Wisdom and where to find her

What passes for wisdom in the music business is usually the sad and brutal stories recounted by musicians who have endured long drives in the middle of the night to the next town on the band's tour. Last night, the Intro to Music Business class that I teach had the pleasure of hearing wisdom.

She was wearing black and had a leather coat and a pair of glasses tangled in her blonde hair. She spoke with a dead-pan alto voice that only exceeded the interval of a minor third when she would crank up her story-telling. Wisdom was patient and kind. Wisdom was not jealous as much as she was curious about the digital age and what was going on in the Twin Cities music scene. She did not boast -- on the contrary, she kept down-playing her accomplishments to the point that you might have missed that when she decided to move on with her life (and away from the Rock 'n Roll road show), she finished a Master's degree in creative writing. She began to teach. She had a family. She figured out how to be a grown-up.

After she had left class, we had a chance to process the words of wisdom. One student observed that she didn't seem proud enough of what she had done. Maybe she wasn't as happy with herself.

Here is what I think. Wisdom comes in small hand-made batches. It is not something mass-produced for consumption. That's why we shouldn't be looking for wisdom on the news or from our politics. Wisdom is personal and thoughtful and open-ended because wisdom is never complete. In class today, wisdom went by the name Laurie Lindeen.

Laurie's book, Petal Pusher, is something that rockers and jazzers and every other kind of musician should read aloud to each other. Wisdom resides there and it has got a sense of humor and a personal narrative that disguises its universal messages. I would suggest that those looking for wisdom about music, business, and life should take a few hours of thoughtful reading. It will be worth the effort.

Agreements, convenants, contracts, promises

Students in my Intro to MuBu class are just now beginning to think about the prospect of putting together a letter of agreement between a "manager" and an "artist." In most cases, the manager is someone with an interest in (or a major in) business. The artists are, for the most part, music majors. I have asked them each to consider realistic projects that they need to think about and then to create a letter that would articulate their deal.

Hard part is, that the students are slightly confused about whether they are working in Fantasyland or RealityWorld. Rather than put the managers in the position of authority, I have asked the students to think about what music projects appeal to the artist. This puts music first, where I believe it belongs. We call the field and practice Music Business, not Business Music. Can you imagine what it would be like if the world of music put business ahead of the music? Oh, right. Sorry. I was losing my mind there for a second.

I guess I have skewed the world to reflect my fondest wish -- or I am trying to teach the students that music comes first, the deal follows.

So how does someone build a business plan around the feathery wispiness of a musical ambition, dream, or idea? In my own experience, good people have tried mightily to create business around some of my ideas. Where it has worked best is when the music is in existence and then the business has a commodity that can be "exploited" (in the best sense of that word). When a work is in the process of coming into existence and is not a commodity yet, the business people can get involved in the creative process -- this is usually bad news.

I can imagine that my students are slightly confused as to how to proceed when music has not been created yet. I have asked the managers to listen to their artists' music and to get engaged in the excitement of creation. If we can find a way to teach the business end of MuBu to get passionate about music, then I think we should figure out a way to bottle it. We could sell that for considerable amounts of money.

But first, we have to be creative. How to teach passion?

Back @ it

Hello, again. I know that someone is following this blog and will read it whenever I post. So here is the first post in a long time. I'm gearing up for next semester (Fall) with the intro to mubu. The course will be streamlined -- I tried to do too much the first time through.
And I'm starting to think about how the intro course pours into internships. The course is required for all mubu majors but not everyone wants to go into mubu. This simple little fact has taken a little time to soak into my head and now that I can see that internships have to be customized for each student I will work a little less strenuously in developing opportunities ahead of the demand.
The large, industrial-strength music businesses continue to realign and consolidate themselves. The problem continues to be how to innovate and re-invent the business models. The most interesting ideas are happening outside of the business offices and taking place in out-of-the-way places. I recently became acquainted with an adjunct at MCAD (Mpls College of Art & Design) and his work in a Minnesota association of social networkers. I'll be bringing this into the next class.
Anyhoo, I'm back @ it. Hope you all have had a good Spring. Summer's a-comin'.

Welcome back from vacation...

...and Happy New Year!

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