music Archives

File Sharing / P2P, Music Formats, Music Industry, Music Marketing

Nevermore

Do you think Edgar Allan Poe could have made money if he sold The Raven separately from 30 other poems?

This is a question posed in the U.K. Register article examining the “value gap”, or the amount that sound recording revenue has fallen since 2004. The report suggests that Apple (and others) should take the blame for the woes of the music industry (British) for unbundling the song from the album format.

“The Value Recognition Strategy working group was created last summer – largely at the impetus of the indie labels and collection societies, but backed by all sectors of the industry – to examine alternative revenue opportunities for digital music. The growth of MP3 has seen large hardware manufacturers such as Apple and media companies such as News Corp’s MySpace prosper from music, but returning little or nothing to composers, songwriters, and sound recordings owners.

It’s what economist Will Page, of the MCPS-PRS Alliance, calls a “broken supply chain”. Revenues from telecoms companies and service providers dwarf the revenues from the beleaguered music business.

The conclusion that unbundling is the chief factor is richly ironic. When Apple launched the iTunes Music Store in 2003, it did so with the backing of all four major labels. The labels had failed to see digital music as an opportunity, and launched only small scale and piecemeal commercial offerings. At iTunes, consumers chose one or two songs from a performer’s repetoire for 99 cents a song, rather than pay $9.99 for the CD.”

Since that time Apple has reaped tens of billions in sales of iPods, while the labels have lost tens of billion in sales of CDs. It has almost been a complete one-to-one swap of revenue from the label’s, writer’s and artist’s pockets – into Apple’s. See an analysis I did of this a while back here.

Read the whole Register article here.

October 26, 2007/8 Comments/by newartistmodel

Music Industry, Music Marketing

Access, Convenience and Trust

The last few weeks have heralded some great news for the music industry. Radiohead’s experiment with user-based pricing, Madonna’s new deal and the formation of ArtistNation, a “360” model for music where the artist and the company partner on numerous levels including recordings, touring, merchandise, etc., and Apple’s repricing of DRM free tracks to $.99. These are all very positive moves that continue to point toward a healthy future of music.

Madonna left Warner Music for a newly formed ArtistNation designed to optimize the revenue potential and investment strategy by combining multiple revenue streams into a package deal. “Madonna is the first step to making Live Nation into the next-generation music company,” Live Nation CEO Michael Rapino said during an investor conference call. “We believe it should help attract additional artists.” Let’s hope so for them.

The End of Control

My co-author Gerd Leonhard has just published a new work entitled “The End of Control”. Here is an excerpt from the introduction. Enjoy.

“This book is about the most important issue the media business is facing as it tries to move forward: control.

In my work as speaker and advisor, the tough issue of control emerges, again and again, as the key contention point within TV companies, publishers, record labels, and broadcasters: How can a commercial venture that is based on so-called “intellectual property” thrive and prosper in an environment that seems to continuously and progressively remove control from the creators/owners/providers of content, and hands it over to the people formerly known as consumers (aka the users), effectively making them more powerful every single day?

But the reality is that every click inadvertently makes another case for the consumer’s ever-increasing rise in importance. Within all the conversations I have had about things like commercial content versus shared content, about the read-only or the read-write web, and about copyright versus Fair Use, the crucial question always seems to boil down to WHERE IS THE CONTROL HERE, i.e., questions such as “Who will control this new media universe” and “How much control do I need to run a revenue-generating business?”

Network_to_networked

Ever more devices, ever faster broadband, more channels, more platforms, faster processors, endless storage, better search — and still, we have only 24 hours in a day. The real barrier is attention! For many content creators or providers, it may often seem that one’s power to monetize stands to be inadvertently diminished every time some geek in some garage publishes a new piece of code. Today, those digital natives (i.e., the 10–25 year olds who were born as the Net Generation) increasingly self-assemble or pull media, controlling and sharing their own collections — and thereby making the companies that usually purvey their mass-media less crucial in the process.

Seven years after the explosion of the dot-com bubble, the future of media once again seems to be up for grabs. Bloggers and Web 2.0 entrepreneurs; social media and UGC (user-generated content) startups; mobile filesharers and P2P software developers; teenage inventors; hungry telecoms; operators and cellcos; mobile phone makers; worried governments and industry organizations; exasperated venture capitalists and their latest and greatest offspring, search engines and online communities — they all want a nice, juicy piece of the anticipated $ 1.6 trillion entertainment economy of 2010. And they all are hell-bent to take control away from the people who used to have it: the studios, and the titans of content.

