Wednesday, September 1, 2010

The Divide Continues. Silliness of Apple's Ping

Is there anybody out there (that has a clue about digital music)?
The Plain Old Silliness of Apple's iTunes Ping Social Music Discovery Attempt

Is it me or should Apple have created Ping around the time they created iMix? Does the layout scream Facebook status meets iLike? If you were reading the reports from major news outlets you would think that whoever is reporting perhaps really likes Apple and apparently isn't following digital music. I mean there wasn't really one story from the perspective of what is already out there, why this is different (because clearly its the same) and what customers actually want. Jeez. Really?

Silliness I say. Just plain old silliness. Oh great oracle Ping super duper, now I can see what everyone is buying. But there is a little problem there, I don't want have to buy something to discover music or just wait for my friends to buy music. My buying music rate is vastly slower than the rate that I want to find new music. I want to new things everyday, but I might only want to buy something every once in a while. I want to tag songs I hear all over the internets or even when I am walking in a store that I can Shazam the song and somebody reminds me to buy it. I want to hear the whole song. I want to share things with my friends that I don't own to see what they think. I might want to buy it, maybe not. I know You Tube advertisers hate it but I kinda like seeing people who do covers and silly stuff like that. Yeah, I bought the Bed Intruder song not just because it was funny but to help Antoine and his fam. Saw him on Facebook, he's super sweet. Now he's my ringtone and my friend on FB. But I guess that isn't technically music - but I bought it on iTunes. I like knowing what's going on with the artist. I really like when an artist reminds me they are in my town. I love streaming concerts and chatting with fans about how awesome they band is. I love when there are secret shows and exclusives. Even when I travel, I'd like to see who's playing in town. I mean I saw James Taylor at the O2 just because.

Just a little tip for yah, the term "Discovery" is a music industry term not in the language of the every day person. Seems you are paying more attention to the industry than the consumers of music you are trying to sell to - oh, but yes, that isn't your main goal because you don't make money on music, your game is hardware. Humph. Well, then if that is the case, how much are you willing to dive into this to make this really happen?

Taking a different perspective, digital music is great for artists but if it doesn't promote the growth, connectivity and exchange to bring the artist closer to the fan, then how is this useful if it only is yet another channel which distribute, but the key to the future is the ability to develop and monetize fan communities. Fans promote the music by sharing it with their friends. They are the new virtual street teams and can remix their own content and take a song that never did anything strait to millions of downloads. The further a fan is disconnected by the technology itself from the artist's fan community the more fractured and the harder it is for the artist to engage their base. More channels of distribution is awesome, but there has got to be some thought that all of the fan interaction needs to lead the fan to reach the artist on a long-term basis not in a passive role. I mean if I was an artist, these distribution channels are really helping to have your music in more places but you can't reach the people that are into your music in a meaningful way long-term. This will continue to be a serious challenge until artists figure out how to drive community of anyone who has stumbled up or "discovered" their music.

Here is the duh factor - why music discovery is #1 on You Tube. Er because it is free. It's the whole song. It can be shared, embedded and emailed. You can get to from whatever device you have - especially your browser. People don't want to pay to test drive music. They don't mind giving you 10 bucks a month to access music or more to store music they already have. People are going to be mad when they pay all this money for songs and the world goes cloud. I will tell you one thing from the consumer side, I don't have places to store all this crap and like the 2009 CyberCensus people don't have time to figure it all out. I have it all my computers and its annoying.

Let's just create an argument for argument's sake - the best thing for me is to have all of my data in the cloud, I can find and search for it easy, but Apple makes hardware. Hum. Will Apple work in the best interest of the consumer? Because there is a finite amount of music people will download due to space constraints. The more I want to have movies that are big files the more I have to think about storage. I don't want to have to do that. You know what people do? They delete what they bought or it goes on an external hard drive and just sits there. Or in some cases people just buy a new computer. Storage space will begin to be a big deal, where to put all this stuff. People using music from the cloud seems like a better stewardship of data storage because its shared rather than clunking up drives, computers everywhere. That just isn't fun and it stops the consumer from buying music.

Keeping up with digital media has disconnected whole markets. People are just like enough and now they spend their time and effort on something else. Really, when was the last time you went into someone's house and saw their state of digitalness? I literally have a HP Tower from 1999 that has a bunch of songs on it. I keep it with the thought that one day, ONE DAY, I can take all my computers to a magical place where they get organized and I can actually use everything I have bought or were given.

