Nordic Music Week: Optimism Galore And Found Songs

from the good-times dept

Last week, I had the pleasure of attending the Nordic Music Week event held in Stavanger, Norway. It was a smaller event, mainly involving those involved in the music industry in the Nordic countries (Norway, Sweden, Finland, Denmark and Iceland), with a heavy emphasis on independent musicians, as there were no major label representatives there. As such, the event was quite different than most of the typical music industry events I go to. There was very little fretting and worrying about "piracy" and such, and most of the discussions were quite forward looking and forward thinking. In fact, I'd say much of the event was downright optimistic about where the music industry was heading. While there were many great discussions (and I liked the fact that much of the event was focused around open table discussions, rather than just presentations), one of the most interesting presentations was by Òlafur Arnalds, an Icelandic musician, who started his presentation off by saying he disagreed with me and my presentation (which had been an updated variation on my NARM presentation), and had adjusted his presentation to be a response of sorts to mine. Except it wasn't. His presentation was yet another great example of a musician who understood exactly what works in the industry, even as he thought he disagreed with me. We later chatted briefly about it, and realized we're actually very much in agreement about where we stand on the industry. The confusion came about because he is really focused on the music, and felt that my presentation focused too much on the money aspect.

And, indeed, my presentation did focus somewhat on how to make money, but that's because if I just focus on the music, people complain that no one will make money and then no one will make music. But, of course, that's ridiculous. None of these models work particularly well if you don't make great music. And Òlafur Arnalds makes great music -- and once we started talking, even he admitted that in order to do what he does, he needs (and wants) to make a living (which he does). And his actual presentation was about how to do just that. It was all about how he closely connected with his fans and gave them a reason to buy (even if he didn't like to think that way). Instead, he noted that he needed to come up with a good story to go with the music, that would help attract his fans, better connect them to him while also giving them a reason to support him monetarily.

So, with that idea (having a story behind the music) as his basis, he came up with a great project called 'Found Songs', where he would write, record and release a new song every single day for seven straight days. He did it all out of his bedroom. His fans then stepped up and created artwork for each song, and in some cases, amazing videos, such as this one below, which is truly beautiful, and within days had thousands upon thousands of views:

You can watch the videos, look at the artwork people created for the songs and even download all the songs for free as mp3s. But, there's also a store where you can buy the beautifully packaged vinyl or CD versions of the album, and some higher quality digital downloads. In other words, it was yet another perfect example of connecting with fans and giving them a reason to buy (and, yes, it involved great music as well -- which is, in fact, key). The importance of having a good story to go along with things, as we've seen with other projects, is a particularly good point. And, again, it shows how an infinite good (a good story) can increase the value of a scarce good (the products you're selling). He also showed how his own fanbase increased massively after doing this project -- much more so than when he was out opening for Sigur Rós. So, in the end, we absolutely agreed, and I found out about some more great music and yet another great story and example to go along with all the others.

Beyond that, I met a bunch of fascinating people doing very interesting and unique things in the music industry in the Nordic region. All of the Nordic countries are working hard to help enable their bands to adapt to a changing music environment, and there are definitely some very creative indie labels, artists and managers who are thinking through and implementing some great ideas that left me quite enthusiastic for what comes next. I also got a chance to meet Moto Boy, who took part in our CwF+RtB experiment, and see him perform live (which was fantastic). Overall, a very encouraging trip.

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Last Chance For The Old Recording Industry... But Plenty Of Excitement In The New Music Industry

from the time-to-be-optimistic dept

I spent Monday at the wonderful SanFran MusicTech Summit and I have to admit that I came away quite optimistic. You may recall earlier this year that my takeaway from MidemNet was how optimistic people were becoming -- but how much the old school industry folks then took that optimism and twisted it into something bad (saying things like "we have to stop treating our fans as criminals, but we need to stomp out piracy at any cost!"). In contrast, I have to say that after the SF MusicTech event, I'm back to the optimistic viewpoint, though I recognize there's still plenty of shaking out to occur.