This book will offer a counter-intuitive theory of we will get there: Give Up on Control.

Old-media veterans, be they music moguls or newspaper, radio, or TV executives — those who have cherished and at all cost maintained their absolute control over the marketplace — are now howling with disgust as those People Formerly Known as Consumers are becoming their de-facto bosses. They have suddenly lost their Monopoly on Attention. Yes, it’s happening everywhere, in all industries, but it is in media where we are most awestruck by its implications: We will now have to work much harder at getting people’s attention, and to gain and keep trust, rather than just use distribution monopolies to send more stuff they should watch down the pipeline.

What’s more, convergence is no longer just an idea, or a PowerPoint tagline. It’s naked reality for every media company, discussed in every boardroom. And many convergent products are relying on a substantial loss of control by all involved parties. Can we offer converged media services without giving up control? Highly unlikely.

The bottom line is that in the future, we will need to learn how to live and prosper with relative control.

Let’s face it: in a world where digital content is ubiquitously created and made readily available to everyone, everywhere, anytime, we simply will not generate enough revenues by attempting to control the copies (or the access to those copies). Throttling distribution and monetizing scarcity — an operating mode that most media conglomerates have enjoyed since the invention of the printing press, the phonograph, the TV, and the CD — is no longer a viable option. Rather, access to media content will simply be a universal, default, built-in status — and therefore, media will first be a service and only then a product.

Value will be generated by being and remaining the trusted context (formerly known as being ‘the networks’ but now becoming known as ‘being networked’); by becoming the unique purveyor of a particular media experience; and by providing added values, again and again, every time the user shows up — real-life, virtually, or both.

Here and now, the people formerly known as consumers are becoming fully empowered Netizens, and it is the Net Generation that will quickly become the default audience for our content, rather than an aberration. The Digital Natives are taking over everywhere, and they will not play if they, in the aggregate, don’t feel like they control the game, or if they get even the slightest whiff that the game may be rigged.

Social networks are quickly becoming the new radio and stand to have more influence over music trends (and commerce) than MTV ever had; (digital) radio is fast turning into a music retailer and distributor; and smart, software-based taste-making agents are set to become a standard in digital music. Mobile phones are becoming powerful media players, and remix devices, and super-distribution nodes — by default. Ubiquitous Wi-Fi and Wimax will soon mean that online and offline cease to be meaningful terms of distinction.

All of this can be summarized in one conclusion: It is now becoming utterly impossible to control the people formerly known as consumers. Instead, they control the media purveyors — by virtue of millions of mouse-clicks and the power of their combined click-streams.”

October 17, 2007/0 Comments/by newartistmodel

Music Industry, Music Marketing, The Future

Radiohead knows where the real revenue comes from

Great to see a band of this stature make a bold move like this. Radiohead has released their latest album "In Rainbows" online and for free, if you want it. They will also accept whatever amount you wish to pay for the songs. Brilliant!

Bertis Downs, manager of R.E.M., says "This is the sort of model that people have been talking about doing,
but this is the first time an act of this stature has stepped up and
done it. . . . They were a band that could go off the grid, and they
did it."

Just watch what happens when they launch their tour! Tickets, t-shirts, hats, box sets, other goods – watch the cash register ring. KA-CHING

LA Times reported the story on Sunday.

October 4, 2007/3 Comments/by newartistmodel

Music Formats, Music Industry, Music Marketing

CD Sales Take Another Dive

CDs are now sliding precipitously, especially in the United States, and that has intensified media diversification efforts at major retailers. At the halfway point, year-over-year disc sales in the United States dropped 15.1 percent, according to Nielsen Soundscan. That gap has since broadened to 18.4 percent.

For retailers like Trans World, Hastings, and Virgin Megastores, diversification has now become an accelerated survival tactic. During the recent quarter, music-specific sales at Trans World dropped 19 percent on a comparable store basis. That is more severe than dips of 16 percent recorded during the same quarter last year, and represents a worsening trend. "Trans World has 950 stores and we would expect them to continue to deemphasize music over the next 12-24 months," said Richard Greenfield of Pali Research during a recent investor note. Greenfield noted that Trans World has already lowered its music-specific selection to 43 percent of total inventory, down from 47 percent last year.

