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MUSIC BIZ INSIGHT #33 Power Reading for Busy Music Professionals Hope you're hungry! MUSIC BIZ INSIGHT is published for musicians, songwriters, managers, label reps, booking agents, entertainment attorneys, studio owners, music publishers, and all others involved in the music business. Its purpose is to help boost your business, find new markets, make the right connections, develop professionally, work smarter and improve your bottom line. "As a general rule, the most successful people in life are those who have the best information." Benjamin Disraeli Written and published bimonthly by Peter Spellman, Director of MUSIC BUSINESS SOLUTIONS: Turning Music Business Data into Useful Knowledge. Career-building books, articles, training, consulting and more. P.O. Box 230266, Astor Station, Boston, MA 02123-0266, USA Phone: 888-655-8335 Email: success@mbsolutions.com Web site: http://www.mbsolutions.com © 1997 - 2003, Peter Spellman, MBS Business Media, www.mbsolutions.com Please feel free to redistribute with above credit and copyright notice.
SPELLMAN ONLINE! This month Berklee College of Music bows www.berkleemusic.com, an online music career development portal. They've been working on this baby for over a year to provide the BEST in music career development resources. Lots of stuff to expand your network and your mind, including an online school... I'm debuting my first six-week online course titled, "Marketing Yourself in the Music Industry" this month. It's designed to help you discover your particular niche in the biz and then build a career marketing plan from it. You also get plenty of individual attention from yours truly. Sign up now! Get the skinny at berkleemusic.com. Next section begins in mid-January, 2003. LOYALTY ALIVE Pearl Jam, Phish and big Bob Dylan are issuing "live recordings to build and reward loyalty among existing diehard supporters," reports Chris Nelson in The New York Times. Dylan is about to release Volume 5 in what's called the "bootleg series" of his 1975 Rolling Thunder Revue tour. Pearl Jam, meanwhile, released a total of 72 live albums last year, "one for almost every show. "We're not trying to talk new people into liking Pearl Jam," says Kelly Curtis, their manager. Expounds manager John Paluska of Phish : "We're trying to enrich our core audience's experience, rather than seeking to broaden our audience." They are also trying to undercut bootleggers who record and then swap concert recordings online, as well as circumvent "radio's restrictive programming." For example, a British combo called Doves enjoys a strong following, on the strength of its critically-acclaimed disc, The Last Broadcast. However, "the album has yet to attain much airtime on radio. By giving away a live recording, the group hopes to keep fans coming back for the next tours and albums...even if fans do not hear the band on the radio." Says Andy Williams, the band's drummer: "It's looking after the people who looked after you." This new era of live recordings is quite different from the old one. Back in the '70s, live recordings meant hit singles and made superstars out of Peter Frampton and Cheap Trick, for example. Live records tended to be "ideal representations," with producers creating "fantasy sets intended to appeal to a broad audience by stitching together the best performances from different nights or different eras." Nowadays, the idea is simply to capture a given night's performance, warts and all. The ideal is to enable fans to "buy the very shows they attended, in their entirety." Pearl Jam's Kelly Curtis sees a very bright future in this approach: "I kind of envision a time that you'll be able to just almost stream it live and get it out immediately, where you're not even going through the process of putting it on disc." For the time being, fans can download "two-CD sets in stripped-down packaging for $11 through its Web site, http://www.pearljam.com UPSCALE & DOWNTEMPO The new epicenter of pop music culture could be in Vienna and Washington, D.C., suggests Martin Johnson in The Wall Street Journal. Wha'? Vienna has no music industry to speak of, and D.C. is, well, D.C. Actually, that seems to be the point. A new strain of music is growing perhaps because it is as far a way from the mainstream as possible, away "from the glare of being anointed 'the next big thing' by the pop-culture press." It is called "downtempo" and is described as "lush" and "cinematic," blending "the nuanced sounds of jazz, bossa nova and dub (instrumental) reggae." Like techno, electro and trance, downtempo is germinating in clubs -- not traditional discos but rather "meticulously designed cocktail lounges where music provides an artful backdrop to a tranquil environment." In America, it's the Eighteenth Street Lounge, first opened by Eric Hilton in the mid-'90s. Hilton soon teamed with Rob Garza to form The Thievery Corporation, and