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Showing posts with label Future of Music Coalition. Show all posts
Showing posts with label Future of Music Coalition. Show all posts

Friday, August 1, 2014

5 Lessons For The Music Industry From "Weird Al" Yankovic

5 Lessons For The Music Industry From "Weird Al" Yankovic

By Kevin Erickson from Future of Music Coalition.

Last week, beloved musical humorist “Weird Al” Yankovic dropped his new album Mandatory Fun. Propelled by a set of eight viral videos, it quickly rose to the top spot on the Billboard charts, his first ever #1, with over 104,000 album sales. Al recently told the New York Times, “I wasn’t thinking, ‘Oh, I’m on the bleeding edge of marketing, this is going to be a business model that will change the world.” But as a longtime (possibly obssessive?) fan of Al, I’d suggest there’s still a few things we can learn from him.

1. Exclusivity can matter.

Let’s say you are launching a new album with eight new videos. The obvious first place to go to premiere them would be the world’s largest video site, YouTube, right? Well, while Al’s new crop of videos will all end up on YouTube eventually, Al didn’t choose to launch most of them them there initially. Instead, he struck partnership deals with a bunch of different websites for exclusive premieres. As Al described in a somewhat bizarre interview with Fox Business’s Stuart Varney, Al got sites like Yahoo, College Humor, Funny or Die, and Nerdist to pay production costs of videos in exchange for the exclusives. These sites benefit from extra traffic and ad revenue, while Al gets their extra promotional muscle in a different corner of the online world. And getting these third parties to pick up video costs means that Al’s label RCA isn’t paying for it either, meaning the record will potentially recoup faster.

This runs counter to a currently popular notion that the best thing an artist can do is have all of their content in as many different places as possible as soon as it’s released. (To be fair, the album itself is on the major on-demand streaming services, but you wouldn’t know that from Al’s website, which is set up to direct fans to download stores and direct-to-fan physical sales, presumably because the value of those purchases is higher.) And, while most artists aren’t going to have the kind of leverage to be able to get a whole bunch of popular sites to pay for their videos, an artist’s ability to decide where and when his/her music is or is not used is something that can generate serious economic value.

(Incidentally, this is one reason that certain indie labels are reportedly angered by rumored clauses in YouTube’s contracts with indies for its new streaming service disallowing “windowing” and limiting exclusives. It’s possible that if Al had been constrained by these contractual terms, he’d have been unable to launch his album this way.)

2. Fair use is great, but actual permission can enable you to do more.

“Fair use” is a provision in US Copyright law that allows for the public to use portions of copyrighted works for comment and criticism. Every time a big fair use controversy comes up in the news, particularly when its associated with a new version of a song with altered lyrics, people start making references to Weird Al’s supposed invocation of fair use, in cases ranging from Frank Ocean’s rewrite of “Hotel California” to Goldieblox’s ill-advised appropriation of the Beastie Boys‘ “Girls.”

In reality, Al doesn’t invoke fair use, but generally gets permission from the artist and songwriters and negotiates a license agreement. The writers and publishers of the original song then earn a share of royalties on sales of Al’s version. (Indeed, TMZ recently stumbled on Al asking rapper Iggy Azalea for permission backstage after her concert.)

Some commenters have speculated that Al doesn’t need permission, but asks for it anyway, just because he’s such a nice guy. But while parody is explicitly protected in fair use doctrine, one could make the case that most of Al’s song parodies may not be entirely parodic but cross a line into satire, which doesn’t enjoy the same fair use protection. Technically, parodies are supposed to comment upon the original work, but in Al’s humorous rewrites, the object of the lampooning is often not the song or artist himself/herself, but some other sociocultural phenomenon that Al is commenting on. (Exceptions might include 2011’s “Perform This Way,” a perfect deconstruction of Lady Gaga’s persona, or 1993’s Billy Ray Cyrus parody “Achy Breaky Song.”) As the Supreme Court held in Campbell v. Acuff-Rose Music:

…parody may or may not be fair use, and [the] suggestion that any parodic use is presumptively fair has no more justification in law or fact than the equally hopeful claim that any use for news reporting should be presumed fair…The Act has no hint of an evidentiary preference for parodists over their victims, and no workable presumption for parody could take account of the fact that parody often shades into satire when society is lampooned through its creative artifacts, or that a work may contain both parodic and non parodic elements. Accordingly, parody, like any other use, has to work its way through the relevant factors, and be judged case by case, in light of the ends of the copyright law.