Before all the Apple love goes a little crazy, perhaps we can think about where the consumer is and how is Ping going to help them do the things they like to do. Great to see what other people buy, but really, come on now, it that all you got?







Tuesday, August 31, 2010

My Teachers, Myself




I’ve always been interested in how people do things and why they do them. I think from an early age I’ve been interested in how this happens. Why people choose one way over another. How people inspire and create. It’s pretty amazing what people can do to inspire others.


I think perhaps one of my first inspirations was a teacher named Ms. Carroll. She was my 5th grade (maybe it was 4th) teacher Berkley Glen Elementary School in Waynesboro, Virginia a small town tucked in the middle of the Shenandoah mountains. I remember Ms. Carroll well. She had the cool classroom. The desks weren’t in rows rather she shaped the room in a U so we all could engage - kinda like the UN. She encouraged speaking up and gave us interesting projects. I don’t remember the first album that I ever bought but I remember my geography project to make the continent of Australia out of paper mache. She also introduced us to new things. Once we had an assignment to write about an animal. I drew out of a hat the assignment to write about a rodent - the American Prairie Dog. I went to the library (my favorite place besides the YMCA) and dove into the project. To my surprise, I found out that Prairie Dogs get a bad rap and have come to adore them. She allowed me the space to discover for myself and form my own opinion. I think the reason why I loved Ms. Carroll so much was that she created the environment that I wanted to be a part of, she led the class and gave us projects which inspired me to participate and go the extra mile. It wasn't just class, I wanted to be there and participate. I hope that whenever I have kids they have teachers like Ms. Carroll.


Later on when I was in college, I had another teacher, Dr. Shareef who inspired me with a similar open approach. He didn’t take class attendance, he didn’t really assign homework we had to turn in, we were graded on two things: 1) our class participation and 2) your ability to create a well constructed debate. I practically minored in what I called, “Shareef.” I took all of his classes. Somehow in these classes the concept of leadership and organizations always came up. I was fascinated with how organizations worked, why some worked, why some didn’t. It always seemed to boil down to the people in the organization and how well they worked together. The most successful companies are organizations where perhaps not everyone agreed but there was an overarching dedication to the mission. A love for one another. The word family came up often.


When I graduated from college, I was extremely lucky to experience this first hand. I was offered a job by a small consulting firmed named Marasco Newton Group. When I was hired there were only 70 employees but had to almost double overnight because they won a big contract with the U.S. Environmental Protection Agency. There was about 10 of us in that first wave of hires. I would bet we were all about 25 years old or under. I immediately fell in love with the company. It was set in a an open space, people talked to each other. There was a pool table and beer in the fridge. You might find a team playing video games in the conference room. They were flexible in how you worked, the point was to do a good job. There were awesome perks like the office closing at noon on Fridays. Every single friday. They allowed you to actually take the vacation time you earned. I went backpacking in Europe for the very first time in the summer of 2001 for a month. How many companies let you do that in DC? There was a big party each month we called corporate gatherings where the events were created by the employees and it celebrated the company’s values like diversity and community service or encouraged employees to be healthier and better prepared for emergencies. It was an employee-owned company. I loved it.


I was hired at the tail end of the “Total Quality Management (TQM)” movement that seemed to be a buzz word in businesses of the mid-90s. Ironically, TQM was coined by Edwards Deming. Deming was a statistion, but perhaps more known for his management philosophy. I was familiar with Deming because during college, Dr. Shareef would frequently point to Deming his in lectures. In the Deming System of Profound Knowledge he talks about the transformation of business begins with the transformation of the individual. Where in essence if people transform within themselves to do such things as (1) be an example, (2) be a good listener (but not compromise), (3) continually teach other people and (4) help other people themselves transform (without the guilt) then the system itself, meaning the production you seek, will improve.


Looking back now, I see pieces of Deming and pieces of Yochai Benkler who spoke of distributive peer production and the innovation outside of the market systems. Seems like there was a bit of both going on at Marasco Newton Group. I remember wanting to do good work because I wanted to represent the best of what I could do. I wanted to pitch in to help organize community events, I wanted to learn new skills and show how I could apply them to our mission. I wanted to contribute. We all worked together. Some of the most cherished friendships I have formed in my life came from working at that company. We became a tight nit group because we were innovating and contributing to the culture we loved. Everyone had a role to play. Nobody was above any task. Employees led Continuous Improvement Teams (really the Japanese "Kaizen" approach) they also thought of more ways to recognize good works and if there was a challenge, employees would recognize it and work together to develop a solution. The culture of the company held service of ourselves within our own internal community on par with work performance. To be honest, it was easy to be enthusiastic because you were contributing to the culture you, yourself wanted to be part of. We often spoke of Marasco Newton Group as a family.