put out a record called 'Sounds From The Thievery Hi-Fi' on his own ESL label. A follow-up disc, 'The Mirror Conspiracy', sold 100,000 copies, and now ESL has signed "12 acts and six more via licensing deals with overseas companies." The Lennon & McCartney of Austrian downtempo, meanwhile, could be dZihan & Kamien, who self-publish their own damn records, having been turned down by the major labels. The duo introduced Turkish instruments and Swahili rapping into their mix, and are partial to song structure. "Electronic music gets to a point where it's content to layer samples," says Kamien, "and that's not enough anymore." Eric Hilton comments: "You have to listen to it with greater attention than you would, say, a house track. We try to make it less obvious." Verve, the leading jazz label, is now jumping on board, having released a Hilton & Garza compilation disc, 'Sounds from the Verve Hi-Fi'. dZhihan & Kamien have put together a 20-piece orchestra and Hilton & Garza's Thievery Corporation is planning a tour. EMOTIONAL SOUNDS Did you know that the letters p, b, t and d are slow, while f, v, s and z are fast? Well, they are, according to an article about vowels, consonants and the business of naming brands, as reported by Sharon Begley in The Wall Street Journal. Not only that, letters that make "the vocal chords vibrate -- such as d, g, v and z -- sound both larger and more luxurious than voiceless sounds made with just an explosion of air, such as t, k, f and s." Maybe best of all, such links between sounds and emotions tend to cut across languages, meaning that "brand managers peddling their wares globally, or even in multilingual communities in the U.S., can make sure their product sounds like what it is in any language." Sound symbolism, as it's termed by naming experts, apparently is replacing semantic associations as a naming construct, in part because "winning hybrids of real words" are largely taken. So, where hybrids like Intel ("intelligent" and "electronics") were once the rage, now it's names like BlackBerry and Viagra that are advancing the science of brand names. Blackberry? The handheld's brand name has some good letters in it. Research by Lexicon Branding, Inc. finds that b connotes reliability while "the short e evokes speed." The letter y, meanwhile, "is very pleasant and friendly," according to pyscholinguist Cynthia Whissell of Laurentian University. The name BlackBerry is also semantically correct, in that it "suggests accessibility" while "berry" also projects "smallness." Actually, the naming team got on the fruit wagon right away because the device's tiny keyboard buttons "resembled nothing so much as seeds." Viagra, meanwhile, rhymes with Niagara, of course, bringing with it the psychological connection to "sexuality and life," as well as a certain honeymoon connotation. The "vi" associates with vitality, virility, vigor, etc. By itself, the letter v, according to Stanford University linguist Dr. Will Leben, "is one of the fastest, biggest and most energetic sounds in the language." A competing brand name -- Eli Lilly-ICOS's Cialis -- meanwhile, flows gently, perhaps "expressing a couple's desire to engage romantically...As a competitive marketing tool, it provides brand contrast," says Dr. Leben. How do the experts arrive at such conclusions? Typically, they "present volunteers with pairs of nonsense names that differ in only a single phoneme, such as Paressa and Taressa, and ask which sounds faster, or more daring, or nicer, depending on the product in need of a name." Did you know?... The total cost to Disney Studios for using Stravinsky's "Rite of Spring" in the film "Fantasia" was $2500, of which $500 went to Stravinsky, and $2000 went to his agent. ))) FEATURE: INTERVIEW WITH REEBEE GAROFALO The first book I ever read on the music business was "Rock 'n' Roll is Here to Pay: The History and Politics of the Music Industry" by Reebee Garofalo and Steve Chappel. Though published in 1977, the book remains the most penetrating, in-depth analysis of the corporatization of pop music I've ever seen. It's out-of-print but worth looking for as a snapshot of the music business when entrepreneurial instincts were giving way to the profit-driven bean counters. Reebee Garofalo is a past chairman of the U.S Chapter of the International Association for the Study of Popular Music and a co-founder of Massachusetts Rock Against Racism. For relaxation, he enjoys drumming and singing with the Blue Suede Boppers, a fifties rock 'n' roll band. I caught up with Garofalo at the University of Massachusetts-Boston where he teaches and writes. I was curious to get his view of the current state of the music biz and he graciously fit the following interview into his busy schedule. MBSOLUTIONS: You co-wrote one of the classics on music industry history and dynamics ("Rock 'n' Roll is Here to Pay: The History and Politics of the Music Industry", 1977). In