HolodigmMusic.com
Valerie Walsh asks:
What the hell is going on in the music business? Is everybody fiddling as Rome burns? Is there a plan for the future?
Hartmann responds:
Welcome to The Gold Rush - The Digital Music Business
When no bag is ubiquitous all genres are viable. We have entered The Music Renaissance and the future of the Music Industry has never been brighter. The thousands of years old concert business will not evaporate because the postmodern record business has reached the end of its dominant era. The double edged sword of the Internet has cut the big four labels to their knees. It is also the instrument carving the future of recorded music. The paradigm shift is toward the artist. No longer will popular music be dictated from corporate board rooms. The next great star will rise up from the cyber-grass-roots and suddenly explode on the web. Should only the degree of affection we held for The Beatles land on a new artist, a monumental windfall could make such an act instantly famous and vastly rich in one day. Would you have stolen from Elvis or The Beatles?
It would defy the historical trajectory for such a phenomenon not to occur. If everybody with an iPod decided to purchase rather than "share" a particular song a multi million dollar fortune would be made instantly. The pursuit of this potential has a fertile garden and an army of contestants. Millions post their music online every day. This creates a giant hay stack of brass needles. Everybody with a Guitar Hero badge and a Mac can write a song and make a record. But they are not necessarily talented. The challenge is to find the golden needles among the brass. It can't be done by surfing the web. The battle is fought in the live arena.
The digital convergence has vastly expanded the core audience for music. Every song ever recorded is available online for free. Nothing can stop the tide of peer-to-peer file sharing. It is not regarded by the participants as theft. The music is "shared" for the benefit of artist and fan. They regard record companies as the enemy of the artist and they are correct in that presumption. Since the moral quotient has no consideration nothing can stop the practice. The new music industry entrepreneur must accept the fact that paying for music is a choice not a necessity.
The listening experience has come full circle. Music lovers are addressing one song at a time. They no longer have to buy ten songs they don't want to get the one they like. After all, they are not paying for it and nobody steals something he doesn't want. The record business is over, and bands must give their music away to create a following. Downloads are easy to distribute. If enough people "share" your music they will come to your gig out of curiosity.
If you have a great live act they will fall in love and buy the CD from you even though they already have the music or they wouldn't be there. If they go for a t-shirt as well good for you. They saw MTV and are aware that purchasing your merch is a gesture of admiration, affection and support. The artist and the audience are now directly linked and the new infrastructure for the monetization of music will be constructed according to this principal. The artist is the publisher, manager and label and he must own and control all income streams just to survive. Ten percent of the artists will split one hundred percent of the money.
The big four record labels will continue to shrink and ultimately become banking institutions. They will try to buy the acts that succeed. By the time the labels know what is happening the artists won't need them. Their distribution system evaporated with the brick and mortar stores. Radio has been their long time weapon of justification but everybody listens to his iPod.
There is only one template for how to pursue careers in the current environment. If you are going to turn your music into a survival mechanism you must first learn how to play the digital music business game. You must play perfectly well, have talent and get lucky to win. The process begins with education. The systems, mechanics, protocols and politics of how to get started can be found at The Holodigm. The golden needles are invited to join the revolution in the digital music renaissance. Make music your business. Make business your music. Learn how, right now at: http://www.holodigmmusic.com/.
Showing posts with label music business education. Show all posts
Showing posts with label music business education. Show all posts
Wednesday, April 28, 2010
Saturday, March 27, 2010
The Digital Music Business FAQ - What is The Holodigm? - Match 27, 2010
HolodigmMusic.com
WHAT IS THE HOLODIGM ?
The Holodigm Corporation is based in a one room cabin high in the Santa Monica Mountains. It is run entirely on volunteer and collegiate intern labor. It is also the fastest moving force in the creation of a new music industry paradigm. The central product is the first on line, audio-visual, interactive text book.
The Holodigm System provides a comprehensive training in the eight core professions of entertainment. Our online education program presents an industry overview and analysis of the systems, mechanics, protocols and politics of the contemporary music Industry. It is part higher education and part coaching and mentoring. Holodigm Society members gain access to a myriad of products and support services.
The Holodigm Seminars course provides the initial income stream, it is generating a loyal customer platform from which a myriad of production and manufacturing systems previously, provided by record companies, will be launched. The digital convergence has imposed a severe decline in the century old record business. This does not mean that the ancient concert business will suffer a similar fate. Those same digital forces, that have decimated the postmodern record business, are presently engaged in carving a new business model to address the future direction of millions of music professionals and fans.
Established in 2008, by veteran agent, manager and record executive John Hartmann, The Holodigm is an on line sanctuary for artists and entrepreneurs seeking to build careers in the music renaissance. The core demographic of our customer base is the millions of bands posting music on the Internet every day.
The infrastructure of the music industry is built around publishing, concert and record commerce. Every generation chooses a musical hero. The contest to be the one at the top of the charts generates the global music industry mechanism. As a new paradigm evolves the creative community has no template for how to launch a career. The Holodigm provides a map, strategy and method for bringing the band from the garage to the professional realm. We are the missing link in the evolution of digital and music.
With just one full time employee, and a free-lance, part-time staff of interns and professional advisers, The Holodigm has established a marketing position with its central product, The Holodigm Seminars. We have proven the profitability and scalability of our business model. An array of ancillary tools, text books, DVDs and interactive programs are in development. The on line “Songworks” and “Coaches” services will connect aspiring songwriters and bands with world class record production and song craft.
Over the next 36 months, the Company intends to replicate its success by:
• Expanding its promotional and Internet marketing strategy
• Increasing the on line content for The Holodigm Music “Academy” division
• Developing enrollment in The Holodigm Music “Society”division
• Continuing to develop the Holodigm Music “Media” division
• Creating reciprocal trade agreements with the primary music manufacturers.
• Building the infrastructure to provide full time Web rejuvenation and repair.
The business model leverages an extremely large industry with enormous systems that will not expire from the loss of one of its components. All economies considered equal, digimodernization will turn out to be a great thing for the entertainment industry.
The advent of free music and low cost infrastructure has brought the extant universal library of music to the widest audience in history. Collegiate level education in music and business is creating a higher standard and it will produce a music renaissance.
WHAT IS THE HOLODIGM ?
The Holodigm Corporation is based in a one room cabin high in the Santa Monica Mountains. It is run entirely on volunteer and collegiate intern labor. It is also the fastest moving force in the creation of a new music industry paradigm. The central product is the first on line, audio-visual, interactive text book.
The Holodigm System provides a comprehensive training in the eight core professions of entertainment. Our online education program presents an industry overview and analysis of the systems, mechanics, protocols and politics of the contemporary music Industry. It is part higher education and part coaching and mentoring. Holodigm Society members gain access to a myriad of products and support services.
The Holodigm Seminars course provides the initial income stream, it is generating a loyal customer platform from which a myriad of production and manufacturing systems previously, provided by record companies, will be launched. The digital convergence has imposed a severe decline in the century old record business. This does not mean that the ancient concert business will suffer a similar fate. Those same digital forces, that have decimated the postmodern record business, are presently engaged in carving a new business model to address the future direction of millions of music professionals and fans.
Established in 2008, by veteran agent, manager and record executive John Hartmann, The Holodigm is an on line sanctuary for artists and entrepreneurs seeking to build careers in the music renaissance. The core demographic of our customer base is the millions of bands posting music on the Internet every day.
The infrastructure of the music industry is built around publishing, concert and record commerce. Every generation chooses a musical hero. The contest to be the one at the top of the charts generates the global music industry mechanism. As a new paradigm evolves the creative community has no template for how to launch a career. The Holodigm provides a map, strategy and method for bringing the band from the garage to the professional realm. We are the missing link in the evolution of digital and music.
With just one full time employee, and a free-lance, part-time staff of interns and professional advisers, The Holodigm has established a marketing position with its central product, The Holodigm Seminars. We have proven the profitability and scalability of our business model. An array of ancillary tools, text books, DVDs and interactive programs are in development. The on line “Songworks” and “Coaches” services will connect aspiring songwriters and bands with world class record production and song craft.
Over the next 36 months, the Company intends to replicate its success by:
• Expanding its promotional and Internet marketing strategy
• Increasing the on line content for The Holodigm Music “Academy” division
• Developing enrollment in The Holodigm Music “Society”division
• Continuing to develop the Holodigm Music “Media” division
• Creating reciprocal trade agreements with the primary music manufacturers.
• Building the infrastructure to provide full time Web rejuvenation and repair.
The business model leverages an extremely large industry with enormous systems that will not expire from the loss of one of its components. All economies considered equal, digimodernization will turn out to be a great thing for the entertainment industry.
The advent of free music and low cost infrastructure has brought the extant universal library of music to the widest audience in history. Collegiate level education in music and business is creating a higher standard and it will produce a music renaissance.