And as attorney Rich Stim notes over at Stanford’s page on fair use, the amount of the original work that gets used has also been a factor in existing case law; Al usually uses songs in their entirety. Al’s original style parodies, where he writes original tunes but imitates the general musical style of the original acts are another matter entirely, and don’t require Al to obtain permission or any kind of license because nothing copyrightable is being appropriated. Examples include the new Pixies homage “First World Problems” or my personal favorite, the DEVO-spoofing “Dare To Be Stupid.”

3. Vinyl really is back.

You might be surprised to learn that Mandatory Fun is being released in vinyl LP format, as was its predecessor, 2011’s Alpocalypse. That was Al’s first release on vinyl since 1992’s Off The Deep End. By now everyone knows that vinyl sales are one part of the recorded music business that’s experience serious growth, reaching a 22 year record in 2013, and on track to set another record in 2014. Excitement about this growth has been tempered by an acknowledgement that it’s not enough to make up for digital declines, and it still only represents a small share of overall industry revenues.

Sure, it’s still a niche format, but it’s a niche with significant enough economic value that even singles-driven, mainstream-oriented artists like Al find it worth participating in. (Though this growth has created some challenges; the vinyl release was bumped back until August 5, quite possibly a result of the backlog at pressing plants created by all the new demand for vinyl.) Al’s always been willing to try new formats (2006’s Straight Outta Lynwood was realeased as a DualDisc), but it’s significant that even artists like Al who are deeply invested in a digitally-focused strategy see real value in analog physical media.

4. Every artist’s path is different.

Much has been made of Al’s recent speculation that this will be his last full length record—having fulfilled his contract with Sony, he’s likely to just release singles independently, so he can more quickly respond to pop hits with timely spoofs. It would be easy to extrapolate from this that “the album is dead” or “you don’t need labels anymore.”

But remember: Al is weird, and so is his career, so we have to be careful about using outliers to define “industry trends.” No one would have expected the kid with the accordion sending 4-track home-recordings to Dr Demento to have a number one album all these years later. While anyone can make a song parody and share it now, there’s not many people making a living off of song parodies, and there’s still only one Weird Al. For some artists, albums might not be the most important format, for others they’re vital. Some artists have a business model that doesn’t require label support; others find their assistance crucial. Most of the viral strategies that work for Al aren’t going to work for Godspeed You! Black Emperor, for example, even as they too are huge fans of Al’s work.

Every musician is different. Some, it turns out, are inimitable. And, yes, I’m kinda making a meta-criticism of my own blog post here. But here’s one thing that everyone can learn from Al:

5. There’s enduring value in being a really nice person.

Al is legendarily fan-friendly, and generous with his time and attention. Nearly every musician or journalist who’s ever encountered Al reports that he’s genuinely, disarmingly humble and kind, and treats his team exceptionally well, including his band and crew. (Amazingly, he’s worked with the same backing band since 1981.) He only plays all-ages shows, knowing that kids grow up into life-long fans. That accumulated goodwill pays dividends, as a generation of younger comedians clamor to make cameos in his videos, and aging fans bring their kids to shows. While only a tiny handful of musicians will have a career as successful as Al’s, that “nice guy” reputation is something anyone can aspire to e



