Found an interesting article about a student run record label at USC... a coincidence? I think not.
Rock!
Daily Trojan
http://media.www.dailytrojan.com/media/storage/paper679/
news/2008/04/10/Lifestyle/Usc-Student.Record.Label.Strikes.
Through.With.L.a.Bands-3315951.shtml
4.16.2008
Blogs are... Record Labels?
As it has become obvious that the major labels have begun to lose traction in the industry, it is also realistic to point out that independent labels have continued to grow as their digital marketing and distribution efforts can not reach more people than ever before. So if the major label shrink, and the indie’s grow, then what happens to the void left by the indie’s as they move up the ladder? While it is feasible to say that more and more smaller and localized labels will begin, and have begun, to pop up all over the country, there is a new trend that Gerd Leonhard has pointed out as being the next wave in user filtered reviews and referrals. As it has been coined, the blogesphere, or the community of fans that write and update their own personal music blogs, in addition to the more professional services, the most well know being Pitchfork Media, has begun to create a new model that in Gerd’s view is about to change not only how users find music, but how music is distributed, produced, marketed, and discovered. In essence, he believes that blogs are the future record labels.
Seem far-fetched? It did to me at first, but when you actually begin to consider the value that a blog has to offer, it begins to make sense. After all, with much of today’s music available all over the Internet, it is increasingly simple for any fan to find any music by any artist that they so desire. At the same time, web applications and sites have made it easy for anyone to self-publish their own reviews, referrals, and even playable music widgets with their own track list. These resources have made bloggers not only some of the most informed fans, but also the most technologically advanced reporters that can make use of any media and from any device. Just as fans have begun to look to these people for the best advice on new music, it has become more and more feasible for a well-known blog to have the ability to break an artist by simply writing a positive review. Especially within genre-specific blogs, this has become a valuable resource for A&R people all over the country. If this is the case, and such bloggers have access profitable sponsorships and other revenue sources, than who is to say that they cannot become a record label tied into the blog itself? All of the pieces are there: distribution, marketing, a loyal audience, and with a little extra capital obtained through ad revenue or brand sponsorships, even the ability to produce new content. Seem real yet?
The fi
rst and possibly most important asset that blogs and their respective bloggers have to offer is their loyal viewer base. Because the of the capabilities of the Internet and the spreading use of RSS feeds and readers, any person with Internet access can receive all of their own personalized news the minute it gets published. This means that any person that subscribes to a feed will receive all of the news and content provided by the blogger: and for bloggers, this means a built in audience that is passionate and responds well to the subject of the blog. What does this mean for a blog-label?
And by what medium will all of this content be delivered to the reader? The blogger’s weapon of choice, the widget, has become a widely used device by which media can be delivered, information can be provided, and can even be used as a revenue generating source through the use of target ads and sponsorships. As Gerd describes,
What does this mean for the rest of the music industry and its traditional approach? How about utilize the blogs and the resources they provide? As the article puts it, “Look at bloggers as you next A&R people” (par 13). If labels were smart, and thankfully some have wizened up to the ways of the ‘net, then they wouldn’t shun the sharing of music on such sites, even if no one is getting paid, but they should use them to discover the new trends, new bands, and new ways that listeners interact with their media.
The best thing that ever happened to DIY was the blog, as it allows fans to promote their favorite artists and even help their new local heroes find new audiences. It has created the “me” generation of fans: “My taste, my list, my ears, my audience, my artists, my network i.e.... you guessed, it, my record label” (par 4).
Leonhard, Gerd. "Future Stories #1: Blogs will be Record Labels, and Bloggers will be the new Music Moguls. BlogJs anyone?." MediaFuturist 08 Apr 2008 14 Apr 2008.
Seem far-fetched? It did to me at first, but when you actually begin to consider the value that a blog has to offer, it begins to make sense. After all, with much of today’s music available all over the Internet, it is increasingly simple for any fan to find any music by any artist that they so desire. At the same time, web applications and sites have made it easy for anyone to self-publish their own reviews, referrals, and even playable music widgets with their own track list. These resources have made bloggers not only some of the most informed fans, but also the most technologically advanced reporters that can make use of any media and from any device. Just as fans have begun to look to these people for the best advice on new music, it has become more and more feasible for a well-known blog to have the ability to break an artist by simply writing a positive review. Especially within genre-specific blogs, this has become a valuable resource for A&R people all over the country. If this is the case, and such bloggers have access profitable sponsorships and other revenue sources, than who is to say that they cannot become a record label tied into the blog itself? All of the pieces are there: distribution, marketing, a loyal audience, and with a little extra capital obtained through ad revenue or brand sponsorships, even the ability to produce new content. Seem real yet?
