Warner's success

Warner is one of the big four music companies in the world. Warner is beating the competition these days by avoiding paying out too expensive fees (goodbye Madonna) and finding talented new music/musicians. They are winning (with 5% profits) at the old music business model and they are trying as much as they can to re-invent themselves in the new music business model.

What a great story. Can't wait to read the next chapter.

classicLive

Last week, we had a visit from Eeva Savolainen who was on the marketing and communication staff of classicLive.com until recently. The website is created in and run from Finland. Eeva made a short presentation on the features of classicLive.com and talked briefly about the business model. Here is her recent note which is published here with permission:

"It was fun to meet your class, now I'd like to hear any comments you or the students have about classicLive. I forgot to mention that cL now has two competitors, which is good for the business. medici.tv and monteverdi.tv, check those out too and let me know what you think.
Cheers,
Eeva"

The invitation to compare and contrast these three classical music video sites is very generous. Please post your reactions here.

Medici.tv is here.
Monteverdi.tv is here.
classicLive.com is here.

Entertainment & Sports Law Symposium

Entertainment & Sports Law Symposium

Lommen Abdo and its entertainment attorneys are presenting The Entertainment & Sports Law Symposium on Thursday, November 13, 2008. The CLE will take place on the 50th floor of the IDS Center in Minneapolis and is presented in cooperation with Minnesota Law & Politics® and the GRAMMY® Foundation.


The Symposium is $50 for lawyers and other professionals, and $25 for law students. Five CLE credits have been requested, including one ethics credit. The fee includes the CLE, lunch and reception.

This inaugural symposium is designed for attorneys, industry professionals and law students who want to know more about substantive legal and business issues addressed in the practice of entertainment and sports law.

Schedule

9:00 a.m. - Welcome
A special presentation on the Entertainment Law Initiative
By Scott Goldman of the GRAMMY Foundation®

9:15 - 10:15 a.m.
Careers in Entertainment Law: A Panel Discussion of Lommen Abdo Entertainment/Sports Lawyers for Law Students and Curious Lawyers
Moderated by Bill White, Publisher of Law & Politics®

Entertainment and sports law is a deceptively broad legal practice field. Opportunities range from solo to large private practices, from in-house positions in major companies to minor/independent companies. The recipe for a successful law practice includes part law, part business and a healthy measure of art. This session explores the variety of fields of the practice including music, film, TV, sports, book publishing, on-line, litigation, financing, business structures and intellectual property and the opportunities therein. Practical questions will be addressed such as what to study in law school, how to network, how to learn about the industries, and how to develop a practice.

10:15 a.m. - 15-minute break

10:30 - 11:30 a.m.
Music: The Exclusive Recording Agreement in the Digital Age
Presented by Ken Abdo, Bob Donnelly and Paul Bezilla

The exclusive recording agreement was once the nexus of an artist’s music career. Over time, customs developed in the negotiation of the agreement based on a body of law and an “analog” economy. With the onset of the digital music economy, the rules and the documents have changed. This panel will review the changes in technology and law that have sent the music business and the concomitant exclusive recording agreement negotiations into uncharted territory. The anatomy of a digitized recording agreement will be dissected.

11:30 a.m. - 1:00 p.m.
Sports (A Working Luncheon): Representing Professional Athletes in Marketing, Negotiations, and Post-Play Realities
Presented by Lee Hutton III

Addressing the needs of athletes, both on and off the field, requires attention to the rapidly changing sports industry and knowledge of the athlete’s rights in many areas of the law, including contracts, employment, sports, unions, estate planning, and the laws and regulations on ethics. This session also discusses the role sports attorneys play in the holistic representation of an athlete, the challenges they face in meeting these obligations and, in particular, the ethical issues faced by lawyers and non-lawyers.

1:00 p.m. - 15 Minute Break

1:15 - 2:15 p.m.
Film: From Book to Screen
Presented by Dan Satorius and Christie Rothenberg Healey

What goes into making a film adaptation of a book and what legal issues does that create? Many of Hollywood’s greatest films are based on books. Follow the perilous journey from book to script to the silver screen as the presenters address option and purchase agreements, writer employment agreements, book authors as screenwriters, characters rights and more.

2:15 - 3:15 p.m.
IP Litigation: Litigating the Scope of Intellectual Property Rights in Entertainment Transactions
Presented by Tim Matson and Barry O’Neil

Disputes over the ownership of rights of publicity, trademarks and copyrights and the scope of any related licensing agreements are prevalent in the entertainment industry. Whether in professional sports, the music industry, the film business or the software industry, an awareness of the issues and the potential ways that problems can be avoided is useful to both the transactional entertainment lawyer and the litigation attorney. Trial lawyers Barry O’Neil and Tim Matson will address substantive and procedural issues that arise in litigation involving intellectual property rights.

3:15 p.m. - 15 Minute Break

3:30 - 4:30 p.m.
Entertainment Law Ethics: A Roadmap for the Entrepreneurial Entertainment Lawyer
Presented by Ken Abdo and Bob Donnelly

The rules of professional conduct apply equally to all lawyers in all fields. For lawyers building and maintaining an entertainment and sports practice, the rules of professional conduct present uniquely challenging practice considerations. The panel will address these challenges head-on with references to applicable statutes, rules and judicial decisions.