Wednesday, September 11, 2013

The Most Important Problem The Music Business Must Solve


By David Sherbow (@MusicBizGuy) of My Life With Music.
What is the greatest problem which the new music business must solve to maintain it relevance in the future? In my humble opinion, it needs to figure out how to simply curate new music, filter it down to a small enough selection that is easily digestible and readily posted some place on the Internet, seamlessly accessible by mobile phones, where people will want to come, listen to it, own it emotionally and support it financially. When this happens, and eventually it will, the music business will be forever changed.
Artist development and new music discovery via the Internet seem to be incredibly lacking when it comes to finding a clear, defined path on which true artistic and financial success can be built. Where are artists mostly found hoping to be discovered? Major sites include Bandcamp, Bandpage, SoundCloud OurStage, Reverbnation, MTVMusic, and the new Myspace. Lesser sites include Tunezy, TastmakerX, WeAreHunted and TheSixtyOne. This list can go on forever as there are hundreds of sites out there that no one has ever heard of which have little or no traction and allegedly were built to discover new music. Streaming music services like Spotify, Grooveshark, Rdio, Deezer, Rhapsody, Songza, iHeartradio and Pandora are not in the business of new artist and new music development.
Former Topspin and now new Daisy Project CEO, Ian Rogers, made a telling point a while back when he guestimated, that the real market for serious bands and musical artists around the world was most likely in the vicinity of 30,000 serious artists making some kind of income. The Future of Music Coalition's artist revenue stream study certainly did nothing to shed any further light on whether or not this was an accurate number or what they thought the number actually was. Admittedly there are hundreds of thousands, if not millions, of people who have created profiles and posted music somewhere on Internet. At least 99% of these have no intention of ever making a career out of music. So how do we find the really good new stuff that could resonate with millions of people? This is the new music business' greatest question and it begs for an answer that no one seems to have except me.
There are lots of blogs that are more than willing to help with the curation process and which recommend new music for people to listen to on the regular. Some of them like Pitchfork actually can and do influence a large number of people to take a shot with a new song or artist. However, these trusted sources make a very small difference in the grand scheme of things. There is no longer in place a system of filtered choices and listener control. Occasionally a song or artist will pop up on YouTube, go viral and generate loads of activity and some income. If I were a talented artist, I could not reasonably rely on the fact that my music would ever go viral on YouTube and make me famous. Furthermore, all the web sites mentioned above combined have broken only a handful of new artists into the mainstream. When they actually have or lay claim that they did, there has usually been no rhyme or reason from their end for the success of those few artists.
Unfortunately, Top 40, Rhythmic and Country radio are where most people still discover their new music. This environment is carefully controlled by major labels and rarely sees a newly developed unique act because those chosen to be exploited are usually brought into the mix by major players with little vision and cookie cutter mentalities all about making money.
Very few real music business veterans are connected on a day to day basis with most of the above mentioned sites. Most have been built and are being run by technologists under 40 who have been in a band or worked in new media for a label but don't really, for the most part, understand the true mindset of a working musician and his or her actual needs nor what it's going to take in today's world to develop a casual listener into a true fan. Show me a site, any site, that has one million plus uniques a month or that has converted into paying customers a large portion of Rogers' 30,000 serious artists AND that is making more than just a little bit of money. Show me any site that has created an ecosystem for artist development and exposure that regularly spits out a stream of successful moneymaking artists and I will bow down to their genius.
I have been analyzing the music business Internet space for almost eight years. It is clear to me that there is one piece that has been completely missing: none of the alleged music discovery/artist development sites has any kind of meaningful and compelling value proposition for casual listeners that gets them to aggressively participate in a site's discovery process in large enough numbers to develop an emotional and financial bond with a particular artist to make them a successful mainstream artist who can live off their music. Without there being something substantial in it for the user why should any user change from their present course of music activity to a new one? For example, what's the Daisy Project going to do for the casual listener to make them leave Rhapsody, Pandora or Spotify?
Extremely well funded sites like Reverbnation, TopSpin, Bandpage, OurStage, Turntable.FM, Pandora and Spotify would have been bought up by now if they were really making money. None of these sites or any others that I can see have anything to do with new music content development and ownership. Content used to be king. Major labels and major publishing companies don't need to develop new content because for the time being they still control 95% of the content people want to listen to. Record promotion is broken like the rest of the traditional music business. In time, some company will figure out how it can successfully promote new music in the new music business and then the clutter overwhelming the music space will become manageable once again.
Most streaming services have access to 10-20 million songs of which only a very small percentage are listened to on a regular basis. Those songs actually listened to more than once are made up overwhelmingly by good to great songs from the past. How is the content of the future being discovered, developed and meaningfully exposed? Whomever or whatever entity figures out how to access, discover and control new and great future music content will have found the new music business' answer to the "Holy Grail."
At the beginning of this piece, I told you that I have a solution to this problem. My visionary idea for a startup has evolved over eight years of personal trial and error in the Internet music business space. Here is the link to my proposal, entitled "MusicWhirl.Com: A Weapon of Mass Music Discovery."
David Sherbow is a 35 year music business veteran, former artist manger, booking agent, indie label operator,urban independent record promoter whose companies have broken over 100 No.1 records, Internet music business entrepreneur and Adjunct Professor of Music Industry, Towson University, Baltimore, MD.

