Sunday, February 10, 2008

MidemNet The Future of Digital Music

Allen L. Johnston - The Music Specialist
www.asha.com

The music business’s future is being rebuilt and the originators of the most popular music on the planet are not even aware of what is happening. In the past year several new business models have been created that will totally change the direction of how music is served and received worldwide. Labels have become retailers and TV channels, mobile phone companies have been turned into multi-media companies while expanding on to the PC platform, live music promoters have signed recording artists and are selling music, merchandizing and licensing their artist’s works while still selling massive amounts of tickets. We have seen the iPod go from music to movies and now become a mobile phone and above everything else all of this new social networking connection has caused advertising to become KING.


Web 2.0
Unknowingly to millions of people Web 2.0 has taken over the way people communicate online. Just in case you don’t know, Web 2.0 is the proliferation of social networking sites such as MySpace, Facebook and YouTube. This growth has occurred so fast that individual artists now have Web 2.0 sites, and Internet leaders such as MySpace have created spin-offs of their own site to capture more users. These sites allow users to communicate between one another at unprecedented levels while sharing personal tastes, ideas and generating massive opportunities for advertising.


Music has become an integral part of these sites with the addition of widgets (specialized software that either plays music or captures information concerning usage) that now effectively gives online subscribers personal players for uploading and downloading music either from their own websites or over social networking sites.


Social networking has also afforded great opportunities to many bands and individual artists. Radiohead showed the world what the consumer wanted was the ability to make up their individual mind about music pricing. Amy Street, an online retailer using the Amazon backbone, offers buyers free music until the downloads become popular then their pricing structure starts increasing with the popularity of the download to a maximum .98 cents (US) with the artist retaining 70% of the revenues and their copyright.






From the Netherlands SellaBand allows unsigned acts to upload their music to its website and offers listeners the opportunity to financially invest in the artist they like. As soon as the act raises $50,000 from its investors, SellaBand provides the professional resources to record the album. Since its launch in August 2006, 11 different acts have raised the required funds and all 11 have placed either major label deals, licensing deals or enormous digital distribution deals.


What is becoming a beast of a concern among labels, retailers and subscription services is the new concept of music for free.


There is a growing swell of advertiser funded digital music services around the world and during this MIDEMNET this became the hotbed of controversy. On one side of the aisle are the traditionalists that believe music must ALWAYS be paid for, irregardless of the format it is in. On the other side are the people that see the web creating a 61 BILLION dollar advertising industry by 2010. These people point to the current figures of 35 Billion for 2007 and only see upward growth. The largest unauthorized music download site today on the web is LimeWire and estimates place this software on one out of every six pc’s in the world, thus proving that consumers still want to receive music FREE.


Advertising supported sites now include Spiral Frog, MySpace, InGrooves, Qtrax, the college targeted Ruckus Network and the French site Deezer. Advertising is also being considered for mobile-distributed music MVNO (mobile virtual network operator) a new concept is the basis for Blyk a new service that offers free airtime for voice and text as long as it users are prepared to receive advertising messages. Participating musical artists will use their websites to invite fans to register with Blyk, which will setup an account and a free mobile communication line to enable artists to reach their fans directly.


Major labels, major publishers, retailers and more argue that advertising based free services will give music fans the impression that they should never pay for music, what I see is that this is a “front” to disguise the fact that the music industry has failed to react to the consumers demand for more digital music free. The fact that the music industry failed to deliver economic models that matched the consumers needs digitally is not the consumers fault. So why should consumers be held liable?




With the proliferation of mobile phone handset makers worldwide Nokia leads the globe with an unprecedented 40% market share. They have manufactured handsets that allow new forms of digital media delivery. Social networking, broadband internet, mobile TV, handsets that can hold up to 6000 songs have made downloading a viable business. Last year when the iPhone hit the market Nokia released the Nokia Music Store, a dual delivery service for mobile and PC downloads, unlike iTunes and other services Nokia Music Store allows users the capability to transfer music to other devices and if you lose your phone you can still have your music on your PC or any other digital device capable of housing mp3’s. NOKIA and UNIVERSAL struck a deal last year that calls for NOKIA to offer music fans access to unlimited digital music for a period of time with the cost built into the price of the portable mobile phone sometime this year.