The fi
rst and possibly most important asset that blogs and their respective bloggers have to offer is their loyal viewer base. Because the of the capabilities of the Internet and the spreading use of RSS feeds and readers, any person with Internet access can receive all of their own personalized news the minute it gets published. This means that any person that subscribes to a feed will receive all of the news and content provided by the blogger: and for bloggers, this means a built in audience that is passionate and responds well to the subject of the blog. What does this mean for a blog-label? They will use their blogs as the primary attention channel (yes – attention really is the new distribution) and will dish up a complete, interactive and highly relevant multi-media experience that will include TV shows, chats, webcasts and games. Forget about 'websites' and browsers - the BlogJs will do it on all platforms and devices” (Leonhard par 1).Not only do these news feeds automatically attract attention for regular users, but they also act as a way to distribute the music. While a normal record label may able to reach more physical retailers than a blog, or at least we sure hope they can, it is still much more difficult to attract the attention without spending a large sum of money on marketing and advertising efforts across multiple media platforms. Though it can be argued that a blog’s reach is only as far as the Internet and the readers it attracts, it must be pointed out that generally, if a reader has subscribed to such a blog and trusts its opinions and relies on it for new music and media, than it is also true that these readers are more likely to pick up on the output of that blog. In other words, a blog may offer a smaller radius of influence to a potential artist, but the likelihood that this form of marketing and distribution will be more effective is very high.
And by what medium will all of this content be delivered to the reader? The blogger’s weapon of choice, the widget, has become a widely used device by which media can be delivered, information can be provided, and can even be used as a revenue generating source through the use of target ads and sponsorships. As Gerd describes,
Widgets will continue to become instant, ubiquitous mini-site modules that will allow anyone to re-distribute any kind of content, to any device and any platform, anywhere. Most marketing will be done through and with the users - and some of them will get paid for it, too” (par 2).Just as it was described above, these widgets, in conjunction with RSS feeds, will be able to distribute content, market an artist, and even allow the creator to be paid as they track usage. As described in the article, partnerships through a sponsor can be used to generate revenue through a similar ad model that free music services are using now. Though there is one major difference: these sponsors will be able to target the audience that is most likely to buy their product by backing a blog that attracts a similar audience. In other words, “These ads will pay as much as $5 per click-thru (CPT), with major brands 'sponsoring' music blogs that fit their exact brand vision” (par 10). What does this mean for the bloggers? They can charge a premium for a more targeted audience, which means a better return rate for the sponsor. This money can then be used to help artists produce new material for distribution exclusively through the site, therefore only boosting attention for the blog and the artist. And the best part? They are available on all platforms so that no user will be restricted just to a computer screen, but will also be able to access what they want, when they want.
What does this mean for the rest of the music industry and its traditional approach? How about utilize the blogs and the resources they provide? As the article puts it, “Look at bloggers as you next A&R people” (par 13). If labels were smart, and thankfully some have wizened up to the ways of the ‘net, then they wouldn’t shun the sharing of music on such sites, even if no one is getting paid, but they should use them to discover the new trends, new bands, and new ways that listeners interact with their media.
The best thing that ever happened to DIY was the blog, as it allows fans to promote their favorite artists and even help their new local heroes find new audiences. It has created the “me” generation of fans: “My taste, my list, my ears, my audience, my artists, my network i.e.... you guessed, it, my record label” (par 4).
Leonhard, Gerd. "Future Stories #1: Blogs will be Record Labels, and Bloggers will be the new Music Moguls. BlogJs anyone?." MediaFuturist 08 Apr 2008 14 Apr 2008
4.02.2008
The Future of Music: Is Here
Back in 2005, Gerd Leonhard and David Kusek predicted what they thought the music industry would like by the end of the decade. Looks like their predictions will come true even sooner than they thought.
In their book, they described a music industry in which music flowed “like water” and was paid for as if it were a utility. In their view, music would no longer be a product, but a service that would draw in the consumer and prompt them to participate in other revenue streams such as merch, live events, street team membership fees, and etcetera. In addition, the direct consumers, or the ones downloading (because who would continue buying physical CDs when digital songs would be easier to access, available for use and any and all media players, and most importantly, free) would not actually be paying for anything, but instead, a variety other companies would be paying. The music might be supported by ads, or including in the bill for internet service, or even bundled with physical products, such as a phone, computer, or iPod (because let’s be honest, d
oes any body really have a Zune?). This money would be compiled in a pool, so they said, that would be split among the distributors, the labels, the creators, and on down the list. The Future of Music wouldn’t be about dictating prices, adhering to outdated copyright laws, or encoding songs with DRM, but more about losing control and letting the consumers get what they want, when they want, and where they want it. They preach a culture of change, in which music companies (and any company that cares about making a profit in any industry) will have to adapt if they want to survive.