4:30- 5:30 p.m.
Grammy Foundation®/Law & Politics® Post-Conference Social

Click on this link to register for the event. For more information, contact Theresa Abdo Whelan at 612-336-1277 or theresa@lommen.com.

* Business
* Entertainment, IP & Sports
* Litigation & Appeals
* Medical Malpractice
* Personal Injury
* Services for Individuals
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© 2008 Lommen, Abdo, Cole, King & Stageberg, P.A. Professional Corporation Attorney Advertising

IODA

To quote the site:
"IODA (Independent Online Distribution Alliance) is the industry-leading digital distribution company for the global independent music community.
Run by an experienced team of digital music and technology experts with a passion for independent music, IODA is the premier digital distribution and marketing company for independent labels who want to build and grow their business."

I cannot vouch for their success at marketing...because I've never used their service. The business model inhabits the world where music is a product -- but they seem to be positioned to exploit (in the best sense) the opportunities of "music like water."

There are many things that can be learned from these guys' website if you were a student of music business!

Corporate sponsorship

Dell Computer's corporate sponsorship of music festivals like Lollapalooza and Austin City Limits Festival is an example of how a large corporation reaches out to younger audiences when it wants to launch a new product. It looks like Dell Computer is trying to create buzz for a new consumer product by working with a media story about their corporate sponsorship of rock festivals around the country.

This is an example of someone writing a story about one thing while creating a story about something else. Smart marketers are tricky this way and I think it's important to examine the story of tell-tale signs of the corporate hand: the opening paragraphs about the Dell at the festival, it wheels quickly into news of Dell's purchase of Zing, a quote from a marketing director about how Dell can establish direct contact with customers because there is going to be a new product launch, followed immediately with a description about that new product.

As we like to say, there's nothing wrong with any of this. Except you need to use your critical mind when you read news stories and understand that there is always a hidden agenda, an unspoken but clearly articulated narrator and audience for every story. The questions should be:
Who is the narrator?
What is the story?
Who is the audience?

You can check out the Reuters story by Michael Ayers here:

Here's a great place for news about the contemporary music scee

http://www.newmusicbox.org/radar.nmbx

"Bumpin' into Geniuses" book review

This is a good history of rock from the 60s through the early 80s. A lot has changed in the music business, but there is something real about the relationship the author (Danny Goldberg) had with the artists. This wonderful review by Jody Rosen appears in the NYTimes.

http://www.nytimes.com/2008/09/21/books/review/Rosen-t.html?_r=1&ref=books&oref=slogin

7 mainstream steps for the indie musician

Here is a good, short list of promotional steps that can be helpful to indie musicians.

http://blogno-us.blogspot.com/2008/09/7-main-streams-of-internet-resources.html

Google helping the music industry?

WSJ's MarketWatch reports that Google Content VP (David Eun) says:

"World-famous search engine Google, which has just celebrated its 10th anniversary, is behind more than 100 content access products and services, including YouTube, Gmail, Maps, Orkut and Picasa. New for the music industry, Google has recently launched a free download service in China, in partnership with the Top100.cn website.
At the head of this strategy, David Eun will discuss the mechanisms behind and the advantages of such diversification of content access within an economic model built around free services."

An economic model built around free services...sounds crazy. Just like Google!

http://www.marketwatch.com/news/story/david-eun-reveals-googles-content/story.aspx?guid=%7BD1ED626E-11F1-4696-BF9A-DF28505BA547%7D&dist=hppr

IP Watch:

Kaitlin Mara writes "Outside the realm of mainstream proprietary entertainment, owned by big studios and protected by brand names, lay large numbers of artists without audiences looking for the means to distribute their creativity, and groups of people who yearn for art reflective of experiences not touched upon by the mainstream movies and music. These artists have created independent side industries that challenge conventional views on piracy."

This abstract language could be applied to musicians of avant garde music, Native American music, aboriginal music from the Outback -- any music with little commercial appeal.

http://www.ip-watch.org/weblog/index.php?p=1221

Passionato launches in UK for Classical Music

DRM-free Passionato tries to do for Classical what others do for Pop. The site only has 18,000 titles with a handful of mainstream labels. It is in direct competition with DG Web Shop. The Classical field had a reputation (30 years ago) of doing the R&D for the entire music field. It's sort of sad to see this website touted as potential break-through.
Bad news too -- it is available for the UK -- only.
If you want to see a leader in the classical music field, I would recommend the American Music Center's streaming audio internet station: counterstreamradio.org. It's much smaller, narrower in its focus, but edgier and (thus) better.

http://www.last100.com/2008/09/11/attention-classical-music-fans-passionato-is-open-for-business-but-only-in-the-uk/

THE AGE: The future of music is "the audience"

The greatest quote comes out of this story from THE AGE, an Australian website/publication:
"Traditional music structures are losing ground, but still the only thing that matters is the audience" which was spoken by Paul Cashmere from undercover.com.au.
The Future of Music is never directly quoted in the story -- all of the theses of the book are stated over and over again.

http://www.theage.com.au/national/net-is-the-new-order-for-pop-success-20080912-4fl3.html

OINK website part of an INTERPOL bust in the UK

The music police bust an IT worker in Middleborough for file-sharing. Isn't there a better way?