This has changed the way the world listens to and treats music. Worldwide mobile phone delivery of music and now video is ever increasing and the only thing stopping a wider penetration of delivery is content. This is where you, my reader, can join the new world order. You are the ORIGINATORS of the most widely popular and listened to music in the world and you have a responsibility to uphold. Content is needed for every style of music / video imaginable, content is the deciding factor when people from other countries want to know more about YOUR country. Content is a superior form of education for the masses and a revenue builder for the content creator.

MidemNet made one thing extremely clear. There will be multiple new delivery systems and business models, however without the creative creation of content there can be NO FUTURE.

Thursday, February 7, 2008

Getting Paid From Labels

GETTING PAID FROM LABELS
Allen L. Johnston – The Music Specialist
www.asha.com

While sitting in a music conference panel recently it dawned on me that the Independent labels had created a whole new series of individual and small group owned independent SUPPORT businesses . These businesses are flourishing while the independent labels that use them are not.

As a Hip-Hop / R&B / Neo Soul / Rock / Country or Gospel artist you feel that your material should be the hottest in the country. You just don’t know what to do to get started, so based on what you’re seeing and hearing today the first thing you desire is a

Manager – Most individuals imagine that a manager will be the one person that can take an artists career to great heights. Unfortunately the entry level manager knows just about nothing concerning the intricacies of the entertainment industry. At this level it’s ALL about ego and a false sense of power. Many mid-level managers only know how to spend money on delusional marketing schemes and are not creative enough to really enhance an artist’s revenue streams or career.

Consultant – This person is normally hired by the artist or label based on either who they know or the company they used to work for. I recently had a label consultant tell me that he knew how to sell music because he had worked for G-Unit as a STREET TEAM LEADER. The best consultants know how to develop team strategy, work within specified budgets and develop meaningful marketing plans.

Since the majority of today’s artists don’t know how to make music they now need someone who can place music around their lyrics and make people want to listen to them.

Beat Makers – is a name that was created because rappers wanted people to believe that they were solely making the music popular with just their lyrics. It doesn’t matter that the people inventing the music, which ultimately gives the artist their muse, are relegated to an inferior position. They only make the BEAT and sell it for a few hundred or thousand of dollars. This new business is becoming so popular that I have recently seen directories of Beat Makers for sale.

Producer – is the correct name given to the person who not only creates the music, but assembles and mixes the musical project. Sometimes considered Beat Makers, today’s producers are becoming stars in their own right and their fees are becoming astronomical also. It is normal to expect to pay $20,000 - $75,000 per track for the expertise of a Gold or Platinum selling producer, plus own NONE of the publishing royalties. These are the real “ballers” in the entertainment industry for they retain more money, more often.

Since there is a growing cadre of Beat Makers and Producers, then there has to be a business in making the tools these people will need to work with.

Computer recording software – Fruity Loops, Pro Tools, Sonic Foundry and thousands more have been purchased and downloaded on multiple machines around the world. These new recording software businesses have become so wealthy that they are having their own closed vendor shows to network and give rise to newer business models.

Recording has become so removed from the art of making music that people now say “Out of the lab” making recording a Frankenstein phrase. Musical products should instead be a work of genius, emotional yet precise and be originated from creative thought. Once “out of the lab” most labels and artists start immediately promoting the “upcoming” music.

Flyer & Business Card Printers – Computers have made this business easy and home grown. Just in the streets of Charlotte NC alone I saw thousands of flyers, post cards, mini-posters and business cards ALL promoting a new artist, a new band, mix tape or song. This phenomenon is happening in every major, secondary and tertiary city in this country, and it is happening in every major city around the world. Who is reading ALL OF THIS PAPER?

CD Inserts, posters, merchandise – This is normally a 2 or 3 person operation, with one person doing artwork, while another person does the physical machine runs. This business physically makes most large orders obtained from Flyer & Business Card Printers who become the middle man. This company is also working with the…..

