Tag Archives: Lorde

A to Z of Making It, Copyright, Music, My Stories, Piracy

What Can Lorde and Spotify Teach The Metal World? Plus The Ones That Control The Talent Will Win In The Long Run

Record labels were dependent upon record sales and when the profit margins from recorded sales shifted from high margin returns to low margin returns, they screamed piracy. To them the only way they could remain in business was to have laws passed that protected their gatekeeper based business models.

However technology and innovation is always moving forward, so while the record labels are lobbying hard for new laws, at the same time they were being pulled into the future, kicking and screaming all the way.

Spotify to me is just a legal version of Napster, that has arrived in most markets. However before Spotify was even allowed to operate in certain markets, they needed to make licensing deals with the relevant record labels and publishing groups.

Spotify came into the market with the idea that they need to compete with free. And compete they did. The service even started to break artists to the masses, something that the record labels are clueless to do in current times.

Look at Lorde.
Her song “Royals” was added to Spotify on March 19th. It did nothing.

On April 2nd the song was added to the popular Hipster International Playlist by Napster founder Sean Parker. Isn’t it amazing what a little help can do and this was achieved without any dollars going into marketing. This was purely a stakeholder of Spotify, liking a song and sharing that song with the masses.

What’s that word again? Sharing.

On April 8th “Royals” appeared on the Spotify Viral Chart. What does this mean? It means that people have started to share it.

In relation to metal, I have posted previously how Dream Theater is doing it all wrong with their album release, putting money into marketing and believing that the old school scorched earth policy would bring results. It doesn’t. Sharing is what brings results. Fans sharing your music. Hey didn’t Napster do just this. Didn’t Napster allow fans to share music.

On June 10th “Royals” started to appear on radio. Remember when radio was cutting edge and used to be hip. This is proof that radio is a format that is dead and buried. This is proof that radio is always late to the party. This is proof that radio is clueless. This is proof that radio only plays what the record labels pay them to play.

So if you are an artist and your idea is to get your song onto radio, forget it. It is pointless. It does nothing for your career today.

Go on Dream Theater’s Facebook page and they are telling fans to contact their radio stations, so that “The Enemy Within” can be added to the playlist.

To use a quote from Flying High;
“Surely you can’t be serious.”
“I am and don’t call me Shirley.”

On July 9th “Royals” debuted on the Billboard Hot 100 – three months after debuting on the Spotify Viral Chart.
See how important sales are. By July 9th, Lorde was already a super mega star. It didn’t matter if she finally made enough physical sales to enter the Billboard Hot 100. She was already a success.

This is another lesson that the metal and rock world fail to learn. They still focus on the sales in the first week and the chart position. This is so old school and not a great measuring tool of reach or success, especially for new acts starting out.

But the metal world is still clueless. This is what we get from the bands, their PR companies and the various news outlets that report on metal and rock. Here are a few examples.

Loudwire: Dream Theater’s new DVD ‘Live At Luna Park’ recently entered at No 1 on the Soundscan music DVD chart.

Loudwire: Volume 2 of Five Finger Death Punch’s ‘Wrong Side Of Heaven; lands at No. 2 on Billboard 200.

Blabbermouth: “Wretched and Divine: The Story of the Wild Ones” sold 42,000 copies in the United States in its first week of release to debut at position No. 7 on The Billboard 200 chart.

See what I mean. They are still reporting on the old system. What those websites are saying is that the first week of sales is a measure of success, which I totally disagree with. If that was the case, then the first Five Finger Death Punch album was a dud, after first week sales.

August 6 – Lorde plays her first US gig in NYC.

Slow and steady wins the race. You play where there is demand. Humanity wins out in the end. Those that can play, perform live and write their own songs will win. It’s a return to the song writer. Expect a back lash against the over processed songs written by a committee.

Forget about acts that focus on big screens and pyro technics. The people are looking for human performances. It is an escape from our increasingly digital world.

“Royals” is the most shared track in the US by a new artist this year. This is what matters. The track is SHARED. It means the fans are spreading the word, getting more people to invest time and money into you.

