Here's Part 2 of the lecture The Who's legendary Pete Townshend gave at the BBC in honor of the iconic DJ John Peel. Like Part 1, it's about the value of music, the new music business, and how the musician fits into it. As always, Pete has a learned and scholarly take.
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Pete Townshend:
"What
creative people want is to know their music has been heard. They would
prefer a response that was constructive than a positive or negative
review. They would prefer expertise to opinion. They would like to know
the public if they had a chance to hear the music, also had a chance to
make up their own minds. They would prefer that in the long term the
public were willing to pay for their music. But looking at the John Peel
model, what is clear is that just knowing there was a chance the great
man would listen, react and offer the music on air, for whatever reason,
was enough for budding musicians and bands.
That
is where we must be going. Musicians need to be heard, to be judged, if
possible to be paid, but also allowed to believe they had more than a
single chance to get a hit. Software systems that offer this model will
survive and prevail – loved and embraced by musicians of every sort –
whatever happens financially.
Whether
the public listen or not, creative writers and musicians should get
paid if their work generates money by virtue of its mere existence on
radio, television, YouTube, Facebook or SoundCloud. It’s tricky to argue
for the innate value of copyright from a position of good fortune – as I
do. I once suggested on a forum that people who download my music
without paying for it may as well come and steal my son’s bike while
they’re at it. One woman was so incensed that she tried to argue that
she was still supporting me as an artist by “sharing” – my parentheses –
music with others who would eventually filter down some cash in some
form or other to me, that would pay for my son’s bike – and she was not,
in any sense, a thief or a criminal. I think she was in a kind of
denial. Cutting the body to fit the cloth rather than the correct way
around.
We now
live in a digital world in which the only absolute is work by the hour.
Lawyers, accountants, doctors, nurses, plumbers, painters, truck
drivers, farmers, pilots, cleaners, actors, musicians – they all get
paid for work done as a clock ticks.
Creative
work is not like that. Any one of the people listed above could create a
method that would help other people to do their job in their place.
This could be digitized, and made available on the Internet. I have
given away dozens of my trade secrets in this way, knowing that I could
afford to do so, but also knowing that my trade secrets are also
trademarks in a way – I have become known for a particular style of
creativity that belongs to me, because I am its principle practitioner.
However,
if someone pretends to be me, or pretends that something I have created
should be available to them free – because creativity has less value
than an hour’s work by me as a musician in a pub – I wonder what has
gone wrong with human morality and social justice.
When
we look at wars we often find ourselves reverting to simple epithets:
why can’t people just get along? Vivre les differénces! So it would be
better if music lovers treated music like food, and paid for every
helping, rather than only when it suited them. Why can’t music lovers
just pay for music rather than steal it?
Would
a return to John Peelism be better? There must have been music lovers
who recorded his shows to tape and shared copies with friends. But it
was never that easy, and was very time-consuming. You had to be really
passionate about some music to share it in this way. Yes I think it
would be better if music lovers had to work a little harder to find what
they like best, and it was not quite so easy to knock out a digital
copy to one’s friends. The word “sharing” surely means giving away
something you have earned, or made, or paid for? At least you should
have searched for it, and not simply happened on it by chance – or
apparent chance, the newly intelligent Internet is now capable of
sending you things that you never thought you wanted. It would be better
if these “sharers” had to set aside time to listen, and to work at
listening, and thereby do honor to the creative work of musicians even
if their final judgment was that the music they heard was not for them –
not worth stealing, not worth sharing.
Now
I’m being facetious, but some things are really worth stealing. A
creative person would prefer their music to be stolen and enjoyed than
ignored. This is the dilemma for every creative soul: he or she would
prefer to starve and be heard, than to eat well and be ignored.
Radio
is not like Internet radio, or torrent sites. Radio pays musicians a
fee when music is aired. Radio does not take the position that the
public has a right to decide after hearing the music played whether to
pay for it or not. Radio stations pay, and the public pay directly or
indirectly in order to listen and make the judgment.
Suppose
you asked a painter to paint your house on condition that if you didn’t
like the color you had chosen, thinking it would work, you wouldn’t pay
him?
Peel was
not a musician. He was a listener, a patron of the arts, a broadcaster
with almost no censorial mandate or agenda. He only played what he
thought deserved to be played. I don’t think it always mattered that he
himself liked it. In China in Chairman Mao’s day he might have been sent
to prison if only for being the first to play Jesus and Mary Chain, the
Undertones or the Proclaimers – all of them were a little bit
political, but also radical and outspoken. When I first heard them on
John’s show I thought they were a bit dangerous.
So
if we assume that musicians want more than anything to be heard, and
that there is now a massive audience wanting to hear new music every
day, what is next?
What’s
next is already here. The BBC will not be thankful to me for saying
this but if you have a decent computer and some Internet bandwidth there
are dozens of amazing Internet portals where you can hear new music,
and see new videos. SoundCloud, HypeRadio, Cull.TV, Spotify and Last.fm
all offer to take you on an extraordinary journey if you log in. Today,
the era and scope of modern music stretches broadly over a range of
music styles, nationalities and age-ranges that might threaten to
obfuscate the artistic achievements of individual musicians. Sorry, I
mentioned the art word. We might be overwhelmed by the amount of
variation – especially without a John Peel to bring us up to speed every
week. But a quick look at the way the Internet has enriched the
investigation of any particular musician’s work can be proved by the
expediency of searching – just to suggest a deliberately quirky example –
“Bjork” in Last.FM or Spotify. Along with all of Bjork’s many bands and
collaborations, we find the band Garbage, Tori Amos, mùm, Planning to
Rock, Sigur Ros, Bat for Lashes and Fever Ray. They all line up to
confuse and entice. Even iTunes might take you off on a strange,
inspiring or disturbing journey if you search the appropriately
left-field artist.