"The raid was part of an Interpol-led investigation, involving music industry bodies the International Federation of the Phonographic Industry (IFPI) and the British Phonographic Industry (BPI)."

http://news.bbc.co.uk/2/hi/uk_news/england/tees/7612128.stm

How to create a tribe

Our good friend in England has a free video describing the ways to market your band. Here's the link. It's online for a short time.

http://www.innerrhythm.org/blog/nonconformity-video-presentation/

Pure Play new platform for indies to compete on internet

As seen in the Earth Times:
"Unsigned artists may upload their music and profiles on site and immediately begin to monetize their music, generate a fan base, and create commercial opportunities by taking advantage of Pure Play's extensive relationships in the commercial sectors. Pure Play Music, (OTC: PPML) a leading digital distribution platform assisting unsigned artists in promoting and selling their music worldwide, has officially launched their site worldwide."

This site adds an the innovation of a social networking component to what already widely exists for indies. If The Future of Music tells us anything it is that the internet can start eliminating the customer's perception of what an indie and a record company can do on the internet. As muscle is put on the bone for indies, they will begin to look like what recording companies should have been doing for the past ten years.

Again, from the Earth Times:
"Pure Play Music portal, www.PurePlayMusic.com, provides an array of online social media features for unknown and independent artists, and a user-friendly interface to upload content. Fans and artists can listen to music, watch videos, rate artists, write blogs, send e-mail, and upload their own music all on one site. In addition, Pure Play is adding new features to expand the fan pages so fans can post information about themselves. In the area of social networking through music, this is revolutionary.
Pure Play offers DRM-free download from its music catalogues, and its content is compatible on virtually all digital music players. Pure Play offers independent artists the ability to control the future direction of their careers, by providing the opportunity for artists to sign with any record label they choose through their non-exclusive arrangement with Pure Play. Once they sign with a major label, Pure Play Music retains rights to distribute the artists' music for up to 90 days through its alternative channels.
Artists maintain 100 percent of the royalties achieved from on-site downloads, and up to 40 percent of the revenue generated from the sale of "hear it, buy it" compilation CDs and MP3s at stores playing Pure Play's catalogues.
"We are very excited to break the mold of the current music business model and really offer our musicians and fans an new alternative. We actively market our artists to provide new sources of revenue through mass exposure. We understand that commercial placements increase our artists' earning potential. Bands are broken on shows, commercials, and video games these days; we have the history and relationships in the industry to help them achieve their goals," says Grange.
In addition to retail in-store airplay and CD sales, Pure Play Music is introducing a range of other distribution channels, including an online store where artists can sell their music directly to the public. This allows them to retain complete control and 100 percent of the royalties generated through the sale of their music.
For our fans, we offer an incredible experience in being able to listen to music from unknown artists around the world. Our stringent screening of all uploaded musicians ensures that our listeners hear only the very best new, unsigned music. We want our fans to turn to us as their source for new music, and the go-to site to listen to breaking bands worldwide. With us, music fans have the inside track on what's new, hip, and edgy before it becomes trendy. Our artists are feeding the tastemakers of this generation," adds Grange.
With a total of over 6,500 artists from 42 countries around the world in the Pure Play catalogue, Pure Play Music is quickly becoming the venue of choice for unsigned artists to upload their music and capitalize on Pure Play's resources.
Pure Play has six retail radio stations delivered via satellite or online with agreements with over 20,000 retail outlets from around the globe to feature their artists. Pure Play radio station can be heard online at www.PurePlayMusic.com.

About Pure Play Music
Pure Play currently features and promotes over 6,000 artists from a total of 42 countries, all of whom have been through the stringent Pure Play A&R selection and legal process. Artists grant Pure Play specific non-exclusive commercial rights to their music. The Pure Play Web site allows access to the main radio broadcast, six genre-specific music streams, on-demand music tracks, artist pages, business directories, news articles, download store, an international gig guide, and numerous other features, all of which contribute to an average page view quantity per visitor only exceeded by a few established on-line communities. Under development for launch for the end of 2008 is 'Pure Play People,' the Pure Play social networking platform, believed to be the next generation of both social networking and radio broadcasting.
Safe Harbor
This release includes forward-looking statements generally identified by phrases such as "believes," "expects" or "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. The Company's business strategy, plans, intentions, or goals are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
Links
www.PurePlayMusic.com
www.GregoryFCA.com"

http://www.marketwatch.com/news/story/speakerheart-artists-perform-next-big/story.aspx?guid=%7B70B9357D-27BA-4963-B22A-BD10F9196199%7D&dist=hppr

The Toronto Globe & Mail's blog by Jack Kapica quotes Aubrey Winfield (Orange Lounge Recording Company) with the following:

"...the music business is healthy — the CD business is bad.” An interesting article on the recording industry's attempt to re-invent a business from a small-business entrepreneur.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080909.WBcyberia20080909180233/WBStory/WBcyberia

LIVE NATION spin-off

By selling off its motor sports division for $175 million and $30 million performance-based rvenue. This sale brings to a close a sell-off that has narrowed the focus of LIVE NATION on its music businesses. The sales have generated $465 million.

http://www.marketwatch.com/news/story/live-nation-completes-sale-motor/story.aspx?guid=%7B83203E6F-4FA7-4031-858A-DB31230D74CC%7D&dist=hppr

As the blurb in this WSJ website says:
Live Nation is the future of the music business. With the most live concerts, music venues and festivals in the world and the most comprehensive concert search engine on the web, Live Nation is revolutionizing the music industry: onstage and online. Headquartered in Los Angeles, California, Live Nation is listed on the New York Stock Exchange, trading under the symbol "LYV." Additional information about the company can be found at http://www.livenation.com under the "About Us" section.

