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Re: Re: Re: A Better World Without Whiners
I doubt I can get my way out of that statement regardless of what I say. I focused on the King and Ghandi and their particular approaches to addressing significant issues. Regardless of what I say from this point forward, I consider both men to be among the greatest people in history.
You have addressed problems in a number of your posts, including suggestions for addressing those problems. I enjoy those posts where you focus on solutions and examples of people who have embraced new technologies and ways the best. These posts are clearly examples of addressing problems. I did not intend to insult you "incredibly" or otherwise.
Complaining about a problem, or identifying a problem exists, can be a part of addressing a problem.
I will shut up now...
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Thumbdrive
You lost me.
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Any Students Left?
A while back, I wondered if Mike would get tired of repeating the same things, and then I realized that if he stopped, there would be one less (very powerful) voice exposing the lies and corruption the entertainment industry employs in its (seemingly) never-ending battle to subjugate OUR freedoms to THEIR control over OUR culture and technology.
Mike and crew, keep it up!
The battle won't be over until the corporations stop suing, lying and trying to make back-door deals with everyone from service providers to senators.
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Re: A Better World Without Whiners
Lonnie E. Holder wrote:
But weren't you describing that as "whining" earlier? Are you now backing off your original position?
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Re: re: An Outsider Gets A Peek
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Your answer seems to be 'step back and let it take care of itself'. This clearly isn't working.
The reason for 'eliminating' the old business models is simple; the digital age as profoundly changed the way we interact with media. Society has changed as it has done many times before, and business needs to change with it if it wants to survive.
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As you rejoice, I remain a little sad, as this will be my last post on Techdirt, ever. While some may try to impersonate me, I remain happy to see Mike had such a good response. I'm going to take off, now as I work forward with a fork in my left and a knife in my right.
Yes, I've been here for a while, but it's on to creating other master dishes. Good luck to all I've met here as I've posted anonoymous coward or otherwise.
It may get a little cold while I'm gone, but, hey, pizza is always good cold, isn't it?
- Iron Chef.
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Re: Re: re: An Outsider Gets A Peek
Well, there you have it.
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You missed the real issue
It's pretty simple: free music and direct fan interaction increases sales for *musicians* not labels. Labels don't know how to scale that kind of interaction, and instead rely on traditional sales methods using bits of plastic (CDs). Musicians can use their skills (fans entertainment) to bypass the label's skills (Porter analysis and logistics).
The idea that musicians could start making their own money--cutting them out of the middle--scares the hell out of the labels. If the technology weren't so hard to use, the labels might have died off years ago as musicians flooded to the internet to sell direct to fans.
That's why labels want a blanket charge on ISPs. A blanket surcharge on ISPs effectively eliminates the advantage musicians would have on free internet distribution. Even if no musician uses a label to distribute their music, the labels will still make money on the free distribution.
In fact, a perfect situation for the labels would be bands doing all the work to get their music out (effectively eliminating the need for A&R) and the labels just kicking back and collecting their ISP surcharges.
Gotta love "capitalism".
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Re: Old Business Models
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Re: Re: A Better World Without Whiners
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Re: Re: Old Business Models
Lonnie. No one is saying to get rid of any business model. What they're saying is to get rid of regulations that artificially favor one business model.
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Perhaps what we really need is a total ....
Music and movies would and will continue to be created and distributed through the internet, on CDs and in ways we can't imagine. I'll still pay to see artists at my local event center, go to the local pub and listen to the live music and pay through the nose for a occasional IMAX movie, and sure that there those who would still pay to see "Donny & Marie at the Flamingo" in Vegas. Perhaps there wouldn't be as many multibillionaires as top stars but in reality there isn't many now. We would still have our entertainment, artists would get paid (probably more) and less of our resources would be eaten by the large corporate machine.
If Piracy forced the large corporations out of business, after a bit of a readjustment, we would all be better off. I for one would welcome the "Total collapse of the entertainment industry" as defined by the large studio execs.
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Re:
In my opinion, the single was eliminated by a few factors. The main one being that no one wanted to go around buying "CD singles". The form simply is inconvenient, almost as bad as the cassette singles. As people moved away from turntables, the whole "45" concept faded in step.
In addition, young people (the major purchasers of singles) began to have far more disposable income so purchasing an entire album was feasible for them. Having singles tapes/CDs became a bit of a stigma..."what, you can't afford the WHOLE album?"
In the place of CD singles, we saw a proliferation of "top of the charts" mixes.
At least, that's how I saw the "singles" sections in my record stores disappear. It went from an entire wall of 45, to a few bins of tapes, to a single bin of CDs that simply didn't sell.
I have hundreds of CDs and tapes, maybe 10-20 singles tapes, and ZERO CD singles. My vinyl collection was much smaller but contained proportionally more 45s than 33s.
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Re: Perhaps what we really need is a total ....