In a recent article published on Portfolio.com, all of Gerd and David’s dreams have started to take shape in the form of Warner Music Group’s new project that is being directed by Jim Griffin, former digital chief at Geffen Music. In the simple form, the project has been described as a way for consumers to obtain music in a manner that is unobstructed and easy to access: “Consumers will pay a monthly fee, bundled into an internet-service bill in exchange for unfettered access to a database of all known music” (Gustin par 2). So let me get this straight, I’ll pay for my internet access like I always have, and in addition I’ll get access to all of the music I could ever want. Kusek/Leonhard 1, traditionalists 0.
The next point that the article brings up is the issue of how government regulations have affected (or have failed to affect) the growth of illegal downloading. But more importantly than this, after it became obvious that such downloading wasn’t going to stop, there was never a successful attempt at amending either the copyright law, or adjusting/creating a new license that would allow music to be used in this way, but also to make sure that money flowed to where it was deserved. As the article describes, “digital music seers have argued the rise of such networks has made copyright law obsolete and free music distribution universal” (par 5). While this is a valid point, the reasonable counterpoint would be, where the (insert expletive here) have you been for the last decade? Okay, maybe that’s not quite a reasonable response, but in essence, the point will still remain that almost all, if not all, of the biggest music companies failed to adapt, experiment with a new model, or embrace the changes that were occurring. Blame it on the causes that you will, but now that nothing has been done, these companies have been, and will continue to suffer until something substantial is done about it. Kusek/Leonhard 2, traditionalists 0.
The next point, and one of the more promising realizations that Griffin and his team have expressed, is that the way things are being done now will no longer suffice for the future. As he explains, “we’re swinging toward the vine of music as a service. We need to get ready to let go and grab the next vine, which is a pool of money and a fair way to split it up, rather than controlling the quantity and destiny of sound recordings” (par 9). While Griffin may sound like quite a business genius, it is very obvious that Kusek and Leonhard pointed this out in their book more than three years ago. Yes change will be slow, but at this rate, will it ever be accomplished? While I’m skeptical about the major labels’ ability to make such large changes, the idea still remains that all of these companies are losing control. They will no
longer benefit from using DRM or attempting to keep their music within their own distribution channels. It is simply too large a task to control all of their music’s use, let alone virtually impossible to stop such use from happening. Instead, as Griffin stated, these companies will need to stop wasting so much energy on cracking down on illegal downloading, and start using that energy to figure out the best way to implement a new plan, and then how they will split up the money accordingly. Kusek/Leonhard 3, traditionalists 0.
The final point that is worth mentioning comes from Griffin himself as he describes the goals of creating a music “utility” that will be bundled with some sort of fee. “Ideally, music will be free” (par 19). While speculation on how these fees will be paid and by who, either way, the consumer wins and music companies get a sizeable return, and isn’t that the most important part? And who’s to say that there couldn’t be a combination of companies paying the fees? Some websites could use an advertising model, where in exchange for watching or receiving a few advertisements, users would get the music they want for free. Also, the article comments on the possibility of iTunes’ model, in which in buying an iPod or other media device, customers would automatically get access to a trusted music supplier and all the music has to offer. Finally, the ISP model, in which the fee is built into the service, could be added to the pot as well. If you were to combine all of these models so that each takes part, in which the ISPs only charge a dollar or two per month, Apple only increases the prices of their players by a few dollars, and more advertisements become integrated with the material, the overall toll on the listeners would minimal, if noticeable at all. Kusek/Leonhard … I think you get the picture.
While music is more important and more widely used than ever been before, music companies seem to be complaining more than ever as well. While some of their complaints about fair use and legal rights and yada yada yada seem to be legitimate, the point is, they had their chance, and now the consumer is going to do what they will until they get want they want. Kusek and Leonhard had it right the whole time, and if anything, the industry should look to their latest work to figure out what might happen next… (ad support at work).
Gustin, Sam. "Fee For All: Jim Griffin Will Lead Warner Music's Fight To Tame The Web's Lawless Music Frontier." Portfolio.com 27 Mar 2008 01 Apr 2008.
