My buddy Bruce Houghton at Hypebot, caught me last week for a quick interview before Rethink Music.  Here is an except from our discussion:

HYPEBOT: Your new focus is on consulting and investing. Are there any sectors, particularly within music and music tech, that particularly interest you or where you see the most room for growth?

DAVE KUSEK: Online education is one of them. This is an area that is already transforming how people learn and gain job skills and it is only going to grow as time goes on. There are big opportunities here that will effect tens of millions of people around the world. Online training is going to be huge. Job requirements are shifting and people need to be able to adapt to changing circumstances that can benefit them. The traditional model of higher education is already under pressure and there are many people and companies exploring alternative models that are very interesting.

The other area I am bullish on is live music and live events. The live concert experience cannot be digitized, yet can benefit enormously from technology. There really has not been much innovation in live music or in music merchandising beyond ticketing. I think there is a lot more that can be done with mobile technology and am actively working in this area. My investment in Tastemate is one way of digging into this potential in a meaningful way. We will be bringing our service to a venue near you, very soon.

I also think that there is potential to expand the reach of live performance using remote technologies. I am interested in ways to cut the costs out of touring to make it more profitable and to reach broader audiences. It is amazing to me that there has not been more activity in this area either, so I am looking for companies and people to work with that are thinking differently about what live music is all about and how to make it even more lucrative.

HYPEBOT: What are some of the things that Digital Cowboys has done in the past or is looking to do now?

DAVE KUSEK: We are focused on business development, marketing and product development, particularly in online and mobile services. We also do strategy consulting for businesses wanting to expand or enter new markets or make acquisitions. I say we, because while I am the managing partner, I also leverage a network of people around the world and with different specialties that I bring together to form a team to address the issues. For example, with a lot of the product work that we have done I brought together a team of visual designers and user experience people to execute on the product vision and do the testing. With business development projects I sometimes work with friends that have particular contacts or relationships that are beneficial to my clients. Sometimes I put together a couple different investors or strategic partners to provide capital or distribution or some other need. The main thing is to get the work done and show results, while trying to have some fun and work on interesting projects that are pushing the envelope.

HYPEBOT: There’s some talk of another tech bubble. Do you see think we’re approaching one in music and media technology?

DAVE KUSEK: I do think that some of the deals we have seen recently are off the charts, like Instagram – but who knows? That has all the earmarks of “bubble” written all over it. But Facebook is also about to go public and at their level, what’s another billion dollars?

But really I don’t think overall that we are at the point of frivolousness and excess that we witnessed in the earlier dot-com bubble, at least not yet. I believe that people are just beginning to figure out better ways to communicate and interact and learn via technology. That is having massive implications on the future of society around the world. Take a look at the stock market trend over the past 100 years and you will see that things tend to move up and people get smarter and more prosperous. I am an optimist.

There are a lot of music startups getting funded these days and certainly they are not all going to make it. I think we will see some consolidation in the DIY space as there are probably more companies addressing that market than the market really needs. The same is true for music streaming and distribution and music discovery. I think the real breakthrough companies will be formed by trying to do something completely different, rather than mimicking the past with technology. We’ll see.

HYPEBOT: Any plans to write a follow-up to the “Future Of Music” book?

DAVE KUSEK: I plan to spend a lot more time posting things to my blog and on digitalcowboys.com. This is a much better way to continue to update original thinking and way more efficient than writing another book. The music industry has gone digital and online outlets like Hypebot really do work as conduits in this business. That is a real bright spot in the transformation of the music industry. So, look for more at futureofmusicbook.com.

You can get the entire interview here.

More coverage from Hypebot here and from Billboard here.

Gerd Leonhard

My co-author and friend Gerd Leonhard was recently interviewed by Carter Smith of Rollo & Grady. Here is the interview:

R&G: How did you become interested in writing about the future of music?

Gerd: I was involved in various online ventures during the Internet years, in the late 90s. I was trying to reinvent the music industry, so from 1998 through 2001 I ran a company called licensemusic.com. It was a real dotcom venture. Because of the work I had done, I saw what was going on. While I was recuperating from the dotcom craziness, I figured that since I had looked at it so deeply that I might as well write about it. I wrote “The Future of Music” from 2003 to 2004, and it was published in 2005. Ever since then I’ve written and blogged about the future of music, the media business and the content business in general.

R&G: In the book, you focus on the concept of music being like water. Can you describe that?