Although the anarchist in me also wants to tare it all down and start over, this method would never get support from governments, particularly in these hard economic times. For all its faults the music industry is still worth a lot of tax revenue and employs a lot of people.
What we really need is an orderly transition away from the old, with new startups replacing failing old models, and for politicians to recognise and understand whats happening.
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Re: Re: *shivers*
Simple: Eventually, consumers will be forced to become "loyal" to a brand they may not care for.
It happens on a daily basis. In addition, you can also bet all consumers will "pay" more for the song than they can get for themselves elsewhere.
No offense, but I seriously don't see Corporate America covering both the cost of music distribution and product distribution without some way of ensure the consumer pays for it.
Personal note: Current program offered by Pepsi - get a free NFL cap by matching 3 caps of the same team. Chances of getting all 3 of your favorite team? So laughable, even Albert Einstein's rolling in his grave.
Getting 3 of any team? Better, but you'll spend so much on Pepsi products you'll be too stupid to realize you could have easily purchased the cap at a much lower price.
"This would be on a different scale, but as long as they didn't restrict you to their selected artists, what would be the problem?"
This will never, ever happen. Believing it would only shows your ignorance when it comes to Corporate America's dominance over consumers.
There is always a problem when having Corporate America dictate the "rules" of how you can obtain offers from them. Always.
Personal note (part 2): Given how Corporate America is losing billions due to lost ad revenue, this would clearly be another example of how ads would infiltrate your "free" music by the company sponsoring it. Thanks, but I'd rather have DRM than a ton of ads in my product.
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Re: Re:
Albums...one of my favorite topics.
In the olden days (pre-mid-1960's), singles were the norm. Indeed, record companies made money from singles. However, during the 1960s artists began writing more music of greater quality and it was cheaper to buy a complete album of high quality music than to buy singles. Another factor is the rise of concept albums.
By the end of the 1960's album sales dominated, but the quality of music was high as well. This situation remained reasonably constant for a long time.
However, the situation has changed. As highly creative artists have been moved to the back burner by record companies because their music sells relatively poorly (just not radio friendly), and throwaway acts (flavor of the month) move to the front, the quality of the music has been reduced and there are fewer popular songs or even halfway listenable songs from some artists. Many listeners, especially young listeners, may only be interested in one or two songs from a particular artist (which seems reasonable since all the songs from that artist are probably crap anyway - which current listeners will realize in about 10 years).
So, in mainstream music the album is dying, but good artists who are rarely heard still sell a lot of albums. My favorite contemporary group remains Porcupine Tree, and their albums are filled with great music (if you like progressive rock). Buying a single from one of their albums would be like reading one chapter from a book.
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Re: Re: Re: Old Business Models
SteveD specifically said that "The reason for 'eliminating' old business models is simple..."
Here is the thing. Old business models are rarely "eliminated." Neither should they be "eliminated." The market is a relatively fast-paced environment. It may not seem so to the participants because they are looking for instant change (they are a product of their times, poor things), but looking back over the last 500 years, it is apparent to a student that market evolution has happened continuously and steadily. Markets evolve. If "elimination" happens, it is the market that causes the "elimination."
What I find interesting is that old business models are rarely eliminated. Sometimes they are modified, but they survive. I could go through a list of business models that "died," but really did not. They changed, sometimes only slightly, and were reborn.
One of the most interesting debates I have seen is between the pro-software patent and anti-software patent groups. It has always been my contention that the business model that yields the best results will eventually succeed. Though I personally believe software patents are counterproductive in general, I also have wondered whether the market would correct an imbalance in the long run if they were truly counter-productive. If markets truly work, this correction should happen. Recently I saw an announcement from IBM that they will reduce patenting and publish more of their inventions, dedicating them to the public.
As you say, Mike, stay tuned.
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Re: Staying Positive
The quotes from the recording industry insiders show just how out of touch they are will the current market, and the consumers themselves. I don't see how Mike is 'complaining' when he's using the industry's own quotes... ??
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Re: Re: Staying Positive
Last night I saw a great interview with Nichelle Nichols. She was unhappy with her role as Lt. Uhura and went to Gene Roddenberry to advise him that she was planning on leaving the show. Yes, she was complaining.
That weekend Nichelle attended an NAACP activity where she encountered Dr. Martin Luther King. It turned out that Dr. King was a big fan of the show. He was distressed when Nichelle told him that she was considering leaving the show. He told her that she was a vital role model and she absolutely could not leave the show. He also reportedly said that "Once that door is opened by someone, no one else can close it again."
Of course, Nichelle remained on the show and through six movies. Throughout the years many people have told Nichelle that she was a positive influence on their lives (I believe a certain Mr. Obama was one of those people). It would have been easy for Nichelle to have moved on because things were not happening fast enough.