Spotify has finally released some information as to how they pay and it sure makes an interesting read. I have posted previously about the greed of the record labels and how that greed will ultimately kill the streaming star.

So let’s get down to the nitty-gritty. Spotify pays 70% of their revenues to rights holders. The rights holders in 90% of the cases are the record labels and publishers. The same people who lobbied hard to extend copyright terms and are lobbying hard again for longer copyright terms.

So in 2013 so far, Spotify has paid out $500 million dollars to rights holders in royalties. That’s right $500 million. When Spotify pays royalties to a rights holder they provide all the information needed to attribute royalties to each of their artists. Check out the post, it sure makes interesting reading.

http://www.spotifyartists.com/spotify-explained/

So it got me thinking about business models. It looks like to me that the new record label business model of today is to ensure that they have the talent. The one with the most talent wins.

The Record Labels are the only ones putting money out there and the rule of thumb is that if you want to dominate in the music business in the future, you have got to spend. So if record labels are spending, the talent ends up on a label.

That talent brings to the record label the following;

Any songs that BAND A writes will end up with the record label for the life of the artist plus 70 years after their death (the U.K has 90 years). So if the artist is say 30 years of age when they write HIT A, then the copyright of that song will be owned by the record label for 120 years (assuming the artist lives to 80 years of age). Talk about securing their future. Now multiply BAND A or ARTIST A by all the millions of artists who are getting into deals where they sign away their copyrights.

SECURE the most talent and be a winner in the long run.

Has anyone noticed the large push from Frontiers Records in signing up talent past and present? Has anyone noticed how they are getting the Eighties legends to re-record their classics by creating modern forgeries and in the process handing over the copyrights to Frontiers? Has anyone noticed how they are getting all of these artists together for special one-off projects like Michael Sweet from Stryper and George Lynch?

Since managers and other entities are afraid to spend on artist, the ones that do so will win. If a label is not spending money, then they are not in the game. If they are not in the game, then they do not control any talent.

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A to Z of Making It, Music, My Stories, Piracy

The Winners In Music are always the Gamblers

REFORMS and CHANGES present challenges for every business. So why should it be any different for the Music and Entertainment Business?

AMC is a large power player in TV at the moment. So if they employ the Record Label business model, AMC should now scream piracy and get different laws passed to help protect their past incomes.

However they are not doing that? AMC recently announced that two new pilots have been ordered in Galyntine (which looks like a competitor for Revolution) and Knifeman (set in 18th century London and telling a story about a genius who challenges the normality of society in his quest to discover.) On top of that they already have ordered pilots for Line of Sight, Preacher, Raiders, The Terror, an Untitled The Walking Dead Spin-off and White City. Add to this list shows that passed the pilot stage and are in the scripted stage, with debuts set for 2014 like Better Call Saul, Halt & Catch Fire, Turn and King Of Arms.

That is a lot of gambles they are taking in order to remain relevant. Are the record labels doing that? Are artists doing that?

Then you have Netflix. Netflix is an innovator when it comes to movies. They provide a service to fans that the actual movie studios refused to provide.

Recently they branched out in original programming. House Of Cards was a success. Not just the show, but the way Netflix released it. This is the “all at once/binge viewing” model. This is what fans want today instead of the old school weekly episodes model.

So it was only a matter of time before other players came knocking on Netflix’s door. And that was Marvel.

Marvel will produce five shows for the platform, one each about heroes Daredevil, Jessica Jones, Luke Cage (formerly known as Power Man) and Iron Fist. The four individual superhero shows will then merge into a fifth show called The Defenders where the four heroes work together as a team. If these shows prove to be popular, no one knows, however it is a risk that a lot of people are taking.

The above demonstrates that entertainment is all about the new. If artists are not investing in their future, they might as well scream piracy or move into another career.