Gerd: I had a co-writer, Dave Kusek, who you might know. He teaches at Berklee College in Boston. The concept of Music Like Water wasn’t entirely ours. David Bowie once said in an interview with The New York Times that music would become like water, flowing freely. That stuck with us and we built this whole theme around it, saying that digital music needs to be as available as water. In other words, there has to be a licensed pipeline, just like licensed connections for water or electricity. Everybody pays for electricity and water, but nobody feels it’s a big effort to do so. Of course, people are up-sold with Evian, Pellegrino, or filling the swimming pool. It is very much the same logic. You have a license to use. You’re all in. Then you do an up-sell towards other variations. The principle fits pretty well with the idea of content distribution on digital networks. It’s a blanket deal – a big deal rather than a unit sale.

R&G: Is that similar to the labels backing Choruss? [Note: Choruss is a proposed plan that would build a small music-royalty fee into university tuition payments, allowing students to legally access and share music.]

Gerd: Yes, totally. A friend of mine, Jim Griffin, is doing that. Jim and I have talked about this for the last ten years, pretty much since Napster came to light. It’s a very similar idea, even though they’re thinking of this as more of a “covenant not to sue.” I don’t think that is taking it far enough. One has to be realistic. I think that the major labels are reluctant to give up control of the ecosystem in a flat out strike, so they will probably take a bit longer to get used to this.

R&G: If I understand this correctly, it’s a university tuition tax?

Gerd: It’s not so much a tax as a way for universities to say, “Whatever people do here, we can legalize it.” It’s fighting against the criminalization of sharing, which is great. And for the students it’s not a tangible expense. It’s wrapped into their tuition. It’s like 911 calling on your phone bill; nobody is going to complain about it. Then, I think a completely new ecosystem could pop up that would essentially be part of the way to access and up-sell to people. I would be against any such tax, levy, or any of those things, but if it can be made to feel like it’s free, which is what it is, I think that is an ideal solution that gets the ball rolling.

R&G: Once a digital network customer pays a fee, how are funds distributed to the artists?

Gerd: It’s very much like traditional radio. Every action on a digital network is monitored. Whether it should be is a different question, and, of course, there are privacy issues. But whatever action people are doing on the network, it’s captured in some anonymous way and then the revenues are paid pro rata. When you click on a song and share or download it, whatever network you’re on can say, “Okay, this was downloaded. This was streamed.” Artists are paid out strictly by popularity. So if your band is busy doing lots of gigs, you’re very popular and you get 100,000 people following you on Twitter, they will click on the song, download it, and you get more money. It’s just like radio.

R&G: Can the labels regain the trust of “people formerly known as consumers?”

Gerd: They may not be able to, and this is the Number One problem. I think it’s a very tough road. The only chance they have – and that goes for everyone, not just the majors, but also the indies – is to drastically open up, put their cards on the table and start doing business like everybody else. This means being transparent, sharing, putting deals on the table and making them public. They need to create real value rather than pretend to do so.

R&G: You’ve previously mentioned that music blogs are the new record labels.

Gerd: Yes. Music blogs have enormous power because people trust the blogs not to pitch them stuff that they’ve been paid to pitch. If they can keep it up, they will be the next BBC. When you look at mechanisms like Twitter or Facebook or FriendFeed, these people become the default recommenders for us. They are the ones who say, “You should pay attention to this band, to this artist.” That’s what radio used to do.

R&G: Serving as filters.

Gerd: Yeah. You have to keep in mind that the biggest problem we are having is not that music isn’t available, because even though it’s not legal it is available. The biggest problem is that once the legal issues are solved, everything will become available. Our problem will be that we have to pick, and nobody has time to pick through 62 million songs. That’s the total universe of currently published music, and it’s going to increase. We don’t really need to solve the distribution problem. We have to solve the attention problem. That’s what Amazon does for books.

R&G: You’ve talked about how the record industry should adopt Twitter. Can you elaborate?

Gerd: Twitter is a mechanism of micro communication, like RSS feeds. Therefore, it becomes something that is completely owned by the people who are doing it, rather than by the people who are making or receiving it. It’s a completely viable mechanism that is cost-neutral, at least to us. It becomes a very powerful mechanism for peer response and viral connections. That is the principle of what music is all about. It’s word of mouth, connecting, forwarding and sharing. A musical version of Twitter would be a goldmine. It already exists to some degree in blip.fm, but the music industry should use that mechanism to broadcast directly to fans. They’re starting to do that, but the problem is that many music companies perceive their primary mission as gatekeeper for the artists rather than getting the music out. That is a big problem today, when you’re in an economy where everybody wants a snack before buying a sandwich.

R&G: What other technologies do you think are necessary for the do-it-yourself artists and managers of the new music world?

Gerd: Widgets and syndication have made YouTube the world’s leader in video. 60% of videos are not played on YouTube.com but on blogs and other people’s sites. Music has completely overlooked that very powerful tool. That is this whole idea of syndication – getting people to transmit music to each other and then reaping the attention on the other end.