Progress can be very slow. It took 150 years to move from slavery to having an African-American in the highest office in the land. In all those decades of complaining, perhaps some of the greatest progress was made by a man who rarely complained, but envisioned a goal and worked toward the goal rather than lamenting current and past situations.
I think that the insane desire one has sometimes to bang and kick grumblers and peevish persons is a Divine instinct. ~Robert Hugh Benson
The people who live in a golden age usually go around complaining how yellow everything looks. ~Randall Jarrell
Instead of complaining that the rosebush is full of thorns, be happy that the thorn bush has roses. ~Proverb
"If you don't like something change it.
If you can't change it, change your attitude.
Don't complain."
Maya Angelou
"Now, 10 years later, the person who talked and complained is still talking and complaining and still remains in the same position. The person who took the initiative and found solutions has been promoted several times."
Catherine Pulsifer, from How Valuable Are You?
"If you have time to whine and complain about something then you have the time to do something about it."
Anthony J. D'Angelo
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Re: Re: Re: Re: Old Business Models
They've said that every year for the past 3 years.
Hasn't happened yet.
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Re: Re: Re: Staying Positive
You really should have stopped digging. The hole you're in keeps getting deeper.
You keep saying don't complain, but change things. Have you noticed that the stuff we say is HELPING to change things?
Again, I'll say what I said before: your determination of what's "complaining" seems to be what you don't agree with. For the rest of us, that's part of the process of changing things.
And, honestly, the only real complaining I'm seeing in this thread is, again, from you.
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Re: Re: Re: Re: Staying Positive
I am looking at the post you commented on, I am missing my complaint...
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Re: Re: Re: Re: Re: Old Business Models
The implication from the article linked below is that IBM essentially gave away 1500 inventions in 2007, and plans to give away 3000 this year. At what point does that meet the standard of "it is happening"?
http://bits.blogs.nytimes.com/2009/01/14/patent-king-ibm-will-give-away-more-ideas/
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Re: Re: Re: Re: Re: Re: Old Business Models
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Re: Re: Re: Re: Re: Staying Positive
Thus proving my point. Thanks.
(if you're still not getting it, here's a hint: I am missing my "complaint" in this post.. which you seem to think is complaining.)
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Re: Re: Re: Re: Re: Re: Re: Old Business Models
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Re: Re: Re: Re: Re: Re: Staying Positive
Tu ne cede malis sed contra audentior ito.
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Industry in denial
Frankly I was shocked by what I saw and heard. Makes the advertising world seem positively revolutionary...
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Re: Industry in denial
Thanks for the comments.
Btw, your presentation was fantastic. Another one along the lines of what the industry *needed* to hear. Hopefully they were listening.
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Re: Re: Re: *shivers*
To say I am ignorant about corporate America's dominance and anti-consumerism is a bit laughable if you read my past posts. I just think you are blowing this out of proportion a bit. No one is talking about handing sole control of the music industry over to a few snack manufacturers. They just mention it as a possible brand promotion option. I don't buy much of anything, so I would likely just pay the subscription myself.
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Information Needed
It's a new day and age for music. Recording studios are closing because musicians are able to create their art in their own homes. Internet alows an unknown to reach fans and generate great income streams without having an "insider" wondering if the song will sell or not.
It's true that all this has been written before, but there are millions of musicians who really don't understand that there isn't a set model to making money from their product.
The labels should really listen to the people who buy their product instead of attacking them because at the end of the day, it's always that one fan who starts a new wave of getting music lovers to buy new music.
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Re: Staying Positive
But then again, everyone is entitled to their own.
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Ironically, it seems the music industry insiders are deaf to anything they don't want to hear.
Still, I suppose that might explain some of the horrible music they've been releasing the past several years. ;)
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Re: Re: Re: Staying Positive
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Re: Re: business model evolution
Pop radio, MTV, VH1, and the rest of the 'pseudo-we-bring-you-good-music-that-we-were-allowed-to-bring-you' venues are part of the failure of the music industry in general. Being limited to what they were allowed to show or play, which have always been decisions made by the publishers not the artists, has limited music variety and was WHY new artists have been hard to find in the past.
The explosion of new talent you say you're longing for is ready to happen through venues like Pandora Radio, Jango, and other free to listen streaming sites. Music released under creative commons licenses, or free to listen licenses that maintain copyright, allow those unknown artists to get music out there. The music industry's strangle hold on who gets listened to and who doesn't must end before that explosion can happen. MTV is and never was part of ending that stranglehold.
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Re: Re: Re: Re: Re: Re: Re: Re: Old Business Models
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Upbeat and positive on the whole.
We are an independent record label and publishing company not a big bad corporation out to sue people for file sharing, we WANT them to spread our music around. Songs from our catalog have been played by hundreds of radio stations and podcasters worldwide and it didn't cost them a penny, in return we got exposure and promotion.....sounds like a good deal to me, that's why many of our tracks have been released under a creative commons license.
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