Amy Marasco was the president of the company. Without a doubt, Amy was my first professional role model. She was so smart and was always full of great ideas. But the best thing about Amy is that she let us run with the ideas. She empowered everyone around her. She led the company by not being a leader, but by being personable, open and accessible to everyone in the company. She made it a point to spent time with people. She wanted to listen. Sometimes she could help, but sometimes she could only listen. She inspired many of us to strive for the stars.


Amy placed a lot of emphasis on recognition and the importance of our service to with the company and to our customers. Her famous line was, "We want to make our customers giddy!" And she meant it. But she knew in order for that to happen, she had to begin by nuturing her own community. She knew it was tough sometimes to do some of the work we were doing on a technical sense. But often, it wasn't the work that was tough but the way we had to do the work which might have been outside of anyone's control. She knew if people were recognized for the good things they did - especially when they went above and beyond - that we would be a high performing company. She was right. We were profitable and grew our impact in the community year after year.


Thinking back, "Spot Awards" perhaps was the most fun and immediate way she empowered recognition. Say you were working really late to do something for a client who asked for the impossible, but you made it happen. All of the project managers had a set of money they could just give you a $100 right on the spot. It wasn't an everyday thing, but when that happened, you felt great! It was a nice surprise. Was a great watercooler story too - better than, "Ugh I had to work late yesterday." Every week people were recognized in front of the whole company for doing great things. There wasn't a week that went by that I didn't want to be mentioned. It's nice hear. But the best perhaps was at the corporate gatherings, Amy and her husband Dave would give away a week of vacation. This was the most popular prize. It created cheers from everyone and we all envied who won the free week off. It was not recognition award but rather a participation bonus. But as Amy and Dave would say, "You have to be here to win." I rarely missed a corporate gathering.


Everything aside, it was the values which attracted people to the company. We worked hard, we played hard. We were there for each other. We were empathic when people were going through tough times or medical issues. We were a family. Perhaps it was an easier road because we were environmentalists and believed in service and stewardship. So in a sense, service and conscious action were traits we all had. Not everyone at the company came from an environmental background, but we all could relate to being good to each other and giving back to our community. So in a sense we began from a place where we wanted to contribute not only to the bottom line but to make the world a better place.


When you look back on your life and say who made an impact. Amy Marasco profoundly affected my life. She showed me that an organization can care about its people and that leadership isn't about telling people what to do but rather being the person you need to be and being there, in a personal way. She showed me that a woman doesn't have to try to be someone else to be successful. She was authentic. She was girly. She wore bright colors and laughed a lot. She was emotional and her compass came strait from her heart.


Perhaps you might ask, did she do everything right? I'm sure she would tell you there were many challenges. But to me she was someone you respected not because she commanded it, because of the way she treated people, encouraged service to others and how she walked through her own life. She was a giver. She still is doing that to this day with the Newton Marasco Foundation who is dedicated to environmental education and service.


Perhaps it was that sense of community which led people to describe their feelings about the company as a family. We all believed in service as a root value. Service to others not only meant helping people outside of the company, but that community began from within the organization. In fact, it really began within yourself. That we would treat each other with respect and work together towards the common good. Like any family, we would have disagreements but at the end of the day it was the heart of our community which would always lead us back to what attracted us in the first place. A workplace where people were paramount, their ability to give of themselves to each other and to their own communities was of greatest importance.


On one of her last days in the office, Amy gave away her prized rhino collection. I remember being surprised to see a rhino on my desk. You have to know those rhinos meant a lot to her. Its a funny thing about rhinos, did you know they are acute listeners? As you can imagine, my heart was filled when I read the card, "Be strong, always protect what is most dear, and have the courage to enjoy everyday." I still have this card and the rhino. It sits within eye sight of my desk at home. I often think about Amy these days in my new adventures with CrisisCommons and CrisisCamp.