Thursday, February 18, 2010
Digital Music Business FAQ - The Mainstream - February 18, 2010
HolodigmMusic.com
The Mainstream
George Gavin asks:
Do you believe that as the recording industry continues to lose money, and may eventually fold, that a popular mainstream will be able to survive in the face of millions of bands and no superstar to represent them? I know you say that the music world is waiting for a superstar, but there is no guarantee it will come (I think).
Hartmann responds:
The postmodern record business is in a state of explosion. All the pieces of shrapnel are flying toward the perimeter at the speed of light. As the old reliable systems and mechanics break down confusion remains for the survivors. Massive staff cuts at the big four labels are justified by the revenues lost to peer-to-peer file sharing, a cultural phenomenon that is not going to go away.
The label A&R, publicity, promotion, video and marketing divisions barely exist. Most remaining employees are at the executive level. They are charged with "saving" the record business. But they don't know what to do and it cannot be salvaged by trying to revive the compact disk. The CD will be sold by artists to their fans and it will be more of a souvenir than a music source. Most hard copy record sales will occur as a gesture of support generated by fans at the band's live events.
When no genre is ubiquitous all genres become viable. There is no mainstream music market. Every artist must project his music and live act toward the core audience that follows his particular style and musical niche. If a band cannot dominate its genre, it will never generate crossover appeal to fans of other styles. This is actually a good thing. It means that if you are truly talented, you can market to the group most likely to embrace your music and build a following.
The record companies had their day and they abused their power. Now, neither the fans nor the bands care much about what happens to them. They will continue to shrink and eventually become licensing and downloading systems with very little infrastructure. The labels will continue to push the few artists they do sign into the radio system but as the buyers disappear selling CDs will not be a profitable enough venture to survive. Bands will sell directly to the fans.
Perhaps the digital sword will cut even deeper into the record business and all the catalogs of masters will be sold or licensed to the phone companies, ISPs or new ventures formed specifically to exploit mid level artists and old product. The superstars will probably avoid the big four labels altogether and deal directly with the distribution systems. The high cost of developing baby bands will make the labels second stage players who will try to buy acts that can succeed on their own.
Every major historical advance in the music business has revolved around a superstar emerging in synch with changes in technology. Nobody is debating that the influence of dgimodernization has had a profound effect on the music industry. The loss of a primary income stream has forced artists back to the drawing board. They must now survive the old fashioned way, by excelling at the symbiotic art and science of performing and recording. A universal star could still emerge.
It is reasonable to assume that many of the Guitar Hero fans will graduate to real instruments. With sophisticated music programs available at most universities it is logical that college kids will learn many more chords than the three Elvis Presley used to generate his career. These young musicians are not going to graduate from college and give up. Music business curricula will teach them how to market and brand their product. The realistic progression for the next era in music is that quality would rise to previously unimagined heights. From this collegiate rock movement a new universal star could rise, or not. Perhaps music itself is THE superstar of the digital age.
The Mainstream
George Gavin asks:
Do you believe that as the recording industry continues to lose money, and may eventually fold, that a popular mainstream will be able to survive in the face of millions of bands and no superstar to represent them? I know you say that the music world is waiting for a superstar, but there is no guarantee it will come (I think).
Hartmann responds:
The postmodern record business is in a state of explosion. All the pieces of shrapnel are flying toward the perimeter at the speed of light. As the old reliable systems and mechanics break down confusion remains for the survivors. Massive staff cuts at the big four labels are justified by the revenues lost to peer-to-peer file sharing, a cultural phenomenon that is not going to go away.
The label A&R, publicity, promotion, video and marketing divisions barely exist. Most remaining employees are at the executive level. They are charged with "saving" the record business. But they don't know what to do and it cannot be salvaged by trying to revive the compact disk. The CD will be sold by artists to their fans and it will be more of a souvenir than a music source. Most hard copy record sales will occur as a gesture of support generated by fans at the band's live events.
When no genre is ubiquitous all genres become viable. There is no mainstream music market. Every artist must project his music and live act toward the core audience that follows his particular style and musical niche. If a band cannot dominate its genre, it will never generate crossover appeal to fans of other styles. This is actually a good thing. It means that if you are truly talented, you can market to the group most likely to embrace your music and build a following.
The record companies had their day and they abused their power. Now, neither the fans nor the bands care much about what happens to them. They will continue to shrink and eventually become licensing and downloading systems with very little infrastructure. The labels will continue to push the few artists they do sign into the radio system but as the buyers disappear selling CDs will not be a profitable enough venture to survive. Bands will sell directly to the fans.
Perhaps the digital sword will cut even deeper into the record business and all the catalogs of masters will be sold or licensed to the phone companies, ISPs or new ventures formed specifically to exploit mid level artists and old product. The superstars will probably avoid the big four labels altogether and deal directly with the distribution systems. The high cost of developing baby bands will make the labels second stage players who will try to buy acts that can succeed on their own.
Every major historical advance in the music business has revolved around a superstar emerging in synch with changes in technology. Nobody is debating that the influence of dgimodernization has had a profound effect on the music industry. The loss of a primary income stream has forced artists back to the drawing board. They must now survive the old fashioned way, by excelling at the symbiotic art and science of performing and recording. A universal star could still emerge.
It is reasonable to assume that many of the Guitar Hero fans will graduate to real instruments. With sophisticated music programs available at most universities it is logical that college kids will learn many more chords than the three Elvis Presley used to generate his career. These young musicians are not going to graduate from college and give up. Music business curricula will teach them how to market and brand their product. The realistic progression for the next era in music is that quality would rise to previously unimagined heights. From this collegiate rock movement a new universal star could rise, or not. Perhaps music itself is THE superstar of the digital age.
Saturday, February 13, 2010
Music Business FAQ - TALENT TODAY - February, 13, 2010
HolodigmMusic.com
Talent Today
R. Monahan asks:
Do you feel that there is any one act or artist already around today that could potentially rise up to being the face of our generation or are we still waiting on that star to appear? And also, if there is not anything established yet, what genre do you believe this act will rise out of?
Hartmann responds:
Every displaced record executive in the world is dreaming and scheming about how to reinvent the music industry. But, it is not the music "industry" that is suffering. It is the record "business" that is in a stew of its own making. The concert "business" is the second, and most enduring, component of the "industry" of music. The live music business will not sustain the same long-term, deleterious damage as has befallen the record business. Regardless of cost, profit, packaging, or how it is marketed, the music industry is here to stay and will be bigger than ever.
Digimodernization has fired the shot heard round the world. The transition is in motion, the industry will adapt. The evolution of it cannot be stopped. The artist and the audience are forever connected without imposition of middle-men who may have less than artistic motives. Cross cultural communication is exploding across the Internet and music is at its forefront.
Vast digital systems are hyper-linking social networks and enabling the exchange of millions of songs and videos every day. This "sharing" of music is expanding the global audience at an accelerating rate. The net result will be an increased interest in musicians and their work. The perceived values will accrue to the artistic side and the business of music will be redefined. This progression is moving at an explosive pace and the sound it makes is music.
There are hundreds of artist and repertoire services on the Internet that all offer "expert" guidance from seasoned professionals. The problem is that the expertize they purvey almost always relates to the old paradigm. There is a distinct lack of vision about exactly how to pursue the development of new talent in the music renaissance. One thing is for certain, reliance on record companies is no longer a viable option.
Newly minted Internet entrepreneurs must function within the parameters of their personal experience. This usually means finding someone to invest in the act. With very few record companies still in the artist development business, no artists get signed until they have a strong online following. By then, the potential contribution of a label is questionable. They can't guarantee much money, because the return on investment is not secure. The 360 degree formula is yet unproven; not one single act has come to prominence under this type of arrangement.
The music industry has been forced to take a digital leap backwards in order to surge forward into the new paradigm. The record business is collapsing under the weight of it's own infrastructure. This demise of the labels does not portend the end of recording as an art form. The two primary activities of the music industry will always prevail. Recording and performing are the symbiotic partners that created the postmodern record business; and they will continue to flourish as new music is discovered and shared across the Internet. The promotion will be freely generated by the global fan base.
The development of a new system for the monetization of music will endure a myriad of possibilities and some will prevail. There is a plethora of business models, some actualized and others in development. These include subscription, advertising based and bundling concepts that despite enormous investment, can at best be considered experimental. Nobody knows how the music fans will ultimately react to the sudden freedom the world wide web has provided. Their ability to choose any amount of music, from any genre, on demand at no charge must not be taken lightly.
The concept of "free" music is very powerful and deeply entrenched in the youth culture. It will not be easy to get them to pay when they are accustomed to sharing music without fees. This makes for a low threshold for entry; but immediately raises the bar for artists reaching for square two. It is easy to get into the game, but very difficult to progress. Only the most talented will build a large enough following to sustain a career. That is the way it has always been. Only ten percent of the competitors will survive as ninety-nine percent of the money is earned by this elite group.
The first level of success is survival. Artists who reach this plateau will be competing with the best of the best. One percent of them will earn ninety percent of the money. The bands that cannot generate a following through their live performances will be doomed to keep their day jobs. Their music will become a hobby, not their business. Artists who have the talent to inspire an audience and bring them back for more will have a chance to continue in the game. This will require the appication of artistic and business skill in equal proportion. Virtuoso talent combined with good theater, trmendous desire, and enormous personal effort could still produce a monumental star.
Each new enterprise will be built around a body of music that appeals to a niche market. When no genre is ubiquitous, every genre is viable. It does not matter which style of music you perform, there is an audience for every established style and there is even room for a new genre if it should emerge. Although they all follow a similar trajectory, each career has its own signature components. They all face the same obstacles and every one has to be built up from rock bottom.
The shock wave of digimodernization has not only rocked the record business, it has fragmented the fan base. As music lovers adjust to the new found freedoms and have access to every song ever recorded, they will discover the wonders and delights of the global music pool. Within the millions of possibilities there lurks some inspired artist struggling to find his voice and direction.
Although no such artist is evident and none is on the horizon, it would defy history for a superstar not to evolve. When that phenomenon arrives everyone will learn about it on the same day. There will be a roar of acclamation and affection that will streak around the planet by instant messages, tweets and friends Facebooking friends. YouTube and MySpace will light up like Christmas trees. The new superstar's web site will crash for lack of server power; and everybody with an iPod will embrace the song and choose to pay instead of "sharing" the file. This will result in the single biggest financial windfall in the history of popular music.
A hard core fan base, who discovered this artist years previously in their home town will rise up and inspire universal support. Needless to say the unknown, subject artist will make millions of dollars that day. The impact of the event will bring world-wide attention and the acclaim will be unprecedented. At this juncture the monolithic, multi-national corporations will move in and try to capture the beast.
There will be an enormous effort to try to duplicate the process in order to seize and control the golden egg. However, the new addition to the pantheon of mega stars will already be rich and famous and have no need for unnecessary partners. The success will inspire thousands of lesser stars to compete within the infrastructure created to contain the new universally appealing musical hero. Many will emulate the style and characteristics of the messiah and a new paradigm will be born.
It will only require the same measure of identity, appreciation and personal attachment that previous generations have awarded Caruso, Valli, Sinatra, Elvis, The Beatles and Michael Jackson to turn the economic tide. The fans of these artists would not have "shared" their music for free. And, although no such star is present, or even on the horizon, history shows that such a musical force always arrives at a time just like this, a time when nobody can imagine how it could possibly happen.
Talent Today
R. Monahan asks:
Do you feel that there is any one act or artist already around today that could potentially rise up to being the face of our generation or are we still waiting on that star to appear? And also, if there is not anything established yet, what genre do you believe this act will rise out of?
Hartmann responds:
Every displaced record executive in the world is dreaming and scheming about how to reinvent the music industry. But, it is not the music "industry" that is suffering. It is the record "business" that is in a stew of its own making. The concert "business" is the second, and most enduring, component of the "industry" of music. The live music business will not sustain the same long-term, deleterious damage as has befallen the record business. Regardless of cost, profit, packaging, or how it is marketed, the music industry is here to stay and will be bigger than ever.
Digimodernization has fired the shot heard round the world. The transition is in motion, the industry will adapt. The evolution of it cannot be stopped. The artist and the audience are forever connected without imposition of middle-men who may have less than artistic motives. Cross cultural communication is exploding across the Internet and music is at its forefront.
Vast digital systems are hyper-linking social networks and enabling the exchange of millions of songs and videos every day. This "sharing" of music is expanding the global audience at an accelerating rate. The net result will be an increased interest in musicians and their work. The perceived values will accrue to the artistic side and the business of music will be redefined. This progression is moving at an explosive pace and the sound it makes is music.
There are hundreds of artist and repertoire services on the Internet that all offer "expert" guidance from seasoned professionals. The problem is that the expertize they purvey almost always relates to the old paradigm. There is a distinct lack of vision about exactly how to pursue the development of new talent in the music renaissance. One thing is for certain, reliance on record companies is no longer a viable option.
Newly minted Internet entrepreneurs must function within the parameters of their personal experience. This usually means finding someone to invest in the act. With very few record companies still in the artist development business, no artists get signed until they have a strong online following. By then, the potential contribution of a label is questionable. They can't guarantee much money, because the return on investment is not secure. The 360 degree formula is yet unproven; not one single act has come to prominence under this type of arrangement.
The music industry has been forced to take a digital leap backwards in order to surge forward into the new paradigm. The record business is collapsing under the weight of it's own infrastructure. This demise of the labels does not portend the end of recording as an art form. The two primary activities of the music industry will always prevail. Recording and performing are the symbiotic partners that created the postmodern record business; and they will continue to flourish as new music is discovered and shared across the Internet. The promotion will be freely generated by the global fan base.
The development of a new system for the monetization of music will endure a myriad of possibilities and some will prevail. There is a plethora of business models, some actualized and others in development. These include subscription, advertising based and bundling concepts that despite enormous investment, can at best be considered experimental. Nobody knows how the music fans will ultimately react to the sudden freedom the world wide web has provided. Their ability to choose any amount of music, from any genre, on demand at no charge must not be taken lightly.
The concept of "free" music is very powerful and deeply entrenched in the youth culture. It will not be easy to get them to pay when they are accustomed to sharing music without fees. This makes for a low threshold for entry; but immediately raises the bar for artists reaching for square two. It is easy to get into the game, but very difficult to progress. Only the most talented will build a large enough following to sustain a career. That is the way it has always been. Only ten percent of the competitors will survive as ninety-nine percent of the money is earned by this elite group.
The first level of success is survival. Artists who reach this plateau will be competing with the best of the best. One percent of them will earn ninety percent of the money. The bands that cannot generate a following through their live performances will be doomed to keep their day jobs. Their music will become a hobby, not their business. Artists who have the talent to inspire an audience and bring them back for more will have a chance to continue in the game. This will require the appication of artistic and business skill in equal proportion. Virtuoso talent combined with good theater, trmendous desire, and enormous personal effort could still produce a monumental star.
Each new enterprise will be built around a body of music that appeals to a niche market. When no genre is ubiquitous, every genre is viable. It does not matter which style of music you perform, there is an audience for every established style and there is even room for a new genre if it should emerge. Although they all follow a similar trajectory, each career has its own signature components. They all face the same obstacles and every one has to be built up from rock bottom.
The shock wave of digimodernization has not only rocked the record business, it has fragmented the fan base. As music lovers adjust to the new found freedoms and have access to every song ever recorded, they will discover the wonders and delights of the global music pool. Within the millions of possibilities there lurks some inspired artist struggling to find his voice and direction.
Although no such artist is evident and none is on the horizon, it would defy history for a superstar not to evolve. When that phenomenon arrives everyone will learn about it on the same day. There will be a roar of acclamation and affection that will streak around the planet by instant messages, tweets and friends Facebooking friends. YouTube and MySpace will light up like Christmas trees. The new superstar's web site will crash for lack of server power; and everybody with an iPod will embrace the song and choose to pay instead of "sharing" the file. This will result in the single biggest financial windfall in the history of popular music.
A hard core fan base, who discovered this artist years previously in their home town will rise up and inspire universal support. Needless to say the unknown, subject artist will make millions of dollars that day. The impact of the event will bring world-wide attention and the acclaim will be unprecedented. At this juncture the monolithic, multi-national corporations will move in and try to capture the beast.
There will be an enormous effort to try to duplicate the process in order to seize and control the golden egg. However, the new addition to the pantheon of mega stars will already be rich and famous and have no need for unnecessary partners. The success will inspire thousands of lesser stars to compete within the infrastructure created to contain the new universally appealing musical hero. Many will emulate the style and characteristics of the messiah and a new paradigm will be born.
It will only require the same measure of identity, appreciation and personal attachment that previous generations have awarded Caruso, Valli, Sinatra, Elvis, The Beatles and Michael Jackson to turn the economic tide. The fans of these artists would not have "shared" their music for free. And, although no such star is present, or even on the horizon, history shows that such a musical force always arrives at a time just like this, a time when nobody can imagine how it could possibly happen.
Friday, February 12, 2010
HoloGram - Bob Lefsetz - February 12, 2010
HolodigmMusic.com
HoloGram: Lefsetz Says:
The way to success is to win the hearts and minds of the customer
and build from there. Anything else is just a waste of time. BL
http://www.thelefsetzletter.com/
HoloGram: Lefsetz Says:
The way to success is to win the hearts and minds of the customer
and build from there. Anything else is just a waste of time. BL
http://www.thelefsetzletter.com/
Thursday, February 11, 2010
An Open Letter to Tommy Silverman - February 11, 2010
HolodigmMusic.com
An Open Letter to Tommy Silverman:
Hi Tom: Thank you for your gracious letter. As I had originally suspected we are almost on the same page. I was in High School when "Rock Around The Clock" started the avalanche that propelled Elvis to the big top and established rock & roll as a permanent part of popular culture.
I made my first money selling music in 1957 and have been doing it ever since. I cannot remember a time when I did not manage at least one band. Over my fifty plus years in the postmodern record business I have been fortunate to serve many artists great and small.
Today I manage a baby band called The Reflectacles, so my interest in the new music industry paradigm is not casual or merely academic. I have a real job to do building a business around this six piece Americana folk rock band that formed out of my classroom at Loyola Marymount University.
Seven years ago when I was teaching personal management at Musicians Institute a student asked me, "How would you build an act today when the music is free?" I must admit that for the first time in my life I did not have an immediate answer to a question. The Holodigm is the continuing answer to that question. After due consideration, my students and I embarked on an extensive analysis of the problem. When I joined the faculty at LMU we continued the research and development of a new music industry paradigm.
Now, six years and more than 2000 students later, we believe we have perfected a working model that the industry will follow, knowingly, or not. It is organic and based primarily on the historical trajectory and a clear vision of the future. More importantly, it deals with the broadest range of participants. The millions of bands registered on myspace.com. They all deserve a chance to compete.
The concept is presented as the first interactive, audio-visual, online text book and addresses the fact that a kid would rather watch a movie than read a book. It is a training, mentoring and coaching system for musicians and entrepreneurs that addresses every aspect of the ancient alchemy of turning music into gold. It functions on a simple mathematical formula: One Artist + One Manager = One enterprise.
The manager is the CEO of the artists company and he owns an equal share of the enterprise. Fifty/fifty partnerships a la Elvis and The Colonel for solo artists and an equal share with bands. He cannot be fired because his contracts ran out or somebody will do it for less. He is an equity owner of the business he helps build and can only be bought out at the fair market value of his shares.
All are exclusive employees of the corporation or LLC. Record producers can also be invited to join as partners since their skills will always be needed. We invited recording legend Eric E.T. Thorngren to be a full partner in The Reflectacles Music Co. ensuring that we will make world class records from day one. Everybody works for free until there are dividends to declare.
This form of partnership will ensure that everyone on the board of directors has an incentive to make the business successful. Each member has a role beyond the stage. In the case of The Reflectacles, each man is either an officer of the company or a vice president of a division. They apply the business skills they acquired in the classroom to their real life career pursuits.
How many CEOs get to indoctrinate their employees for sixteen weeks, three hours a week? Not many. But Holodigm Artists get that training before they start the arduous climb to artistic and financial success. Thy do not run blindly, lost in the fog of showbiz. Their goals are clearly defined and supported by a game plan that can be conducted at a livable pace, under their direct control.
The Holodigm is their sanctuary and provides continuous career direction as each enterprise grows. We hold no equity interest in the activities or entities produced by "Academy" and "Society" members. When appropriate, we may invite partnerships with promising talent through our professional division Holodigm Media. The business that is built will belong to those who build it.
Our staff of coaches and consultants is being implemented at this time and will provide a constant source of seasoned professional advice to our members online. Additional services and products provided below market price will facilitate production and marketing activities ensuring a faster rise to profitability. Individual successes and failures will be shared among the membership through The Holodigm Forums, Blogs, Social Network and Chat Rooms. The members, pursuing the same goals, each get to benefit from the other's learning experience. There is no template to follow; it is a real-time live experiment.
With a clear focus on the two primary activities of recording and performing, combined with effective Internet marketing, the team can build and operate its own business. The mystical fuel of "talent" drives the engine and combined with other "star" factors, like, great songs, charisma, sex appeal, hero worship, authenticity, passion and desire, they can build a fan base.
Nepotism, personal wealth, sponsorship, talent TV and personal relationships can enhance and accelerate the process. However, these are stairway to heaven possibilities that will not exist in most cases. Generally speaking, The bands and managers will have to do the work themselves.
Traditionally, investors want something for the risk they take. And that is only fair. However, during my fifty plus years in the music industry I have never seen a record company make a fair deal with an artist. And, I have never seen private investment pay off for the artist or the investor.
The money will want a permanent piece of the company. Unless they contribute something else to the artist's enterprise this will become inequitable eventually. In an industry where only ten percent of the artists will survive there won't be much venture capital available.
The Holodigm concept concentrates the artists and managers on the job of building a viable live act, in local and regional markets, around which products can be developed and sold. It focuses on do-it-yourself systems, mechanics and protocols. And, it forces the players to run their enterprise as a business without giving away equity to third party service providers.
Artists who wait for investors will be doomed to fail. Those who take action on their dreams will create their own destiny and they will reap the reward. They will own their masters and publishing and the most talented will build a permanent annuity to support them in their old age.
I totally understand the pressure you were under the day we met. I am a long time observer of your significant accomplishments and hold you in the highest regard. The work you do in support of the continued growth and development of our business is significant and necessary. In time the labels will let go of the old paradigm and embrace digital download distribution for their catalogs. And, they may even be able to buy up a few new acts as they emerge. But, it will never be the same.
The music industry is thousands of years old and will not expire under the weight of digimodernization. The record business is just over a hundred years old and will surrender to the digital sword. In the transition the business of recording will fall to the hands in which it belongs, the men and women who create music.
New artists will no longer be imposed by record company moguls or A&R producers of the month. They will be discovered, nurtured and revered from the fan base up. The information super highway is the arena and the Internet is the rocket.
I hope you will visit www.HolodigmMusic.com and consider that perhaps the new paradigm exists and only has to be implemented. This concept evolved from an historical observation of the effect of new technologies on the record business pre Napster; and, on my personal experience directing careers as an agent and personal manager in the postmodern era.
The invitation to speak to my class still stands.
Pax et Amo. Hartmann
An Open Letter to Tommy Silverman:
Hi Tom: Thank you for your gracious letter. As I had originally suspected we are almost on the same page. I was in High School when "Rock Around The Clock" started the avalanche that propelled Elvis to the big top and established rock & roll as a permanent part of popular culture.
I made my first money selling music in 1957 and have been doing it ever since. I cannot remember a time when I did not manage at least one band. Over my fifty plus years in the postmodern record business I have been fortunate to serve many artists great and small.
Today I manage a baby band called The Reflectacles, so my interest in the new music industry paradigm is not casual or merely academic. I have a real job to do building a business around this six piece Americana folk rock band that formed out of my classroom at Loyola Marymount University.
Seven years ago when I was teaching personal management at Musicians Institute a student asked me, "How would you build an act today when the music is free?" I must admit that for the first time in my life I did not have an immediate answer to a question. The Holodigm is the continuing answer to that question. After due consideration, my students and I embarked on an extensive analysis of the problem. When I joined the faculty at LMU we continued the research and development of a new music industry paradigm.
Now, six years and more than 2000 students later, we believe we have perfected a working model that the industry will follow, knowingly, or not. It is organic and based primarily on the historical trajectory and a clear vision of the future. More importantly, it deals with the broadest range of participants. The millions of bands registered on myspace.com. They all deserve a chance to compete.
The concept is presented as the first interactive, audio-visual, online text book and addresses the fact that a kid would rather watch a movie than read a book. It is a training, mentoring and coaching system for musicians and entrepreneurs that addresses every aspect of the ancient alchemy of turning music into gold. It functions on a simple mathematical formula: One Artist + One Manager = One enterprise.
The manager is the CEO of the artists company and he owns an equal share of the enterprise. Fifty/fifty partnerships a la Elvis and The Colonel for solo artists and an equal share with bands. He cannot be fired because his contracts ran out or somebody will do it for less. He is an equity owner of the business he helps build and can only be bought out at the fair market value of his shares.
All are exclusive employees of the corporation or LLC. Record producers can also be invited to join as partners since their skills will always be needed. We invited recording legend Eric E.T. Thorngren to be a full partner in The Reflectacles Music Co. ensuring that we will make world class records from day one. Everybody works for free until there are dividends to declare.
This form of partnership will ensure that everyone on the board of directors has an incentive to make the business successful. Each member has a role beyond the stage. In the case of The Reflectacles, each man is either an officer of the company or a vice president of a division. They apply the business skills they acquired in the classroom to their real life career pursuits.
How many CEOs get to indoctrinate their employees for sixteen weeks, three hours a week? Not many. But Holodigm Artists get that training before they start the arduous climb to artistic and financial success. Thy do not run blindly, lost in the fog of showbiz. Their goals are clearly defined and supported by a game plan that can be conducted at a livable pace, under their direct control.
The Holodigm is their sanctuary and provides continuous career direction as each enterprise grows. We hold no equity interest in the activities or entities produced by "Academy" and "Society" members. When appropriate, we may invite partnerships with promising talent through our professional division Holodigm Media. The business that is built will belong to those who build it.
Our staff of coaches and consultants is being implemented at this time and will provide a constant source of seasoned professional advice to our members online. Additional services and products provided below market price will facilitate production and marketing activities ensuring a faster rise to profitability. Individual successes and failures will be shared among the membership through The Holodigm Forums, Blogs, Social Network and Chat Rooms. The members, pursuing the same goals, each get to benefit from the other's learning experience. There is no template to follow; it is a real-time live experiment.
With a clear focus on the two primary activities of recording and performing, combined with effective Internet marketing, the team can build and operate its own business. The mystical fuel of "talent" drives the engine and combined with other "star" factors, like, great songs, charisma, sex appeal, hero worship, authenticity, passion and desire, they can build a fan base.
Nepotism, personal wealth, sponsorship, talent TV and personal relationships can enhance and accelerate the process. However, these are stairway to heaven possibilities that will not exist in most cases. Generally speaking, The bands and managers will have to do the work themselves.
Traditionally, investors want something for the risk they take. And that is only fair. However, during my fifty plus years in the music industry I have never seen a record company make a fair deal with an artist. And, I have never seen private investment pay off for the artist or the investor.
The money will want a permanent piece of the company. Unless they contribute something else to the artist's enterprise this will become inequitable eventually. In an industry where only ten percent of the artists will survive there won't be much venture capital available.
The Holodigm concept concentrates the artists and managers on the job of building a viable live act, in local and regional markets, around which products can be developed and sold. It focuses on do-it-yourself systems, mechanics and protocols. And, it forces the players to run their enterprise as a business without giving away equity to third party service providers.
Artists who wait for investors will be doomed to fail. Those who take action on their dreams will create their own destiny and they will reap the reward. They will own their masters and publishing and the most talented will build a permanent annuity to support them in their old age.
I totally understand the pressure you were under the day we met. I am a long time observer of your significant accomplishments and hold you in the highest regard. The work you do in support of the continued growth and development of our business is significant and necessary. In time the labels will let go of the old paradigm and embrace digital download distribution for their catalogs. And, they may even be able to buy up a few new acts as they emerge. But, it will never be the same.
The music industry is thousands of years old and will not expire under the weight of digimodernization. The record business is just over a hundred years old and will surrender to the digital sword. In the transition the business of recording will fall to the hands in which it belongs, the men and women who create music.
New artists will no longer be imposed by record company moguls or A&R producers of the month. They will be discovered, nurtured and revered from the fan base up. The information super highway is the arena and the Internet is the rocket.
I hope you will visit www.HolodigmMusic.com and consider that perhaps the new paradigm exists and only has to be implemented. This concept evolved from an historical observation of the effect of new technologies on the record business pre Napster; and, on my personal experience directing careers as an agent and personal manager in the postmodern era.
The invitation to speak to my class still stands.
Pax et Amo. Hartmann
Sunday, January 10, 2010
GUEST SHOT: Bob Lefsetz - January 10, 2010
HolodigmMusic.com
GUEST SHOT: Bob Lefsetz
Subject: What The Customer Wants
"Businesses should concentrate on their customers' needs, not on specific products.
" "Marketing Myopia" (1960) Theodore Levitt, Harvard Business School.
What does the music customer want?
1. To easily be able to hear all recorded music
Now I'm not saying such ability should be free, but this does not undermine the
desire.
If you read about a record, if a friend mentions a tune, you should be able to
instantly click and sample it. On your desktop, laptop and hand-held device.
Not jut a thirty second sample, but the whole thing.
The public hates thirty second samples. They project an image of withholding as
opposed to honest, fair dealing. It's like the music industry is a carny
attraction behind a curtain that you must pay for, with very little advance
knowledge, before you partake.
The best delivery of the ability to hear music is Spotify. Which has been
delayed in its American introduction because certain rights holders don't
believe in giving anything away for free.
Spotify is a music app, with a full catalog.
LaLa's not bad, it's just that you have to go to Google first, you've got to
click a bit.
Rhapsody and Napster provide the end result, with very poor functionality,
certainly compared to Spotify. They seem to live in a land where the lessons of
Apple are hidden, that usability and functionality are key. Apple has also
proven that people will pay premium prices for this usability and functionality.
Oh, here's where you tell me it's impossible to compete with free. Well, Apple
is competing with a plethora of computers a third the price, yet is extremely
profitable and valuable. So, rather than decry theft, the question becomes how
can one make a profit by delivering exactly what the public wants?
And just a note. The more access to music people have, the more they consume,
the more tickets and merch they buy.
2. A fair shot at a good concert ticket
The number one complaint is not high prices, the big bitch is you just don't get
a chance at a good seat. People know the value of a front row seat, they're
willing to pay for it, just give them a shot at it.
Sure, it works for the act to make a deal with AmEx, to have a fan club, to put
so many layers of sale between the act and the customer that people are turned
off instead of turned on, pissed instead of happy.
Yes, happy. People may say the movie is lousy, but most concertgoers are
thrilled to be able to attend the event, they fully enjoy it. But, how do they
get in?
Until all tickets are available at one time (how many credit cards and fan club
memberships do you have to get to be a regular concertgoer, this works against
the industry instead of for it), and are priced according to their desirability,
fans will be unhappy.
If you desire to appeal solely to your fans, by allowing them to get tickets and
requiring them to line up and show ID to get in...this is not a terrible
strategy. You're satiating the hard core, while pissing off the public. Then
again, most of the public is willing to shrug and say they just don't care that
much about going to this show.
3. Access
What's the number one thing a fan wants?
To be able to go backstage.
Not everyone can provide this, but don't decry platinum packages that allow
this, for this is exactly what the public wants.
If you want to make people happy, make yourself available. That could be as
simple as a response on a message board or as complicated as going out on a date
with a contest winner.
But this is what people want. Think about how you can deliver it.
4. Music that they want to play again and again
Note, this does not mean music that is given a thumbs-up in radio callout
research, when a listener hears a short snippet. After all, we've established
above that thirty seconds is not enough. If a listener does not get the urge to
immediately replay your music, you're not going to have success. That could be
playing a three minute ditty again and again, or a complete album again and
again. The form is unimportant, it's about the desire.
5. More music by their favorite artists
Shorten the time between releases, deliver more material. Fans want outtakes,
rehearsal tapes, live tapes...almost anything and everything. Sure, this is
different from what the casual fan or the uninitiated person wants, but these
are two different markets, and you make the lion's share of your money from your
hard core fans.
Don't think about how you can placate radio, think about how you can placate
fans.
This is as simple as a live album of the studio album a month after the original
drop date. YouTube broadcasts of live shows. Downloadable content from your
Website. You can never have too much for a fan. And don't forget, fans are
your number one evangelists, they're the ones who spread the word.
6. More information
Where you are, who you're recording with, the process.
I've said it before and I'll say it again, no one does this better than John
Mayer. And in the process he sacrifices not a whit of credibility or charisma.
Somehow, the public feels as if it's in his back pocket and knows him, even
though they realize the odds of in-person contact are slim to none.
7. Fewer commercials
Whether it be radio, television or a streaming music service, the public is fed
up with commercials. And unlike forty years ago, people have options. Extended
runs of commercials are abuse, never forget this.
8. A final concert ticket price
People hate being pecked to death by ducks, which is the equivalent of buying
concert tickets today. It's not so much about the cost, as the feeling of being
screwed by hidden charges that make no sense. Print at home fee?
Come on. That's inane. I'm using my own paper and ink.
We know it's all about profits. But why can't it be buried in a final price?
9. A belief that the acts are in it for the music, not the money
It's hard to sell an art form if people think it's just a means to an end, a
good lifestyle. People won't respect it. People don't respect towels, they
don't respect toilet paper. Sure, they're necessary products, the companies
that purvey them make a profit, but it's not art.
Art generates profits in a wholly different way than traditional industries.
Look at fine art. The canvas may have been produced for essentially nothing,
the cost of materials. But only a few years later, it can sell for millions.
Stop calculating how to get to millions of revenue in a spreadsheet by
maximizing this and that. Just create something rawly desirable, then the
revenue will come. A great hit is more powerful than any marketing campaign.
People don't need music, but they want it. When it's great. When it speaks to
them. When it's seen as integral to their lives.
10. Respect
In today's connected world, the customer sees himself as equal to the purveyor.
Think of the wrath inflicted upon Wall Street. That's how much people hate the
music industry, and that's a problem. Yup, fat cats who screwed us for far too
long who want to continue to screw us! You've overpaid for one good track on an
overpriced CD, you've overpaid for a shitty seat, but you'd better not steal our
product, we're entitled to our income! Huh? Don't make excuses, try and
rationalize your behavior, just look how stupid it appears to your customer,
without whom you've got nothing.
Record labels want to sell physical recorded product. Or individual tracks. Or
albums.
Concert promoters want to sell food and drink.
None of these speak to the underlying needs and desires of the consumer.
The consumer wants music. It doesn't matter what form it's rendered in, as long
as the end result pours into one's ears. People are not locked into vinyl or
CDs, tracks or albums, they just want the listening experience.
As do they want the experience of hearing live music. Sure, they'll buy food
and drink if they're at the show, but those are incidental. How can you make
the show so desirable that people will willingly come and not care about parting
with their dollars for extras?
Visit the archive: http://lefsetz.com/wordpress/
--
http://www.twitter.com/lefsetz
--
If you would like to subscribe to the LefsetzLetter,
http://www.lefsetz.com/lists/?p=subscribe&id=1
GUEST SHOT: Bob Lefsetz
Subject: What The Customer Wants
"Businesses should concentrate on their customers' needs, not on specific products.
" "Marketing Myopia" (1960) Theodore Levitt, Harvard Business School.
What does the music customer want?
1. To easily be able to hear all recorded music
Now I'm not saying such ability should be free, but this does not undermine the
desire.
If you read about a record, if a friend mentions a tune, you should be able to
instantly click and sample it. On your desktop, laptop and hand-held device.
Not jut a thirty second sample, but the whole thing.
The public hates thirty second samples. They project an image of withholding as
opposed to honest, fair dealing. It's like the music industry is a carny
attraction behind a curtain that you must pay for, with very little advance
knowledge, before you partake.
The best delivery of the ability to hear music is Spotify. Which has been
delayed in its American introduction because certain rights holders don't
believe in giving anything away for free.
Spotify is a music app, with a full catalog.
LaLa's not bad, it's just that you have to go to Google first, you've got to
click a bit.
Rhapsody and Napster provide the end result, with very poor functionality,
certainly compared to Spotify. They seem to live in a land where the lessons of
Apple are hidden, that usability and functionality are key. Apple has also
proven that people will pay premium prices for this usability and functionality.
Oh, here's where you tell me it's impossible to compete with free. Well, Apple
is competing with a plethora of computers a third the price, yet is extremely
profitable and valuable. So, rather than decry theft, the question becomes how
can one make a profit by delivering exactly what the public wants?
And just a note. The more access to music people have, the more they consume,
the more tickets and merch they buy.
2. A fair shot at a good concert ticket
The number one complaint is not high prices, the big bitch is you just don't get
a chance at a good seat. People know the value of a front row seat, they're
willing to pay for it, just give them a shot at it.
Sure, it works for the act to make a deal with AmEx, to have a fan club, to put
so many layers of sale between the act and the customer that people are turned
off instead of turned on, pissed instead of happy.
Yes, happy. People may say the movie is lousy, but most concertgoers are
thrilled to be able to attend the event, they fully enjoy it. But, how do they
get in?
Until all tickets are available at one time (how many credit cards and fan club
memberships do you have to get to be a regular concertgoer, this works against
the industry instead of for it), and are priced according to their desirability,
fans will be unhappy.
If you desire to appeal solely to your fans, by allowing them to get tickets and
requiring them to line up and show ID to get in...this is not a terrible
strategy. You're satiating the hard core, while pissing off the public. Then
again, most of the public is willing to shrug and say they just don't care that
much about going to this show.
3. Access
What's the number one thing a fan wants?
To be able to go backstage.
Not everyone can provide this, but don't decry platinum packages that allow
this, for this is exactly what the public wants.
If you want to make people happy, make yourself available. That could be as
simple as a response on a message board or as complicated as going out on a date
with a contest winner.
But this is what people want. Think about how you can deliver it.
4. Music that they want to play again and again
Note, this does not mean music that is given a thumbs-up in radio callout
research, when a listener hears a short snippet. After all, we've established
above that thirty seconds is not enough. If a listener does not get the urge to
immediately replay your music, you're not going to have success. That could be
playing a three minute ditty again and again, or a complete album again and
again. The form is unimportant, it's about the desire.
5. More music by their favorite artists
Shorten the time between releases, deliver more material. Fans want outtakes,
rehearsal tapes, live tapes...almost anything and everything. Sure, this is
different from what the casual fan or the uninitiated person wants, but these
are two different markets, and you make the lion's share of your money from your
hard core fans.
Don't think about how you can placate radio, think about how you can placate
fans.
This is as simple as a live album of the studio album a month after the original
drop date. YouTube broadcasts of live shows. Downloadable content from your
Website. You can never have too much for a fan. And don't forget, fans are
your number one evangelists, they're the ones who spread the word.
6. More information
Where you are, who you're recording with, the process.
I've said it before and I'll say it again, no one does this better than John
Mayer. And in the process he sacrifices not a whit of credibility or charisma.
Somehow, the public feels as if it's in his back pocket and knows him, even
though they realize the odds of in-person contact are slim to none.
7. Fewer commercials
Whether it be radio, television or a streaming music service, the public is fed
up with commercials. And unlike forty years ago, people have options. Extended
runs of commercials are abuse, never forget this.
8. A final concert ticket price
People hate being pecked to death by ducks, which is the equivalent of buying
concert tickets today. It's not so much about the cost, as the feeling of being
screwed by hidden charges that make no sense. Print at home fee?
Come on. That's inane. I'm using my own paper and ink.
We know it's all about profits. But why can't it be buried in a final price?
9. A belief that the acts are in it for the music, not the money
It's hard to sell an art form if people think it's just a means to an end, a
good lifestyle. People won't respect it. People don't respect towels, they
don't respect toilet paper. Sure, they're necessary products, the companies
that purvey them make a profit, but it's not art.
Art generates profits in a wholly different way than traditional industries.
Look at fine art. The canvas may have been produced for essentially nothing,
the cost of materials. But only a few years later, it can sell for millions.
Stop calculating how to get to millions of revenue in a spreadsheet by
maximizing this and that. Just create something rawly desirable, then the
revenue will come. A great hit is more powerful than any marketing campaign.
People don't need music, but they want it. When it's great. When it speaks to
them. When it's seen as integral to their lives.
10. Respect
In today's connected world, the customer sees himself as equal to the purveyor.
Think of the wrath inflicted upon Wall Street. That's how much people hate the
music industry, and that's a problem. Yup, fat cats who screwed us for far too
long who want to continue to screw us! You've overpaid for one good track on an
overpriced CD, you've overpaid for a shitty seat, but you'd better not steal our
product, we're entitled to our income! Huh? Don't make excuses, try and
rationalize your behavior, just look how stupid it appears to your customer,
without whom you've got nothing.
Record labels want to sell physical recorded product. Or individual tracks. Or
albums.
Concert promoters want to sell food and drink.
None of these speak to the underlying needs and desires of the consumer.
The consumer wants music. It doesn't matter what form it's rendered in, as long
as the end result pours into one's ears. People are not locked into vinyl or
CDs, tracks or albums, they just want the listening experience.
As do they want the experience of hearing live music. Sure, they'll buy food
and drink if they're at the show, but those are incidental. How can you make
the show so desirable that people will willingly come and not care about parting
with their dollars for extras?
Visit the archive: http://lefsetz.com/wordpress/
--
http://www.twitter.com/lefsetz
--
If you would like to subscribe to the LefsetzLetter,
http://www.lefsetz.com/lists/?p=subscribe&id=1
Saturday, January 9, 2010
MUSIC BUSINESS Q&A - January 9, 2010
HolodigmMusic.com
Artists in Sobriety
Emilin Yaghoubian asks:
If an artist believes that he/she is incapable of performing completely sober, without drugs and alcohol, what does the manager say or do to change this belief?
Hartmann responds:
A manager should never encourage an artist to incorporate drug use into his creative process. When artists and managers put together a professional career plan that includes sobriety as part of the operational procedure they greatly increases their chances of success. Drug abuse is a serious inhibitor of creative energy. It not only dulls one's perception of reality during the inebriation, but there is always a recovery period during which time and efficacy are lost. There is a prevailing attitude that certain drugs can stimulate the creative process by opening the doors of perception and dispelling inhibitions. This has been known to produce some great music. However, if an artist is able to write, produce and perform without the use of mind altering substances it is in the manager's best interest to encourage and support a drug free lifestyle. Touring bands are engaged in a rigorous activity that requires coordination of mental and physical aspects of performing. A clear head can see farther, adapt faster and deliver better work. Go sober. Manage the jones.