The decreased selection means less consumer matches, and lowered sales volumes. "As floor space continues to contract at physical retail, we are increasingly concerned that the rate of decline in CD sales will materially accelerate in 2008," Greenfield asserted.

From Digital Music News

August 27, 2007/3 Comments/by newartistmodel

File Sharing / P2P, Music Copyright / Legal, Music Creation, Music Formats, Music Industry, Music Marketing, Music Publishing, Radio, The Future

Good Copy Bad Copy – Stealing Culture

Watch a fascinating social commentary on the state of affairs in copyright and the internet.

See the whole hour long movie here.

July 3, 2007/2 Comments/by newartistmodel

Music Copyright / Legal, Music Industry, Music Marketing, Music Publishing

The plunge of the Major Music Labels (New York Times report)… the end of Music1.0 is near?

Good reporting from the NYT, as usual.

Some of my favorite morsels are below, plus my comments.

Link: Music Labels – EMI – New York Times.

NYT:
"Despite costly efforts to build buzz around new talent and thwart
piracy, CD sales have plunged more than 20 percent this year, far
outweighing any gains made by digital sales at iTunes and similar
services. Aram Sinnreich, a media industry consultant at Radar Research
in Los Angeles, said the CD format, introduced in the United States 24
years ago, is in its death throes. “Everyone in the industry thinks of
this Christmas as the last big holiday season for CD sales,” Mr.
Sinnreich said, “and then everything goes kaput…”

Gerd says: guess there IS hope: once the pain is big enough, changing
seems like a real option, all of a sudden – that is what we are seeing
now. Maybe this ship really has to be steered into the cliffs first,
after all? Call me an optimist but I used to think there were
other options ;). My 2 cents: if you have the guts CHANGE NOW, you can
still own a good chunk of the market, and prosper. But: band-aids are
over – it’s time for real, hard-core changes. Drop copy-protection (at
least for now – until something can be used that is of super-value to
the USER!), tell the users, fans & artists that you screwed up, go
for flexible pricing and bundles, package music into other media, offer
agency-type deals to artists, become completely transparent and drop
the ‘secret sauce’ antics, and start using syndication as the prime
vehicle of promotion, marketing and distribution. It’s not the COPY – it’s the ACCESS. It’s not Prevention – it’s Participation.

NYT: "For the companies that choose to plow ahead, the question is how to
weather the worsening storm. One answer: diversify into businesses that
do not rely directly on CD sales or downloads. The biggest one is music
publishing, which represents songwriters (who may or may not also be
performers) and earns money when their songs are used in TV
commercials, video games or other media…"

Gerd says: ok, now, I have talked about this until the cows came
home, but here is again: switch to music as a service. Again: never
mind the copies – the next big thing is offering ACCESS. Brands.
Experiences. Added Values. Stuff that only you can provide – together
with the artists. Values and experiences can’t just be downloaded.

NYT: "But very few albums have gained traction. And that is compounded by the
industry’s core structural problem: Its main product is widely
available free. More than half of all music acquired by fans last year
came from unpaid sources including Internet file sharing and CD
burning, according to the market research company NPD Group. The
“social” ripping and burning of CDs among friends — which takes place
offline and almost entirely out of reach of industry policing efforts —
accounted for 37 percent of all music consumption, more than
file-sharing, NPD said…."

Gerd says: sounds like an obvious problem – it’s all out there for
free so they stopped buying. But the thing is that this is not the real
problem. ‘Free distribution’ is a blessing not a curse, and P2P /
Super-Dustribution will emerge as the main mechanism for digital
distribution in the next 3 years (and not just for music). Rather, it
is – still seriously counter-assumptive, and beyond grasp of
most of the incumbents of ‘music1.0’ – the unfailing desire to, at any
cost (including self-destruction), want to control the ecosystem that
the large music companies must keep in check – and then we can understand and monetize what people actually do
with technology. They are doing this because they like the music and
the artists, not because they want to do as much damage as they can –
YOU simply have not given them good enough options to act differently.

If the model of uber-control over music distribution isn’t working
any longer, wouldn’t it make sense to try to come up with a new model?
Lesser control does not mean zero revenues. There is life after selling
expensive copies of plastic, or indeed of 0s and 1s. Trust me.

May 28, 2007/18 Comments/by newartistmodel

Music Copyright / Legal, Music Industry, Radio, The Future

The money ain’t for nothin’

A terrible thing is happening to the recorded music business as we know it. It is literally going away. For years now many of us have been predicting the demise of the record labels, falling CD sales, the erosion of radio as a promotional channel, lack of barriers to entry into music making – and all the rest. Well now it seems like the worst possible future is happening right before our eyes.