R&G: Many of the kids who grew up with Napster are now in college. They’ve never owned a physical CD and only know how to click and download music. They think music is supposed to be free.

Gerd: Yeah, and it can be free in the sense that it’s not as painful as paying per action. The question is not so much about the payment or the fact that people may not be willing to pay right away. It’s about controlling the marketplace. Who gets to listen to what, where, when and how much money do I get? We have to get back on the same page we were on a hundred years ago. We’re all on the same boat. Everyone wants an audience. Until we have that, we have nothing.

R&G: When do you foresee the end of the CD?

Gerd: I think we have another 18 months maximum for CDs to become a Step Two rather than a Step One. They have a 25% decline for 2008 pretty much around the world. How much steeper can they drop? In 18 months, the CD isn’t going to be the cherished moneymaker anymore. And this year people in the music business are going to be forced to say, “Okay, what is the next model? Do we have to loosen up to actually participate in this, or are we standing in our own way?”

R&G: Are you saying they need to recognize any revenue stream they can generate from their content? Sell CDs, subscriptions, etc.?

Gerd: The flat rate is the next CD. Its simple mathematics. If you charge or indirectly earn one dollar from each user of a network, that dollar can be ad-supported. It can be supported by bundling, so the user won’t feel it, so to speak. If you look at the total number of people who are active on digital networks, which is somewhere in the neighborhood of 3 ½ billion people, they’re not all going to pay a dollar because they’re in different countries. But the money that comes in from such a flat rate is humongous.

R&G: You are currently working on a new book, “End of Control.” When is it coming out?

Gerd: I’m working on it right now, and it’s kind of a painful process because it’s always changing. The first couple of chapters have already been published at endofcontrol.com, and people can download those. It’s a free book, so I’m working on various ways to make that more powerful. The control issue is key. It used to mean that if you had more control you would make more money, especially in the music business. You control distribution, radio stations, marketing, everything. Now all that is completely falling apart. Artists are going direct. Radio becomes useless to some degree. It’s all on the web now. People are doing their own thing. Control is a thing of the past. The question is, “What is the next business model?” That’s what I’m working on.

R&G: Who are the current music business visionaries?

Gerd: This is one of the most unfortunate things. There aren’t very many. I always say we need an Obama of the music business, or at least a Steve Jobs, even though Steve is kind of egomaniacal, but brilliant. I see a couple of people, like Terry McBride from Network Records in Canada. I firmly believe, however, that the biggest innovation will come from people who are not in the music business.

R&G: Is this the year we will see considerable change within the music industry?

Gerd: I thought it was going to be 2008, so I’m quite disappointed. I think we’ll see new things emerge in 2009 that will be completely disruptive, like the iPhone and mobile applications of music, new kinds of broadcasting, people sharing stuff through mobile networks and high-speed, broadband, wireless Internet. I think 2009 will be a key year because the current economic crisis will make it worse. People will stop buying content the old-fashioned way.

Read more great interviews here at Rollo & Grady

Future of Music Book

I was recently interviewed by Carter Smith of Rollo & Grady on The Future of Music.

R&G: What was the reason behind writing “The Future of Music?”

Dave: Gerd [Leonhard; co-author] and I became friends at Berklee. He did a few projects with the music business department, which is how we got to know each other. We started talking and found that we had a lot of common ideas about what was happening in the music business. I ran Berklee Press, so I had a way to publish the book. We just started putting ideas down on paper. There wasn’t as much blog action then as there is today. It was probably 2002 or 2003 when we really started to write the book, so we figured, ‘Okay, we’ll publish it in book form.’ Our motivation was, ‘How can we help people understand what we think is going to happen?’ Both Gerd and I had done lots of panels and music shows – South by Southwest, all the digital music ones, Billboard and many gigs like that. We thought, ‘How can we pick some of these ideas and package them in a form that would be digestible and widely available to people at a reasonable price point?’ That was the genesis of it all. Honestly, it all happened so quickly that I kind of wish we could do it all over again. It was fun. It was a very condensed period of time. There were a lot of things that obviously were changing and happening, and there were a lot of things that weren’t so obvious. For example, I don’t think there was an iPod when we first wrote the book. That happened during the publishing and editing process. There was no iTunes music store, no MP3 blogs to speak of and no Amazon.com selling downloads. eMusic might have been there. It was all so early. Everything was happening so rapidly. We just tried to gather up as much as we could that was obvious and make some stabs as to what might happen.

R&G: Can you discuss the process of writing the book?