(Some have called it the Evil Empire -- you've gotta admire the storm trooper language.)

DCIA - important trade organization conference

P2P means "person-to-person" and is both the greatest threat to and opportunity for the music business. The first conference that brings together "peer-to-peer and social networking software developers and distributors (P2Ps), Internet service providers (ISPs), content rights holders (CRHs), and service-and-support companies" for its inaugural P2P & MUSIC CONFERENCE, which will take place on October 10, 2008 at PopKomm in Berlin, Germany.

The conference is sponsored by Cugate, QTRAX, Unlimited Media, and Javien Digital Payment Solutions.

http://www.prweb.com/releases/2008/9/prweb1307224.htm

Kavit Haria - music guru

Here's an interesting website. Lots of answers for the musician in a band.

http://innerrhythm.eventwax.com/how-to-grow-a-successful-music-career---exeter

Cool job opening at NPR

No telecommunity. Must live in Washington DC. Oversee $10 million budget with a charge to lead NPR's (national public radio) transition from radio-only to a multi-media company.

Can you spell convergence? And why is NPR behind American Public Media which is behind the British Broadcasting Corporation? Good questions.

http://jobs.cmswire.com/job/611/

Tufts University students vs RIAA

In its continued campaign to bust students that are pirating music using file-sharing websites/services, the RIAA continues to gain a more nuanced and sophisticated approach in hunting down the "evil-doers." Matt Repka from the Tufts Daily reports on the smack-down.

http://www.tuftsdaily.com/news/1.616076

Un-Convention, one of thousands AND a good thing

Ben Cardew of Music Week writes about a London conference that showcases local artists and addresses new business models that can assist them. Acting locally sometimes is so local that it falls below the international radar screen. It is still a very good thing. I especially appreciate the..."renews emphasis on live performance..." that is quoted in context, below.

"Organisers claim they will be joined by “over thirty of the most forward-thinking minds in the current scene”, with discussions on the future role of record labels, the renewed emphasis on live performance, how to gain exposure across all forms of media and a look at some of the most innovative ideas and business models around.

Un-convention is also running a blog, to be found at www.unconvention.wordpress.com, so participants can have their say on what should be discussed at the event."

http://www.musicweek.com/story.asp?sectioncode=1&storycode=1035384&c=1

Great online interview about the music industry

Check this out. DailyTech offers an online interview with Rich Bengloff, president of A2IM. Good information about Pandora, iTunes, Rhapsody, Matador, SubPop, Epitaph, and Saddle Creek. Also, piracy is damaging to independent artists AND major label artists. Mr. Bengloff focuses on the problems with DRM. This interview is a little dry, but is wonderfully informative.

http://www.dailytech.com/DailyTech+Talks+Piracy+Taxes+and+More+With+Independent+Music+Chief/article12852.htm

myAWOL now LP33.tv

In launching a new "brand," it's important to get your name right. myAOL is about to launch at the same time as start-up myAWOL. Someone had to change their name -- who do you think flinched?

On the other side, could LP33.tv be a place for your mubu majors to get their first job?

http://www.marketwatch.com/news/story/listen-up-music-fans--/story.aspx?guid=%7B68AF623A-5FD8-4168-9DB7-AEA27BEFCE8D%7D&dist=hppr

MySpace Music ship without a captain

You've got a hugely successful social networking website with millions raging through your portal. You see the opportunity to create a robust music service that can rival iTunes. Your CEO is hot for the idea. You begin plans to launch the site; resources are brought online. You forgot one thing: you need someone to lead and coordinate the business.

MySpace is about ready to launch its music service. Do you think it will be a success?

http://news.cnet.com/8301-1023_3-10032248-93.html

Australian pirate

It is too early to attribute guilt, but I do believe there are bad people in the world and that piracy is nothing but piracy -- no high-minded arguments about the old business models operating in the recording industry. Pirates arrrrrre bad.

http://www.news.com.au/story/0,23599,24293239-29277,00.html

Death to DRM

Slashdot blog points out that sales go up for CDs with Digital Rights Management encoding. Tjhis is a measure of the lengths that the recording industry has once again failed to foil illegal downloads. What to do? Time for a new business model.

http://yro.slashdot.org/article.pl?sid=08/08/29/230216

New Brunswick's Forward Music Group

This story, written by Adam Bowie, enumerates some of the things band managers do to maximize income streams.

http://dailygleaner.canadaeast.com/opinion/article/401327

Canada's C-61 law meant to protect the record industry

Charlotte Hunter writes for Toronto's Victoria Univesity student newspaper. This is the law meant to fine people who illegally download music from the internet. The law provides for personal transfers of CDs to iPods. The record industry likes the law. Consumers hate it.

http://media.www.thestrand.ca/media/storage/paper404/news/2008/09/01/News/Bill-C61.Takes.Aim.At.Students.Personal.Academic.Lives-3409607.shtml

"The whole performance side of the thing is what people need to learn."

