Zero Day: MediaWorks in Full Effect

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Nothing to see here, just a bunch of photos of the AWESOME 2014 MediaWorks cohort. We were in Knoxville Thursday for day zero, our first meetings with the teams, and we couldn’t be more pleased. Also we ate at Pete’s, which was sweet.

Episode 31: Billionaire Boys Club, For Real Yo

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I think we can sum up the entire show notes thusly:

jackie-chan-confused

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And on to the show notes….

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The Flashlight, Part 1

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Maybe I’m the only one who sees it, but I think the Flashlight is the ultimate X-factor in the music business.

Anyone who has tried to build software tools or other products for the independent artist has surely, whether they know it or not, dealt with what I call the Flashlight.

The Flashlight refers to the dream of stardom, the intoxication of being a rock star, the recognition of the public and most specifically being such a big deal that you have a roadie with a flashlight guide you up the dark stairs to bright lights of the stage.

Business people don’t understand the Flashlight. When they present a perfectly good idea to an artist they are always surprised by the artist’s reluctance to take advantage of a product or service that would clearly advance their career. Or when the artist says “that’s awesome, let’s do it”, then leave the meeting never to be heard from again.

This is because being a success in music isn’t about the money, it’s about adoration and worship. Kids who are good at baseball dream about hitting a home run in the ninth inning of the World Series, not playing for a minor league team in a small midwestern town. Musicians who receive their first guitar when they’re ten dream about playing in stadiums and having the Rolling Stones open for them.

Perhaps the only difference is the age factor. By the time most of us reach our twenties, we are fairly sure we won’t be drafted by the Yankees, but artists hold onto the dream of being led around by their handlers for a lifetime. They always feel like they’re one “big break” away from being discovered by the uninformed masses who, if they only heard the new record, would immediately thrust them into superstardom.

The Flashlight it that special treatment reserved for the rock star. Rich people don’t get the flashlight, baseball players don’t get the flashlight, movie stars don’t get the flashlight. The Flashlight is the right of passage from opening act to headliner. The Flashlight means you have made it. The Flashlight is the dream.

When you get frustrated by artists who seemingly won’t help themselves, against all logic, don’t blame them, blame The Flashlight.

We’d love to hear your Flashlight experiences. Please comment or email us with your stories. We could write a book!

For the Future of the Music Industry, Fear is Not the Answer

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The music industry is full of fear. Fear of customers as thieves, fear of technology run amok, fear of loss of control. But for the music industry to do more than just survive, fear cannot be the answer.

The answer lies in listening to customers and letting them inform what and how they want to buy. The answer lies in experimentation and a willingness to fail. And key to it all is to stop grasping desperately for control and to stop acting out of fear.

All too rarely do I read an article in an industry publication that leads with curiosity and possibility when covering new technology. From every streaming service, to novel new music players, to self-driving cars, it would seem the sky is always falling.

Fear also comes in great supply from rock and roll royalty. While their arguments are worth careful consideration, artists like David Byrne and Thom Yorke have, in many ways, become the industry’s version of town criers gathering villagers with torches, set on destroying Frankenstein’s monster.

To me, the irony is this: just as artists embrace fear daily as they make their art, why shouldn’t the industry be expected to do the same with their business models and operations?

So, what’s the good news? Examples of companies and artists pushing past fear and taking risks are out there, if you know where to look. Neil Young’s Pono is a great example of both. Unsatisfied with the state of digital music quality, he crowd-funded a new music player that is now the third highest-funded campaign in Kickstarter’s history. There are plenty of skeptics, us among them, but Neil is to be saluted for trying something new.

Closer to the ground, we’re fortunate to work with deeply established music businesses like Zavitson Music Group, who are turning music publishing on its head with MusicPubWorks, and Lyric Financial, who are bringing progressive financial practices and technology from outside the music business to labels and artists alike.

These and other companies like them in Nashville and beyond are taking big risks and bucking the status quo. In doing so, they’re setting examples the rest of the industry would do well to study.

Episode 30: Moybious Strip

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Today we welcome very special guest Chris Moon of Noisetrade! We talk streaming, discovery, and…. physical? Yep, physical music. You know, vinyl rekkids. Also on this podcast: candle makers, app annoyances, HD-DVD, Sumatran tigers, and Portugal. The Man.

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Pardon the echo. Shawn has a big condo.

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Show Notes:

For The Love Of The Game

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In 1904, the French mathematician Henri Poincaré declared his eponymous conjecture: Every simply connected, closed 3-manifold is homeomorphic to the 3-sphere.

This famous problem remained one of mathematics’ great mysteries for nearly 100 years. In 2000, the Clay Mathematics Institute included the Poincaré Conjecture in its Millennium Prize Problems, a set of 10 unsolved math problems with a $1,000,000 prize attached to each of them.

Three years later, the problem was solved by a Russian mathematician named Grigori Perelman. To this day, it remains the only Millenium Prize Problem that has been solved.