Perhaps one of the things I have learned from Amy and Deming is that I need to be a good listener. I can hear the people who know me giggle a little bit. For most people who know me, they know that I am a serious participator! That probably comes from being a better participator than a student in school. Its something that is learned, listening. My brother actually has this gift. It's what makes him a great lawyer and brother. He listens and provides feedback in a way where you hear it. Listening can come in many forms, it can be one on one, it can be giving people space and it can be just being there to be supportive. To be honest, it is one of the top three things I really want to do better because in a way its not on of my natural instincts like it is for my brother. I do try and hope to be better as time goes on. That is the work for me that needs to be done to be that better person. If we are using Deming, I love to share what I know and its been a personal project to be that better person. I think everyone in some respect always wants to be better. We can all do better. We can always be more positive, respectful and giving of our selves. We can always do better in empowering each other and building the communities we belong. If we start with ourselves, we can be that person of change and that only multiples with every interaction we have with people in our lives.


At the end of the day, the world is about people working together. But as we know, we aren't all perfect. We shouldn't expect that from each other because we will all make mistakes. What we should expect are the important things such as how we work together and how we treat each other. That is what makes a group of people a true community. It's not that we all think the same or even agree on things. Rather is it that we all have a deep sense of service to ourselves and respect for each other. That if we are working towards a common goal that we bring each other up. We listen. Perhaps that is what Gandhi was saying when he talked about being the change. He didn't say it was easy. He didn't say it was without conscious effort. In a sense it is about us showing up to do our part. Doing the work, being the person we need to be. It's not always easy, its an every day process. But, like I have seen with the people who have inspired me, it can be done. Community begins within ourselves. With that begins the greatest possibilities for a bright tomorrow.



Thursday, August 26, 2010

Love is a Mixed Tape


I really enjoyed Rob Sheffield's (@robsheff) Love is a Mixed Tape: Life and Loss, One Song at a Time. I was reminded about that book when I saw he was coming out with a new book, Talking to Girls About Duran Duran. Being in love with Simon LeBon since I was 10, I couldn't help but put that on my "to read" list. I bet girls will buy that book just for the name. I will. Genius.

I being like any other search obsessed, tangent driven person on the internet, you start searching for more. This is when I stumbled across Wikipedia's description of the mixtape:

"On a very basic level, the creation of a mixtape can be seen as an expression of the individual compiler's taste in music, often put forward for the implicit approval of the tape's recipient, and in many cases as a tentative step towards building the compiler's personal canon of pop music." - Wikipedia

To me a mixed tape is a special thing. You do spend time figuring out the song list, trying to be clever but perhaps getting a message across as well. In the past, distant past, when I was given a mixed tape it was a form of expression from a guy who liked me. During the early 90s I was given tapes filled with metal ballads. Yes, Great White's Afterglow is a favorite song of mind. Don't hate.

I was thinking what if I asked a guy, a potential date if you will, what kind of mixed tape he would put together for me (before meeting him). I love Craiglist and what better way to gauge the dating public than put out a post. Within about two hours I received the following replies.

Most interesting of this little experiment was that both listed Best Coast Boyfriend and had at least one Arcade Fire song. Some nice touches was Avalon by Roxy Music. Who doesn't like Bryan Ferry?

It was fun to get the lists. Some nice surprises were Trilogy by Rocky Road which made me hunt around a little to find a clip. You and I by Washed Out which as no surprise was a CMJ favorite in October 2009 where the NY Times cooed about Ernest Greene. I echo their sentiment. Good stuff.

In any case, here are the lists in their entirety.

Happy Listening!

Mix 1

Mix 2

Mix 3
Mix 4 (complete with "sides" nice touch.)


Sidenote: I began putting these in a @Rdio list to listen to later today. Rdio is newest all you can eat song streaming service. I'm thinking about subscribing, it's the closest thing that the US has to Spotify. The trouble with these services is that everything isn't on there. There are probably about 10 songs from these lists that can't be found on @Rdio. That is annoying. Of course I found all but 2 on You Tube. That's why people are all over You Tube for music, because some piece of it, whether its official or fan made, can be found on You Tube in the song's entirety, not just a clip like on iTunes or @Rdio. You can embed and share the link really easy. You can even respond to it. It's so silly that the music industry doesn't understand this. I know there is Vevo, but it's super annoying wait for a commercial before a song. I usually I'll just click off rather than wait. Probably not the behavior that the labels/advertisers were looking for.

