Future Of Music

Great post from Mashable about how artists are creating upgrades and enhancements to music business models. Earlier Mike King reported in his blog how Amanda Palmer made $19,000 online using Twitter on a Friday night. The important thing is not the fact that she used Twitter, but that she found a way to engage her fans and make money, on top of the traditional approach of trying to sell CDs or tickets.

“Amanda is not producing money out of thin air, or by swindling some people into buying something they do not want. She’s engaging her fans who are glad to be able to buy some merchandise directly from the artist. Secondly, she’s not a professional PR or a marketing professional; she did it by engaging her audience through the simple tools at her disposal.

Which brings me to my most important point: Twitter is just a tool in this case. Her 30,000 Twitter followers aren’t just people who she followed and then they followed her back; they’re not some random mass of people who just happen to be following Amanda Palmer. They’re her fans, which means that any artist who has fans can do the exact same thing. It’s not a one-time thing or a passing fad: true fans will always be interested in buying a t-shirt, attending a secret gig, or getting their record signed.

We’re still at a very early stage in the online music revolution. Soon, artists will have a multitude of tools to help them communicate with their audience, offer them extra value and, last but not least, make money.

Ultimately, we’re not talking only about replacing current business models; we’re talking about upgrading them; finding new, better business models. You think that the music business is fine as it is? It’s not. It scales awfully. It’s great if you’re hugely popular, but if you’re an indie artist, the big record companies don’t care much about you. As Amanda bluntly puts it:

“TOTAL MADE THIS MONTH USING TWITTER = $19,000
TOTAL MADE FROM 30,000 RECORD SALES = ABSOLUTELY NOTHING.“

These new tools, such as Twitter, will help the entire music business scale much, much better. Very popular musicians such as Radiohead will still make a lot of money. But relatively unknown artists, by promoting their work and selling stuff directly to the fans, using free or inexpensive online tools, will be able to make a better living than they do right now. The future might not be very bright for the big record companies, but it is indeed bright for the artists.”

Read more here at Mashable.

In 1973 – $4.99 was then the going rate for a single LP. Then the prices slowly starting climbing over the years, despite Tom Petty’s very public efforts in the early 80s, and vinyl rose bit by bit until it was about $7.99 or $8.99.

When CDs came along in the late 80s, even though they were less expensive to produce, the list prices put them at $14.99 or more. Over the last 10-15 years, the street price has settled at about $11.99 or so, but of course lots of places sell them for more and less than that. Of course now CD prices are dropping in price to compete with digital downloads and they are often costing less than mp3s albums.

After the demise of the original Napster and the rise of iTunes, the $.99 a song model arose and somehow took hold. But in an era where many listen to music free from myspace.com or off of artists’ web sites and others file share, most working musicians are wondering how they will make a living making music when it’s clear you can’t rely on the sale of a physical product any longer.

Enter Amie Street.

Amie Street was started in Providence, Rhode Island on Amie Street on July 4, 2006 by Elliott Breece, Josh Boltuch and Elias Roman while at Brown University. They are now based in Long Island City, just across the river from Manhattan. Roman is the Director of Business Development and Operations, Breece is the Director of Product Development, and Boltuch is the Director Public Relations and Marketing.

The idea is that when a song is added, it starts free up to .98 and will go up in cost as demand rises up to a maximum of .98. Occasionally, shoppers who frequently recommend artists will also get credits from Amie Street, so it’s a bit of a buy back strategy.

The mp3 files are all free of digital rights management, or DRM.

Musicians receive 70% of the revenue from each sale.

Listen to the PodCast here.

“Alongside the explosive growth of online video over the last six years, time spent on social networks surpassed that for e-mail for the first time in February, signaling a paradigm shift in consumer engagement with the Internet.

According to a report released in April by Nielsen, Internet use for “short-tail” sites with large audience reach has evolved since 2003. The change is from portal-oriented sites, like shopping directories and Internet tools like Microsoft Passport, to social networks, YouTube and providers of niche content.

In November 2007, the video audience also exceeded the e-mail audience for the first time, and sites with long-form videos (averaging six to eight minutes) are showing much more growth and user time spent online than those with shorter videos.

Although Charles Buchwalter, senior vice president for research and analytics for Nielsen, said marketers had yet to master advertising on social media, he predicted that “over the next 12 months a model will emerge” that takes into account “the influence factor” of users who wield disproportionate power.”

From the New York Times.

Neil Young’s ‘Archives’ Shows the potential of new formats. New formats have driven the music industry forever. That and new music.

While Blu-ray may not be the “next big thing”, it shows what can be done with more storage and bandwidth. The evolution of music formats will determine the path for the future. MP3 was the last major music format and the industry missed monetizing it entirely.

“Anything is possible in the Blu-ray disc edition of “Neil Young: Archives, Vol. 1 (1963-1972),” the most technologically advanced mega-boxed set in rock ‘n’ roll history, arriving with a hefty thump on store shelves Tuesday.

Young, a militant guardian of the analog waveform (notably, the vinyl LP) who dismissed the CD era as sonic sludge, has found purist’s heaven in a new digital format, Blu-ray, that’s still trying to push the consumer acceptance needle past indifference.

Neil Young’s “Archives” is the latest thing to debut in the Blu-ray format. This first volume, at $299, chronicles Young’s early music career from his school-days band, the Squires. Young waited 15 years for the appropriate format to showcase his life’s work in a multimedia package that combines high-resolution audio, high-resolution graphics and archival video.

The set includes 128 tracks (12 hidden), 20 feature videos, film clips, trailers, interviews, radio spots, photo galleries, biographies, even newspaper clips. Young also promises free updates with music, vintage recording sessions or film using BD-Live, which needs a compatible Blu-ray player and a broadband Internet connection.

The set will be available in CD and DVD, too, but Blu-ray is the marquee package: It could foretell the future of music as multimedia and prolong, even save, the new format’s life.

“I went through hell in the ’80s,” Young told bloggers a year ago at the JavaOne conference in San Francisco, where he announced this project that uses Sun Microsystem’s Java-powered graphics. “Now we’re coming close, climbing the quality wall.” How cool is that – Neil Young at a Java conference?

How big is the climb? Young has used “ice picks” to describe the sound of early CD. Where a vinyl LP is a continuous analog waveform, a CD is a digital approximation. The CD takes 44,100 numerical samples each second, each sample in 16-bit chunks. At 22 kilohertz, the theoretical high-frequency limit of human hearing, that 44.1-kilohertz sampling rate produces as few as two samples. It’s what makes the higher frequencies fatiguing, even grating, to some ears.

In recent years, DVD-Audio pushed recorded digital music to 24 bits and 96,000 samples per second. Now, Blu-ray goes even further with music, like “Archives,” at 24/192,000 or, as it’s more widely known, 24/192. With more digital information comes a more lifelike representation of the original source. An elaborate timeline, a horizontal scroll, lays out Young’s career amid world events and includes access to supplemental music, vintage concert video and future BD-Live downloads.

The music is also cataloged in a virtual file cabinet that stores each song in a folder with album art, recording date, credits and handwritten lyrics. As the music plays, a vintage Dual cassette deck, Ampex reel-to-reel player or KLH turntable might be the video backdrop, a lit cigarette in an ashtray next to a coffee cup the ambience.”

Read more here.