CD Duplication – Not to be confused with replication, the duplication process is just copying onto a pre made blank cd. Having to buy the cd duplicating machines is the first qualification for the owners of this type business. Computers have made this business easy to operate as long as you have supplies and your machines are clean and maintained.

Now you’ve got your product and you need to expose it to the world so you can become rich and famous. Of course your ego has told you that your song is HOT and you are the greatest performer of all time. Therefore you need to perform it in front of as many people as you can even though you have never had any training in how to perform. This brainstorm has generated many different varieties of the following business concept.

Night Club showcases – In every town and hamlet weekly showcases have opened, giving the artist a chance to perform in front of an audience. Very few showcases promise any reward and the few that do still use the performers’ audience to make additional money every week. I have yet to find a showcase that actually gave an artist a major label deal as the grand prize, or any artist that received one.

Talent shows – Not to be confused with Fashion show (That’s another article)

Talent Auditions – Normally this is a weeding out process to see who will really pay money to be told that they have NO talent.

Music Conferences – If I read or hear about one more conference being compared to JACK THE RAPPER’S FAMILY AFFAIR I will start a fight. Today’s music conferences leave much to be desired for the new artist. Panels have people talking down to the audience or just promoting the panelists individual agendas. The dress code is loose and so are the attendees who arrive with pre-conceived ideas of grandeur, . What made Jack’s conference the best is that it WAS a family affair, with proper rules of etiquette and a complete cross section of the industry, announcers, store owners, labels, artists and support groups. It was NOT a
DJ’s Summit
Producer’s Summit
How Can I Be Down
Get Seen & Signed

Street Teams – someone has to place this monstrous pile of paper and plastic goods in the street. Teams have become specific as the All Woman Country Music Street Team I met in Nashville recently.

Another avenue of promoting your song or performance is now the impressive…..

Publicists – Dedicated to getting you as much publicity as possible the majority of the new business publicists only have a limited amount of physical contacts and a myriad amount of email addresses. How many times have you seen 80,000 emails sent for $100 or something just as ludicrous. A real effective publicist has writing contacts, print contacts, radio contacts, television contacts and venue contacts.

Periodicals - Have you been able to count the number of genre specific magazines in your city? Not only the Hip-Hop magazines, R&B magazines, Gospel magazines, but now urban lifestyles, hair, business contacts, and networking magazines ALL in print form. Add to that the ever increasing….

Ezines/ E Blasts – Interactive emails that I am receiving about 20 a week publicizing concerts, shows, new songs, new artists, and other entertainment events. This seems to be the wave of the future reaching the consumer directly.

Internet Radio shows – There is now a radio show or pod cast for every type of music and genre available. You can hear it over the Internet at any time day or night.


When you are ready you are told that retail distribution is the only way you will ever see any substantial financial reward from your product. The reality is that if you were organized you could make more money selling your own product.


Distribution Services – This is really the new business model for making money off labels that never sell records. You offer the label or artist distribution then you charge them for everything you do.

Major Independent Distribution - First to get your product into a major indie distributor you must pay another company that already has a distribution deal with the major indie, thousands of dollars to be able to be a subsidiary company. Next you must hire a liaison that has a relationship with the major indie distributor to make sure that your product has preferential treatment. Finally you must hire a radio promotion person to TRY and get you airplay in several different cities over different radio stations all during a specified time period that should coincide with the product release and video showing.

Mid-Level Independent Distribution – This new business model is popping up at a surprising rate. Companies are now charging labels AND artists to distribute their product. Additional charges include storage fees, shipping fees, marketing fees, distribution fees, advertising fees and the new digital distribution fee. These distributors seldom have direct access to the larger chain stores (Best But, Wal-Mart, Target, etc) and must use another company to help them sell.

Digital Distribution – More and more companies are popping up claiming to be able to place your music on digital download sites and ringtones. These companies have a reputation for telling the artist that they are going to get a lot of money, while the reality is that the creator and owner of the music makes about15% of all the money from online purchases. Phone companies get the money, take a percentage then send money to the phone carrier who takes money then sends it to the mobile aggregator who takes money then sends it to the company that represents your music. You are seldom told that you must pay for ALL marketing & promotional services online & offline.