CD sales are falling off a cliff as we speak. Sales of CDs in the US were down over 20% in the first quarter of 2007 according to Soundscan, yes folks, down 20% – and we have 9 months left to go. The same report shows sales of digital downloads up 52%, but that is not nearly enough to offset the free-fall in CD sales. More telling is the fact that the increase in paid digital downloads is slowing from the unsustainable rates of the last couple of years (87% for the first quarter of 2006). While all this is happening, illegal downloading of songs and albums and the wholesale trading of files continues to skyrocket. It will soon be impossible to make a significant profit from the sales of recorded music.

The brain trust that represents the recorded music industry has successfully lobbied the Copyright Royalty Board in the US to effectively strangle Internet Radio, the last hope for the marketing machine that once was the record label combine. If these new regulations stand, not only will it be nearly impossible to make a profit selling CDS, it will be nearly impossible to promote new music or run a fledling online streaming service. See this excellent article from Salon on the subject.

Just last week, the mini-major label EMI agreed to release unprotected, DRM free music from it’s catalog via the Apple iTunes store. This is scheduled to happen soon, at a premium price of $1.29 vs $.99 for the chastity belt wrapped files. Do you see anything wrong with that pricing model? Charge more for the unprotected file when you can get them for free practically everywhere else? Who is in charge here?

As we have been saying for years, it is quickly coming to a time when being a musician means finding ways to make money that do not include the sales of recordings. This has never been more true in the last 50 years than today, and will become more true with the passing of each week as we move forward.

April 9, 2007/2 Comments/by newartistmodel

File Sharing / P2P, Music Copyright / Legal, Music Creation, Music Formats, Music Industry, Music Marketing, Music Publishing, Radio, The Future

Music Survival Guide – from NARAS

The Recording Academy, the organization that brings us the Grammy awards, has spent the last two years on a project to "create a dialogue between music makers and music fans to help shape an exciting digital music future". This is some amazing work and the academy should be recognized for their grass roots efforts to connect the fans and the artists. Here are some excerpts from their report.

In the 50 years since commercial rock ‘n’ roll was born, everything about music has changed, from the way it’s made to what it sounds like to how it’s marketed and sold. The most dramatic difference, however, has perhaps come in the last decade. Spurred by the introduction of the Internet, the act of discovering music and, subsequently, sharing it, have evolved in ways artists, record companies and listeners never imagined. Gone are the days of walking over to a friend’s house with a stack of vinyl long-playing records under your arm—a deeply personal, one-on-one experience that, often, ended in generating a future sale. Today, connecting with music happens in an instant, involves an incomprehensible number of people, and a method that’s nearly impossible to trace.

Like many times before in its history, the music industry is at a crossroads. Faced with declining album sales and a public that lives—but doesn’t always buy—online, the traditional brick and mortar model, which has weathered its share of technological innovations (from 8-tracks to tapes to compact discs), can no longer function as it was designed; at least not for profit. At the same time, consumers are battling music providers with issues centered on perception (the perceived greed of record companies and the perceived wealth of popular artists) and one undeniable reality: that acquiring music is easy and, depending on where you are getting it, free. While the conscience may debate the act of illegal downloading, is it enough to steer the listener towards a legitimate purchase or is a legal threat necessary? If you are willing to pay, will you be able to own the music or will copy-protection software ostensibly mean you’re renting it?

These are some of the many questions that this report tackles. It was compiled by a 12-member panel of 18 to 24-year-old music fans from every walk of life that have spent the better part of two years collecting viewpoints and opinions through interviews and roundtable discussions with artists, producers, songwriters, executives and peers. The What’s The Download® Music Survival Guide is an unedited look at today’s state of music and a genuine attempt to decipher what’s working, what’s not, and where we go from here.

7 Music Survival Tips – (from the Guide)

#1: Educate to Eradicate Piracy
“Unaware of the large number of people who collaborate to make a record, many consumers have turned to illegal file sharing as a response to the high price of music, believing that they are not hurting all of the ‘rich’ musicians. They simply do not understand the ramifications of their actions.”

#2: Make Music Retail Therapy
“Sometimes when you go to a record store, you bump into a record. You bump into people that may hip you up to records. It’s a whole other experience. And we need that journey. It’s important that as artists we take time to dig, to see the roots of where everything is coming from so that we can offer it to the fans, and they all can offer it to the next generation.”