your opinion, what are some of the biggest changes you've noticed in the music industry since that time? Reebee Garofalo: The biggest change would have to be the role of the indies. Back when we wrote 'Rock 'n' Roll is Here to Pay,' we understood the indies like Atlantic, Chess, and Sun to be in competition with the majors. And in some instances they posed an economic threat. Since the early seventies, the majors learned from their rock 'n' roll mistakes. Now the overall function of the indies is to provide the research and development for the majors. This is not to say that some indies don't still enter the business as enthusiasts who are genuinely interested in the music. But rather that the majors keep their corporate eyes more closely on the trends and scenes that the indies may be developing. As soon as such a trend looks like it is going to be financially successful, the majors are there to buy labels and talent, or enter joint ventures and distribution deals. MBSOLUTIONS: If you had to sum up the key changes in music production and consumption over the past 30 years, what would they be? RG: On the production side, it would have to be the advent of digital media. Musicians don't even have to be on the same continent anymore to make a recording together. On the consumption side, this same technology offers fans greater control over the use of their music. Digital downloading, file swapping, burning, and ripping allow fans to individualize their musical tastes in ways not even dreamed of a decade ago. The music industry would do well to try and capitalize on these developments instead of fighting them at every turn. Napster and the next generation of software it spawned could have provided the industry with the most effective promotional apparatus it ever had. MBSOLUTIONS: What are some of the key factors that influence how the corporate music machine deals with music? RG: At the top of the list is the ability of the artist to achieve superstardom in a relatively short period of time. Gone are the days when a major might nurture a Bruce Springsteen or a Prince through a period of less than stellar sales. One of the implications of this strategy is that the industry has essentially abandoned a whole middle tier of artists who are capable of very respectable sales in favor of the one or two blockbuster acts who can pay for dozens of losses. Another key factor is how many revenue streams can be generated. The value of back catalogue was an artist's greatest asset during the period when consumers were switching formats from records and tapes to CDs. The ability of a piece of music to generate movie and advertising tie-ins right now is incredibly important to the industry. MBSOLUTIONS: Care to make a prediction on the future of the Big Five record companies? RG: The current business model of the industry, where the primary source of revenues is still tied to the production, distribution, and sale of physical property is doomed to failure. The current Big Five (record companies) cannot continue to operate in this fashion forever. It is no coincidence that sales have been falling for the last couple of years. Consumers get their music in other ways now. Unless the industry can fashion a business model that accounts for this new reality it will go the way of the wax cylinder. MBSOLUTIONS: How does the U.S. music industry compare with other nations in terms of corporate-controlled music vs. independently produced music? RG: I am not sure it makes sense to talk about a US industry as much as a US market and I'm not quite sure what 'independently produced' means anymore. The music industry is clearly part of a global economic system. Only one of the Big Five is US-owned and all five have long since entered joint ventures or distribution deals with most of the indies. MBSOLUTIONS: Hypothetically, if your son or daughter wished to start a record label today, what advice would you offer? RG: Think internet! MBSOLUTIONS: If your son or daughter wished to start a music publishing company today, what advice would you offer? RG: While creative artists have a right to be able to earn a living from their creativity - and publishers can play a role in that endeavor - in order to have a vibrant culture, it is important to recognize that users rights have to be protected as much as owners rights. This was the original intent of copyright. In this regard, the Digital Millennium Copyright Act and the Sonny Bono Copyright Term Extension Act are unconscionable (and probably unconstitutional) because they obliterate the public domain and fair use, which are the cornerstones of the balance between artist protection and the public rights of access to information and freedom of expression. MBSOLUTIONS: Where do you see the opportunities for musicians and music entrepreneurs in the emerging new economy? RG: In abandoning the middle tier of artists, the music industry is relinquishing its hold