Dave: I learned a lot from Gerd during the process. I was more on the ground with the musicians. My whole career has been helping musicians and artists create their art, take their art to market and most recently teaching them about it. Gerd was more in the consulting end of things, talking to the likes of Nokia, Apple and Sony. I learned a lot about what was going on in the corporate world that I hadn’t been exposed to. I think we pushed each other because I would often argue that, ‘Man, we’ve got to talk to the artists and writers and managers, not to your consulting clients, because most of these people aren’t going to understand what the hell you’re talking about.’

R&G: “Music Like Water” the David Bowie quote meaning music becoming a utility. Do you still believe in that?

Dave: I think it’s inevitable. Music has always been free. It started off as a live performance. You’d go to a party, to a friend’s house, to a show, to the theatre or an event and music would be there. You’d be dancing and laughing and happy and singing. There was no idea of a business other than maybe the performers wanting to get paid. Throughout the technological phase of the last seventy or eighty years, there was always a free form of music, such as radio. The single most influential technological phenomenon in music was radio. It brought music to everybody, and it was free. Now we have gone through this pre-packaged, packaged phase of music, with vinyl, cassettes and CDs. That was a way for labels to control distribution and squeeze profits out of people wanting copies of the stuff they heard on radio. But once that leapt into the Internet, music became free again.

R&G: By free, do you mean file-sharing and uploading CDs onto your computer hard drives?

Dave: Both. People have been trading files for years. It started out on Usenet, which predated Napster. You remember Apple’s “Rip, Mix, Burn” campaign? It was really all about enabling the digitalization of music and unlocking it from the plastic that it was bound to. I don’t see it as a big deal that music is free again and in a higher quality format that is randomly accessible to the file-sharing networks or the services that we have now, some of which are “legitimate” and some aren’t. It’s not a very big deal to me. It just seems normal. The utility idea already exists on your TV. I have Comcast service here on the East Coast. We have Music Choice, which is essentially digital radio on your TV. There are 30 or 50 channels of music that are programmed and streamed to my house constantly that I pay for on my cable bill every month. I’ve been doing that for fifteen years. I have no choice about it. I just do it. It comes with HBO and the basic cable service. So there already is a music utility that millions of consumers in the U.S. have paid for many years. Why can’t that service just get a little bit better? If you add a random access mechanism where I can select what I listen to at a finer level than just picking the channel that Music Choice gives me, the service becomes better. I think it’s inevitable. I don’t understand what all the teeth gnashing is about. That’s a personal opinion.

R&G: What role will labels play in the future business models?

Dave: The major labels are going to be able to sign new artists, so they will have influence. But I think the indie labels and the no-labels that artists are forming – their personal labels – are going to be just as influential. If you get a super-hot band that decides they’re going to help pioneer a new format or a new distribution vehicle, and people love the band, they’re going to pick that up. They’re going to inherit that into their life. If enough new bands do that and connect with their fans, that will matter way more than what the four big record labels do. Eventually, they’re going to come around and say, ‘Oh man, we’ve got to get on this bandwagon,’ as opposed to doing it deliberately. You can see in the last four or five years, and particularly in the last two years, that labels are willing to abandon DRM, experiment and take a little bit more of a risk in how their music is put out there, which they absolutely, categorically refused to do four or five years ago. The rest of the music world is pulling them along. The fans and the new music are pulling the bigger labels into the future, as opposed to the big labels setting the pace. I think those days are over.

R&G: The majority of people I talk to feel that the next killer app is a filter that will enable users to find music they enjoy.

Dave: I think that’s certainly a critical element of whatever system of music delivery we evolve into. Findability, discovery are going to be critical features. I don’t know that there’s going to be a technological solution to that problem. Again, various forms of word-of-mouth have driven the popularity of all music through the years. So, to the extent that we can supercharge that word-of-mouth that’s happening in blogs like yours and services like Last.fm and Pandora that are kind of aggregating the opinions of others, uncovering and making those available, I think that’s going to be very important. But again, I don’t see how that’s any different than my telling friends in 1963 that I heard this cool band on the Ed Sullivan Show. It’s the same thing.

R&G: What do you think of blog aggregators such as The Hype Machine and Elbows?

Dave: I frequent The Hype Machine. Elbows, I’ve looked at a couple times. I think it’s a great thing. The more somebody can make it easier for people to find music they’re going to like, the more value that entity will gather. I don’t know that a computer-based search is going to be the ultimate winner. I tend to doubt it. I think it’s going to be more in the mobile space. It still blows my mind that people sit in front of their computers and listen to music on these absolutely shitty little speakers. They’re listening to crappy files in an uncomfortable chair. When I grew up, having a killer stereo was all that mattered, other than a car and a girlfriend. The stereo/audio business has completely gone away and been replaced by shitty ear-buds from Apple and MP3 files. It blows my mind that people tolerate that. I think it’s impacted the experience of listening to music, how you listen to it, how you enjoy it. So I’m not sure that a computer-based model is going to get enough traction to supplant other ways of acquiring, listening to and finding out about music. I think it needs to be easier, better sounding, portable and more integrated into your life. It needs to get outside of your bedroom or den.