#3: Declare a Music/Tech Truce
“Simply put, the industry does not make it easy for consumers to purchase and use digital music online legally, while piracy delivers what companies hold back. Digital music is a vital force in the industry and technology needs to be properly embraced to provide ease of use to consumers.”

#4: Commit to Artist Development
“If the music industry wants to win back the financial loyalty of fans lost to illegal means of obtaining music, the major labels should work with artists to cultivate their talent, rather than casting an artist aside after a commercially unsuccessful release.”

#5: Embrace New Music Avenues
“If the music industry hopes to survive, it must embrace the new face of musical community to reach out to potentially dedicated fans. Labels as well as artists should take the time to interact online with their fans in the interest of developing an artist-fan relationship that will entice fans to support artists monetarily as well.”

#6: Offer What Piracy Doesn’t
“So how can companies drive illegal file sharers to legal Web sites? This is something many are struggling to figure out, and there is not one clear answer or solution. However, if legitimate Web sites and online companies want to continue to grow, they must offer what piracy cannot.”

#7: Make Music a Priority
“More people are discovering more new music–and a greater variety of music–than ever before. There are tremendous challenges facing traditional music businesses, but for artists and fans this is an incredibly exciting time. One day, we will look back on this period in music history as a kind of Internet adolescence—a confusing, sometimes awkward transition that in the end leaves us stronger, smarter…and a little less innocent.”

Get a copy of the complete guide here and check out their very informative site "Whats the Download"

January 2, 2007/1 Comment/by newartistmodel

Interviews with Authors, Music Industry, Online Course - FOM

Interview on the Future of Music

New Formats

In a recent interview with Doug Dixon, David Kusek argues that the industry needs to develop new formats for music
distributed in physical formats. "Dual Disc is certainly a pointer in the
right direction," he says. "You need to create something that has
great value in order to continue to compete."

For example, in the movie A Clockwork Orange, says Kusek, "even
before CDs were out, they played music on a disk that was a little bigger than a
silver dollar. It reminds me of the idea that perhaps there are other formats
that could be developed, nontraditional formats, from what we have seen so far.
If you had a recordable format that was more convenient than CD, and held more
data, and was faster to record, then perhaps you could have a system where the
recording could be inside the stream of commerce."

The other critical trend, he says, is that "the price of these physical
products needs to come down. I’m encouraged that Dual Disc seems to be priced
around $18 to $20, and discouraged that CDs continue to hover in the $15 to $18
range. I don’t know how much control the manufacturers have over this, but to
the extent they can encourage their customers to be more realistic about pricing
CDs, the longer they will be able to stay in business. I really do believe the
price point for an audio CD is south of $10 at retail."

Music Commerce

But isn’t piracy destroying the industry? "There are two forms that are
currently labeled piracy," says Kusek. "You have the wholesale
replication of CDs and DVDs. To me, that’s counterfeit products and is obviously
not to be tolerated. It is certainly evil and criminal, and bad for
business."

"But the other kind of behavior that is labeled as piracy — downloading
files and trading files with your friends — I’m not sure that I would put that
in the same camp. Often there is no profit margin, there’s no distribution
network, other than yourself and a handful of people that you know. Generally,
you are not selling files to your friends."

"You can measure wholesale piracy and replication in many billions of
dollars, whereas for downloading and file sharing, it’s hard to quantify whether
it has had any negative impact at all in terms of real sales. I actually think
that is good for music, as painful as it may be for to the record
companies."

"I don’t think that file sharing and downloading of music is going to
stop," says Kusek, "until there is something easier, and better, and
cheaper, and more appealing. So as I argue in the book, why not embrace that
behavior, license and tax it, and somehow derive money from it? Make it easier
to find music, improve the quality of the files, and make it easier to record,
instead of trying to fight it. It seems a completely losing battle; People are
never going to stop doing it as long as the price of CDs is too high. So why not
go with the flow and embrace it?"

Investing in the Future

Says Kusek, "by and large the record companies are not in touch
with their customers at any significant level. They thought that their customer
was Wal-Mart. They are out of touch with their ultimate customer, and their
customer shifted away from them. They are still selling a ton of CDs, but the
whole file sharing thing was off their radar screen until someone told them
about it. So then they decided, let’s just go sue all these bastards."