Mikey Bennett is very smart. He also says that ""CD sales are down and we will soon be giving away CDs." The confounding thing about the recording business seems to be that the artist is now more important than the executives. Isn't this what musicians have been wanting for along time? In Jamaica, a leader of the music industry seems to be coming to the conclusion that the recording industry needs to find a way to survive by putting artists first.

Richard Deane is the author of this article in the Jamaica Gleaner.

http://www.jamaica-gleaner.com/gleaner/20080831/business/business5.html

Eric Nicoli - someone to follow

If someone were to do a cameo on a music industry mover and shaker, this is one of the guys I would want to focus on. He's been outside of the record industry for a year as part of his multi-million dollar buy-out from EMI. He's coming back in witha new concept. I think he has a good plan. Time for a Google Alert.

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article4641190.ece

Cracker Barrel & Kenny Rogers

Interesting approach to marketing a well-known artist's catalogue. Cracker Barrel is a mid-market retailer which has sold more than 3 million units since launching it's "CB Music" label. Take that, Starbucks!

http://www.reuters.com/article/musicNews/idUSN2947082920080829

Music business is alive!

Mallory Factor reports that the NYC music scene is bustling. The music industry is not dead. The recording industry is changing, but music-lovers continue to support the music they love. Appearing in the Cleveland-based Observer.

http://observer.case.edu/Archives/Volume_41/Issue_1/Story_2782/

Burmese record industry suffers from copyright pirates

The collapse of the recording industry unpacks across political borders. The complaints also unpack in predictable ways.

http://www.mizzima.com/news/inside-burma/963-body-blow-to-burmese-music-industry-by-pirated-vcdsdvds.html

Napster Smackdown

Dissident candidates for the Board have been smacked down by Napster.

Napster is "available for sale." Yawn.

http://www.marketwatch.com/news/story/napster-concludes-dissident-candidates-unqualified/story.aspx?guid=%7B68F2D109-60C7-4DC3-A83E-81A85894DA9B%7D&dist=hppr

Essential Report on Australia's Digital Media

WSJ posts an "essential report" with lots of reference links that report on the recent collapse of recording industry business models. The video/film industry has learned a few lessons from the recording industry and so have begun efforts to exploit downloads to protect copyrights and intellectual property. Very business.

http://www.marketwatch.com/news/story/essential-report-digital-media--/story.aspx?guid=%7B25E99D3A-5B5C-4EB6-BD70-B34270308A37%7D&dist=hppr

The Bigguns and Littluns

Paul Glazkowski writes for Mashable [Social Networking News] that there is another change coming in the downloadable music industry. The Bigguns are going to squish the littluns in the next two years. And his main question is if this is better for consumers. Is this the right question? Should we pay more attention to what is better for the businesses?

How you answer that question should be a sign unto you whether you are a "suit" or an "artist."

http://mashable.com/2008/08/29/somebodies-nobodies/

Kevin Cogill -- watch this name

The LA Times reports the arrest of Kevin Cogill for distributing nine cuts from the new Guns 'n Roses recording, "Chinese Democracy." The website was antiquiet.com. Stay tuned. Kevin Cogill is going to be famous for 15 minutes starting very soon.

http://latimesblogs.latimes.com/technology/2008/08/guns-n-roses-un.html

Check out Cogill's/Skwerl's website: http://www.antiquiet.com/features/2008/06/weve-got-chinese-democracy-and-its-worth-the-wait/

No brainer idea: buy songs off the radio

Here's a story from the Telegraph in the UK. Great idea. You hear a song you like, you push a button on your car radio or playback device at home and you download the music...instantly. Cool idea, too. It's good for radio stations. It's great for the record industry. It's even good for car manufacturers.

What's the problem?

http://www.telegraph.co.uk/connected/main.jhtml?xml=/connected/2008/08/28/dlradio128.xml

Brisbane's ambitions for BIG SOUND

Here's the plan (same as in Tulsa). Build up a local festival to be a "must attend" event for the industry. Tourism. Industrial-strength investment. Finance. Creative community growth. Home values up. Expansion of the tax base.

Brisbane wants to establish a "must attend" music festival for the Southern Hemisphere. Read more about it, below.

http://www.westender.com.au/news/139/15/Qld-dancing-to-a-new-beat

Up down-under, Down in Canada

In a recent post to this blog we noted that Canadian Tories cut the subsidy for the music industry. Now the Labor Party in Australia is campaigning that they will throw $1 million (Australian) at the industry if they win in the next round of elections.

So come on. Pick one way or the other: 1) subsidize the music industry to make it more competitive in the world economy OR 2) do not subsidize the music industry in order to encourage to it to be more competitive in the world economy.