Online Stores – The new online store model is for either digital delivery or physical delivery. Once again most online stores are either individually owned by the artist and label, or leased operations where the store owner does not control the product or the money from the purchase. One of the best examples of this type of operation is BurnLounge, by the way whatever happened to all of those people claiming that this was the wave of the future?

There are many adaptations on the above named new businesses, but one thing remains constant. The independent labels are disorganized, unfocused and not realizing the multiple revenue streams available today. Instead of making money labels and artists are supporting many new businesses.

Tuesday, December 4, 2007

Henry Stone Black Music Innovator



HENRY STONE BLACK MUSIC INNOVATOR


Henry Stone was born and raised on Jackson Avenue in the New York City borough of the Bronx on June 3, 1921. His family stayed in the Bronx until their move to Manhattan’s Washington Heights neighborhood. Henry remained in Manhattan till the age of eight before going away to an orphanage in Pleasantville, New York after his father passed away. He remained at the orphanage until the age of fourteen. It was 1943 when Stone joined the U. S. Army. He was stationed at Camp Kilmore in New Brunswick, New Jersey for three years. He played in the first racially integrated Army Band and recalls, "I spent a lot of time with Black musicians and that’s where I got a lot of my Blues background." After being discharged in 1947, he moved to Los Angeles, working on sales and promotion for Jewel Records and then Modern Records, and traveling around the country.



Ray Charles came to Miami n 1951 and I ran across him and he told me he needed to do a gig… I invited him to my recording studio and we cut four sides." The 78-RPM recording of St. Pete Florida Blues ended up selling fairly well in the South and is considered highly collectible today.

During the 1950s Henry kept busy by building his distribution company and recording local artists. He says, "I always liked to make records (produce and record them). That was my hobby. I did a lot of Blues stuff with Earl Hooker, John Lee Hooker, The Charms’ "Hearts of Stone", which became an R&B chart #1 hit in 1954. He was also instrumental in signing James Brown to King, and in recording Brown’s first hit “Please, Please, Please”

In 1955, he established his own independent publishing companies and several record labels, including Chart and Dade, mainly recording local blues artists. In 1960, Stone cut "(Do The) Mashed Potatoes" by "Nat Kendrick and the Swans" – actually James Brown's backing band - for the Dade label. He also set up Tone Distribution (originally Tru-Tone), which became one of the world’s most successful record distribution companies. He would distribute records for Atlantic Records, Motown Records, Stax Records and many more independent labels right up through the 1960s and 1970s.

Henry’s success included Betty Wright whose "Clean Up Woman" was a major hit in 1971 on his Alston label. He also set up the Glades label, recording the million selling hit "Why Can’t We Live Together" by Timmy Thomas. In 1972, Stone formed TK Records (named after studio owner Terry Kane), based in Hialeah Florida


Stone’s companies produced numerous other hits during the 1970s, including Beginning of the End’s "Funky Nassau" (on Alston), Latimore’s "Let's Straighten It Out" (on Glades), Anita Ward’s "Ring My Bell" (on Juana), Little Beaver’s "Party Down" and Gwen McCrae’s "Rockin’ Chair" (both on Cat), and Peter Brown’s "Do Ya Wanna Get Funky With Me" (on Drive). Two of Stone’s warehouse employees, Harry Wayne “KC” Casey and Rick Finch, began collaborating on writing and performing songs, with Stone allowing them to experiment in the recording studio after hours. As KC and the Sunshine Band, they released a string of hits such as "Get Down Tonight", "That's The Way I Like It" and "Shake Your Booty", all on Stone's TK label. The band had five number one pop singles, and platinum albums, winning five Grammys in 1976. At the same time, Casey and Finch wrote and produced the number one "Rock Your Baby" by George McCrae, and his follow-ups.
By the late 1970s, the TK Records and its sister labels became pre-eminent in the dance and pop music scene, but suffered badly from the anti-disco movement which followed. TK Records ceased operating by 1981, and Stone went into partnership with Morris Levy of Roulette Records to form the Sunnyview label, issuing records by funk and rap artists such as Newcleus. Stone later became involved with Hot Productions in the reissue of dance classics on CD. Today, he continues reissuing R&B and dance tracks on his own label, The Legendary Henry Stone Presents...