In their book, they described a music industry in which music flowed “like water” and was paid for as if it were a utility. In their view, music would no longer be a product, but a service that would draw in the consumer and prompt them to participate in other revenue streams such as merch, live events, street team membership fees, and etcetera. In addition, the direct consumers, or the ones downloading (because who would continue buying physical CDs when digital songs would be easier to access, available for use and any and all media players, and most importantly, free) would not actually be paying for anything, but instead, a variety other companies would be paying. The music might be supported by ads, or including in the bill for internet service, or even bundled with physical products, such as a phone, computer, or iPod (because let’s be honest, d
oes any body really have a Zune?). This money would be compiled in a pool, so they said, that would be split among the distributors, the labels, the creators, and on down the list. The Future of Music wouldn’t be about dictating prices, adhering to outdated copyright laws, or encoding songs with DRM, but more about losing control and letting the consumers get what they want, when they want, and where they want it. They preach a culture of change, in which music companies (and any company that cares about making a profit in any industry) will have to adapt if they want to survive.In a recent article published on Portfolio.com, all of Gerd and David’s dreams have started to take shape in the form of Warner Music Group’s new project that is being directed by Jim Griffin, former digital chief at Geffen Music. In the simple form, the project has been described as a way for consumers to obtain music in a manner that is unobstructed and easy to access: “Consumers will pay a monthly fee, bundled into an internet-service bill in exchange for unfettered access to a database of all known music” (Gustin par 2). So let me get this straight, I’ll pay for my internet access like I always have, and in addition I’ll get access to all of the music I could ever want. Kusek/Leonhard 1, traditionalists 0.
The next point that the article brings up is the issue of how government regulations have affected (or have failed to affect) the growth of illegal downloading. But more importantly than this, after it became obvious that such downloading wasn’t going to stop, there was never a successful attempt at amending either the copyright law, or adjusting/creating a new license that would allow music to be used in this way, but also to make sure that money flowed to where it was deserved. As the article describes, “digital music seers have argued the rise of such networks has made copyright law obsolete and free music distribution universal” (par 5). While this is a valid point, the reasonable counterpoint would be, where the (insert expletive here) have you been for the last decade? Okay, maybe that’s not quite a reasonable response, but in essence, the point will still remain that almost all, if not all, of the biggest music companies failed to adapt, experiment with a new model, or embrace the changes that were occurring. Blame it on the causes that you will, but now that nothing has been done, these companies have been, and will continue to suffer until something substantial is done about it. Kusek/Leonhard 2, traditionalists 0.
The next point, and one of the more promising realizations that Griffin and his team have expressed, is that the way things are being done now will no longer suffice for the future. As he explains, “we’re swinging toward the vine of music as a service. We need to get ready to let go and grab the next vine, which is a pool of money and a fair way to split it up, rather than controlling the quantity and destiny of sound recordings” (par 9). While Griffin may sound like quite a business genius, it is very obvious that Kusek and Leonhard pointed this out in their book more than three years ago. Yes change will be slow, but at this rate, will it ever be accomplished? While I’m skeptical about the major labels’ ability to make such large changes, the idea still remains that all of these companies are losing control. They will no
longer benefit from using DRM or attempting to keep their music within their own distribution channels. It is simply too large a task to control all of their music’s use, let alone virtually impossible to stop such use from happening. Instead, as Griffin stated, these companies will need to stop wasting so much energy on cracking down on illegal downloading, and start using that energy to figure out the best way to implement a new plan, and then how they will split up the money accordingly. Kusek/Leonhard 3, traditionalists 0.The final point that is worth mentioning comes from Griffin himself as he describes the goals of creating a music “utility” that will be bundled with some sort of fee. “Ideally, music will be free” (par 19). While speculation on how these fees will be paid and by who, either way, the consumer wins and music companies get a sizeable return, and isn’t that the most important part? And who’s to say that there couldn’t be a combination of companies paying the fees? Some websites could use an advertising model, where in exchange for watching or receiving a few advertisements, users would get the music they want for free. Also, the article comments on the possibility of iTunes’ model, in which in buying an iPod or other media device, customers would automatically get access to a trusted music supplier and all the music has to offer. Finally, the ISP model, in which the fee is built into the service, could be added to the pot as well. If you were to combine all of these models so that each takes part, in which the ISPs only charge a dollar or two per month, Apple only increases the prices of their players by a few dollars, and more advertisements become integrated with the material, the overall toll on the listeners would minimal, if noticeable at all. Kusek/Leonhard … I think you get the picture.
While music is more important and more widely used than ever been before, music companies seem to be complaining more than ever as well. While some of their complaints about fair use and legal rights and yada yada yada seem to be legitimate, the point is, they had their chance, and now the consumer is going to do what they will until they get want they want. Kusek and Leonhard had it right the whole time, and if anything, the industry should look to their latest work to figure out what might happen next… (ad support at work).
Gustin, Sam. "Fee For All: Jim Griffin Will Lead Warner Music's Fight To Tame The Web's Lawless Music Frontier." Portfolio.com 27 Mar 2008 01 Apr 2008
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