In business, you need to adjust your way of doing things to suit the reforms, otherwise you will go out of business. So why is it that in the Entertainment business, the major players need laws to be re-written, they need people prosecuted, they need websites taken down, they need the police to act on evidence provided by the Lobby Groups and they just scream and complain about everything else.

Music was always a risk game. The great success stories in the music business always came from left field. Even now, if you look at the great mainstream success stories recently, no one predicted Adele to sell over 10 million albums of her “21” album and she did that with her album available for free on all the illegal downloading sites.

No one expected an unknown New Zealand singer Lorde to out sell “the superstars – backed by a huge marketing budget” like Katy Perry, Lady Gaga and Miley Cyrus. Of course, she got a big boost by Sean Parker, who added her song “Royals” to his Hipster Spotify list, which has over 800,000 followers.

Money spent building up and marketing an artist doesn’t always make money. What the label or the A&R rep believes in doesn’t always equate to what the fans of music believe in.

No one predicted that the self-produced and financed Five Finger Death Punch debut album would be certified GOLD in the US, three years after its release. “The Way Of The Fist” was released and distributed via Finnish record label Spinefarm in Europe and in America it was distributed via artist and talent management company The Firm. They didn’t even have a major label behind them.

The album came out on July 31, 2007 in the U.S, selling only 5,400 copies in its first week and debuting at No. 199 on the Billboard 200 chart. In relation to charting, its highest position was No. 107 on the Billboard 200 chart. However, the album just kept on selling on a weekly basis and it was certified gold by the R.I.A.A for selling in excess of 500,000 copies as of April 1, 2010. Don’t be surprised if the album is certified platinum by 2015.

There is plenty of money to be made if the artist is good and if the artist is in a position to take it. If the music is poor, then it is no one’s fault except the artist.

No one has a guarantee that they will make it in the music business. No one is entitled to make it in the music business.

That is what art is all about. Entertainment is not a safety net. It is always about the new. If artists can get by in music, good luck. If they can’t, then they need to write better songs. No one cares if family and friends like the song.

In Australia, we have a shortfall of skilled fitters and machinists. We are even importing them from overseas. However to be musicians, the queues stretch across city blocks when X Factor, Voice, Idol and Got Talent shows hit town.

Today there is a new generation of artist that have grown up with the “everyone gets a trophy” paradigm regardless of how good they are. So you have a new generation cruising on sub-standard effort. It is those artists that didn’t play in the local soccer team that end up succeeding.

In my opinion, the music business began to decline when the label executives tried to become as famous as the artists. That is when the labels stopped caring about music and started caring about the Forbes Top 100 and profits. That was when reforms, innovation and changes went out the window, to be replaced by maintaining the profits that came.

In relation to profits, if artists are not making any money from music, what that means is that they are basically not good enough at the moment to capitalise. This applies to artists starting off, to artists paying their dues and to artists who were once successful. Artists need to realise that they are not entitled to people’s attention today based on past victories.

Look at your local sporting franchise. When they start losing, they struggle to fill stadiums, however when they are winning, no one can get a ticket.

In relation to music, I love Metallica, however everything they have done since the Black album has been worth a listen, but that’s it. There is no desire to go back and give it multiple spins. To prove my point, go and name the full track list of Reload without Googling it. However, they have taken gambles. St Anger was a gamble, the symphony concert was a gamble, the LULU project was a gamble and the 3D movie was a gamble. Some pay off and some don’t.

YouTube and Spotify allow us to sample and move on. If it is great, we stick around. But the music industry complains.

The truck drivers that transport CD’s are out of work, the people who work at the CD manufacturing warehouses are out of a job, the $2000 a day recording studios are out of business because people can record at home. Finally, you have the recording industry propping up the large record stores like HMV.

It’s not like anyone wants to go back to the days when we paid twenty dollars to buy an album, just to get home and find out it’s terrible. It’s not like we want to go back to the days of not being able to afford the great records that we couldn’t hear because we outlaid our money on duds the week before.

If the music is that good, the fans will come out to seek it and when we do, the artist needs to be in a position that they can capitalise on it as there’s plenty of money to be made.

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