Stone established many different labels on the basis, he said, that it was easier to get records played if the radio stations did not realize they came from the same source.

Here’s a brief list of record labels that Henry Stone had an interest in:
APA
Alston (in partnership with Steve Alaimo)
Blue Candle
Bold
Cat
Chart
Dade
Dash
Deep City
Deluxe (in partnership with King Records)
Drive
Glades
Glory
Gucci
Hot Productions
Kayvette (partnership with Brad Shapiro)
Marlin
Nezz
Reid’s World
Rockin’
Saadia
Scott
Silver Blue
Summer
Sunnyview (in partnership with Morris Levy)
Sunshine Sound Disco (label meant to spotlight KC & Finch productions)
T. K. Records / T. K. Productions
Time-X

Monday, October 29, 2007

Music Conferences Should Be Banned

MUSIC CONFERENCES SHOULD BE BANISHED
Allen Johnston - The Music Specialist
www.asha.com

This year I have seen advertising for over 30 music conferences just within the Southeastern United States. What could possibly be the reason to have so many conferences about the same issue? Is there such a dire cadre of uneducated artists, producers, label owners and wannabes that these conferences are really needed? What are these conferences setup to do? The reasoning is ultimately extremely easy to understand. ALL of these conferences have played to a basic instinct within the populace.

EVERYBODY WANTS TO BE A STAR.

Every one of these conferences has had showcases of one type or another that was a hidden reason to pay additional monies to the conference owner. What has been accomplished? The majority of the conferences were attended by independent record labels that never understood the rational around selling music versus performing for free. These labels will take their budget, (whatever it is) and squander it upon creating cd’s, postcards, flyers, hiring promotion people or the occasional video. Their ultimate goal is to have a major label “discover” them, pay them, sign, promote, market and sell their music all the while creating more and more opportunities for them to become famous. NOT ONCE has this happened! The performers are performing in front of their peers and not anyone that has an interest in signing them.

What happened to educating the people? Why are their so many people rushing to give away their money just for a few moments upon a stage?

What has been created has been the growth of a new business model. This model is one where a few entertainment industry people are getting wealthy from the mass of uneducated artists who have a burning desire to be a STAR. Unfortunately none of the artists, labels or producers knows anything about the music industry.

What I am finding more and more of is the young entrepreneur who really only desires the fame and popularity associated with the entertainment industry and not the basic business acumen needed to initiate and maintain a viable entertainment business. “BALLIN” has become a game of one up man ship to see who has the brightest “iced out jewelry”, biggest most expensive cars and the latest fashions. Who can market themselves into a major deal yet not have any professional team available to maintain a deal.

Tools needed to become a winning label.

The creation of a written document outlining the agreement among partners should be one of the first things you do. Next the organization of your office environment where all mailings, billings, invoices and correspondence can be collected, sorted, acted upon and filed. A central phone number and a computer based office system should be formed. How will you keep in contact with the many different individuals and companies you & your crew will come in contact with?

Incorporation of the business will give you the tools needed to create a corporate bank account, savings certificates and a corporate credit card. Additionally it will also give you the basis for paying your taxes and the ability to keep open and honest legal documents.

The entertainment industry is based on communication so a strong ever-increasing database of radio, retail, publicity and industry executives should be started.

You won’t be getting this information at any music conference that you attend locally, because it is better to keep you ignorant and coming back then to assist your knowledge and have you become a potential conference owner yourself.

As for you conference owners and promoters your days are limited. People deserve and want more than a chance to perform in front of other “poor and unsigned” companies. To stay in the conference business you will have to change your conference structure.

A few ideas for the next REAL music conference.

Publish a list of the conference attendees and give it to every person that attended your event. This will increase networking and give your attendees something that they will hold on to for at least a year.