on artists who can generate modest but sustained profits. I think there are tremendous opportunities for musicians and individual entrepreneurs to operate in this sphere. MBSOLUTIONS: Your writings often explore the social and political dimensions of music. Administrations and states use popular music to solidify the masses and others use music to subvert the current order. Can you provide recent illustrations and commentary for each of these uses (U.S or abroad)? RG: Ah! Where to begin? In the 1984 US presidential race, every candidate worth his or her salt tried to adopt Bruce Springsteen's "Born in the USA" as a campaign anthem. If any of them had bothered to listen past the hook line they might have thought differently. Bruce, to his credit, endorsed none of them. Throughout a series of military interventions since then, the US military has used rock to announce its presence in Grenada, Panama, and the (first) Gulf War, to name a few. During last year's America: Tribute to Heroes, pop stars were called on to pay tribute to the heroes and victims of 9/11/01, with anthems like God Bless America. But even here, Neil Young weighed in with a version of John Lennon's Imagine, envisioning a world in which there is no heaven, no hell, no countries, no religion, no possessions, no need for greed or hunger, and nothing to kill or die for. Willie Nelson closed the show with an ensemble rendition of America the Beautiful that included every verse, the second of which contains the self critical lines: "America, America, God mend her every flaw. Confirm thy soul in self-control . . ." Most interestingly, no one dared sing our national anthem. "Purple mountain's majesty" and "amber waves of grain" clearly played better for this occasion than "the rocket's red glare" and "bombs bursting in air." MBSOLUTIONS: Where have all the "mega-events" like Farm Aid and Sun City gone in the world of music? What's up? RG: Farm Aid is still an annual event. A book about its history is about to go into production. In the early 1990s, I think that alternative tours like Lollapalooza played a political role that was similar to the mega events of the 1980s. During the dot.com boom, I think some people were waiting for the internet to take over that role; I believe there was a Net Aid event. Since then things have moved in a very conservative direction. Bono (Vox) at the Super Bowl and trying to influence the World Trade Organization from the inside is a real mixed bag. I think it nets out in the minus column. MBSOLUTIONS: Any final words for the humble recording/performing artist of today? RG: We need you. Music is a powerful force. Historically, the rock and rap generation has leaned toward the progressive end of things. Remember this as you develop your career. It is more important than diversifying your portfolio! EDITOR'S NOTE: Check out Musicdish.com this week for another intelligent "read" on the current music biz climate by Gerd Leonhard, founder of Licensemusic.com, titled, "The Future of the Music Business: General Trends." Important stuff! ))) MONEY-SAVERS FOR THE ENTREPRENEURIAL OPERATOR While most entrepreneurs aren't obsessed with micro-managing every penny of their business, they do sweat the details. They realize that a few dollars saved or wasted here and there can make a big difference in a company's bottom line at the end of the year. With this in mind, here are a few money-saving tips guaranteed to boost your profits.
TO SUBSCRIBE to MUSIC BIZ INSIGHT: send email with the message in the body, "subscribe" to success@mbsolutions.com It's not an autoresponder so feel free to include any other comments, ideas, suggestions, etc. you may have. About the PublisherPETER SPELLMAN is Director of MUSIC BUSINESS SOLUTIONS, a business and marketing consultancy to the music industry, and Director of Career Development at Berklee College of Music, Boston. He is the author of several books for music entrepreneurs and teaches music industry courses at Northeastern University (Boston) and the University of Massachusetts (Lowell). A musician since he was ten, Peter continues to spin riddims in the improvisational collective, Friend Planet and sing Cat Stevens' songs to his kids every night before bed. BLOOM WHERE YOU'RE PLANTED! Quote of the Month-- "Ah, but a man's reach should exceed his grasp, Or what's heaven for?" --Robert Browning, 'Andrea Del Sarto' Written and published bimonthly by Peter Spellman, Director of MUSIC BUSINESS SOLUTIONS: Turning Music Business Data into Useful Knowledge. Career-building books, articles, training, consulting and more. P.O. Box 230266, Astor Station, Boston, MA 02123-0266, USA Phone: 888-655-8335 Email: success@mbsolutions.com Web site: http://www.mbsolutions.com © 1997 - 2003, Peter Spellman, MBS Business Media, www.mbsolutions.com Please feel free to redistribute with above credit and copyright notice.
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