And while you're at it, let's decide once and for all what to do about our subsidies for the oil, farm, tobacco, armaments, chemical, mining, pharmaceutical, banking, and insurance industries.

http://www.abc.net.au/news/stories/2008/08/28/2348533.htm?section=entertainment

Arizona infringement decision

Mr Howell used KaZaa to distribute copyrighted music and then tried to hide the evidence by reformatting his hard-drive. That was the decision of Judge Neil Wake. The decision on the fines Mr Howell will have to pay will be released soon. Anther music pirate down with another 100 million to go. This ain't no way to fight a war.

http://www.allheadlinenews.com/articles/7012086415

Boyz II Men fan-dom rules

Here's an article in a Utah paper about Boyz II Men. It answers the question you were not asking yourself: whatever happened to Boyz II Men? Defining the relationship between musicians and their fans is very "old school," older even than Boyz II Men. This article does a great deal to illuminate a perennial favorite in the music business.

Besides focusing on their music, Boyz II Men members focused on their fans and whoever wanted to listen to them in whatever setting that seemed suitable. Lessons for the wise.

http://www.heraldextra.com/content/view/278435/147/

African music industry news

Interested in a career in Africa?

http://www.filmmaker.co.za/readarticle.php?article_id=3375

Read Write Web

Richard McManus has a terrific music industry podcast. The latest installment features the movers and shakers at Imeem, RealNetworks, Yahoo Music, and Webjay. You can check it out at...

http://www.readwriteweb.com/archives/future_of_online_music_discussion.php

Song contest

M-Audio and Avid are sponsoring a song-writing contest. Funny that the announcement is distributed to the money channel on CNN.com. That's not where one would normally look for this news. What is getting communicated and to whom?

http://money.cnn.com/news/newsfeeds/articles/marketwire/0428449.htm

Canada's competitive edge gets tax cut

Have you ever wondered about the role of governments in subsidizing and encouraging the music industry. Canada's Tories cut funding for musicians' travel to showcases and industry trade shows. You hear, above the yelps coming from the industry reps, a challenge to the idea that the creative arts need government support.

On the other hand, the CBC has a quota for Canadian music content on all of its broadcast units. Culture and politics -- who would have thought they are intermingled in anyway?

http://www.exclaim.ca/articles/generalarticlesynopsfullart.aspx?csid1=115&csid2=844&fid1=33268

Better than hiring a composer

SmartSound Music is a unique service for music editors. It can save thousands in licensing fees for films and TV shows. Bad news for composers who can customize music to a mood, a scene, etc -- SmartSound can do the same thing for dimes on the dollar. With millions of discs to choose from, music editors play a more important (not less if they hire a composer) in editing music to a scene. The "creatives" are troublesome and the music industry can create a few more less expensive jobs by sourcing underscoring from a service like SmartSound Music. The news article shows up in the WSJ's MarketWatch.

Sample the music and learn more about Sonicfire Pro's unique features at www.smartsound.com or call (800) 454-1900 to request a free on-site or online demonstration.

http://www.marketwatch.com/news/story/hit-films-tropic-thunder-bucket/story.aspx?guid=%7BB0F5C491-F3B1-40F6-A7DE-94552D5CF8A3%7D&dist=hppr

Getting pinched in Australia

Australian health clubs are feeling pinched by the mega-US recording corporations. Th record industry can't find enough income in sales so they are pursuing income wherever music is played: health clubs, coffee shops, muzak, Pandora, etc. The record industry is not ALL of the music industry -- but they sure are making a name for the entire industry.

http://fitnessbusinesspro.com/news/australian-music-licensing-affect-2608/

Talent Clearing House

MarketWatch, a service of the Wall Street Journal, reports that a music business is positioned to take advantage of the shift most businesses in the industry will have to use someday: Talent Clearing House. TCH just cleared $20 million "of music sales through its royalty administration system." This kind of business is a sign of the shifting model the recording industry must continue to pursue in order to re-invent itself. It also is beyond the control of the industry "giants" which is also a good sign. The bad news, you have to live in Wilkes-Barre PA if you want to work them.

For more information on Talent Clearing House, please visit www.talentclearinghouse.com or e-mail info@talentclearinghouse.com.

http://www.marketwatch.com/news/story/talent-clearing-house-reaches-20/story.aspx?guid=%7B789DDD4B-0988-47C0-988E-0B2BC174595C%7D&dist=hppr

Borders limiting recordings in-stores

As part of its larger efforts to survive, Borders Books reports that it's continuing to be "disciplined" and limiting its inventory or recordings in order to maximize its profit. Don't look for Hootie and the Blowfish in-store performances anytime soon. This news comes to us via AP wire service.

http://ap.google.com/article/ALeqM5i0S69B6dHSghDs5bntTCVsNZ6upwD92QN2DG0

Bandstock and other crazy ideas?

The Guardian in the UK is such a great news source. Caroline Sullivan's article highlights the sometimes crazy but always out-of-the-box ideas that the recording industry needs to pursue in order to re-invent itself. Caroline is a funny writer -- and an incisive thinker. ***

http://www.guardian.co.uk/commentisfree/2008/aug/27/internet.stockmarkets

Is the Kindle like the iPod?

The Guardian's Jack Schofield is a smart writer -- at least I feel smart reading about what interests him. Anyway, there is a great quote in this article. My bet is that the Kindle is not the iPod. I think it's more likely the equivalent of the Diamond Rio. Anyhoo, here is the quote with a link to the full article.