If
you search my name you’re likely to be spoon-fed tracks by Dave Dee,
Dozy, Mick & Tich. This is the cross that Dave Dee etc. has to bear,
being compared with The Who on Internet search engines.
What
the BBC has to rise to is the challenge of using some its resources to
sidestep editorial censorship, and give the listeners the kind of
license they got when they tuned into John Peel. That license is offered
free or almost free on dozens of amazing music blogs, sharing websites
and video sites. There is more music being made today, and made ready
for broadcasting, webcasting, podcasting and sharing, than ever before. I
mean by this, finished, well-produced, good sounding music. And if it
doesn’t sound good you can be fairly sure it isn’t meant to. There is a
lot of talk about live music, and it is great that it’s seen to be so
important – but it’s never gone away. In fact The Who shared the bill
with John Peel once or twice, he took his radio show on the road
regularly in the Sixties and Seventies. If the BBC were to start a
website like Spotify, one thing would be certain – the musicians who
were featured would get paid.
Speaking of which: my £6 fee for this lecture is being passed to the Musicians Union Benevolent Fund."
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Wednesday, November 23, 2011
The Pete Townshend Lecture - Part 2
Tuesday, November 22, 2011
The Pete Townshend Lecture - Part 1
The BBC recently invited The Who's Pete Townshend to
give a lecture in honor of influential UK broadcaster John Peel, a DJ who's musical taste and integrity helped shape music as we know it.There's been a lot written about this speech that makes for some good old fashioned negative headlines, but there's a lot more beneath the surface if you read the whole thing since you'll find that this lecture is particularly insightful about music as it is today, not how it was. This is not about the creation of music, but how an artist today relates to the music business.
The transcript of the lecture is a bit long so I've broken it up into two parts. Whether you like him or not, it's worth every minute of your time.
Pete Townsend:
"Firstly, I’m honored to have been asked to do this first lecture in the name of John Peel. John and I were never close friends, and I know he was not always an unconditional Who fan, but through his long-time producer John Walters – who was a great friend to me and to Who drummer Keith Moon – I followed John Peel’s career with the sense of a family insider. I don’t want to kick off this series of annual lectures with any po-faced intellectualism. Nor do I want to talk about pop music as art – hard for me because music as art is my favorite subject. Neither do I wish to try to make this lecture amusing, or light-hearted or even ironic in the tradition of the sixties and post sixties pop era Peely and I shared. I don’t want to try to celebrate John Peel, nor make this into any kind of memorial. That’s all been done. So what do I want to do?
I have limited time. Looking at what John Peel did with his show on radio for many years is worth looking at. But I must assume that most listeners will know what he did. Annie Nightingale once told me that John was one of the few deejays at Radio 1 who would take home everything left in the in-tray cubbyholes at the end of each week. More than that, he listened to it all. Sometimes he played some records that no one else would ever have played, and that would never be played on radio again. But he listened, and he played a selection of records in the course of each week that his listeners knew – partly because the selection was sometimes so insane – proved he was genuinely engaged in his work as an almost unconditional conduit between creative musicians to the radio audience.
So he listened. And he took chances with what he played.
And he is gone.
Why was John Peel’s system important? Why is listening important? Why is being ready to give space to less polished music important? Will John Peelism survive the internet? Or is John Peelism thriving on the internet without many of us realizing it?
So we have John Peel. The BBC. And – for the purposes of this lecture – iTunes. All enormous icons in music.
Let me introduce you briefly to my inner artist, then I will put him back in his box.
'I don’t give a shit about making money. I think rock music is junk. I am a genius. The Who were OK but without me they would have all ended up working in the flower market, or worse – in Led Zeppelin. John Peel played some records that were so bad that I thought he was taking the piss sometimes. The BBC only gave us Pop Radio 1 in the ‘60s, five years after the Pirates had proved there was an audience for it. Sadly, unlike the pirates, they didn’t accept payola.'
I really should put this inner artist guy back in his box yes? Have we got our newspaper headlines yet?
This inner artist really doesn’t give a shit about any of this lecture. Just give him a piano and a guitar and some decent way to record the music, a pleasant room to work in, and a few free hours, and he is happy. When he’s done he hands me the end product and says – there, a work of genius, try and live off it for a while you philistine.
It seems to me that a conversation between my inner artist with the late Steve Jobs would have been impossible. I seem to remember that once in an interview I let my artist out of the box for a minute too long and he said he wanted to cut Job’s balls off. As I force my artist back in the box again, I hear him say that in fact he really likes his iPad and loves to noodle with GarageBand. My inner artist is a bit of an ageing Mod you see. He really thinks the late Steve Jobs was one of the coolest guys on the planet: loved his black outfits, cut his balls off, look at my red Vespa – irrational.
So there was Pirate Radio, then Radio 1, then a music shop. There were record companies and music publishers. Was it good, what the God of pop music had created?
Music publishing has always been a form of banking in many ways, but – in cooperation with record labels – active artists have always received from the music industry banking system more than banking. They’ve gotten: 1. editorial guidance; 2. financial support; 3. creative nurture; 4. manufacturing; 5. publishing; 6. marketing; 7. distribution; 8. payment of royalties – the banking.