When he was finally awarded the Millennium Prize in 2010, Perelman refused. What’s more, Perelman was awarded the Fields Medal for the same work, the equivalent of winning a Nobel Prize. To this he responded:

I’m not interested in money or fame. I don’t want to be on display like an animal in a zoo. I’m not a hero of mathematics. I’m not even that successful; that is why I don’t want to have everybody looking at me.

Say what you will about reclusive geeks, Perelman is nothing if not passionate about his art.

Musicians don’t turn down GRAMMYs. Director’s don’t turn down Oscars. Writers don’t turn down Pulitzers. Sure, all of these things have happened, usually as a matter of protest, but it take balls of steel to turn down a friggin’ Fields Medal because you just want everyone to piss off and let you keep doing your work.

I believe this is something missing from music.

I often ask an artist, “Is there anything I can do right now to make you stop playing music forever? If I handed you a billion dollars, would you put your guitar down and never pick it up again?”

If the answer to the above question is yes, then you should just stop now.

Artists shouldn’t play music because it’s their job. They shouldn’t play for the money or the fame or the women. They shouldn’t play because it makes them happy, or makes them feel important. And they sure as hell shouldn’t play because someone else told them they should.

Artists should play because they have to play, because they can’t not play.

Perelman doesn’t do math for the fame, the prizes, the awards, and he doesn’t even do it because he loves it. He does it because math. Because it’s the only thing.

Episode 29: Once A Cynic

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In this episode: Spotify, Sprint, Apple, Amazon…. you know, the usual.

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Show Notes:

Nashville’s Poison Pool

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Dead fish

One of the dark secrets in media tech investment is what I call the Poison Pool. For the last ten years, a number of music tech start ups have found angel investments and some Series A rounds from the wealthy investors in Middle Tennessee.

This all seems well and good, except for one sad fact: the investments were made for the wrong reasons and without proper guidance.

Picture this: you are a multimillionaire who made his money in healthcare. You have large sums of it that you may use to buy a boat, go to Italy for the summer or buy your college kid a Mercedes. This is money you can afford to lose, money you are going to spend anyway and you don’t really give a rat’s ass what happens to it (or so you say).

Then a friend of a friend gives you a call and says they’ve found a good investment in music tech. They tell you all about how great it is, and let you know that your investment may allow you to hobnob with those cool people on Music Row. You think Awe what the hell?

So you get the prospectus, and surprisingly it makes tons of sense to you. People love music, music is going through a business transformation and this guy (who used to be a big record producer) seems like he knows his stuff. So after a few courtesy meetings and some back and forth about the valuation, you go for it.

For the first few months things are humming along. You do, in fact, meet some cool people at the cocktail parties arranged by the founders. Then there’s an office with people buzzing about doing music-business-looking things. There are white boards covered with tech terms and wireframes, and even a mobile developer. Everything is going perfectly. You may have just stumbled into a good one.

Then come the press releases and the launch event. Music guys are awesome at launch events. Their friend gets a country star to sing at the event whose friends (also famous music people) all show up to show their support and admiration. There’s an article in Billboard that mentions you as an early investor. The social buzz is through the roof, and in the first few months thousands of people sign up for the new (free) app.

Then it happens: nothing. Yep, absolutely nothing. What the hell went wrong? It’s been 18 months, and you threw in another 50K to support V2. All was still going so well. And now two years in… silence. The CEO decided to start charging for the app. You went from several thousand excited bands downloading your app to a few dozen paying customers. Yep, you’ve been duped.

All this familiar rhetoric is common knowledge among those of us who have been around for a while. And we wonder, sometimes aloud, why didn’t he just call me and ask? I would have told him it wouldn’t work. But that’s where the breakdown occurs. The lure of meeting stars and being in Showbiz claims another victim. This is fair game, but the outgrowth is poison.

The money guys get skittish. They talk amongst themselves and tell the story (with certain ego-protecting caveats), and their friends all hang out at the Palm and swear to never get sucked into that showbiz crap ever again.

This poisons the pool.

It’s common conversation in VC firms and angel groups that, no matter how logical it sounds, stay out of entertainment. Those people are crazy and crooked.

There is a solution to this bias, but it comes at a price. We as entertainment entrepreneurs have to seek out a business model that is lean, effective and honest. The best way to do this is to ask for the advice of someone in the music business (preferably several): “will this work?” You may find that some of us are honest, direct, and focused (add cynical, and use this to your advantage).

Over decades, I have found that any idea that claims to have it figured out is patently bogus. Because we have to accept that music is special. It’s special to the people who make it, and it’s special to the people who enjoy it. It’s also completely unpredictable. Stay out of the taste game. Stay out of the politically impossible distribution segment. Stay out of royalty based products. Invest in products that will work whether you like rap or country. Invest in products that build a better mousetrap – a mousetrap that already works, just a better one.

There’s no going back and un-poisoning the pool, but we can guide investors back into the field by honestly vetting ideas and leading with a few solid exits.

Episode 28: The Closest Brian Ever Gets To A Bleeding Heart

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Heartbleed! Deezer! Sonos! Deeeeeeeeeezer!

Ok, that’s enough of that.

We’ve got big news this week. We also talk about the news (no, the other news). We also talk about bleeding hearts. And heartless capitalism.

Show notes: