Mediapocalypse Book Update #1

For those of you who don’t already know, the purpose of this blog is mostly to chronicle my journey as a first-time book author. The nonfiction book I’m currently working on (currently sharing the same working title as the blog) is something that’s been cooking on the backburner of my mind ever since Napster first hit the scene. To put it bluntly, as a musician and fan, I couldn’t help but notice how the music industry was ruining music for profit.

Ten years and hundreds of pages of notes later, I now have a unique opportunity to take a sabbatical from my regular full-time job as a producer of websites and other creative media. I am using that time not only write my magnum opus, but to engage in entrepreneurship related to blending creative technology with my deep knowledge of the dynamic between music industry, musicians and listeners.

Now two weeks into the process, I’m sure I’m not the first to remark that writing a book has been, above all, a humbling experience. I kept writing the perfect outline, only to wake up the next day and write a more perfect outline. Even worse, as the outlines evolved, the stack of research questions that needed hard-sourced answers grew and grew. Dipping a toe into research was alarming (and eye-opening), with so many contradictory figures and findings from supposedly reputable sources. Yes, writing nonfiction was hard — and I hadn’t even written much yet.

Somehow though, all these fast-accruing research tasks and content refinements snowballed recently into a big breakthrough in terms of structure. For the first time, I feel like I have laid the foundation and erected the scaffolding of what will be the final book. Up until now, I was thinking of the book as building an argument, because what I am writing about is going to primarily challenge many deeply-entrenched views of music and the industry, some of which are taken for granted.

However, when I really thought about it, I realized I should draw inspiration from the books I most loved to read, and a couple in particular came to mind. Both Godel, Escher, Bach: An Eternal Golden Braid and Power, Faith and Fantasy: America in the Middle East, 1776 to Present — very different books on disparate topics — had the same general narrative structure. There was an overlying chronological progression, but at the same time, three primary topical narratives weaved their way through each chapter of the book. Often, a chapter would have a dominant topic, but the aim of the larger narrative was to illustrate the interplay between the three topics in the title.

My eureka moment was in realizing this is exactly how I should present my book. One of my foremost goals with the book is to provide a new understanding of the interplay between musicians, listeners and the industry. By threading these topical narratives chronologically through history, through the present and into the future, I would have a content structure that is proven and fits my communication goals like a glove.

Now my studio walls are beginning to look a lot like a scene out of a police detective TV series, with timelines stretching across walls dotted with key events, running along separate tracks which represent the narrative of the primary themes. I recently began organizing my timeline in Preceden, a pretty awesome web-based “fancy timeline creator”. Stepping back, I see everything starting to take shape, with repeating cycles and unique accents — like a song. It’s all very befitting for a book on music.

Rethink Music Conference Recap: Top 5 Lessons

Several weeks ago I attended the Rethink Music conference in Boston. I can honestly say it felt like I downloaded the entire music industry in 48 hours. A non-stop parade of executives and managers concisely detailed the challenges they faced in the digital music age. In panel after panel, their guarded optimism shone like a dull reflection off a classic automobile that won’t start. Between furious note-taking and tweeting, I got all the the insight, confidence and enthusiasm I needed to begin writing the book I’ve been planning for ten years.

I want to extend thanks to the organizers and everyone who made this conference possible. Attending it changed the way I look at music and the music industry forever. Writing a book about musicians, fans, technology and the music industry has been a dream of mine since Napster hit the scene. After spending the beginning of the year cataloging my key thoughts and ideas from the past decade, I am now tackling this monster project every day.

I approached the conference deeply entrenched in my disdain for the overall apparatus that controls access to and thus commodifies music. I believed that technology got us into this mess and could get us out of it. I felt that music should be free like water (and bottled for profit when it serves the artist’s best interests). Most importantly, I felt that our culture had become a wasteland for the benefit of a corporate media oligarchy.

After attending the Rethink Music conference, that smoldering resentment of the exploitative music industry has never been more fully stoked. The trampling of artists’ and fans’ rights in a quest for revenue continues unabated, but you can’t blame the industry. It’s their job. But I’m not writing the book to change the attitudes of the music industry. I’m trying to change the attitudes of fans and artists — it’s the only way to force the industry to change.

Here are my five big “lessons learned” from the conference:

#5 – Lawyer Jokes

I learned what many Americans already know — that lawyers are generally evil, and entertainment lawyers are worse. I always knew IP law was horribly broken, but I never realized how this was the absolute bedrock of the talent exploitation business. he lawmen justify their dubious ethical position by telling musicians, “I’m doing this to protect your rights and revenue”, which rings about as true as a cigarette company telling a smoker they are protecting their freedom of personal choice. What’s worse — with rock and pop publishing deals involving multiple parties, I learned that some big deals just don’t get made. The result? The rights holders can’t afford legal representation to make a deal after the fact, caught in a Catch-22 because the deal isn’t done. Millions of dollars are floating around unpaid because deals don’t get made, period.

#4 – Unintellectual Property

I learned the industry is really as dumb as you think they are when it comes to technology. Incredibly, Napster hasn’t really taught them anything, now 10 years down the road. There were a few exceptions — Open EMI’s pre-cleared license hacker sandbox was the most notable. The Echo Nest is clearly and deservedly well-positioned to become industry tech darlings, enabling the big boys to play with the same tools the small, agile tech startups hold inherent to their hacker talent and creativity. But by and large, the entertainment is a lot like the government — it still doesn’t understand IP in the 21st century, and thinks it can use the old tactics to prevent the freeing of music for the good of fans and artists (to benefit the industry). But without technology in their blood, it’s going to be a multibillion dollar quixotic struggle of epic proportions to try to steer the future of music into conglomerate control. Since they can’t dam Niagara Falls, all they can do is pass laws to make it illegal to visit. But what happens when all the rivers flood? Consider that in the U.S. Apple generates over 100x the annual revenue of all domestic record labels combined, and then you see how badly the music industry needs help in the technology space. This is all so ironic because the entire record industry is based around leveraging technology to make people pay for music.

#3 – Complexity

I learned that one of if not the biggest impediments to the industry generating revenue in the digital space comes from their technological stupidity. One of the main themes of the conference was how screwed everyone will be for years to come because of the industry’s inability to manage the information that is responsible for profitability. There are an infinity of micro payments flying around for songs with different metadata and all manner of licensing, publishing and other exploitation rights and rates to be tracked. Though there are myriad solutions being put on the table, the industry seems to have collectively shrugged its shoulders, hoping the geeks will figure out eventually if they throw enough money at the problem. I heard a lot of guarded optimism as a facade for folks who were clearly flummoxed by the complexity of digital music analytics.

#2 – Gamification of Social Music Advocacy

I learned that what I believe to be most exciting and promising thing happening in music today — the gamification of social music advocacy — is something the industry is largely oblivious to. While the conference’s Genesis award winner Have You Heard was honored for proposing such a system, it’s insanity that the big players like Spotify had nothing specific to show in that regard. Perhaps they thought they were protecting “trade secrets” but I’ve got news for them: this is exactly why the music industry is choking. someone smarter than you is going to beat you to it. You need a Turntable.fm to come along and flout licensing until the Big 4 say, “why, look at how you’ve grown! Accept our terms or we’ll kill you.” That’s the industry’s current model for innovation — let the geeks figure it out, then buy it or sue it out of existence. For the young entrepreneurs fresh out of Harvard who proposed the “FourSquare for fans” idea at the conference — I’m afraid this too could be your fate.

#1 – Artist Responsibility

Perhaps the most important lesson of all: I learned that when artists blame the fucked up music industry for their failure to succeed — or worse, their failure to get paid from their success — they’re ultimately blaming the industry for their own failure to understand the music or the business. There are a million “How to Succeed in the Music Industry” books, none of which have ever helped anyone write a good song. Conversely, there are thousands of great songs written by musicians that no one will ever hear, because the artist has no faith, interest or aptitude in the music business. Why should they? The industry is actually OK with its role as artist scapegoat, because if the artists really understood their responsibilities, they wouldn’t have to put up with such exploitation. Being a musician is really about being an entrepreneur, starting a small music business. What we need is millions of small music businesses, not a handful of monopolies trying to squeeze the last dime out of a dying industry, willing only to co-opt and rarely to innovate. Music, like life, is free and alive — and as they said in Jurassic Park, “life finds a way.”

Response to Tunecore CEO Jeff Price’s Grooveshark Diatribe: Music Should Be Free, Sorry About Your Business Model

This comment was posted to a blog post by Tunecore CEO Jeff Price which launches both personal and professional attacks on Grooveshark. Grooveshark’s CEO Sam Tarantino quickly shot back with 6 reason by music should be free, all six of which I agree with. Tunecore makes its money charing a flat $50 fee to musicians in exchange for digital distribution (and 100% of royalties, minus the sizeable chunk the distributor removes). Grooveshark is an ad-supported global jukebox. Unfortunately, they have become a scapegoat for the low compensation musicians are receiving from digital music, when really this is a problem endemic in the industry.

I was so incensed by Price’s hollow and mean-spirited diatribe I had to respond — you might want to read the original post to put the following in context:

To say that Tunecore “does not earn its money off the sale of the music” is preposterous and misleading. Who is drinking whose own Kool-Aid here? You may charge a flat rate, but without digital music sales (ie if music were freely distributed as it should be), you would not be able to charge a fee.

This is a classic case of “the dinosaur’s tail doesn’t know its brain is dead yet.”

As a musician, I always appreciated the service Tunecore provided as a cost-effective way for musicians to “play the game”. But it’s alienating diatribes like yours that bring me closer to the conviction that a world of free music is the inevitable and far better solution.

How about you stop whining and use some of those profits to fight for a better deal from iTunes etc. for artists?

The current system does not compensate us fairly, from the top (Eminem) to the bottom (most musicians). You do nothing but make it easier for us to be compensated unfairly.

Yes, of course musicians want to be paid for use of their music. That’s called licensing. Listening to music via the global jukebox is a different and fair use.

You’re completely missing the point. Those of us who have already accepted that music will and must be free don’t care if Grooveshark is banking off our streams. They provide an incredible platform to distribute our music! What is the alternative, $0.005 per play? Musicians simply don’t feel the way you characterize them in your post, and I for one resent it.

I’m sorry you’re not in the 360 licensing or concert businesses. I don’t think Tunecore has much of a future with the rotten, condescending attitude you’re displaying. I don’t hear an ounce of fighting for musicians in your argument — how about using some profits to lobby the digital distribution cartel for a much-deserved greater royalty for artists? Or do you just spew ad hominem attacks and vitriol at your competition in hopes that mean words will make the problems with your business model go away? I certainly won’t be returning as a customer.

Anonymous Announces Disruptive “Anontune” Music Platform, Sounds a Lot Like Tomahawk

Anonymous announced today (in another silly voice-garbled video with the typical grammatical errors) the shady but righteous group has built a prototype of the “Anontune” digital music service. It’s based a simple idea: there is a ton of freely streaming music on the internet spread out across YouTube, Soundcloud, Grooveshark, Bandcamp, Last.fm and hundreds of other sites. Anontunes seeks to aggregate all of these sources into a single interface that can search and locate these streaming files with the ease and elegance of iTunes.

The interesting thing is, such a service has existed for months, and it’s called Tomahawk. Just a couple months ago, Wired magazine called it the “Most Important Music App Nobody’s Talking About“.

Tomahawk is an open-source hacker project, just like Anontunes. It pulls streaming music from multiple sources. And it manages to do all this in a slick iTunes-esque software client that features social integration. The code and API are well-documented and there are already apps being built on the platform.

The Anontune white paper brings up a number of important ethical points concerning why digital music should be freely accessible. I’m excited to see Anonymous join the fray — the are fighting the good fight as Davids against the Goliath-run corporate oligarchy. And to give them credit — Anontunes has a pretty cool research agenda in addition to its media consolidation goals. The idea of using a ‘global jukebox’ to data mine peoples listening and discovery habits could drive digital music consumption through the roof. But the streaming music aggregator — I’ve heard it before, through my speakers, running Tomahawk.

Tomahawk has the polish of Limewire in its prime — well put-together but still not child’s play. Anontunes is so rough around the edges I don’t think anyone but other hackers are gonna bother. There’s another expected and familiar Limewire-esque problem: the catalog is polarized between widely available popular music and obscure stuff you’ve never heard of. And there are bugs aplenty, particularly because the technologies they’re aggregating content from are always changing.

The RIAA may have their claws deep enough in digital music to control the global jukebox through Spotify and other officially licensed services, but give Tomahawk and Anontune a few years and you’ll once again be hearing about grandmas having to settle with the major label music cartel for $25,000 because their grandson listened to an American Idol single on her computer.

CASH Music’s 360° Music Marketing Platform is an Open Source Revelation

CASH Music's admin abilities look impressive.

I’ll be the first to admit it, I have been out of the digital music scene for a while. Well, I’m officially back and doing tons of market research, getting ready for next week’s Rethink Music conference in Boston. I’ve discovered a slew of new organizations I can’t wait to learn more about, and a plethora of services and products for musicians I can’t wait to test drive.

Number one on my hit list right now is CASH Music. As profiled in a recent New York Times article, Maggie Vail and Jessie von Doom are in the process of creating what I believe could be a watershed product for independent musicians.

For a long time I’ve been baffled at the lack of decent WordPress templates for bands. That seems like the most reasonable solution for my band — an open-source WordPress theme with a nice admin panel that allows a high level of customization. There are plenty of themes to be bent to the needs of a musician, but none expressly designed for their unique needs.

The team at CASH Music has me losing a lot less sleep these days, having figured, “hey, instead of a theme, let’s just build a WordPress for bands from the ground up. Oh yeah, let’s make it free and open source too.”

Geeks with a bit of web dev knowhow can use the self-installer to get up and running and have a robust set of band-specific web tools at one’s disposal. The admin manages content, CRM, mailing lists, eCommerce and events… so CASH Music gets 10.0 on nailing all the key ingredients of an amazing platform there. These elements elegantly come together as the building blocks of custom web tools that can be implemented by site designers.

This is the most brilliant thing about CASH Music: Not only is it open-source, but the company is nonprofit. When I read this, my head split open and rainbows enthusiastically sprung out. The team had an incredibly successful Kickstarter funding drive that ended in March (they raised over $60,000 — double their goal). These funds will go toward their work on an easy-peazy hosted version for the masses, wisely following the model of WordPress.org.

Keep in mind this is all open source! That means, as a musician, you are seeing 100% of the revenue (well, maybe more like 97% after transactional fees, but still). Musicians the world over are truly fortunate that a talented group of people have taken up the cause to address the problem of lower revenues for artists amidst much more widespread consumption.

I can’t wait to have some time to try out my own install — I’ve been using Bandcamp for our band’s website now for about a year. Perfectly utilitarian, but I do miss having our own unique look and feel that features original content. I certainly couldn’t be more impressed with their combination of ethics and strategic thinking, so it’s time to kick the software tires. Stay tuned for part two.

Albums as Tiered Merchandise Packages Could Become the Norm for Physical Releases

There is a simple principle at work behind the thousands of musicians successfully crowdfunding their own album releases on Kickstarter and IndieGoGo each year. Different bands have different value to different listeners. This has always been true, but the physical media of the old music industry forced us into a relatively one-size-fits-all album format. In retrospect, the standard of twelve or so songs making an album was just an economic and technological compromise.

I believe physical media is in the early throes of a new renaissance in the music industry. With listeners becoming more and more accepting of music as a utility one is billed for monthly, there is a developing thirst for the tangible. But we have to expand our definition of “physical media” beyond mere sonic product, or music-bearing media. Gone are the cheap discs, cassettes and other wastes of space, and in their place are artfully crafted original books, movies, artwork, apparel and all manner of novelty to compliment and even enhance the music.

As is the norm with modern-day video game releases, bands are now releasing albums in tiered collectors’ editions. The upper-tier packages usually feature vinyl and some sort of premium perk, for example Silversun Pickups’ sold-out “Ultimate Collector’s Edition” with a hardcover book to go along with their new album Neck of the Woods. It’s nothing entirely new, pioneering bands have been doing this for a long time. But I do believe it could become de facto standard in independent releases for a good deal of time to come, particularly in independent music.

Madonna Sets Record for Largest Second-Week Drop in Album Sales

Fail is heavy in the air for Madonna, who saw sales of her new album MDNA nosedive 88% to a measly 46,000, setting a record for biggest second-week drop in chart history.

This from arguably one of the top ten names in the music industry, signed to an obscene $120 million, 10-year 360 deal with LiveNation, with one of the largest promotional budgets in the business. Her marketing plan started with a Super Bowl half time performance — an album release doesn’t get a much bigger springboard than that.

No matter what IPFI propaganda will tell you, the CD is the end of the road for physical music media. For the majority of music fans, there is far more value in having access to the digital copy. This is clear as crystal in the numbers: Physical sales fall year-over-year while digital sales are on the uptick. Keep in mind Madonna’s miserable numbers included these digital downloads.

The new trend in physical music media sales can be found in Madonna’s first-week album sales (359,000), when the music industry temporarily convinced themselves that the slo-mo flash crash of the CD media format had hit a plateau. The secret behind the trophy showing was bundling — in this case, the bundling of a free CD or album download with any concert ticket purchase. That’s right — if you wanted to take your friend to the Madonna show, well, you both bought the album too. This gross inflation of actual sales (180,000 albums were bundled with tickets) makes the official SoundScan numbers pathetically hollow.

Good thing LiveNation has a 360 deal — they’re going to need that licensing revenue.