R&G: I read on your blog that Douglas Merrill, President of EMI Digital, said he agreed with data that suggested file-sharing is good for the music industry. I found that interesting, but he also came from Google and didn’t have any experience in the music business. Do you see a trend in technology guys coming to the labels and figuring out how they can make this work; a technology guy versus the old-school music guy?

Dave: Not necessarily. I think the great labels of the past were run by music people who understood what the artists were all about and how to create great product, great songs and how to put great people together. I don’t think we can wave a wand and put a bunch of techies in the driver’s seat, and everything will suddenly be good. You need educated people that understand the technology, the music, the creative process, the marketing and the relationships with fans. As those skill sets get implanted in the people running the companies that matter – not just labels, but publishers, touring companies, marketing companies and distribution companies – then things will get better. I’m pretty confident of that, but I don’t see technology solving the music industry’s problem.

Read more great interviews here at Rollo & Grady

From SPIN.COM

MC Lars, a self-proclaimed “post-punk laptop rapper,” may be best-known for his fast-talking rhymes about Hot Topic stores and hipster girls, but the Bay Area musician is notably literary, and therefore a fitting participant in our ongoing series of musicians talking about their favorite books. Not only has MC Lars penned songs about Moby Dick, Edgar Allen Poe’s “The Raven,” and Hamlet, he’s also published a book of his own poetry called Bukowski In Love.

For his SPIN.com Book Club pick, Lars veers away from iconic works of literature, instead choosing a practical tome for anyone making music these days: The Future of Music: Manifesto for the Digital Music Revolution, authored by two veterans of pop music who outline the music industry’s digital future.

SPIN: Why did you pick this book?
MC Lars: I studied English literature in college, but in a few years I want to do a PhD in media studies, so I’m always reading books about music technology and the digital music revolution and the evolution of content and new media economics. I read this book because one of the authors, Dave Kusek, is a professor at Berklee College of Music and he’s a really smart guy [who actually was one of the co-developers of MIDI technology, a revolutionary development in electronic music]. It’s really influenced my philosophies on technology and media and it’s also really influenced my business model as a guy with a label.

How many times have you read it?
Three times. It’s a good one.

Do you reread the whole thing or do you just have sections you go back to?

What happened was I read it casually and then I read closely and then I read it again because I wrote a song that was inspired by it. I took some of his philosophies and made it into lyrics. It’s called “Download This Song.” The author heard my song, and on the website for the book they did a little piece about how the song reinforced those philosophies. It was really cool to have this author I really love like the song I wrote about his book.

Read the Spin Article here.

Our book is available in various forms.

The Future of Music Book

You can listen to the book on iTunes as a podcast for free. Go to the iTunes store and search “Future of Music” podcasts and subscribe.

You can buy the book on Amazon for $11.53 or less.

You can purchase the audiobook from Audible for $7.49.

Here are a few of the reviews.

Publishers Weekly
Two innovators in music technology take a fascinating look at the impact of the digital revolution on the music business and predict “a future in which music will be like water: ubiquitous and free-flowing.” Kusek and Leonhard foresee the disappearance of CDs and record stores as we know them in the next decade; consumers will have access to more products than ever, though, through a vast range of digital radio channels, person-to-person Internet file sharing and a host of subscription services. The authors are especially good at describing how the way current record companies operate – as both owners and distributors of music, with artists making less than executives – will also drastically change: individual CD sales, for example, will be replaced by “a very potent ‘liquid’ pricing system that incorporates subscriptions, bundles of various media types, multi-access deals, and added-value services.” While the authors often shift from analysts into cheerleaders for the über-wired future they predict – “Let’s replace inefficient content-protection schemes with effective means of sharing-control and superdistribution!” – their clearly written and groundbreaking book is the first major statement of what may be “the new digital reality” of the music business in the future.

5.0 out of 5 stars THE FUTURE OF MUSIC IS NOW
Gian Fiero (Hollywood, California)

This book is so brilliant that it makes the vast majority of music industry books that are being published seem irrelevant. It discusses in detail, the reasons why the future of the music industry is headed into the digital/mobile entertainment era. It also provides statistical information that professionals, marketers, entrepreneurs, and educators can use constructively. Both Dave and Gerd (the books co-author), have their fingers firmly planted on current music industry activities and trends. They also possess and display a clairvoyant eye toward the future that offers beneficial insight and foresight to those who may not be aware of what this whole digital (i.e. independent) revolution is about, and most importantly, what it will entail to prosper in it. The book is easy to read, easy to understand and simply brilliant. If you buy just one industry book this year, this should be THE one. Buy it now!