Terry McBride, whose insights always are worth thinking deeply about, made a comment that this was "the last chance for the music industry" to stop screwing things up and pissing off customers, and that it was time to get it right: meaning stop treating customers as criminals, stop focusing on the sale of things that people don't want to pay for and stop worrying about copyright (he even agreed with David Bowie's comment that copyright was over). I agree with much of what McBride said, with one exception: this isn't the last chance for the music industry. The music industry is doing great -- with more music than ever before being produced and available to fans, and more musicians than ever before being able to connect directly with fans and put in place a business model that works for them, instead of getting worked over by a major label with a dreadful contract. Instead, I'd argue that it's the major labels who have one more chance... and even that may be iffy given how badly they've screwed some stuff up in the past decade.

But much of the rest of the event showed why there's so much reason for optimism. There are so many different startups entering the space these days that it's honestly difficult to keep track of them. And while the market is certainly confusing, we'll start to see some clear leaders shake out of the pack in the next few years. But, combine it all and these startups provide all of the tools that any musician today needs to record, perform, build a fan base, manage a fan base, tour, manage a tour, connect with fans, communicate with fans, transact with fans, promote, distribute, analyze and share. Basically, absolutely everything that you used to need a record label for is showing up from a hodge podge of startups. They don't all necessarily work well or work together, but that'll change over time. On top of this, there are additional tools that let you do things that simply weren't possible before, such as providing better, more detailed recommendation systems and analytics. Among the cool or compelling companies I saw or spoke with at the event were Band Metrics, Topspin, Bandize, 100000Fans, Instinctiv, Jamendo, Drop.io, thesixtyone... and those were just the ones that I'm remembering off the top of my head. There were at least two dozen other interesting startups as well.

Again, this doesn't mean there's no room for a label anymore -- but the role of that label changes. Some bands won't need labels at all, and will be able to manage everything themselves using these tools and services. Others will rely on label reps to help piece all of the different services together, so they can focus on the music. But the routes around the old system are growing at a phenomenal rate. On top of that, there were some major label representatives who actually seem to recognize all of this, even if not all of their colleagues agree.

So while I am still nervous about what the old guard and its lobbyists will do to laws around the globe, the next generation is clearly growing up from below. It's quite messy right now, but it's coming. Fast.

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Recording Industry, Once Again, Stomps Out Optimism

from the it's-what-they-do-best dept

My initial summary of my trip to the Midem music industry event in January was that it was about turning "optimism into denial." There was a tremendous sense of optimism from all sorts of upstarts: musicians and companies who were really innovating and creating wonderful success stories over and over again. And then... the old school industry guys showed up. They spoke about the optimism and the success stories... and said a few things that made it sound like the got it. They talked about ending this "war" with consumers, and focusing on solutions that worked. But, then the clouds would descend, and they'd immediately start angrily saying that even with these great new business models and innovations, "we need to stomp out piracy." In doing so, they demonstrated how severely they missed the point -- and it's now showing in their actions. We've been seeing more braindead maneuvers over the last month with highly questionable lawsuits, and licensing decisions that only serve to piss off users.

It seems that my initial read is (unfortunately) the same conclusion others are coming to as well. Two of the "industry insiders" I got to meet at the event -- who both came down on the "optimistic" side at the event have each written up blog posts for the MidemNet blog, complaining about the very same thing. That initial sense of optimism that was seen at the event has pretty much gone away -- crushed by dumb moves within the industry. Ted Cohen, who helped moderate much of the event, diplomatically points out that for all the talk of collaboration at the event, the chaos isn't over, and he wonders when we'll actually get down to business. Meanwhile, Bruce Houghton (of the excellent Hypebot blog) more specifically fears that all the talk of a more collaborative approach was nothing more than talk -- and there is no intention to really collaborate.

This is a pretty big problem -- and I obviously won't speak for either Bruce or Ted, who I'm pretty sure would disagree with this assessment -- but, it won't change until the old system and the old structures and the "old guard" are finally pushed out. There are tons of success stories -- but those are in spite of the industry, not because of it. It's time to wipe out the house of cards that the industry has built in terms of Rube Goldbergian copyright licensing schemes, and start fresh. There are business models that work great for everyone -- but the current system is designed to allow bystanders and middlemen to profit at the expense of the musicians and the public. Get rid of the old system, and everyone but those middlemen will benefit.

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Some Much Needed Optimism In The Journalism World

from the look-at-the-opportunities dept

There have been a large number of "downer" stories recently on the newspaper business -- which has certainly been struggling. But there are a few stories coming out that highlights how, like any challenge, for some this really represents a big opportunities. First, there's a post by Steve Outing, where he talks about an (as yet unnamed) group of recently laid off journalists from a major newspaper who are actually using their severance packages to start an online competitor. Who knows if it will succeed (and, I'd worry that just bringing in old newspaper guys alone won't be enough), but it is interesting that they're basically using the severance packages to bootstrap the new organization.