But if I were to make a mixed tape, you can't burn a CD of the songs you put in a playlist on Rdio. I guess you can share online, but that doesn't count at a Valentine's Day present. The whole point of a mixed tape is to give it to someone else. I guess I might be old school in this regard. I want to listen to it in my car. I stream music in my car, but most people don't yet. I guess there are iPods, but then you have the same problem if you don't have the iPod Touch. Rdio being a website makes it hard to move music around in playlists. I like to drag and drop. I guess iTunes has taught me that. It's a 90% solution but if you pay every month, you expect a 100% solution, better than what you can find on You Tube. Don't get me wrong, I like @Rdio, I might even subscribe, but am still wishing for something that works all the way around.

Saturday, August 21, 2010

Gremlins Multiply: An Open Letter to Paul McGuinness, Manager of U2 (My Favorite Band)

Dear Paul,

It's really disappointing to read yet again another very long opinion in the August 2010 issue of GQ on how you feel that internet piracy is destroying the music industry. Isn't this argument pretty tired by now?

Our world is entering into a new age of collaboration and participation in the way that has never been known before. Old centralized and bureaucratic models are being challenged. It's really not about people stealing music (although that is a bad thing) rather its about a consumer who has changed their behavior and you just don't like it, or rather, you don't understand how to harness it.




Perhaps instead of continuing to wallow (BTW - it's really not all that sexy especially since U2 ticket prices have risen from 17.50 in 1987 to 100 bucks today) you might look a things a bit differently? Why not learn about the cool things about the interwebs and take advantage of your pre-established community? Learn about what's coming down the pike from tech companies and how U2 could lead innovation in the music industry? After all you are one of the richest bands in the world.

Just a few ideas for you:

1) Hang Out With Tech Peeps: Paul, if you need some help connecting with the technology sector, I'll be happy to help you out. I know people who would be happy to help you too. But you don't need me (well maybe you do) to create a Music + Technology Summit in Silicon Valley with the industry. If I can create roundtables about cybersecurity, you can certainly show up with Bono in tow at the Googleplex or Infinite Loop to hear from the people who are dreaming up the future. They already have the next five years in the pipeline, you might want to pay attention to them. Seriously, you have a pulpit of cool not complain.

There is not one door of a technology company who would not want to talk to you. Really. Who are you working with that give you pause to say to the Financial Times, "...what dismays me a little about the online universe is that these corporations, like Google and MySpace and Apple, don’t have anything that’s the equivalent of artist relations." Five bucks says within an hour if you asked, you can have meetings booked with the CEOs of those companies and ask for someone who will liaison to you. If they don't, I would do it for you in a heartbeat. We all want you to succeed. I might be a little biased. I am a super fan.

But just a quick question, you know Bono is a partner in Elevation Partners a private equity investment firm that includes a form VP from Apple? And just last fall he was chums with Eric Schmidt during the Vevo launch. So why do you feel disconnected? Just sayin'

2) Midem Isn't CES or TED (it ain't Davos either): When you talk to your own people in the music industry, well you get the same tired ideas (and too many partners to commiserate with). Perhaps Midem needs to blend with folks in the Valley? Maybe you need to have MidemTech? Really, it doesn't take much to bring people together. Get the top ten music managers that you know, have them come to Silicon Valley to see the new shiny tools and hear about cool things happening in tech. It can be that simple.

3) Glass Houses: I hate to point this out, but before you complain about losing money on record sales perhaps you should check out all of the missed business opportunities using technology to engage and yes, sell things to fans. Not to bust it out, but your deal with Live Nation is not a good deal at all they are fracturing your community instead of bringing it together. Simple things - U2 doesn't even have an @U2 twitter address. The Twitter address you do use for the tour has been stale for almost a year! The You Tube Live Show at the Rose Bowl was a multi-million dollar advertising opportunity that was totally missed and U2's social good engagement is very sad and completely not representative of the band's values or desires to encourage their fans to get involved. Basically someone just threw up boilerplate content. Not too compelling.

Let's run the numbers:

U2 360 Tour - 3.2 Millions People in 44 dates
U2 Live at the Rose Bowl - 10 Million People in 1 Night

You reached three times more people in one night via online stream than you did the entire tour. 10 Million people. Largest viewing audience of all time and you missed so many opportunities. You had dead air. No sponsorships. No public service information. No fan engagement and sadly if you saw U2 on that tour, the exact same set list. Perhaps instead of fighting Google, you might want to join them. 10 million people, that's a lot of ads. If you owned the site you streamed from like U2.com then you can sell you own ads if you wanted. 10 million people - lots of companies would want their products to be part of that experience, notwithstanding your own tour sponsor, Blackberry/RIM.