5.0 out of 5 stars Indispensible
Stephen Hill “Producer, Hearts of Space” (San Rafael, CA USA)

A stunningly candid source of concentrated, up to date insight about the music business and its turbulent transition into the digital era. This book tells it straight and will make the dinosaurs of the music industry very unhappy.

Like Martin Luther’s ’95 Theses’ nailed to the door of Wittenberg Cathedral, Kusek and Leonard drive nail after nail into the sclerotic heart of the old-fashioned music business. Their rational vision of the future of music rests on the idea of unshackling music from the hardcopy product business in a yet-to-be-realized era of open content licensing, facilitating sharing and communication among users, and growing the business to its full potential.

It provides as clear a vision of the future of the music industry as you will find, from two writers with a rare combination: a solid grounding in the traditional practices of the music business, an up-to-the-minute knowledge of the new technologies that are changing it, and the ability to think through the consequences.

I’ve dreamed about a book like this, but thought it would be impossible in today’s hyperdynamic environment where every week seems to bring a breakthrough technology, device, or service. But by digging out the underlying trends and principles Kusek and Leonard get under the news and illuminate it. Along the way they provide a brilliantly concise history of the evolution of digital media.

I can’t think of any book more important for artists to get the full re-orientation they need to survive and prosper in the digital era. It’s no less critical for members of the music and broadcasting industries who need to consolidate their thinking into a coherent roadmap for the future. In a word: indispensible.

I heard this song again and had to post about it one more time.

This is a blast from the past (2006) written and performed by MC Lars and inspired by the “Future of Music” book. It is interesting that the point of view represented in the song seems almost like a mainstream idea at this point. Not to say that the financial side of things is working yet, but a lot has happened in the past two years. The future is becoming clearer.

Download this Song – MC Lars

It’s 2006, the consumer’s still pissed
Won’t take it anymore so I’m writing a list
Don’t try to resist this paradigm shift
The music revolution cannot be dismissed
$18.98 Iggy Pop CD?
What if I can get it from my sister for free?
It’s all about marketing Clive Davis, see?
If fans buy the shirt then they get the mp3
Music was a product now it is a service
Major record labels why are you trying to hurt us?
Epic’s up in my face like, “Don’t steal our songs Lars,”
While Sony sells the burners that are burning CD-R’s
So Warner, EMI, hear me clearly
Universal Music, update your circuitry
They sue little kids downloading hit songs
They think that makes sense
When they know that it’s wrong!
CHORUS
Hey Mr. Record Man
The joke’s on you
Running your label
Like it was 1992
Hey Mr. Record Man,
Your system can’t compete
It’s the New Artist Model
File transfer complete
Download this song!
Download this song!
Download this song!
I know I’m rhyming fast, but the message is clear
You don’t need a million dollars to launch a career
If your style is unique and you practice what you preach
Minor Threat and Jello both have things to teach!
I’ve got G5 production, concept videos
Touring with a laptop, rocking packed shows
The old-school major deal? It makes no sense
Indentured servitude, the costs are too immense!
Their finger’s in the dam but the crack keeps on growing
Can’t sell bottled water when it’s freely flowing
Record sales slipping, down 8 percent
Increased download sales, you can’t prevent
Satellite radio and video games
Changed the terrain, it will never be same
Did you know in ten years labels won’t exist?
Goodbye DVD’s, and compact disks!
REPEAT CHORUS
You know, we just wanted a level playing field.
You’ve overcharged us for music for years, and now we’re
Just trying to find a fair balance. I hate to say it, but…
Welcome to the future.
REPEAT CHORUS

Here is what I wrote in ’06.

Check out Lars site.

“David Kusek has an amazing grasp of where today’s music business resides, where its been and where its going. He has a unique ability with factual analysis to cut through the hype and buzz and  give us all a clear picture of what is actually taking place in today’s environment.”
– Terry McBride, CEO Nettwerk Productions

"The billions of songs downloaded from the Web monthly has shown
that the digital music revolution is well underway. The Future of Music
shows us where this is all headed and how music fans and artists are
going to benefit from the new paradigms and new business models that
are emerging."