"That bothers me as well," he says. "I ran the numbers, and
somewhere between 30 and 40 million dollars is being collected in the
settlements from the RIAA. But none of that money is going to the artists or
songwriters. It is going to the attorneys and the courts to process the papers,
and whatever is left is going to fund more lawsuits. It’s incredibly wasteful.
The numbers I see show file sharing growing on a monthly basis, ever since they
started the lawsuits, so it is not working. Imagine if they took $40 million and
invested it in a new way of delivering music that is attuned to the way people
want to buy."

To help people in the industry examine these options, Kusek runs an online
course on "The Future of Music and the Music Business" through the
Berkleemusic.com online extension school. "The course is for people at any
level of the music business," he says, "from artists, songwriters,
managers, record company, publisher, promoter, venue. We have had a lot of
people sign up from those areas trying to figure out what am I going to do in
the future: I own a record label, and how I get into this digital thing, or I am
a manager, and I can see that the labels are not really servicing my clients
anymore, so how can I grow my business in an appropriate way. A lot of the work
we do in the class is class projects or personal projects where you apply what
we are talking about to your situation and try to figure out what the next step
might be."

From his classes and consulting work, Kusek also sees differences in the
music business across the global economy. "One of my online students runs a
CD and DVD manufacturing company in India," he says. "They’re finding
that sales are actually quite healthy because the computer thing has not taken
off in the way it has in other parts of the world. I think there are many areas
in the global economy where there are lots of legs left to the existing physical
media, and those folks have more time to figure out alternatives."

Read the complete interview here at Manifest Technology.

November 15, 2005/1 Comment/by newartistmodel

Authors - Bios, Interviews with Authors, Music Industry, Music Marketing, Radio, The Future

Nightly Business Report on the Business of Music

Watch this week’s Nightly Business Report on NPR and Public Television to see a special series on the Music Business, featuring Dave Kusek and Gerd Leonard.

"On December 6th, 1877, Thomas
Edison shouted a nursery rhyme into his new talking machine. The recording
industry was born.

Over more than a century, the technology evolved from wax cylinder to
shellac platter to long-playing vinyl to cassette tape to compact disc.

But the business model remained the same: The artist recorded to the
label`s satisfaction, the label did the manufacturing and handled the
distribution, and the consumer could take it or leave it.

That changed in the mid-1990s, when personal computers got the ability
to make digital compact discs. Unlike analog, digital recordings are
simply computer data files, and the tools need to create, capture and
manipulate digital music are inexpensive, high quality and widely
available.

Now, consumers can use the recording industry`s compact disc to create
their own compilations, re-edit to produce derivative products, and yes,
make perfect copies.

When the cost of the blank needed for a copy fell to pennies, the
industry`s business model fell apart.

If the ability to easily copy compact discs was a problem for
the recording industry, Napster and other file-sharing systems were a
disaster. Created in 1999, Napster let consumers freely trade the computer
files of songs with others over the Internet. The artists, publishers and
recording companies never saw a dime.

Nearly 40 million people were said to be using Napster when
it shut down. And for every Napster that was shut down, another method to
share files sprang up.
The industry`s trade association sued thousands of people, mostly
college students, to stop the practice. The lawsuits, tens of thousands by
some counts, continue today."

More info here.

September 27, 2005/0 Comments/by newartistmodel

Radio

On Radio – Little Steven’s keynote address radio & records convention 2005

"There is an art to this sh*t. You know that. It’s the corporate
bosses that forget that fact. But it’s not just music – we have this
problem plaguing every aspect of our culture. Yes content needs
work, yes marketing needs work, but it is the sales teams that need to
be re-educated and motivated and inspired and creative. And it’s not
happening because they are being led by business oversight guys.
Content guys should be running companies, marketing guys should be
running companies, who put business oversight guys in charge? Wall Street that’s who. Wall
Street continues to love and reward and worship short term success for
some reason. As the culture and the economy and all our fathers’ and
grandfathers’ and hundreds of years of hard work get trashed in a
generation or two. The tail is wagging the dog. Wall Street should not be calling the shots. When did Wall Street ever write a song? Paint a picture? Make a movie? Play a song on the radio that changed somebody’s life? Where are the music people? I see lawyers, accountants, test marketers running the world. Where is the emotional connection? Where
is the passion? This ain’t about JACK or BOB or Moe or Larry or Curly.
It’s about you. Everybody in this room. You are here because you are
connected emotionally. This ain’t Harvard Business School. It’s f*cking Rock and Roll!"