Today, if we look solely at iTunes, we see a publishing model that offers only the last two items as a guarantee – distribution and banking – with some marketing thrown in sometimes at the whim of the folks at Apple. It’s a fantastic piece of software, I use it all the time and I was honored once to meet the woman who wrote the software. But iTunes is not like radio.
Radio is less driven by cash flow, a little more driven by secondary income streams – like advertising, subscriptions, or in the case of the BBC, license fees – and thus needs its pop music to be cool, look hip, cover a wide array of bases and satisfy a broad market.
Let me quickly go over this list again. Now is there really any good reason why, just because iTunes exists in the Wild West Internet land of Facebook and Twitter, it can’t provide some aspect of these services to the artists whose work it bleeds like a digital vampire Northern Rock for its enormous commission?
Let’s talk it through.
Item 1. Editorial guidance. A&R. Employ 20 A&R people from the dying record business. Have them respond to tracks sent in from new artists. If they feel the artists are bad, or aren’t ready, say so. But have them tell the truth, kindly and constructively. Guide them to other helpful resources, don’t just send them to the wolves of Blogland where it seems to me a lot of the vilest bile comes from people who could be drunk, or just nuts. A fledgling musician at the start of a career is a delicate thing . Even a rapper – you’ll just have to take my word for that. Apple do already have back-room people assessing what’s hot, but they don’t have this kind of power. I’ll bet they’d love it. Twenty John Peels inside Apple – imagine it.
Item 2. Financial support. Subsequently provide free computers with music software to 500 artists a year who the 20 A&R people feel merit it. Provide some basic training.
Item 3. Creative nurture. Follow the work of these 500 artists very carefully. Help where you can. Keep out of the way if necessary.
Item 4. Manufacturing. This should be called “posting” today I suppose. Provide a place on iTunes where these artists can share their music. It should be a like a local radio station. Yes Apple, give artists some streaming bandwidth. It will sting, but do it. You will get even more aluminum solid state love for doing so.
Item 5. Publishing. Help artists protect their copyrights, don’t just exploit the loopholes of grand theft. This is a minefield today. The Internet is destroying copyright as we know it. So they will lose the battle, but guide them to hang on to what they can. Otherwise they might only ever make one album.
Item 6. Marketing. Select a number of the artists on the free shared space local radio station and sell their work on iTunes with some helpful advertising within the Apple software machine. Show that you get behind them.
Item 7. Distribution. Go further. License the best selling artists to other organizations – like record companies, bookshops and high street and mall-based retailers for example – who are willing to make packages, goods you can hold in your hands and give for birthdays, Christmas and Diwali. Share revenue with Amazon. I’m not sure why that notion is so repellent to the Aluminums.
Item 8. Payment. Stop insisting on aggregators to deal with small artists – because you can’t be bothered with the expense of accounting for the numerous small amounts of money you’ve collected on their behalf – and pay direct. Why should an artist pay even more commission to an aggregator merely to get paid? For the uninformed, an aggregator in the iTunes world is a company who stands between the artist and iTunes and thus prevents Apple having to deal with artists directly. Some of these aggregators provide some of the resources I’ve pleaded for above, but they are really just another form of punitive banking.
So what does my inner artist think of all that? Doesn’t he give a shit? I can tell you now, he thinks all that sounds really amazing. He wants to cry. If Apple do even one of the things on my wish-list he will offer to cut off his own balls –they’ve only ever been a distraction after all."
Tomorrow, Part 2.
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You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
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Monday, November 21, 2011
How We Currently Discover Music
Music business association NARM and leading market research company The NPD Group recently released findings of a joint study that examined the ways
consumers discover new music. The study was conducted in August 2011. There were a number of surprising elements in this study.
Committed: the youngest group, with a mean age of 32 (20 percent are age 13 to 17; 42 percent are 18 to 35). They represent 10 percent of all consumers who listened to or purchased music within the prior three months. “Committed” consumers also account for 46 percent of per-capita spending on music, and they are the most engaged consumers in the report. While they use a variety of discovery sources – including radio, video, streaming, and movies – they also value ownership, and they are the most open to discovering new artists. They find their current means to discover new music is good, but still wonder if they are missing something.
Convert: makes up 30 percent of musically active consumers and accounts for 34 percent of per-capita spending. They're the second youngest group, with a mean age of 34 (13 percent teens; 23 percent are 18 to 25 years old). They also listen to music in a variety of ways and are more likely than the average consumer to purchase CDs or digital downloads. They are generally satisfied with their means of music discovery, but they would still consider other options.
Comfortable: makes up 30 percent of musically active consumers and account for 15 percent of per-capita spending on music. With a mean age of 50, they are considered the mainstream segment. These individuals mostly listen to music on CD or on AM/FM radio, and they prefer to discover new music from familiar artists. They also rely primarily on television and radio to find new music, and they feel those methods are adequate for their needs; they are not interested in new ways to discover music.
Casual: makes up 14 percent of musically active listeners and account for 3 percent of per-capita music spending, and have a mean age of 43. They are also lighter listeners than average, they rarely buy music, and they have low interest in digital sources and discovery.
Content: makes up 11 percent of musically active consumers and accounts for 2 percent of per-capita music spending, have a mean age of 55. They are the lightest buyers and listeners, and while they periodically buy CDs, they do not find current music engaging.
Another interesting thing that the study found is that television has emerged as the second-most influential tool for music discovery, with 49 percent of musically active consumers citing it as a top influence. Television is particularly effective for targeting the mainstream “Comfortable” group, as well as women and brick-and-mortar store shoppers. Awards shows, music videos, competition shows, daytime TV, and serial shows are the programs most likely to be effective for music discovery.
But guess what? Television was trumped by AM/FM radio, which continues to remain as the most important tool for music discovery, with 60 percent of musically active consumers citing it as a top influence.
While radio and TV were the clear-cut top traditional choices for music discovery, Internet music-discovery options are much more fragmented. Shazam and other song-ID apps, as well as other mobile/tablet apps, are most likely to lead to high-value actions, like paying for a CD or digital download.
What's the upshot? Some things never change, and that includes the way we discover music. What is changing is that now we have more sources and which groups uses those additional sources. Once again, conventional wisdom is set on its ear.
- More than 80 percent of all respondents were interested in learning about new music from artists they were already fans of, and 60 percent were interested in learning about unfamiliar artists in genres that they usually buy.
- AM/FM radio and family/friends/coworkers are the most common avenues for discovery, and discovery via online radio and
- Web videos were also important for the most active music fans.
- Free online radio, video sites like YouTube and Vevo, and other emerging forms of influence are more likely to cause listeners to continue to stream songs, rather than buy them.
- Music recommendation from family, friends and co-workers are also very important, as they always have been.
Committed: the youngest group, with a mean age of 32 (20 percent are age 13 to 17; 42 percent are 18 to 35). They represent 10 percent of all consumers who listened to or purchased music within the prior three months. “Committed” consumers also account for 46 percent of per-capita spending on music, and they are the most engaged consumers in the report. While they use a variety of discovery sources – including radio, video, streaming, and movies – they also value ownership, and they are the most open to discovering new artists. They find their current means to discover new music is good, but still wonder if they are missing something.
Convert: makes up 30 percent of musically active consumers and accounts for 34 percent of per-capita spending. They're the second youngest group, with a mean age of 34 (13 percent teens; 23 percent are 18 to 25 years old). They also listen to music in a variety of ways and are more likely than the average consumer to purchase CDs or digital downloads. They are generally satisfied with their means of music discovery, but they would still consider other options.
Comfortable: makes up 30 percent of musically active consumers and account for 15 percent of per-capita spending on music. With a mean age of 50, they are considered the mainstream segment. These individuals mostly listen to music on CD or on AM/FM radio, and they prefer to discover new music from familiar artists. They also rely primarily on television and radio to find new music, and they feel those methods are adequate for their needs; they are not interested in new ways to discover music.
Casual: makes up 14 percent of musically active listeners and account for 3 percent of per-capita music spending, and have a mean age of 43. They are also lighter listeners than average, they rarely buy music, and they have low interest in digital sources and discovery.
Content: makes up 11 percent of musically active consumers and accounts for 2 percent of per-capita music spending, have a mean age of 55. They are the lightest buyers and listeners, and while they periodically buy CDs, they do not find current music engaging.
Another interesting thing that the study found is that television has emerged as the second-most influential tool for music discovery, with 49 percent of musically active consumers citing it as a top influence. Television is particularly effective for targeting the mainstream “Comfortable” group, as well as women and brick-and-mortar store shoppers. Awards shows, music videos, competition shows, daytime TV, and serial shows are the programs most likely to be effective for music discovery.
But guess what? Television was trumped by AM/FM radio, which continues to remain as the most important tool for music discovery, with 60 percent of musically active consumers citing it as a top influence.
While radio and TV were the clear-cut top traditional choices for music discovery, Internet music-discovery options are much more fragmented. Shazam and other song-ID apps, as well as other mobile/tablet apps, are most likely to lead to high-value actions, like paying for a CD or digital download.
What's the upshot? Some things never change, and that includes the way we discover music. What is changing is that now we have more sources and which groups uses those additional sources. Once again, conventional wisdom is set on its ear.
-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
Sunday, November 20, 2011
Online Music Store Showdown
Now that Google Music has finally officially launched on the back of iCloud, we can finally get down to the business of the online music business. Here's a chart form Huffpost Tech that outlines the features of the big 3 online music stores: Amazon MP3, iTunes and Google Music.
Who will win? I think that in the near future, iTunes will be hard to beat, but their market share will erode with time as Google Music gains some traction. Plus you can't beat the fact that they're the only one with an easy to use desktop app (which is what iTunes rally is - the front end to the digital music store).
We'll revisit this chart in a few months when the numbers are in to see how they stack up against each other market-share wise.
Who will win? I think that in the near future, iTunes will be hard to beat, but their market share will erode with time as Google Music gains some traction. Plus you can't beat the fact that they're the only one with an easy to use desktop app (which is what iTunes rally is - the front end to the digital music store).
We'll revisit this chart in a few months when the numbers are in to see how they stack up against each other market-share wise.
-----------------------------------
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Labels:
Amazon MP3,
Google Music,
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infographic,
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Thursday, November 17, 2011
7 Tips From The Advertising Giants
Heidi Cohen wrote this great post a couple of weeks ago regarding some marketing tips from the giants of advertising. These gurus have all passed, but their collective wisdom lives on. Even though much of it is from another time and a different world, it still holds true today.
Tip #1
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"Advertising ought to work by telling you what it is you want to tell, you should understand what you want us to do, what you want us to think, where you want us to shop." — Jay Chiat: founder of the Chiat/Day Agency, known for it's Apple Computer and Energizer Bunny campaigns.
- Tip #2
"The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself." — Peter F. Drucker: one of the best-known and most widely influential thinkers and writers on the subject of business management theory and practice.
- Tip #3
"[Brands] establish contact with the subconscious of the consumer below the word level. They do this with visual symbols instead of words … They communicate faster. They are more direct. There is no work, no mental effort. Their sole purpose is to create images and moods." — Rosser Reeves: a pioneer in television commercials with campaigns for Bic pens, Minute Maid orange juice, M&M candies, and Colgate toothpaste, and supposedly the model for the Don Draper character in Mad Men.
- Tip #4
"The headline is the ‘ticket on the meat.’ Use it to flag down readers who are prospects for the kind of product you are advertising." — David Ogilvy: founder of the giant Ogilvy and Mathers Advertising Agency and said to be the "godfather of modern advertising."
- Tip #5
"Just be sure your advertising is saying something with substance, something that will inform and serve the consumer, and be sure you’re saying it like it’s never been said before." — William Bernbach: co-founder of the DDB Agency, with notable campaigns like We Try Harder for Avis Car Rental, Mikey for Life Cereal, You Don't Have to be Jewish to Love Levy's for Levy's Rye Bread, and It's so simple for Polaroid.
- Tip #6
"Good advertising does not just circulate information. It penetrates the public mind with desires and belief. — Leo Burnett: the advertising executive who created the Jolly Green Giant, the Marlboro Man, Toucan Sam, Charlie the Tuna, Morris the Cat, the Pillsbury Doughboy, the 7up "Spot", and Tony the Tiger, and named by Time magazine as one of the 100 most influential people of the 20th century.
- Tip #7
"Any seeming deception in a statement is costly, not only in the expense of the advertising but in the detrimental effect produced upon the customer, who believes she has been misled." — John Wanamaker: one of the creators of the department store, and considered by some to be the father of modern advertising and a pioneer in marketing.
These 7 men made their clients and shareholders wealthy years ago, and would do so today in our Music 3.0 world. Their insight is timeless.
-----------------------------------You should follow me on Twitter for daily news and updates on production and the music business.Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
Wednesday, November 16, 2011
Google Music Finally Launches
After months of public beta, Google Music has finally launched. For those of you who aren't familiar with it yet, Google Music is the big G's version of iCloud, which is a cloud-based locker for storing your music online and accessing it from any device at any time. While it's too early to have many definitive impressions, here's what we know so far.
1) When Google Music launched in beta earlier this year, it had exactly zero licenses from the major labels, a fact that didn't make negotiating with them afterwards none too easy. That said, GM officially launched with agreements from Universal Music Group, EMI, and at the last minute, Sony Music, as well as a host of independents. It's probably only a matter of time until Warner Music falls in line as well. I haven't heard what the license fees were yet, but regardless the amount paid, you can bet that most artists won't see much of it. The Google Music store will start off with about 13 million songs available.
2) It's free to the end-user for up to 20,000 songs, which should satisfy the music collections of the vast majority of users (that's about 2,000 albums worth).
3) Their "Artist Hub" section of the service allows anyone to directly upload, manage, and sell music without the need for a middleman like Tuncore or CDBaby. They say they'll pay artists 70% of the sale price and only charge a one-time upfront fee of $25.
4) T-Mobile customers will soon be able to pay for their music purchases directly through their phone bills, as they currently can with purchases from the Android Market. This is something that the music industry has wanted for ages.
5) Users will be able to put iTunes music into their music lockers, and the Google Music Manager is even supposed to retain users’ playlists and ratings.
6) As you would expect, Google+ is connected to Google Music, making it easy to share songs and playlists either publicly or with select groups of friends through the network’s Circles feature.
Out of all of these points, I think that the Artist Hub is a big deal and it should be interesting to see if iTunes follows with something similar. Right now you pretty much need an aggregatorlike Tunecore to get your songs on iTunes and it takes some time for that to happen. Let's see if Google Music has streamlined the process any.
We'll keep an eye on Google Music in the coming days and report any new info that we find.
1) When Google Music launched in beta earlier this year, it had exactly zero licenses from the major labels, a fact that didn't make negotiating with them afterwards none too easy. That said, GM officially launched with agreements from Universal Music Group, EMI, and at the last minute, Sony Music, as well as a host of independents. It's probably only a matter of time until Warner Music falls in line as well. I haven't heard what the license fees were yet, but regardless the amount paid, you can bet that most artists won't see much of it. The Google Music store will start off with about 13 million songs available.
2) It's free to the end-user for up to 20,000 songs, which should satisfy the music collections of the vast majority of users (that's about 2,000 albums worth).
3) Their "Artist Hub" section of the service allows anyone to directly upload, manage, and sell music without the need for a middleman like Tuncore or CDBaby. They say they'll pay artists 70% of the sale price and only charge a one-time upfront fee of $25.
4) T-Mobile customers will soon be able to pay for their music purchases directly through their phone bills, as they currently can with purchases from the Android Market. This is something that the music industry has wanted for ages.
5) Users will be able to put iTunes music into their music lockers, and the Google Music Manager is even supposed to retain users’ playlists and ratings.
6) As you would expect, Google+ is connected to Google Music, making it easy to share songs and playlists either publicly or with select groups of friends through the network’s Circles feature.
Out of all of these points, I think that the Artist Hub is a big deal and it should be interesting to see if iTunes follows with something similar. Right now you pretty much need an aggregatorlike Tunecore to get your songs on iTunes and it takes some time for that to happen. Let's see if Google Music has streamlined the process any.
We'll keep an eye on Google Music in the coming days and report any new info that we find.
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You should follow me on Twitter for daily news and updates on production and the music business.
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Tuesday, November 15, 2011
13 Questions To Ask About Your Publishing Contract
Once upon a time, a publishing contract was a prelude to a recording contract. The advance was high enough that you could focus just on your music without any other distractions, and if a publisher was interested enough to take a chance, then a record label would be too.
Times have changed though. Advances are pretty small these days, but publishing is still one of the most lucrative parts of the music business. That's why it pays to ask a lot of questions before signing any publishing agreement that's been put in front of you.
The Liveunsigned.com blog recently posted a great article about this, and here's an excerpt oregarding the things you should be concerned with before you add your John Hancock to the agreement.
Times have changed though. Advances are pretty small these days, but publishing is still one of the most lucrative parts of the music business. That's why it pays to ask a lot of questions before signing any publishing agreement that's been put in front of you.
The Liveunsigned.com blog recently posted a great article about this, and here's an excerpt oregarding the things you should be concerned with before you add your John Hancock to the agreement.
1. Is there an advance? Some publishers offer a good advance, but make sure that you are not signing with a company purely for this reason, you need to think about whether the deal is good for you in the long term.
2. Is it an exclusive agreement? Many companies who arrange publishing deals for sync licenses are non-exclusive (for example Sentric or Music Dealers), but most conventional publishing deals are exclusive for a specific amount of time.
3. What is the split? This is the amount that goes to you and the amount that goes to the publisher. For example this can be 50/50 or 70/30 in your favour. You should get at least 50% but ideally more.
4. Is your publisher the same company as your record company? This can be seen as a conflict of interests, giving the publisher/record label too much control. Even worse than this are the current 360 deals where bands allow record companies to control merchandise, live revenue, publishing and other revenue streams. Bands are often pressured to sign these for an advance but they can do serious damage to your career in the long term.
5. How many territories does the publishing deal cover? Is it just for your country or for the whole world?
6. Is there a minimum delivery commitment? This is the amount of songs you have to deliver during the time of the contract, usually around 10 songs a year. However if you only write 50% of a song (because you're co-writing with others), you might have to write 20 songs to deliver the same amount of material to your publisher.
7. What is the term of the contract? The term is the length of time the contract covers, it could be months or it could be for decades.
8. Have they a proven record of getting sync deals? Ask to see what sync deals (for TV, Games, Adverts etc) that they have recently done for their clients. This is an area where there is a serious revenue and you need to see a proven record for success in this area before signing anything.
9. Are you a priority for the publisher? If the publisher has many similar writers to you is your music really going to get the push it deserves?
10. Is it a full publishing agreement? With this agreement the income is collected by the company then split between publisher and writer. The publisher owns the copyright on the song in this case.
11. Is it a co-publishing agreement? Here the writer receives their percentage as before but the writer also receives a percentage of the publisher’s share. This allows songwriters to receive an amount of the publisher’s share (as they are part publisher and writer), co-own the song and receive an overall greater percentage.
12. Is it an administration agreement? Here the writer does not give up any copyright up on the song, the publisher acts simply as an administrator collecting revenues for a percentage of the amount. These deals are less likely to be offered to artists who are unknown as there is less income for the publisher.
13. Can you speak to some of their current clients? If possible ask to speak to some writers who are already working with the company and see what they think. Try and find out if the company pays royalties on time and how they treat their writers.
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Monday, November 14, 2011
The Big 4 Become The Big 3...Maybe
Citibank finally found a buyer for EMI and it wasn't Warner Bros, like everyone expected. The venerable company was sold to two companies, in fact - Universal Music and Sony Music. Universal bought the recorded music assets (basically the record company) for $1.9 billion, while Sony purchased the much more lucrative publishing assets for $2.2 billion.
But before the ink is dry on the agreements there's trouble brewing for this deal. European regulators (who are much more aggressive than their American counterparts) have already signaled that they will do whatever they can to block the deal, believing that Universal is already too big and adding another huge piece of the music industry will be just way too much of a monopoly.
The interesting part of the deal is that Sony didn't supply all the money and instead used a network of partners that include an Abu Dhabi investment fund, Blackstone, Guggenheim Partners, UBS Investment Bank and several others. Sony will manage the business under its Sony ATV publishing business, which already owns or administers the publishing rights to 750,000 songs, including The Beatles catalog. What they would gain from EMI is a catalog that contains 1.4 million titles including standards like "Over the Rainbow," and Singing in the Rain."
So let's say that the deal does eventually go through. What are the potential ramifications for the musician and consumer? Like with all purchases of this type, there is some good along with some bad, so here are a few things just off the top of my head.
"This is a very positive development and I particularly welcome the fact that EMI will once again be owned by people who really do have music in their blood," he said in a Guardian article.
Now the rest of us can just sit back and wait to see if the deal actually happens.
But before the ink is dry on the agreements there's trouble brewing for this deal. European regulators (who are much more aggressive than their American counterparts) have already signaled that they will do whatever they can to block the deal, believing that Universal is already too big and adding another huge piece of the music industry will be just way too much of a monopoly.
The interesting part of the deal is that Sony didn't supply all the money and instead used a network of partners that include an Abu Dhabi investment fund, Blackstone, Guggenheim Partners, UBS Investment Bank and several others. Sony will manage the business under its Sony ATV publishing business, which already owns or administers the publishing rights to 750,000 songs, including The Beatles catalog. What they would gain from EMI is a catalog that contains 1.4 million titles including standards like "Over the Rainbow," and Singing in the Rain."
So let's say that the deal does eventually go through. What are the potential ramifications for the musician and consumer? Like with all purchases of this type, there is some good along with some bad, so here are a few things just off the top of my head.
- Universal becomes far bigger than the next biggest major, which is Sony. They'll be able to dictate to the rest of the business because of their sheer size, for better or worse.
- A new digital music company will find it easier to get licenses because there will be one fewer major to deal with.
- Artists will have one less label to go to if they wish to be on a major.
- What's going to happen to the legendary Abbey Road studios and Capitol building and studios? Will they be sold or run differently? I don't know about you, but this scares me the most.
- How much is it going to sting the UK business community that their only major record label (EMI) was purchased by a French company (Vivendi, which owns Universal)?
"This is a very positive development and I particularly welcome the fact that EMI will once again be owned by people who really do have music in their blood," he said in a Guardian article.
Now the rest of us can just sit back and wait to see if the deal actually happens.
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You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
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Labels:
Citibank,
EMI,
Sony Music,
Universal Music Group
Sunday, November 13, 2011
Pensado's Place #44
I don't usually cross-post with my Big Picture production blog, but the following video has elements that are relevant to both Music 3.0 and recording.
I had the pleasure to be on mixer extraordinaire Dave Pensado's great webcast, Pensado's Place, the other day. On the show we talked about everything from the state of the music business to some social media for musicians and engineers to even some technical stuff about recoding and 5.1 mixing. Check it out. And thanks again, Dave!
I had the pleasure to be on mixer extraordinaire Dave Pensado's great webcast, Pensado's Place, the other day. On the show we talked about everything from the state of the music business to some social media for musicians and engineers to even some technical stuff about recoding and 5.1 mixing. Check it out. And thanks again, Dave!
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You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
Labels:
music business,
Pensado's Place,
social media,
video
Thursday, November 10, 2011
The Ringtone Business Is Still Alive
I'm always amazed at just how long a dying business can hang on. Take the cassette for instance. You can still buy blank cassettes, get mass duplication services and even buy brand new pre-recorded product even in 2011. And in these days of widespread broadband, AOL still has a billion dollar business in the ancient dial-up services (remember modems?). And that's not even mentioning the DVD.
Which is why it should be no surprise that the ringtone business is still alive and well. Don't get me wrong, it's not increasing at all, but it's far from dead and buried.
This was all brought home by a recent Gartner study on recorded music that predicts, among other things, that digital music services will become an almost $8 billion piece of the music industry by 2015. But if you look closely at the chart on the left from that study, you'll find an interesting item called "Personalization Services." What the heck is that, you may be thinking? Well, glad you asked.
Personalization Services is their shorthand for ringtones and ringbacks, which as you can see, is still a $2.1 billion business in 2011. Just think about that for a moment. 4 or so years after the ringtone fad passed us by, people are still buying ringtones - a lot of them. Years after a wide variety of software has made it so easy for the average user to make their own ringtones, some people are still buying them instead. $2.1 billion dollars worth!
Gartner goes on to say that in 2015 they predict the now lowly CD will still garner $10 billion worth of business (see yesterday's blog for more on the current CD business), while ringtones will fall to about a bill and a half. Once again, this proves the point - don't be fooled into thinking that a business or technology is dead and gone just because the numbers are trending downhill and the press has deemed it passe. There's much more life (and dollars) left in those so-called dead technologies than you'd ever believe was possible.
Which is why it should be no surprise that the ringtone business is still alive and well. Don't get me wrong, it's not increasing at all, but it's far from dead and buried.
This was all brought home by a recent Gartner study on recorded music that predicts, among other things, that digital music services will become an almost $8 billion piece of the music industry by 2015. But if you look closely at the chart on the left from that study, you'll find an interesting item called "Personalization Services." What the heck is that, you may be thinking? Well, glad you asked.
Personalization Services is their shorthand for ringtones and ringbacks, which as you can see, is still a $2.1 billion business in 2011. Just think about that for a moment. 4 or so years after the ringtone fad passed us by, people are still buying ringtones - a lot of them. Years after a wide variety of software has made it so easy for the average user to make their own ringtones, some people are still buying them instead. $2.1 billion dollars worth!
Gartner goes on to say that in 2015 they predict the now lowly CD will still garner $10 billion worth of business (see yesterday's blog for more on the current CD business), while ringtones will fall to about a bill and a half. Once again, this proves the point - don't be fooled into thinking that a business or technology is dead and gone just because the numbers are trending downhill and the press has deemed it passe. There's much more life (and dollars) left in those so-called dead technologies than you'd ever believe was possible.
-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
Labels:
cd's not dead,
Gartner,
personalization services,
ringtones
Wednesday, November 9, 2011
Major Labels To Abandon The CD in 2012?