Next up, courtesy of Mathew Ingram is a discussion on why the current crisis in newspapers should lead to better journalism. This goes against the hand-wringing of many in the industry right now who seem to think that as newspapers go under -- so does journalism. That, of course, makes the huge mistake in assuming that journalism only comes from newspapers. The discussion includes a long list of things that will get better once the old structures go away, and new opportunities are embraced. You should read the whole thing, but it includes a recognition that the online world will likely create more respect for the audience, more reporters & more reporting, better reporting since the audience is more involved in the process and more ways to tell a story. That all sounds good.

And finally, for those of you still clinging to the idea that physical newspapers are the preferred medium, Ken Paulson recently gave a speech, where he outlined an alternate reality where the newspaper was invented after the internet. The point was to highlight the "advantages" that a newspaper provides to the internet. I'm not so sure that the advantages are really all that compelling in most cases, but it does show that perhaps the newspapers bemoaning the supposed death of print should be a bit more focused on providing more value, rather than complaining about the internet.

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On Staying Happy

from the happy-new-year dept

A few weeks ago, we got an email sent to the feedback box that asked how we can possibly stay upbeat. I have to apologize because I can't find the email anymore -- so I don't remember who sent it -- but he pointed out that while he really enjoyed reading Techdirt and liked what we had to say, the stories about corporate cluelessness, political corruption and short-sighted thinking were so consistently frustrating and depressing that there were times he considered giving up on reading Techdirt -- if just to keep himself from banging his head against the wall. He wanted to know how we possibly stayed upbeat, and kept positive enough to avoid giving ourselves heart attacks. I didn't get a chance to email him back, but wanted to address the question here as my final post of 2008.

Techdirt has been going strong since 1997, so it's not like we're new to covering these sorts of things. But, in the end, I personally stay extremely happy and optimistic because I see how far we've come -- and I recognize the inevitable outcome of most of these debates. Yes, we point out plenty of bad stuff, but it's not about complaining about how terrible things are -- but about trying to help open some eyes to the possibilities of moving forward, adapting and embracing new technological possibilities. And, while there are some extremely loud and public holdouts, every day we're seeing examples of it working. We see the inevitable results of technological change in enabling new and powerful business models that greatly expand markets, provide consumers with much more than before, and enable new innovations that you might never have thought were possible before.

The internet is a phenomenal communications tool that very few people had even heard of not so long ago. The world wide web only came into being slightly more than fifteen years ago. The ability to go online and find just about anything you need in seconds is a brand new phenomenon. The fact that you can talk to people, easily, in far away places -- make new connections, share stories, exchange ideas, debate, argue and connect, well beyond your local community -- is all simply amazing. Beyond online communications, the internet has provided new and amazing tools for business, commerce, entertainment and information that were nearly impossible to imagine by all but the most visionary people just a few decades ago.

How can you not be optimistic and excited when you look back at how far we've come in such a short time, and think about how much further we can go?

Yes, we're in the midst of a brutal financial mess -- but that won't stop innovation. Yes, incumbent forces, with short-sighted plans and a desire to hold back the tides are annoying and disruptive (not in a good way) in the short run. But even they are finding they can't hold back progress. Robert Friedel has a wonderful book called A Culture of Improvement that details how we, as a society, are constantly looking to improve on what we already have. We add ideas and ingenuity to old concepts and build something better -- not because of the desire to grab some "intellectual property," but because of the desire to improve our own lot, to build a better tool that we want to use. Incumbent short-sighted players have been able to hinder and harm progress, but they can't keep it down completely. That culture of improvement can't be stopped entirely.

There is, of course, plenty to be vigilant about, of course. Bad and corrupt political moves can seriously stunt economic improvement, but history has shown that such periods are often short-lived, as the need for continued economic growth and advancement is impossible to stomp out completely -- and as it seeps out through the cracks, legacy businesses crumble, and outdated political rules and short-sighted policies are pushed to the side. Yes, more come along, often as the innovators of yesterday seek to stop the innovators of tomorrow, but the march of innovation hasn't been stopped yet.