Little Steven Rants on state of radio

September 26, 2005/0 Comments/by newartistmodel

Interviews with Authors, Music Industry, Music Marketing, Radio

KCRW audio interview: The Politics of Culture

The Digital Age and The Future of Music.

It’s no secret that the music industry is challenged on multiple fronts. Now that we’re in the digital age, how can they change their outlook? Celia Hirschman, KCRW’s music industry commentator, speaks with Gerd Leonhard, co-author of The Future of Music: Manifesto for the Digital Music Revolution.

Listen to the Interview (Real)

July 28, 2005/0 Comments/by newartistmodel

Book Reviews, Interviews with Authors

Atlas Plugged Interview Part 2

Held back by fear, you are.

The music industry can’t preserve its current model of total control. Rather, it must embrace P2P and other new technologies because consumers won’t accept anything less than full freedom. In the future,preventing customers from doing things they have grown used to will equal a quickly executed death blow. For the music business, this means that any innovation that will be offered to the marketplace must be without any catches. It must be flat-out in synch with what the consumer will accept and wants, and its integration into the daily lives of the average music consumer must be unobtrusive and effortless. In other words, keep it simple and give customers what they want.

As Yoda might say, “Held back by fear, you are. To the Dark Side, your stubbornness will lead.” It’s a
fate the music industry may want to avoid.

Read the second part of the interview here.

June 24, 2005/0 Comments/by newartistmodel

Artists and Writers, Interviews with Authors, Music Industry, Music Marketing, Radio, The Future

Let’s Get Digital – Radio Show

New York – WFUV Presents – If the new world of mp3 blogs, mash-ups, downloads and ringtones boggles your mind, tune in to Let’s Get Digital as host Jen Guerra takes a musical look at all things online. The New Yorker Pop Music Critic Sasha Frere-Jones, CDBaby.com Founder Derek Sivers, Berklee College of Music Vice President David Kusek, Creative Commons Executive Director Glenn Otis Brown, Analyst Phil Leigh and others join Guerra for an hour-long program examining how the race to get online affects not only musicians, but music fans and the music business in general.

Let’s Get Digital can be heard on WFUV (90.7 FM) www.wfuv.org and streaming online.

June 1, 2005/0 Comments/by newartistmodel

Book Reviews, Interviews with Authors, Music Industry, Music Marketing, Online Course - FOM, Radio, The Future

Atlas Plugged – Interview

"Like modern plumbing, the music industry could operate almost as a utility—with copyright holders able to meter usage down to how many people listened to particular songs at particular times. In such a world, the industry could live off of micropayments flowing seamlessly back to the owners of content rather than rely solely on the disjointed and inefficient distribution of CDs to retailers. Artists, meanwhile, would have unprecedented access to new listeners as their songs spread virally into vast musical networks that fans can access literally anywhere. As the most accessible artists find their audiences, those artists would enjoy increased concert attendance, new forms of merchandise and countless other opportunities to connect with fans like never before."

Read part one of the two part interview

Part two is here

May 22, 2005/0 Comments/by newartistmodel

Interviews with Authors, Music Industry

Keepin’ it Reel to Reel: The Future of Music

To The Best of Our Knowledge

Seven hundred million people get their music from the Internet. More than 10 million people own iPods. Does this mean that compact discs and record companies are going the way of the gramophone and eight-track tapes? In this hour of To the Best of Our Knowledge, we’ll look at this digital music revolution…as we explore the future of music.

Check out this program from Wisconsin Public Radio

May 16, 2005/0 Comments/by newartistmodel

File Sharing / P2P, Interviews with Authors, Music Copyright / Legal, Music Industry, Music Marketing

Forbes – Music Like Water

People should pay for their music the way they pay for gas or electricity.
Forbes Article 2005

More people are consuming music today than ever before, yet very few of them are paying for it. The music recording industry blames file sharing for a downturn in CD sales and, with the publishing companies, has tried its best to litigate this behavior out of existence, rather than try to monetize the conduct of music fans. These efforts are fingers in a dike that is about to burst. Digital media are interactive, and people want music that they can burn to CDs, share and use as they wish. The music industry should instead look at turning this consumer phenomenon into a steady stream of cash–lots of it.

May 1, 2005/1 Comment/by newartistmodel

Authors - Bios

About the Authors

About David Kusek

David Kusek is a musician who has been inventing the future of music for the past twenty-five years. He was one of the first to capitalize on the commercial potential of computers and music. As an early synthesizer and electronic music pioneer, Dave cut his teeth on innovation.