Make sure that you have “hand outs” for each panel, seminar, lecture, etc. Thus giving your attendees information that they can study and learn from at their own pace.



Have every one of your panelists write a paper or case study of something they did concerning the title of their panel. For example if the panel is about independent distribution, then the case study should be about a label that acquired independent distribution and how they fared.



Stop having panels and start having working workshops that teach skills.



5. Qualify your panelists and know that they have done something positive within the industry BEFORE you ask them to be involved with your conference. There are WAY TOO MANY frauds speaking on panels today.


Recently I spoke at a conference and during a private networking session I was asked how to just “jump over” all that old fashioned business and go directly to having a major record deal. My response was that it would be really easy to do if you have met someone in the position of power at the major labels that wanted to immediately sign you and spend their money on making your career. The only issue I can see would be in how you will keep a deal of this magnitude without knowledgeable individuals around you that know the business, have connections and will work on your behalf to ensure your continued success and well being.

In other words where is your trusted team?

Why continue to go to conferences that only waste your time? Why not develop the business structure you will need now, acquire your trusted team, develop your database of industry connections and prepare yourself for success.

Saturday, October 27, 2007

BIRTHING PAINS KEEP COMING

BIRTHING PAINS KEEP COMING
Allen Johnston – The Music Specialist
www.asha.com

Pay back has finally arrived and the system created by the major record labels for music sales is feeling the FULL BLUNT.

In a capsulated version, RADIOHEADS gambit of offering its new release online --and letting the consumer decide on price has turned out to be a genius marketing move.

TELEGRAPH UK reports that hits to RADIOHEAD's website increased 11-fold after the announcement. Although the band refuses to provide concrete numbers on how many fans have pre-ordered their seventh album, "In Rainbows," but figures from Net monitoring agency HitWise show the move pushed the site up from #43 to #1 for music websites in the UK. A band spokesman did confide that consumers so far are spurning the opportunity to download the album for as little as 45 pence ($1US Dollar) in favor of paying full pop for the £40 ($82 US Dollars) box set, which includes vinyl records, CD and artwork
Now that the public has spoken about the music that they desire, the band has direct access to the fans that love their music and they are making more money per disc than they have ever made in RADIOHEADS career. This new concept is ultimately where the Internet will take every type of recorded entertainment. Direct to the consumer. Major labels are not extremely happy about the idea that you can have a massive hit record and not have to use their retail / radio system to get it heard and sold.

The benefits of direct access to the consumer are so great that other acts are now looking at how they can utilize this system. Since Rock & Roll makes up the largest portion of Internet music sales, this is normally what we hear about Internet sales, but the originator of this direct to consumer system has to be PRINCE.

After leaving his “slave” contract PRINCE started selling his music independently through Al Bell (remember The Most Beautiful Girl In The World), but from then on he sold music exclusively online. In his latest move PRINCE gave away 2.8 million copies of his album to newspaper readers in the UK. Prince's free CD was noteworthy not only in that it marked the first time a music icon of his stature gave away a new album of original music, but also because it demonstrates the degree to which album sales no longer matter as much to artists. After all, tours are where most acts make most of their money, and the fact that the music sales have been in a tailspin for the better part of this decade is not news to anyone at this point.

There are a number of factors behind the sales slide, but one important factor is that the album is no longer the primary means for an artist or group to get their music into the hands of the public. Most bands have pages on MySpace where would-be fans can sample their wares. Others, like the Barenaked Ladies, Tilt, and Keane have released albums on USB flash drives.


Now comes word that NINE INCH NAILS mastermind TRENT REZNOR is cutting ties with his label, UNIVERSAL MUSIC GROUP, according to CNS. Previously, REZNOR urged fans to download his new CD illegally, after finding out how much the label was charging AUSTRALIAN and NEW ZEALAND fans for his record.REZNOR's statement on the band's website stated, "It gives me great pleasure to be able to finally have a direct relationship with the audience as I see fit and appropriate. Look for some announcements in the near future regarding 2008. Exciting times, indeed."