-Ted Cohen, Senior Vice President, Digital Development & Distribution, EMI Music

"Some may find this book controversial while others will consider it
prophesy. Kusek and Leonhard have managed to tap into the problems-and
possibly the solutions-of an industry at the crossroads. For those of
us who left the record business to go into the music business, video
games are the new rock ‘n’ roll. But no matter where this revolution
begins or ends, the industry must learn to respect and react to its
consumers. This book contains valuable insights for us all."

-Steve Schnur, Worldwide Executive of Music, Electronic Arts

I know of no other text that as beautifully and concisely presents
the fundamental challenge that music now faces. This book is essential
for anyone who wants to understand what is at stake in this debate."

-Lawrence Lessig, Professor of Law, Stanford University and founder of Creative Commons.

"Amid all the shouting and confusion, along comes The Future of
Music, which in a calm and clear voice explains the essential issues
roiling the music business today. Most importantly, this is written
directly for musicians and their fans, rather than business people in
the music industry. If you want to know what you’re getting into as you
develop your music career, and where music will be coming from in the
future, you have to read this book."

-Gary Burton, Grammy-winning vibraphonist

"The Future of Music clearly and succinctly explains what will
happen to the way we consume music. Anyone who is planning to listen to
music from shiny pieces of plastic in the future will be in for a big
shock."

-Dave Goldberg, SVP and GM, Music, Yahoo!

"The Future of Music offers an enticing and provocative vision for
the future of an industry in dire need of reinvention. For newcomers
and industry veterans alike, Kusek and Leonhard paint a picture of
tomorrow’s music business that is at once dynamic, challenging, ever
changing, and unlimited in its potential. What else would we wish the
future to be?"

-Eric Beall, VP, Sony/ATV Music

"Kusek and Leonhard lay out critical visions of the past, present,
and future. A must-read for music and media culture futurists."

-Mike Dreese, CEO, Newbury Comics

"As a veteran of the wars between the mighty music publishing
conglomerates and those rare individuals who still cherish intellectual
property rights, I read The Future of Music with great interest. Kusek
and Leonhard have done an engaging job of presenting some imaginative
yet realistic alternatives for an ever-changing industry. Deep down I
hope they are wrong, but I doubt it."

-Steve Karmen, composer of "I Love New York," author of Who Killed the Jingle?

"In The Future of Music, Kusek and Leonhard take their place among
the visionaries of this fascinating industry. In this thought-provoking
and informative book, they take the reader on a journey to the rich
future that music and technology may bring us if we heed their warnings
about wise choices that must be made today."

-Joel Fisch, Senior Investment Manager, Intel Capital

"The Future of Music is now and the authors have clearly seen it.
This comprehensive and controversial commentary is a must-read for
every serious music industry professional."

-Chris Stone: Founder, Record Plant Recording Studios; Associate Professor, Music Industry & Recording Arts, USC

"A must-read for musicians planning to survive the next five years."

-Mark Featherstone-Witty, CEO, The Liverpool Institute for Performing Art
s

Read more quotes posted on Amazon

Music Like Water…Reigning Down

Review from Michael Stevens

On the way back from Indy Friday, I switched the iPod over
to the podcast
, The Future of Music : Manifesto for the Digital Music Revolution by
Dave Kusek, Gerd Leonhard. I only made it through the first hour or so
but let me recommend this title to all librarians who want a glimpse of
what the future of music and content dlelivery might be! The more I
think about it, the more I discuss it with my colleague Joe Sipocz (who
gets stuff like this) and the more I read articles like this one about
Yahoo! Music: http://playlistmag.com/weblogs/todayatplaylist/2005/05/yahoodamn/index.php? — and how music services might meet folks’ needs.

Then, I discover this: http://www.stretta.com/~matthew/resources/music_server/.
A music server for the whole house, most cool! To take it further,
then, Kusek and Leonard propose by 2015 a huge jukebox of all
music..available anytime and virtually anywhere as an inexpensive
monthly subscription… music flows to ear phones, receivers,
everywhere…like water!

In their vision of 2015, Music streams to you via wifi wherever you
are… your "TasteMate" remembers your favorites and keeps those songs
in rotation in your personal playlists…news and entertainment are
available as well…and the music companies have a model of business
that is fair and profitable!

Where do libraries fall in this mix of the ubiquitous jukebox
connected to subscribers? For one thing, the CD collections will slowly
fade away like VHS is now. I wonder if the next step will be vendors of
digital content offering a subscription to libraries — like many
vendors do now. In this vague "Music like Water" future, will the
public library pay yearly for streams or downloads of stuff to their
patrons devices and home media servers? I want to see this future!

WOWZA! I need to continue listening. Please let me know what you think if you have read the book!