It goes without saying that U2's web presence should be one of your top priorities. Did you know if you sold tickets direct (not through Ticketmaster) you would make more money? Did you know if you sold digital copies of your shows (at the show) you could make 40% more money for each show? Did you know if you did a short code to have your fans interact with the band to crowdsource the encores you can make 10% more on your show at least? What if you had Video on Demand for you entire tour? What if you had the shows streamed? I would bet for whatever money you are loosing on record sales you could make up two fold using technology to further connect the U2 fan with the band. Seriously, with a band who has so many resources not only could you do this for U2, but you could do it for other bands that U2 wants to help.

4) The Power of Good: This is the part that just kills me. You have millions of people around the world who would do awesome works if you asked them or pointed them in the right direction. U2 has a community of millions. The future of music is YOUR ability to harness your community. If you won't use technology to harness your community for business, then why not for good? Today people are using technology to connect aid directly where its needed and to help people in crisis. If U2 took an interest in using technology to connect their fans with opportunities they can do to change the world, why wouldn't you do this?

5) Gremlins Multiply With Water: One thing you might not want to do is to diss the blogosphere. It's just not a cool thing. There are millions of people around the world that write about U2 and say how great they are. They are U2's fans, they are at the end of the day your customer. The bloggers aren't "anonymous gremlins", we are people who want to say good things about your music. Weare your street team, but on the internet. You want us to be informed, you us them to be part of the process. If you gathered the top 50 U2 bloggers (and a handful internet blogger celebs) you would garner more engagement and traffic to buying U2 music and merch than any press release. Didn't you hear at SXSW that the press release is dead? Seriously, bloggers are your friends. Yeah, there are some trolls out there, but for the most part people want to help. If I got to be on a conference call with you and Bono once a year I would freak out. All that takes is an hour of your time. There are so many advantages of creating a blogger community to support U2 than dissing them. They aren't stealing your music, they are promoting it!

I will leave you with a quote from Ghandi, "Be the Change You Want To See In The World." Yes, maybe you can't save the music industry but what you can do is be the light for the future. You, meaning U2, has the resources to create innovation in the music industry. You can be poking around the streets of El Camino Real and Sand Hill Road to get indicators for the future. I bet Google would love to have a U2 Droid or Microsoft have premium live shows only available on XBOX. So if you aren't making money on records then make money using the technology that is there, sell advertising, VOD, ring tones, short codes, after digital live shows and enhanced fan engagement. If you don't even want to do that, use technology for good.

But if you do anything, please think about U2's fans. We want you to engage us. We want to see live shows from home because sometimes our lives won't let us go to a concert (kids, aging parents, money, ect.). We want to have a special moment with Bono to share with the world. Want to be have a religious experience at a U2 show. We want to know that each engagement is unique and that we are special. We also want to help tell all of our friends about you and how awesome you are. We want hear the show that we just saw (in the car ride home from the show) and trade songs with our friends to relive movement of our lives that U2 shared with us.

Don't loose sight that it's the fans who make U2 go round, not the music industry. The world had changed, the music industry may not chose to move quickly, but you can lead by example.
Paul, I challenge you to lead the music industry into a new age of engagement with fans and embrace the new age of innovation. If you do that, you just might be able to steer the U2 ship where the wind is at your back.

Peace.




Thursday, July 22, 2010

Forgetting the Fan: The Deserved Woes of Live Nation

Live Nation has a long road ahead of them if they expect to plug the holes in their battlestar to maintain a sustainable business. The glaring absence of a fan-based experience business model, lack of trust across stakeholders, distraction of a complex merger with Ticketmaster and perhaps the most challenging, an air of arrogance of its leadership that other people are to blame for their challenges. These indicators are just the beginning of Live Nation's woes because when a business forgets who they are selling to, its only a matter of time when the fan (consumer) will find something better to spend their money on.

Does Live Nation Know What Fans Want?