There's a story being posted on news sites around the Internet with a headline similar to "CD Format To Be Abandoned By Major Labels By The End Of 2012." While it might make for a great headline, it's simply not true, and I'll tell you why in a minute.First of all, let's look how this story got traction. The whole thing started with a small electronic music record label from Brussels called Alfa Matrix, and an article in their official magazine. In it's first issue from June 2011, editor Bernard Van Isacker said the following when asked if a CD would still exist in 5 years:
"Yes, but in a different format. Normal CDs will no longer be available because they don't offer enough value, limited editions on the other hand will remain available and in demand for quite a few more years. I for one buy only limited editions because of the added value they offer: a nice design, extra bonus gadgets, etc. The album as we know it now however will be dead within 5 years, if it isn't even sooner. I predict that downloads will have replaced the CD album within the next 2 years. I don't see that as something negative, it just has run its course, let's leave the space to limited editions (including vinyl runs for bigger acts) and downloads instead."There's certainly a lot of truth to what he said, but his comments started the viral train rolling, which was soon picked up by the influential TechCrunch, who posted:
"It's a move that makes completely sense. CD's cost money, even when they don't sell because there is stock storage to be paid; a label also pays money to distributors when CDs get returned to the labels when not sold and so on. In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of it and no longer focus on the distribution (since aggregators will do the work as far as dispatching the releases to services worldwide) and - expensive - stock maintenance. In the long run it will most surely mean the end for many music shops worldwide that only stock and sell CD releases. In the UK for instance HMV has problems paying the labels already and more will follow. It makes the distribution of CDs no longer worth it."Before you know it, this was picked up almost as a foregone conclusion about the future even by the traditional press.
But as much as the doomsayers might like for it to happen, CDs just won't go away that soon. Why? Because last year 130 million CDs were sold in the US alone for one thing. It's still at least 50% of a record labels business and certainly the most profitable in terms of margin. What's more, there has been 20 straight weeks of increased store sales, according to Soundscan, something that hasn't happened since 2004. CDs are still a huge business that just isn't falling off a cliff at the rate that some might have you belive.
So don't believe the hype, the CD may be on a death spiral but it's not dead yet and won't be any time soon. In 5 years we may be having a different conversation, but the shiny piece of plastic still has some life in it left.
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You should follow me on Twitter for daily news and updates on production and the music business.
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Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
Tuesday, November 8, 2011
How To Set Up A Google+ Band Page
Finally Google+ now makes it possible to set up an artist, band or brand page. This isn't as cool as it could be, since the customization possibilities are still limited, but it's still way better than the personal pages that everyone had to have prior to November 7th.
Here's what you do to get started (thanks to Mashable for the list):
1. Sign in to your Google account and then head to http://www.google.com/+/business/.
2. Pick a Category.
You now have to select which category you fit into. This one might be a little difficult in that so many categories can fit. As you'll see in number 3, each main category has subcategories that conceivably could work if you're into the many areas of music that exist.
3. Add Info
Enter your band or business name and website info, then select the subcategory that suits you best. These sub-categories are dependent on the main category you choose. If you're a band, you can use "Music Band" under the Entertainment category. On the other hand, you might want to be classified under "Celebrity", "Arts and Entertainment" or "Music" under the Product or Brand category. It's too early to know if this selection will make any difference at all in your traffic.
On the same page, select who can view your Google+ profile. The default is any Google user, or you can restrict this to 18 and older or 21 and older.
4. Add A Tagline and Photo
You have only 10 words to summarize your business, then you can add an image. Describing what you do in 10 words is actually a pretty good test of nailing the true essence of who you are and what you do.
5. Get the Word Out
At this point, Google offers you the ability to tell your personal Google+ circles about your new business page.
6. You're done!
On your new welcome page, Google generates a link to your Plus page (which is a string of random characters instead of a vanity URL). You can also get a Google+ button for your site. It's now up to you to start adding people to circles (different to personal pages, the defaults include "team members," "customers," and "VIPs") and get posting.
Now I must say that I've tried a few times today to create a page for one of my blogs without success. I kept on getting an error that never said what was actually wrong with the data that I entered. That said, most people haven't had trouble creating their own brand, band or business page, so go to it. Now is the best time.
Here's what you do to get started (thanks to Mashable for the list):
1. Sign in to your Google account and then head to http://www.google.com/+/business/.
2. Pick a Category.
You now have to select which category you fit into. This one might be a little difficult in that so many categories can fit. As you'll see in number 3, each main category has subcategories that conceivably could work if you're into the many areas of music that exist.
3. Add Info
Enter your band or business name and website info, then select the subcategory that suits you best. These sub-categories are dependent on the main category you choose. If you're a band, you can use "Music Band" under the Entertainment category. On the other hand, you might want to be classified under "Celebrity", "Arts and Entertainment" or "Music" under the Product or Brand category. It's too early to know if this selection will make any difference at all in your traffic.
On the same page, select who can view your Google+ profile. The default is any Google user, or you can restrict this to 18 and older or 21 and older.
4. Add A Tagline and Photo
You have only 10 words to summarize your business, then you can add an image. Describing what you do in 10 words is actually a pretty good test of nailing the true essence of who you are and what you do.
5. Get the Word Out
At this point, Google offers you the ability to tell your personal Google+ circles about your new business page.
6. You're done!
On your new welcome page, Google generates a link to your Plus page (which is a string of random characters instead of a vanity URL). You can also get a Google+ button for your site. It's now up to you to start adding people to circles (different to personal pages, the defaults include "team members," "customers," and "VIPs") and get posting.
Now I must say that I've tried a few times today to create a page for one of my blogs without success. I kept on getting an error that never said what was actually wrong with the data that I entered. That said, most people haven't had trouble creating their own brand, band or business page, so go to it. Now is the best time.
-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.
Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.
Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.
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