At the age of nineteen, he co-invented electronic drums at Synare, which helped ignite the disco era. In 1980, he founded the first music software company, Passport Designs, which made it possible for musicians to record and produce their music at home with its award-winning software.

Kusek is also a co-developer of the Musical Instrument Digital Interface (MIDI) standard that opened up electronic music to literally millions of people. His efforts, along with others, set the stage for the desktop music market that we have today. In 1993, Kusek, with A&M Records, designed and developed the first commercially available enhanced CD that connected audio CDs to a personal computer. He also produces interactive DVDs for BMG Music, Windham Hill Records, and Berklee Press.

Today, David Kusek innovates at Berklee College of Music in Boston, Mass., the premier school for aspiring professional musicians for over half a century. Dave is Vice President of Berklee Media, the continuing education division of the college. In that capacity, Dave oversees some of the college’s most visionary projects. These include: the college’s online extension school Berkleemusic berkleemusic.com, a major initiative to expand music education worldwide; Berklee Shares berkleeshares.com, a venture that taps the potential of digital networks and music content licensing by making a broad selection of Berklee’s curriculum free and universally available online; and, Berklee Press berkleepress.com the publishing arm of the college. Kusek also provides strategic consulting and advisory services to companies and individuals involved in the music and entertainment industries.

Kusek has written for or been quoted in Billboard, Boston Globe, New York Times, Wired, Christian Science Monitor, Associated Press, and San Francisco Chronicle, Forbes, NBC-TV, Nightly Business Report, NPR, Corante, The Deal, Inside Digital Media, the Financial Times. Kusek has been interviewed by over 25 radio stations nationwide. He has been a speaker and lecturer at Berklee College of Music, MacWorld, Comdex, PC World, NAMM, AES, and California State University.

Dave lives near Boston and can be contacted at dkusek@digitalcowboys.com.

About Gerd Leonhard

Gerd Leonhard is a respected music futurist and oft-quoted visionary, a well-known music industry executive and music business entrepreneur, a sought-after strategic adviser and music industry super-node and still a performer (guitar), writer, and producer. A native of Germany, Gerd has spent more than twenty years in the U.S. music, e-commerce, and entertainment technology industries, and is equally at home in the U.S. as well as in Europe.

During the dot.com days, Gerd was the founder and President/CEO of LicenseMusic.com, a company that revolutionized music licensing, reducing the average transaction time for music licenses from six weeks to two hours. LicenseMusic, Inc. served thousands of clients from 1996-2002, including Disney, Paramount Pictures, and Fox TV.

He is the Founder and CEO of ThinkAndLink (TAL), a boutique advisory agency based in Basel, Switzerland and San Francisco. TAL connects people, ideas, companies, and resources in the converging sectors of entertainment and technology, and catalyzes their development. As CEO of ThinkAndLink, he serves as Senior Advisor to Media Rights Technologies, BlueBeat, and ShareTheMusic Networks. Gerd sits on the Advisory Board of Musicrypt, Inc., and works with dozens of startups and new ventures in the entertainment and technology industries in Europe and the U.S.

Gerd served as the Executive Producer of the pan-European talent event EuroPopDays, as Expert Advisor on the Cultural Industries to the European Commission in Brussels in 1993-1996, and as Senior Strategic Adviser to Rightscom Ltd. (London). Gerd graduated with a diploma in Jazz Performance (Guitar) from Boston’s Berklee College of Music (1987), and won the college’s highly acclaimed Quincy Jones Jazz Masters Award. His performance credits include touring internationally, including opening engagements for major acts such as Miles Davis.

Gerd has been quoted in Billboard, Variety, Hollywood Reporter, San Francisco Chronicle, Business2.0, Wall Street Journal, and Wired, and continues to speak, moderate, and/or present at the music industry’s biggest events. He publishes his music business visions at MusicFuturist and you can visit his Web site at gerdleonhard.com.

Gerd currently resides in Basel, Switzerland and can be contacted at gleonhard@gmail.com.

Contact

The authors can be contacted via snail mail at:

David Kusek
Berklee College of Music
1140 Boylston Street
Boston, MA USA 02215

Press contact:

Lori Ames
212-620-4080 x12
lori@wesmanpr.com

May 1, 2005/by newartistmodel

Tag Archive for: music