First lesson in selling anything, know what your customer wants. Does Live Nation know this? Have they conducted research in what fans expect out of their live music experience? What exactly are the consumer insights? I have a feeling you might come up with a few suggestions:
  • Fans want to know in advance about tickets going on sale about bands they care about
  • Fans expect an easy and fair way to obtain tickets
  • Fans expect authenticity
  • Fans don't want to find out they bought tickets at $80 when if they waited they could have bought them for $10 bucks
  • Fans don't like "fees"
  • Fans want the chance to be in the front row and pay the same as everyone at the show
  • Fans are (for the most part) indifferent to the stage show they are there to see the artist perform
  • Fans want an emotional experience, a religious experience at a live show. They want the show to change their life.
  • Fans want to extend their live concert experience beyond the show
  • Fans want bragging rights; an exclusive experience that could be earned not bought
  • Fans want to see a show where the band is highlighted not the promoter
  • Fans like seeing causes and information that the band cares about
  • Fans like to buy stuff that is cool not the same old stuff
  • Fans love their cell phones
In some respects what Live Nation should be is an advocate for the fans to help artists create better live performances because they should know the most about how fans want to interact in a live performance setting. Live Nation's profile should be very limited because they are working on behalf of the artist. A company that spends time and efforts stating they are the promoter is missing the point of their job. They serve the artist, but they must be an advocate for the fan (consumer) if their business model is to be sustainable.

"The front row is [worth] a whole different price than even 10 rows back, or 100 rows back," said Live Nation CEO Michael Rapino "You can now get more creative with the artist and price the house differently. That gives you a chance to bring the back-end of the house way down."

This mentality is what has contributed to Live Nation's decline. If as a fan I have no chance of being "front row" then why should I break my neck to buy a ticket? It's really a bummer when you see seats left empty in the front row. As a fan you shouldn't have to pay $400 for the front row, you should be able to earn that or be selected by chance. The more ticket level pricing and secondary markets rise from a show, the more a fan feels a sense of "that isn't cool"

To be honest if it is 2010 and Live Nation is just now removing the $2.50 fee for "allowing" fans to print their own tickets (but haven't addressed security concerns), well, that just says that it will be years until Live Nation can turn their boat around.

A Warning for Artists

In some respects artists are making a decision by working with an organization who may not be acting in the best interest of an artist's fan base. It could be argued that the mistrust which fans may feel about being charged for fees or the co-branding you do with third party organizations like Live Nation will, at some point, reflect upon the artist's own values and engagement strategy with their audience. For example, Jay-Z greeted the investors and stayed around for its duration. A fan could wonder why an artist would back up a business that says (in his presence), "Jay-Z doesn't care if he's playing Paris or Denver," Rapino said. "We do." I'd bet that Jay-Z cares about reaching his fans in every point of the globe. I bet he cares if his fans are upset about fees that cost about a third of the original price of the ticket. I bet he would rather see his hardcore fans in the front rows rather than empty seats or corporate types. Jay-Z wants to get paid, but I am pretty sure he cares on how he gets paid and what cost that is to his audience that he has worked very hard to build and maintain. For artists, signing a Live Nation deal is a business decision. In some respects, the very artists themselves have created this marketplace and have accepted the behavior of third party companies like Live Nation.

When the market is in a recession and industry is being transformed by technology, artists may find themselves wanting to have a tight grip on the management of their fan base because their community is what will likely be their main source of revenue. The more authentic and meaningful experience that is served up to the community, the more an artist can involve fans in the process, the greater ability it will be for an artist to build a community that sustains their craft for the long haul. Artists don't need millions of fans, they need to build communities that are meaningful to the craft they create.

Artists already are beginning to see that their community of fans are the most valuable asset of any artist. An artist has to be involved in the connection and decision-making of the development and sustainability of the community not "trust" that their handlers will make all the decisions. The most profitable bands know this. They are intimately involved and place fans as the focus of their business model. These artists have strong fan engagement and don't have Live Nation 360 deals. They create a live performance that is authentic and emotional for the fan. I once asked a Live Nation representative at this year's SF Music Summit if Live Nation was in the job of building community for the artist, the response was: "No."

You don't have to ask Live Nation if they build community, just analyze what they do to "help" the artist. The most clear example of this is U2. Live Nation is managing their website and their tour. The fact that U2's twitter address is the @U2_360Tour shows that there is not a focus of Live Nation to help the artist to build and sustain their community. Notwithstanding the fact that twitter account has never been two way nor has creating any communication between the members of the band and the public. Live Nation does a great job of helping an artist distance themselves from their fans. This kind of behavior will only continue to alienate fan bases, broaden the distance between the fan and the artist and allow for fans to seek other experiences which are more meaningful to them. It will only change when the artist (ie. their management) demands that fans be put first and central to their core business. This will likely only happen after Live Nation and other third parties have significantly fragmented their core fan base to the point where an artist who is ready to monetize their community cannot because of the business decisions create a fragmented community overtime with little ability of the artist to recoup missed fan engagement.