Tuesday, July 30, 2013

Musicians: How Will You Create An Epic Bundle?


Musicians: How Will You Create An Epic Bundle?
While music and merch bundles often sell well for musicians, game developers have been much more innovative with their approach to bundling games. For example, at least a few experiments have occurred in which a target amount was set that, once reached, would make the games open source or even place them in the public domain. Given the broad range of examples now available, it's worth asking yourself what would make your bundle of goods an epic release?
In the last few years, Topspin has taken the lead in facilitating music and merch bundle sales and they've long maintained that such options greatly increase revenue per sale. In the purely digital realm, BitTorrent Bundles have shown the marketing potential of free releases of music and music-related content.
Of course, bundles of music in the form of multiple physical albums for cheap from Columbia House back in the day or contemporary experiments such as Soundsupply's digital album bundles are a recurring theme of the industry.
Game Industry Leads the Way in Bundling Experimentation
But despite all this music bundling activity, game developers and associates have explored even more innovative territory. Recently the Future of Music Coalition's blog considered lessons learned from video game bundles and such initiatives as the Humble Music Bundle.
The post focuses on some of the tactics designed to increase sales of bundled goods including support for charities. It's definitely worth a look if you're into the psychology of bundling however lately I've been more interested in a related approach in which games are made open source or content is released into the public domain when a certain level of sales/donations is reached.
Likely the most outstanding example of bundles of games being made open source is that of the first Humble Indie Bundle which was offered as a pay what you want bundle with benefits to go to developers, charities or a combination as determined by the person donating.
Introduced as a form of stretch goal, when the Humble Indie Bundle hit $700,000 in donations they decided to make the games open source if they reached a million. And so they did.
Bringing Lessons from the Game Industry to Music
A more recent example is the Open Call for the Open Bundle which takes things a step further by placing game-related art and music in the public domain if a specific goal is reached. The project is still emerging and it would be nice if the people behind it were more transparent about their identity but, for our purposes, the point is that this is an excellent idea for musicians and indie labels to explore.
As an incentive to purchase, not all possible customers will be moved by the opportunity to give money towards putting music in the public domain. But in some music scenes in which music is regularly given away free or made available for remixes such an opportunity is a strong fit for the perspectives and approaches of both creators and fans.
Beyond that specific tactic, the larger idea of going beyond what you or your band can bundle as an individual act to creating bundles from multiple acts and even multiple labels is a powerful concept.
While no approach is a sure thing, especially given that it can be hard to even give music away for free, we now have an array of tactics for creating and offering bundles of music, merch and/or related content. With that in mind, the key question may well be:
How will you make your bundle epic?