Just because you release your music online does not mean that you are going to have phenomenal sales. There are a few things ALL of these artists have in common that create multiple revenue streams.

The first thing is that they have already enjoyed Gold and Platinum sales on past major label product.

Each and every one of them has cemented a loyal audience and maintains communication with that audience on a regular basis via the Internet

Touring is a major portion of their success while having multiple merchandising articles available for sale before, during and after the tour.

Look for many “superstar” status artists not resigning with major labels in the near future, especially when they can have the type of success that RADIOHEADS & PRINCE have shown.

Last but not least, if the major labels have less superstar product to generate revenue, they'll undoubtedly have less money and time to break new talent. This will make it near impossible for new artists to acquire that major label deal without having shown labels a solid fan base that is constantly growing, massive amounts of Internet play and retailers that want the product!

The new record industry is here NOW and this is just another one of the many BIRTHING PAINS.

Wednesday, October 17, 2007

Birthing Pains

BIRTHING PAINS
Allen Johnston – The Music Specialist
www.asha.com

I was told at a recent music conference by an executive from an independent distributor that he wishes the Internet would be destroyed because it hurts record sales so bad.

I have in recent times heard from a major market radio consultant that the Internet was responsible for the demise in listener ship at radio formats around the United States and it should be banned.

To both of these statements I say “It’s about time”, the one sided business practices and limited opportunities within the radio / record / store system should have ceased years ago.

Michael Harrison, publisher of the talk-radio magazine Talkers, told a group at the National Association of Broadcasters Radio Show that competing technologies -- like Internet, Wi-Fi, podcasts and cell phones -- would all but fill the niche they now occupy.
"These are dark times for terrestrial radio," Harrison said. "And most people in terrestrial radio are in denial of it."

The old record industry depended on radio airplay to sell records for record retailers, then they added MTV / BET to their record selling mix. This vicious cycle has finally started to erode, technology has made it easier for more creators of music and multi-media projects, and with this proliferation of new material came new avenues to listen and expose these creations. The new record industry has been birthed and the initial growing pains are now presenting themselves. Change can be embraced, fought or ignored, change can not be stopped, and today’s technology has brought many new revenue generating ideas to our industry.



RADIO
To exist in a profit making position Radio will need to focus on its local sponsors and core community. Music will probably be the first thing that will leave the format as more and more stations will turn to talk and information radio. Genre specific radio has risen significantly already with the proliferation of Hispanic, sports, talk, Asian, Haitian; and other formats. It is not too difficult to envision that this type of audience targeted radio will become mainstream soon. Music is now available on a multitude of levels as proven by the data being collected today on Arbitrons PPM, and consumers are turning away from radio to hear this music by using many different devices.




RETAIL
Independent record retailers are fast becoming a thing of the past. These retailers have had to change their buying patterns and start carrying clothing, multi media accessories, and adult novelties based on their specific customer genre just to stay in business.


An example of positive genre specific business practices is the new deal announced between MUSICNET, the music unit of MEDIANET DIGITAL and LA CURACAO, a leading Hispanic mega retailer in the U.S. creating the first ever full-featured Hispanic focused digital music service.

MUSICNET with LA CURACAO partnering have created PASITO TUNES a Hispanic based fully customized digital music subscription service and download store, along with the ability to access users’ music collections both on PCs and portable devices. Users will have access to a bi-lingual online music destination with catalog from Latino music genres including Salsa, Meringue, Cumbia, Tex-Mex, Reggaeton, Bachata, Rancheras, Baladas, Spanish pop music and more.


RECORDS
CD, vinyl, and the almost extinct cassette sales are plummeting at a faster and faster rate every year. Digital sales ARE increasing however they are not nearly as bountiful as yesterday’s cd and vinyl sales once were. Record labels are now turning to different sources for their revenue.

The music business is no longer about promoting records, but it has changed into a licensing business.

UNIVERSAL MUSIC GROUP is trying to create a comprehensive subscription plan, called TOTALMUSIC, which would require buy-in from ISPs and mobile access providers. This is an interesting idea if the consumer doesn’t have to foot the bill; however we already know that the ISP will automatically increase monthly access charges in exchange for a subscription-based music plan.