Artists in Sobriety
Emilin Yaghoubian asks:
If an artist believes that he/she is incapable of performing completely sober, without drugs and alcohol, what does the manager say or do to change this belief?
Hartmann responds:
A manager should never encourage an artist to incorporate drug use into his creative process. When artists and managers put together a professional career plan that includes sobriety as part of the operational procedure they greatly increases their chances of success. Drug abuse is a serious inhibitor of creative energy. It not only dulls one's perception of reality during the inebriation, but there is always a recovery period during which time and efficacy are lost. There is a prevailing attitude that certain drugs can stimulate the creative process by opening the doors of perception and dispelling inhibitions. This has been known to produce some great music. However, if an artist is able to write, produce and perform without the use of mind altering substances it is in the manager's best interest to encourage and support a drug free lifestyle. Touring bands are engaged in a rigorous activity that requires coordination of mental and physical aspects of performing. A clear head can see farther, adapt faster and deliver better work. Go sober. Manage the jones.
Sunday, December 27, 2009
MUSIC BUSINESS QUESTION OF THE DAY - December 27, 2009
HolodigmMusic.com
Anti-Industry Attitudes
DaveTDVD asks:
How do you deal with an artist who has talent but has an anti music industry attitude and feelings of mistrust against it?
Hartmann responds:
Here comes Collegiate Rock. The postmodern record business was built around artists who excelled in the local honky-tonks, bars, night clubs and concert halls that proliferate around the country. The best of the best prospered and moved to the big city. From Nashville, New York and L.A. they were assumed into the music industry systems that linked the activities of performing and recording. The singers and songwriters around whom the bands were constructed started young and rose from the streets. Rarely did they stop long enough in their vision quest to acquire an education. Now, thousands of colleges and universities offer courses in the business of music.
It stands to reason that the graduates of these programs are better prepared to address the issues of integrating art and commerce than their predecessors. In the past, artists worked hard for years and eventually figured out how to play the game of showbiz. With a modicum of talent, a lot of aggressive action and a little luck an artist might get "discovered" and have a viable career. The process often relied more on luck than talent; but that won't work in The Music Renaissance.
University educated musicians come to the music indiustry with artistic skills developed over many years. Millions of those little "Guitar Heroes" graduate to real instruments very early and they demonstrate highly advanced writing and performing talent by the time they reach college.
Through university business, marketing and economics programs artists acquire a completely different set of tools with which to engage the challenges of an industry in search of a new business model. These contenders for stardom are not lost in the fog of showbiz. They are not obligated to the systems and mechanics of the postmodern record business. Young artists don't need the established power structure to endorse their talent. They can exploit it themselves.
The paradigm has shifted. The record business has consolidated down to four multi-national corporate giants that control the manufacturing, distirbution, promotion and marketing of ninety percent of records sold through brick and mortar outlets. The glue that holds this system together is broadcast radio, another industry in transition. When every iPod and iPhone is a self programmable, custom radio station, terrestrial radio becomes a default delivery system.
The major labels really don't have much to offer a truly talented artist. If a new act has a certain business acumen and a knowledge of Internet systems and protocols they are better off without a record company. In fact a non-corporate image is uniquely attractive to the potential fan who is often searching for a tribal identity. The public has seen enough cable TV to know that the record companies are the traditional enemy of the artist. The fans prefer to deal directly with the act.
When I meet a young band, the first thing I ask is, "What are your short and long term goals?" When they tell me they want a record deal, I know they haven't got a clue. If they tell me they want to start their own record company and own their copyrights and masters, I know they get it. If they demonstrate a complete distrust of the record business, I think that maybe they have a chance to win in The Music Renaissance. A good business education is the best place to start.
Anti-Industry Attitudes
DaveTDVD asks:
How do you deal with an artist who has talent but has an anti music industry attitude and feelings of mistrust against it?
Hartmann responds:
Here comes Collegiate Rock. The postmodern record business was built around artists who excelled in the local honky-tonks, bars, night clubs and concert halls that proliferate around the country. The best of the best prospered and moved to the big city. From Nashville, New York and L.A. they were assumed into the music industry systems that linked the activities of performing and recording. The singers and songwriters around whom the bands were constructed started young and rose from the streets. Rarely did they stop long enough in their vision quest to acquire an education. Now, thousands of colleges and universities offer courses in the business of music.
It stands to reason that the graduates of these programs are better prepared to address the issues of integrating art and commerce than their predecessors. In the past, artists worked hard for years and eventually figured out how to play the game of showbiz. With a modicum of talent, a lot of aggressive action and a little luck an artist might get "discovered" and have a viable career. The process often relied more on luck than talent; but that won't work in The Music Renaissance.
University educated musicians come to the music indiustry with artistic skills developed over many years. Millions of those little "Guitar Heroes" graduate to real instruments very early and they demonstrate highly advanced writing and performing talent by the time they reach college.
Through university business, marketing and economics programs artists acquire a completely different set of tools with which to engage the challenges of an industry in search of a new business model. These contenders for stardom are not lost in the fog of showbiz. They are not obligated to the systems and mechanics of the postmodern record business. Young artists don't need the established power structure to endorse their talent. They can exploit it themselves.
The paradigm has shifted. The record business has consolidated down to four multi-national corporate giants that control the manufacturing, distirbution, promotion and marketing of ninety percent of records sold through brick and mortar outlets. The glue that holds this system together is broadcast radio, another industry in transition. When every iPod and iPhone is a self programmable, custom radio station, terrestrial radio becomes a default delivery system.
The major labels really don't have much to offer a truly talented artist. If a new act has a certain business acumen and a knowledge of Internet systems and protocols they are better off without a record company. In fact a non-corporate image is uniquely attractive to the potential fan who is often searching for a tribal identity. The public has seen enough cable TV to know that the record companies are the traditional enemy of the artist. The fans prefer to deal directly with the act.
When I meet a young band, the first thing I ask is, "What are your short and long term goals?" When they tell me they want a record deal, I know they haven't got a clue. If they tell me they want to start their own record company and own their copyrights and masters, I know they get it. If they demonstrate a complete distrust of the record business, I think that maybe they have a chance to win in The Music Renaissance. A good business education is the best place to start.
Thursday, December 10, 2009
MUSIC INDUSTRY FACT OF THE DAY - December 10, 2009
MUSIC INDUSTRY FACT OF THE DAY - by John Hartmann
The Record business owes its demise to the criminal infrastructure created by its founders and the failure of the postmodern executive corps to address digimodernization in a timely manner.
The big four stalled at Napster and allowed download distribution to be developed by others. By trying to preserve the highly lucrative CD market they let the big cyber-bucks get away.
The labels' desperate attempt to create a marriage with artists and managers will end in divorce. I'm not saying that 360 degree deals won't work; but why does an artist need a record company to have one? Jimmy, Doug, Lyor et al are lost in the digi-fog and running blind from behind. They have no money to build acts and even if they deliver radio, who is listening? MP3 is here to stay.
The labels have always been the traditional enemy of the artist. They didn't want to be fair and honest in the past and now they demand a place at the artist's table with an equal piece of the pie. However the Internet is the new A&R and promotion mechanism and it is free. The labels have little to offer a new artist. Greed will marginalize their role in The Music Renaissance.
Every act should own their own masters and publishing; these are the permanent assets of their business. They must also have a good live act and a booking system. The Internet enables artists to market their products directly to their fan base. The only accounting will be to themselves.
The remonetization of recorded music will not be dictated from corporate boardrooms down, it will be built by the artists and managers from the cyber-grass-roots up. This liberation is making music bigger than ever. And, it puts the profit where it belongs; with those who earn it.
Never in the history of recorded music has so much been enjoyed by so many and paid for by so few. There is no longer room for a middle-man in this game. Its between the artists and the fans.
Join the revolution at http://www.holodigmmusic.com/
The Record business owes its demise to the criminal infrastructure created by its founders and the failure of the postmodern executive corps to address digimodernization in a timely manner.
The big four stalled at Napster and allowed download distribution to be developed by others. By trying to preserve the highly lucrative CD market they let the big cyber-bucks get away.
The labels' desperate attempt to create a marriage with artists and managers will end in divorce. I'm not saying that 360 degree deals won't work; but why does an artist need a record company to have one? Jimmy, Doug, Lyor et al are lost in the digi-fog and running blind from behind. They have no money to build acts and even if they deliver radio, who is listening? MP3 is here to stay.
The labels have always been the traditional enemy of the artist. They didn't want to be fair and honest in the past and now they demand a place at the artist's table with an equal piece of the pie. However the Internet is the new A&R and promotion mechanism and it is free. The labels have little to offer a new artist. Greed will marginalize their role in The Music Renaissance.