The Future of Music: Manifesto for the Digital Music Revolution

Table of Contents

1. Music Like Water
2. Our Top-10 Truths of the Music Business
3. Futurizing some Popular Music Industry Myths
4. The Future of Music Marketing and Promotion
5. The Future of Music Distribution and Acquisition
6. The Digital Kids and the Changing Marketplace
7. A New Music Economy
8. How Technology Will Rewire the Music Business
9. Megatrends that Will Impact the Future of Music
10. Onto the Future

The record industry as we know it is dying. But the music industry is healthier and more vibrant than ever with limitless possibilities for change and growth due to the Internet and the digitization of music. The Future of Music will show you cool new ways to find music and connect with your favorite artists. Discover the top-10 truths about the music business of the future and how you can benefit from the explosion in digital music, today and tomorrow.

From free music and mp3 music downloads on Kazaa to legal music downloads from iTunes, Napster and Rhapsody to other forms of free music online, The Future of Music charts a music industry destined to embrace digital music, or so it seems. What will become of the music business, the music store, the independent and major record label, artists, writers, publishers, managers and others in the age of free music downloads and the ubiquitous mp3 file? Is there a better way for the industry to proceed?

The Future of Music punches gaping holes through the foundation of a record industry that refuses to adapt. If you love music, have discovered digital music and download or rip MP3 files on your computer, or download ring tones to your cell phone – then this book is for you.

This is a book about music and the music business in the twenty-first century. Imagine a world where music flows all around us, like water, or like electricity, and where access to music becomes a kind of "utility." Not for free, per se, but certainly for what feels like free.

In this world, we share, contribute, collaborate, and trade music amid a constant flow of new songs that suit our tastes and preferences, without any palpable constraints or limitations. Music is ubiquitous and served up in easy, friendly formats. Like water, it is simply present just about everywhere, anytime.

Artists, writers, composers, and producers all prosper, both creatively and financially. The music industry is redefined from A to Z, as fairer, bigger, and better. Fans, artists, and all kinds of music communities drive the business, rather than being driven by corporate powers.

Synopsis

Ever since the invention of electricity, music and technology have worked hand-in-hand, and technology continues to catapult music to unprecedented heights. Today, because of the Internet and other digital networks, and despite all the legal wrangling, music is bigger than ever before. Within ten to fifteen years, the "Music Like Water" business model that we will outline in this book will make the industry two or three times larger than it is today.

Right now, the music industry is viewed as being in great turmoil. Technology has brought powerful and disruptive changes to the ruling incumbents. The best-selling CD in the U.S. is a blank, recordable one. Profits at the big record labels have dwindled and the markets for recorded music have virtually collapsed in many other parts of the world.

Will record companies go the way of horse-drawn carts? How will music companies make money in the future? Who will buy that is, pay for music, for how much, and on what terms? How do music fans feel about these developments, and how will the artists deal with this? How is it all going to shake out? Is the music industry just the first of the so-called "creative industries" to be sold out for free via the digital networks, or will everyone be better off in a world of ubiquitous media? Whose views will prove to be more correct: the recording industry’s legal sharks or burn-crazy downloading teenagers?

This book will examine the issues important to the future of music. We will uncover opportunities, plunge into challenges, serve up wildcards, and revel in utopia. We will move from mere facts through dazzling stories to far-out visions and fantasies. Our views, along with those of other artists, writers, and industry insiders, attempt to give some insight into what is really happening, and what it will mean for the people who love music and for the people who make music.

We see ourselves not as predicting the future by any scientific means, but as providing inspiration, in order to jumpstart your imagination and get you juiced up about the future of music. A brave new world is waiting for those who can handle it– a world that very likely holds fantastic business opportunities for creative thinkers. Enjoy!

Discover

– The real reasons that the record business is in such trouble today
– Legitimate alternatives to downloading music from pirate music services
– Cool ways to find new music and connect with your favorite artists
– How kids are changing the face of music marketing
– How the record industry gets into your head to make you buy music
– How video games have more influence in music than radio stations
– How you can benefit from the explosion in digital music
– The Top-10 Truths about the music industry that you may not know about
– What music has to learn from cable television
– How technology will completely rewire the music business

——–

– The best-selling CD of 2004 is blank and recordable.
– Blink 182s best-selling single of all-time was launched on EAs Madden 2004 video game.
– File-sharing can be the savior of the music industry.
– The artists are the brands, and entertainment is the main attraction.
– Radio is no longer the primary way that people discover new music.
– The record business is not the music business.

AUDIENCE

– 200 Million file sharing downloaders
– 10 Million iPod owners
– 20 Million ring tone fans
– 3 Million artists and songwriters
– Independent music labels and publishers
– Music business professionals
– Music technology experts
– Electronic music fans and musicians
– Online radio stations and DJs
– Colleges and universities

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