"Guardian editor Alan Rusbridger wrote earlier this year: "I don't think the Kindle is quite the iPod moment for newspapers, but even so, it is pretty cute." This is an area we track closely because, as he said, "no editor wants to be like a generation of music industry executives who woke up one morning to find the iPod had eaten their business".

Rather than following the example of the Recording Industry Association of America - which sued to try to stop sales of the Rio player - newspapers are more likely to adopt and support them. The big question is when."

http://www.guardian.co.uk/technology/2008/aug/14/amazon.kindle

Is the record industry the same as the music industry?

http://www.oxan.com/worldnextweek/2008-08-14/Music.aspx

Peter Gabriel pushing the envelope

I have always liked Peter Gabriel's intelligence and taste. I like some of his music although his songs often sound to me like a riff on something he has already done. No matter, Fred Goodman of the New York Times does a very nice article on Mr. Gabriel's prowess as a music industry visionary and investor.

TheFilter.com is another online service that recommends new, unfamiliar music to users. The technology may vary from site to site but the idea is very similar to the software designed at the University of Minnesota at MovieLens.org. The article by Mr. Goodman is STRONGLY RECOMMENDED.

http://www.nytimes.com/2008/08/10/business/media/10peter.html?_r=1&ref=business&oref=slogin

EMI down under

Bernard Zuel in the Sydney Morning Herald writes a nice summary article about the challenges facing the record industry and the great opportunities arising in the music industry at the same time.

http://www.smh.com.au/news/music/how-the-record-rack-lost-its-groove/2008/08/10/1218306658207.html?page=fullpage#contentSwap2

Nice quote:
In the 21st century, compact discs are much less in demand, but interest is growing in tickets for live music, merchandise, licensing in films and advertising and content provision in new media, alongside a technology-driven explosion in media. Ten years ago music marketing essentially involved print, radio and free-to-air television alone. These days there are phone companies, online music providers such as iTunes, pay TV, online media and film and television production houses.

Response:
The record industry is not the music industry. Is there a history of non-innovation among music industry leaders when new technology comes along? See piano rolls, radio, television, cable, internet, iPods, cellphones. Or does the music industry have different leaders at different times depending on what the new technology does?

Exiting EMI

■ Radiohead declined to re-sign, preferring to release albums online themselves and to sign with a small distribution label for disc sales.

■ The Rolling Stones switched back to Universal.

■ Paul McCartney left for the Starbucks label Hear Music.

■ Kasey Chambers moved to Festival Mushroom.

■ Australian indie label Eleven signed an agreement with Universal involving Missy Higgins, Silverchair, Little Birdy, Paul Mac and Kisschasy.

■ Robbie Williams did not commit to further recordings under the current regime.

■ Kylie Minogue, signed to EMI in Britain but Festival Mushroom in Australia, is said to be considering an exit.

■ Coldplay stayed under strict conditions including the use of outside promotions staff.

Music like water::Water like radio - the idea of MySpace, Imeem

Devin Leonard at CNN writes that Rupert Murdoch-owned MySpace is going to launch an ad-supported "free" music service in direct competition with Imeem, a Bay Area service that is much smaller than MySpace. Both sites are trying to "Make Free Music Pay Off" as the headline points out.

The four largest record labels (Sony, Warner, Universal) continue to try to figure out how to monetize their catalogues. Offering music for free is most like Napster et alia.

http://money.cnn.com/2008/08/07/technology/imeem.fortune/?postversion=2008080808

The Lessons of Austin

What does Austin, TX have that Tulsa, OK does not? And is there some way of imitating the lessons of Austin and apply them to Tulsa? Can you incubate a creative class in your community? What a great subject.

I have been pondering this subject while on vacation in one of the creative capitols of the world, Los Angeles. The benefits of the presence of a robust creative class are evident everywhere in Los Angeles. Driving down Washington Avenue in LA takes you through downtown Culver City -- home of Sony Studios. You drive further towards the ocean and see small, 2-bedroom houses that are selling for $1 million. You arrive at the Pacific and wander through Venice and on to Santa Monica.

What does Los Angeles, CA have that Newport News, VA dos not? Is there some way of imitating the lessons of LA and apply them to Newport News?

The question begs that we consider history. What has been happening in LA for the past 100 years that has not been happening in Newport News? What role does geography and climate play? Why does capital investment arrive in LA and not NN? Is there a creative class in NN that we don't know about? And what is my interest in Newport News, VA?

http://newsok.com/oklahomans-study-austins-music-scene/article/3278147/?dt=1217742628

Embracing the Pirates

There is a real story embedded in the good report from Andrew Edgecliffe Johnson (Financial Times). The music industry in Britain commissioned a study from the PRS' chief economist, Will Page. The report is not available online, at this point, but the report suggests that one of the recommendations is to capture some income (rather than punishing pirates) by licensing file-sharing websites. Makes sense but it means that there will still be millions of dollars "lost" to the pirates.