The NATIONAL MUSIC PUBLISHERS ASSOCIATION has stepped up their efforts to shut down popular websites that publish lyrics to songs without their permission -- and are demanding that GOOGLE and YAHOO! remove all references to them in search results, reports THE NEW YORK POST.

The move against lyric sites comes because the publishing business is in the midst of rolling out OFFICIAL online-lyric offerings through such places as YAHOO! MUSIC and REAL NETWORKS' RHAPSODY, via deals with lyric aggregators GRACENOTE and LYRICFIND.

Since 2003, IODA has been at the forefront of digital independent music distribution marketing and technology. Now IODA is in the digital video distribution business, with content from a broad range of top-tier indie film production companies along with IODA's labels' catalog of music videos. Distribution outlets include movie download sites NetFlix and EZTakes, mobile outlets Groovemobile, Hudson, Jamba/Jamster, Mobile Streams, Rogers Canada and Musiwave, and music video purveyors Real Rhapsody, Muzu and Veoh.


WARNER MUSIC GROUP and CHRIS LIGHTY, Founder/CEO of VIOLATOR MANAGEMENT, have formed a joint venture to be known as BRAND ASSET GROUP. The group is designed to increase revenue by more aggressively managing artist brands from all genres and capitalize on the value of those brands through corporate sponsorships, strategic and integrated marketing campaigns and comprehensive brand extensions.


I will say it again. The music business is no longer about promoting records, but it has changed into a licensing business.

Monday, October 15, 2007

Hip-Hop Awards Shows

HIP HOP AWARDS SHOWS
Allen Johnston – The Music Specialist
www.asha.com

On the eve of the Hip-Hop Awards show I have to ask the question WHY?

Why are there award shows for artists that condone violence, derogatory lyrics and a complete disdain for authority?

Who really wins?

What do they win?

What is there to gain?

The presenting award show company acquires EXPOSURE so that the ratings for their show increase. They then can attract more advertisers and make a hell of a lot more money than the artists that received the award. The company also acquires sponsors for the show who use their sponsorship as advertising for their products or services, again making way more money than the Hip-Hop artist.

The Hip-Hop artist gains EXPOSURE so that everyone can see that they are a worthy Hip-Hop artist and the viewing public should become one of their loyal fans. Sales are not increased because you have won an award, your fan base is not increased not even your personal knowledge is increased.

Who acquires the most?

Award shows in the Hip-Hop music business always seem to have similarities.

Major artists are placed up front so that television cameras can constantly check to see their expressions when OTHER people win the awards.

Hard rappers always Thank God yet don’t have the strength to clean up their images or lyrics.

Iced out, grilled out, huge chains, new clothes, new hair arrangements galore yet not one dime to make a REAL change within their cd / ticket / clothes buying public’s community. A few artists have foundations that throw a yearly party so the press can see how much they are helping the community or they’ve given a few thousand dollars to a very few students educational fund. Here’s an idea, why not take the cost of ALL the jewelry you wear to the awards show and invest it into the education of children within your OWN community.

Cleavage will abound on the audience shots.

There’s going to be drama in the show and around the city where the show is being held. This morning I read that during the opening awards party someone got shot and a famous rapper is being accused. This type of behavior is indicative of any artist who really believes their “Hype”, and needs to show how truly “BAD” they are. Once again this is not selling records and most people are not so lucky that they can walk away from a gunshot wound, or an attempted murder charge.

There will be untold numbers of parties all using the name of the awards show in their advertising. Of course there will be Official parties and Unofficial parties advertised plus the underground private parties that this generation is now so proud of. Combined this only increases the chance of some drama hitting the media and blaming the drama on the awards show.

Pick your city Atlanta, Chicago, Houston, Los Angeles, Miami, New York, makes NO difference the similarities are there and the major players are the same.


I already know that some of you reading this article will feel that I’m “hating” on the award shows. My answer is to show me that I’m wrong, in other words WHERE’S THE BEEF?