Transparency & Trust

If I was Live Nation, I would not throw around the word transparency around unless you have staff dedicated to making this happen. Creating transparency in an organization is a cultural change. You have to start with an open and collaborative environment, you have to trust your staff and the public. This will be very hard for Live Nation to accomplish because of the simple fact you have a confidence problem. People don't trust you. This just didn't happen this year, this has been earned by the way you conduct your business and treat your artists, partners and most importantly the fans. People don't trust that your company is doing the right thing. People don't trust you because you have nickel and dimed anyone who has come to a Live Nation show. Transparency to investors isn't going to help. You need to start with the people who are buying what you are selling.

Since you said transparency is important, why isn't the slides and webcast of the investor meeting on your website? In your press release, Live Nation committed it would be publicly available for 30 days. It's not on Live Nation's Investor Relations web site. Its the small things that make transparency happen.

In any case I would argue that the Investor Meeting debacle was an indicator of what is bubbling just under the surface within Live Nation. I once heard advice given to technology start-ups that said "90% of the failure of a start-up has to do with you." It seems that Live Nation has that problem in a big way. They have many assets they could use to turn it around but it would take leadership, trust and a collaborative environment to change the culture at Live Nation. But the single most important change they have to make is with the fans. They have to be an advocate and center their business model around what fans want in a live music experience. It goes back to the basics.

Yeah, I bet Azoff loves hanging around with artists. Yeah, I am sure he thinks that is cool. But its really the fans, that make Live Nation work. When was the last time Azoff hung out on the lawn with the fans?

If you treat fans like gold the rest will all fall into place, for everyone.

Wednesday, July 21, 2010

The Old Rules Still Apply - Reflections from Little Steven at the 2010 New Music Seminar



I always thought Little Steven was a stand up guy, but complete renaissance man and candid artist development advice giver definitely earned mad respect from the new artists attending the New Music Seminar. As one of the final panels of the day, Bill Werde, Editor in Chief at Billboard Magazine led a lively panel discussion with Little Steven, Tom Jackson, Just Blaze and Kelly Cutrone. From the group, it seemed that Little Steven kept issuing very relevant and insightful pearls of wisdom. Basically, do the work.


Being a rockstar takes practice. Little Steven underscore's this notion during a quick overview to the new artists listening, "You

get into Rock and Roll to control your own destiny. What does that mean? You get a band, you get a local bar, you get your own powerbase. If they (the fans) aren’t coming to your shows, you aren’t going nowhere...its strictly word of mouth,” said Little Steven. “You have to be your own industry as well as learning your craft. You have to learn all that ‘tweeting’ and stuff. At a certain point you have a DIY problem, its not all DIY for life. You can’t do it all yourself. All the best records were made by an army of people. Get your craft together, get your own little world going and invite them (people to help the artist) in.”


Little Steven outline the progression of an artist’s development emphasizing that it is all about “the order of things” and that “you (the artist) have to find out who you are before you dress it up." He continues to illustrate that artists have to, "Find that you like. You have to decide who you like. You start to learn the craft. You are who you like.” He also underscored the importance of “getting to the roots of your music” rather than “learning from the diluted version 30 years later.”


Little Steven's four tenants to new artist development are:

  • Arrangement: This is the exploration of music for the artist. Find your favorite artists. Learn from them. Deconstruct their music. Learn to play it. Study their works. Learn from the roots of their music. Dig deep.

  • Performance: Go out an play. Find a local bar where you can get a regular gig. They get the bar, you get the door. This is the most important part of your development. This is where you learn to perform.

  • Composition: From the experience of others and your experience playing you can then move to writing and composing your own music.

  • Recording: This is the final step in your process. There is a long road between these steps. The freedom of DIY recording is nice, but you have to earn it. You need all of these steps before you record. You can’t just sit in your room and pump out music.

As a sidenote, a little nostalgia about Little Steven. More than half of the audience at the New Music Seminar probably doesn't know too much about Sun City. Besides Bruce and the Sopranos, many people remember Little Steven and South Africa. Just last week Nelson Mandela celebrated his 92nd birthday. What a difference 20 years make.

Check him out at his website: www.littlestevensundergroundgarage.com