In any case, it's better to make some money than no money, right? Thanks to the Financial Times for getting this news on the web. When will the report (or an executive summary) make it online?

http://www.ft.com/cms/s/0/763fb67e-61bb-11dd-af94-000077b07658.html?nclick_check=1

Malaysian artists begin again to unite their agendae

The New Straits Times (Malaysia) reports on a congress of artist organizations. I have little understanding or knowledge of the music business in Malaysia. The reporter, RADIN SRI GHAZALI, provides a hint of insight into some of the bureaucratic issues facing the unification of artist organizations. Very little history is provided -- what is the problem here?

http://www.nst.com.my/Current_News/NST/Tuesday/Features/20080804180957/Article/indexF_html

MOU is not the sound a cow makes

An article by Nick Mathiason for the Guardian weighs in on the controversial approach being taken by European ISPs (and soon by an internet service provider near you), governments and music rights organizations to coordinate their efforts to enforce copyrights and to discourage music file-sharing. The form the agreement is taking is called a MOU = memorandum of agreement. Some would wonder if a MOU isn't the first step towards price-fixing.
The largest ISPs in Britain (Virgin, BT, Carphone Warehouse, Orange, Tiscali and BSkyB) are sending out threatening letters to customers suspected of high-volume downloads.
The business models that will be offered are almost identical to those being tried in this country plus the only-in-Europe model of charging a license fee to every customer. There is little support for this business model among the industry. The likely product that will be tried is a subscription model like Rhapsody. Rupert Murdoch is in support of the subscription model.
The tenor of the Mathiason article seems a little sunny when talking of the Dark Lord, but perhaps the subscription model will (one day) rule the face of the earth. iTunes continues to own the majority of the fee-for-music market.

http://www.guardian.co.uk/business/2008/aug/03/musicindustry.downloads

Using film and music as yeast in economic development brew

Oklahoma is not typically considered a hot-bed for the music and film industry. One of the exceptions that I know about is the Flaming Lips, a rock/performance group. The Lips' manager, Scott Booker, is contributing to the discussion being convened by the Oklahoma Film and Music Office. Julie Bisbee's article for The Oklahoman (Tulsa) traces some of the partnerships and festivals that are a means of establishing a vital creative community.

How important is a creative community to the economic health of a region? What is needed to foster that creative community?

http://newsok.com/in-past-few-years-oklahoma-has-become-a-place-on-the-map-for-film-music-industries/article/3278145/?tm=1217738819

The Manager and U2

Neil McCormack of the Independent in Dublin, Ireland has a nice article sketching the business model of the band, U2. The tone is a little breathy, but it points the reader in many interesting directions (e.g. U2's manager is Paul McGuinness; he articulates an oft-repeated idea that artists are now taking on the role that record companies used to play).
Managers are an incredibly important part of a popular band's success. This article offers a glimpse into the importance of Paul McGuinness in U2's success.

http://www.independent.ie/lifestyle/how-u2-have-stayed-on-top-of-the-world-1445208.html

Move to China

There's a new music subscription service in China...but it requires you to move to China!

http://opinion.latimes.com/bitplayer/2008/08/china-mp3s.html

BMG employment opportunity

The blog called "Idolator" links us to a job description for a six-figure VP in the music business that doesn't require any experience in the music business. Your UST degree in music business would give you a solid grounding in music -- I suppose you wouldn't be qualified for the VP position at BMG. BTW, "Idolator" suggests that BMG is a sinking ship...

http://idolator.com/399683/sinking-ship-seeks-captain-promises-hazard-pay-in-high-six-figures

Initiation of a Young Rock impresario

In the NYTimes: There is no short-cut for hard work.

ARTS / MUSIC
On the Bus, and Off It: The Initiation of a Young Rock Impresario
By MELENA RYZIK
Published: July 31, 2008
For Sean Carlson, taking his independent music festival on tour was a chance to have fun, to make his name and, he hoped, to leapfrog to the next level of the music world.

http://www.nytimes.com/2008/07/31/arts/music/31break.html?ex=1375243200&en=577e558c10bcf0ab&ei=5124&partner=permalink&exprod=permalink

More introductions

Spent 45 minutes today meeting incoming freshmen students at an academic information session. Of the students who I met who were interested in music business, almost all of them have had years of experience. The one piece of information that surprised each of them was that they would have to audition to be accepted into the music department.
Surprised because I think it is assumed that music business doesn't require you to be a musician. That may be the greatest long-term strength of the music business program at UST -- we set a very high standard for what our students must be able to do if they are going into music business. They must be performers, producers, conductors, composers, and must have a grasp of the sweep of music history.
AND take foundational courses in business: finance, accounting, marketing, management, business law and ethics, and entrepreneurship.
This MuBu degree is HARD! As it should be.

First post

This is going to be an interesting experience for me. I've kept a blog before but never for my work. I will begin by saying that I am the director of the music business program at the University of St. Thomas. This means that I teach three classes, advise students, help them plan their internships, and advise the student organization called MEISA (Music & Entertainment Industry Student Association).
In time, I will have links to current news and will have posts discussing what is happening in the world of MuBu. Lt. Meriwether Lewis is my model in this endeavor. He kept scrupulous notes on what he thoughts, saw, heard, and felt during the great Expedition of Discovery that was a search for a northwestern passage to the Pacific Ocean that he led with Lt. Clarke.
If this blog is enlightening to you it will be because of Lt. Lewis and his Field Guide.