Every act should own their own masters and publishing; these are the permanent assets of their business. They must also have a good live act and a booking system. The Internet enables artists to market their products directly to their fan base. The only accounting will be to themselves.
The remonetization of recorded music will not be dictated from corporate boardrooms down, it will be built by the artists and managers from the cyber-grass-roots up. This liberation is making music bigger than ever. And, it puts the profit where it belongs; with those who earn it.
Never in the history of recorded music has so much been enjoyed by so many and paid for by so few. There is no longer room for a middle-man in this game. Its between the artists and the fans.
Join the revolution at http://www.holodigmmusic.com/
Saturday, November 28, 2009
MUSIC Q + A - Talent v. Timing - November 28, 2009
HolodigmMusic.com
MUSIC Q + A - Timing v. Talent
N. Safdari asks:
You mentioned in lecture that there are different methods for an artist to reach success in the music industry. An artist can fit in the category of "Lucky 7", where in, good timing, being at the right place at the right time, can often lead to success. An artist can also obtain success through climbing the stairway, meaning, a grassroots approach is the key. Through maintaining an egg yolk and egg white fan base, the popularity can grow into fame. My question is, do you think the majority of recent artists that have found there way up to the top have been a result of timing or talent?
Hartmann responds:
Talent comes in many shapes and sizes. Digimodernization is redefining how we classify the various skills and techniques employed in the production of recorded music. Pro Tools has enabled anyone with a Mac, a Mic and a Song to make a record. Auto Tune and other digital manipulations can even make those records sound pretty good, if not technically perfect. The low threshold to entry has given millions of artists an opportunity to present their music to the public.
The postmodern record business resulted from the marriage of FM radio, and 331/3 RPM albums. The Beatles drove the format to unprecedented sales and prosperity as an entire generation dreamed of being in a band. But access to the professional arena was an awkward and unpredictable process. The record companies held rigid control over radio promotion, marketing and distribution.
New artists were forced to labor long and hard on their repertoire and technical skills. Only after years of practice and extensive live performing did a new act develop into a commercially viable business entity. The prevailing system put the power into the hands of the labels who maintained expensive A&R divisions to sift through the contenders and decide which artists would get to compete.
Selected singles were offered to radio and the public decided which ones they wanted to hear again. And, if they loved the song enough, they might purchase the artist's album. Ostensibly, they bought ten or more songs to get the one they actually wanted. This created an artificially high profit margin for the record business. Songs that rose in the charts created opportunities for touring acts. The artists kept the box-office receipts and the labels took the lion's share of profits from record sales. Timing played a major role in the game.
Getting signed to a record company was a controlled process that allowed only a fraction of the performers to participate. The managers, agents and producers in power pushed their selections into the system and a formulaic approach dominated the music scene. Originality surrendered to emulation and labels scrambled to clone the latest success offered by their competition. Unable to build a management team that could penetrate the resistance of the status-quo, most artists gave up and went home to resume their day jobs.
The Music Renaissance that has resulted from the marriage of digital distribution and Internet promotion has adjusted the timing involved in the pursuit of careers in music. No longer does an artist need a large advance to make a record. Costly radio promotion campaigns have become irrelevant since the iPod generation has abandoned that particular delivery system.
Today's artist no longer needs to gain the approval of the music industry elite to participate. A free myspace page and a video on youtube gets you into the game. The timing bubble has burst. Careers are instantly established and personally directed. An artist can learn everything he needs to know to build an act at www.HolodigmMusic.com and through thousands of recording arts programs at colleges across the country.
Expertise and experience are no longer mitigating factors. If the music is good and the act motivated a band can generate its own career and build a business without the support of a record company. By owning their masters and controlling the publishing and other income streams artists can reach the profit level sooner. They can start their professional careers when ready and without obligating themselves to managers and labels that promise much and deliver little.
It is important to remember that every song you write is not a crystal tear from the eye of Zeus. It is the nature of music that the players find their work beautiful, but the only true judge is the customer. No matter how great you think your band is, without earning public support and stimulating them to pay for your product, you have no business. Most artists who achieve long term success have been able to consolidate a myriad of factors into the creation of a performing act. Talent TV can produce instant notoriety, but popularity derived from TV exposure does not carry the same weight as a well built fan base gathered over time.
An abundance of one requisite ingredient can compensate for a lack of another. Image can stimulate interest and beauty can overcome a less than great singing voice. Passion can often out run talent allowing the confident, enthusiastic artist to surpass a more gifted peer. No two careers are exactly alike, but playing the percentages and reducing the failure factors can provide some insurance.
By mastering your craft and learning how to mount a live act you can participate. If you build a support team, play the game perfectly well, have an abundance of native talent, and get lucky, you can win. It is more about ability and hard work than time. If you have the talent, the Internet is waiting. The timing is up to you.
MUSIC Q + A - Timing v. Talent
N. Safdari asks:
You mentioned in lecture that there are different methods for an artist to reach success in the music industry. An artist can fit in the category of "Lucky 7", where in, good timing, being at the right place at the right time, can often lead to success. An artist can also obtain success through climbing the stairway, meaning, a grassroots approach is the key. Through maintaining an egg yolk and egg white fan base, the popularity can grow into fame. My question is, do you think the majority of recent artists that have found there way up to the top have been a result of timing or talent?
Hartmann responds:
Talent comes in many shapes and sizes. Digimodernization is redefining how we classify the various skills and techniques employed in the production of recorded music. Pro Tools has enabled anyone with a Mac, a Mic and a Song to make a record. Auto Tune and other digital manipulations can even make those records sound pretty good, if not technically perfect. The low threshold to entry has given millions of artists an opportunity to present their music to the public.
The postmodern record business resulted from the marriage of FM radio, and 331/3 RPM albums. The Beatles drove the format to unprecedented sales and prosperity as an entire generation dreamed of being in a band. But access to the professional arena was an awkward and unpredictable process. The record companies held rigid control over radio promotion, marketing and distribution.
New artists were forced to labor long and hard on their repertoire and technical skills. Only after years of practice and extensive live performing did a new act develop into a commercially viable business entity. The prevailing system put the power into the hands of the labels who maintained expensive A&R divisions to sift through the contenders and decide which artists would get to compete.
Selected singles were offered to radio and the public decided which ones they wanted to hear again. And, if they loved the song enough, they might purchase the artist's album. Ostensibly, they bought ten or more songs to get the one they actually wanted. This created an artificially high profit margin for the record business. Songs that rose in the charts created opportunities for touring acts. The artists kept the box-office receipts and the labels took the lion's share of profits from record sales. Timing played a major role in the game.
Getting signed to a record company was a controlled process that allowed only a fraction of the performers to participate. The managers, agents and producers in power pushed their selections into the system and a formulaic approach dominated the music scene. Originality surrendered to emulation and labels scrambled to clone the latest success offered by their competition. Unable to build a management team that could penetrate the resistance of the status-quo, most artists gave up and went home to resume their day jobs.
The Music Renaissance that has resulted from the marriage of digital distribution and Internet promotion has adjusted the timing involved in the pursuit of careers in music. No longer does an artist need a large advance to make a record. Costly radio promotion campaigns have become irrelevant since the iPod generation has abandoned that particular delivery system.
Today's artist no longer needs to gain the approval of the music industry elite to participate. A free myspace page and a video on youtube gets you into the game. The timing bubble has burst. Careers are instantly established and personally directed. An artist can learn everything he needs to know to build an act at www.HolodigmMusic.com and through thousands of recording arts programs at colleges across the country.
Expertise and experience are no longer mitigating factors. If the music is good and the act motivated a band can generate its own career and build a business without the support of a record company. By owning their masters and controlling the publishing and other income streams artists can reach the profit level sooner. They can start their professional careers when ready and without obligating themselves to managers and labels that promise much and deliver little.
It is important to remember that every song you write is not a crystal tear from the eye of Zeus. It is the nature of music that the players find their work beautiful, but the only true judge is the customer. No matter how great you think your band is, without earning public support and stimulating them to pay for your product, you have no business. Most artists who achieve long term success have been able to consolidate a myriad of factors into the creation of a performing act. Talent TV can produce instant notoriety, but popularity derived from TV exposure does not carry the same weight as a well built fan base gathered over time.
An abundance of one requisite ingredient can compensate for a lack of another. Image can stimulate interest and beauty can overcome a less than great singing voice. Passion can often out run talent allowing the confident, enthusiastic artist to surpass a more gifted peer. No two careers are exactly alike, but playing the percentages and reducing the failure factors can provide some insurance.
By mastering your craft and learning how to mount a live act you can participate. If you build a support team, play the game perfectly well, have an abundance of native talent, and get lucky, you can win. It is more about ability and hard work than time. If you have the talent, the Internet is waiting. The timing is up to you.
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