So, yes, we rant and rage against short-sighted policies, and efforts that hinder and delay the inevitable, but we're excited and optimistic and happy about what we see as the eventual possibilities from that advancement and innovation. Any "anger" or "unhappiness" we might display is more frustration at ourselves for not being able to clearly paint a picture -- for those seeking to hold back progress -- of just what opportunities moving forward provides.

As we move into 2009, there are plenty of things to be worried about, but look around at what progress has brought to us already, and look at the trends and the obvious direction in which technology is taking us -- there's so much to look forward to, it's hard to let any depression seep into the discussion at all.

Happy New Year to all of the many readers of Techdirt, whether you agree with us or disagree with us, and we look forward to seeing what great new things come about in the new year and beyond.

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Dueling Headlines On The Online Ad Market: Half-Full Or Half-Empty

from the depends-on-who-you-read dept

I just saw a bunch of headlines fly by and the contrast in them seemed worth noting. Here are just a few, with a brief intro based on whether it's a glass half-full headline or a glass half-empty headline:

• Good News!: U.S. Online Advertising Up 15.2%
• Bad News!: US Online Ad Growth Slows in 2008's First Half
• Good News!: Online ad revenue strong first half of 2008: What about the second half?
• Bad News!: As we fill tanks, growth in Net ads slows
• Good News!: Search-ad revenues grow amid market malaise
• Bad News!: Online Ad Growth Declines in First Half 2008
• Good News!: Internet marketing sees "incredible" spending increase

The most accurate may be from the AFP, who notes: Internet advertising revenue up but slowing, and the LA Times: Internet advertising grows slightly, but analysts worry about the future. Basically, the numbers are still up but at a slower pace than in the past. How you interpret that, apparently, depends on whether you're fundamentally an optimist or a pessimist. It seems pretty clear that there's still plenty of money heading into the online advertising world -- and it was going to plateau at some point. You can't keep up ridiculous growth levels at all times, especially when the broader economy runs into trouble. Plus, the fact that a healthy percentage of online advertising was tied to the mortgage/loan/financial services industry -- you'd have to expect some slowing of growth. No matter what you believe the future holds for the online ad market, you have to admit the juxtaposition of headlines is rather amusing.

Perhaps much more interesting, however, is this analysis of what happened to the advertising market during the Great Depression. It found that while some companies shied away from advertising, the ones that did well focused in on more effective advertising, which worked wonders. So the advertising market itself didn't collapse, it just got more focused, and those who used it wisely ended up doing quite well.

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It's Not Internet Pessimists vs. Internet Optimists; It's Simply Reality

from the the-market-is-changing dept

Adam Thierer has tried to categorize a bunch of different book authors and internet "thinkers" into one of two camps: internet optimists and internet pessimists. I'm somewhat surprised to be included among the optimists for a few reasons -- not the least of which is that I'm surprised to see my name included with a lot of folks who are a lot more prestigious. I don't belong in such a group.

That said, I'm a bit torn about the overall chart. I am optimistic about what new technologies and innovation allow, but I hardly think of myself as an idealist -- and tend to agree with Adam that things like wikis don't solve everything, and that we haven't reached a post-capitalist world where traditional means of production are passe. However, perhaps I'm misreading some of the other "optimists" on the list, but I don't think anyone really believes that either. As I've pointed out in the past, none of what we talk about here is about any fundamental change or shift in economics. It's the same old economics that has applied for ages. It's just trying to explain how changes in technology impact those economics.

So, I agree that it's silly to think that peer production completely replaces professional production means, but that's another extreme scenario that I don't think very many are actually pitching. Instead, the point that they're making is that peer production models will also enter the market, meaning that traditional business models will face some competition. It doesn't mean that one wins out entirely over the other, just that it may force some models of production to adjust to the reality of the market. I don't necessarily think that's an optimistic viewpoint -- it's just a realistic explanation of what's happening. While some pessimists may not like it, they're basically just whining for a different world that doesn't exist any more, and don't like the fact that they can't continue to live in that world.

I also disagree that the "optimists" don't believe in property rights, as Thierer implies. I'm a huge believer in property rights. My point is simply that "property" needs to be applied properly -- meaning not to infinite goods, where it doesn't make much sense. So while I can see where Adam is going with this chart, I'm not sure the characterizations really fit.

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