Thursday, August 6, 2009

Building the Band Brand
Steal a song to launch your career, Part quatre
Jonas Brothers Busted Year 3000

Building the Band Brand
Does your video fit your overall marketing strategy?
Alyson Michalka Bandslam Hula Hoop

Wednesday, August 5, 2009

Building the Band Brand
Don’t quit the day job
Ashley Tisdale does not realize $100,000 on Guilty Pleasure


Time and again I meet the Mitchel Musso-type (but not on one of the most successful TV shows in history - wait, I take it back, yes two are on that show) who have aspirations of becoming first, famous, then rich. Used to be rich and famous, but today’s artists reverse it.

Today we have a case study of why you’re not going to be rich if you pursue your music. Her name is Ashley Tisdale. She was on the most successful basic cable broadcast of all time, High School Musical. She was a star on The Suite Life of Zack and Cody.

Most people think stars like this, when they record an “album” (the term we will use for CD or collection of MP3s since it is what Billboard uses), they’re on gravy street.

Let’s look at the reality. Most stars make $1 to $2 (used to be a quarter in the ‘50s) for each album they release. Ashley Tisdale’s Guilty Pleasure released July 28 only sold 25,000 units its first week. Let’s be generous and say she got $4 of the $12 the label is charging (I’d ask what you're smoking to get that amount, but let’s be generous).

That would mean the first week she made $100,000 on Guilty Pleasure. Nice money for a week’s work. Reality is, she probably didn’t make $50,000, but more than either one of us made since the end of July.

See that Guilty Pleasure video? That probably took a third of that $100,000. What about hiring musicians? At least $25,000. The promotional tour she’s been on? About $30,000. Studio time to record – at least $10,000.

Looks to me like she spent $95,000 of that $100,000 before the album was released. Gee, I could live off $5,000 per week. Only problem is, the second week that 25,000 will fall below 8,000 and in a month or two less than 500 units a week.

Say you have a band and five members must split that $1,000 per week. Not a very good return on your investment (ROI), correct?

Then you look at artists like Tina Parol whom I just heard on Internet radio. Not even listed on Billboard. How about an up and coming band, The Maine? The Tempe, Ariz. based band hit #45 on Billboard’s Top Independent Albums. That means they probably didn’t see Tisdale’s $100,000, but since they are independent, they could have. Again, studio and production eats that up.

The Maine is recouping its investment by touring with bands like Good Charlotte and Just Surrender. They are on the Warped tour.

Yet Billboard says they’re not making money touring (I bet). “The Maine has, however, garnered a devoted following via MySpace, which was helped along by the pop-punk band's connection to fans.”

Once again, like Taylor Swift and Jonas Brothers, 21st Century marketing like MySpace is creating stars.


Saturday, August 1, 2009

Downloading fine of $22,500 per song awarded


Thinking of emailing your sister that new Blue Oyster Cult song. Think again.

Friday a federal court (reminds me of the old saying, want to make a federal case out of it) fined a Boston University graduate student $22,500 per download for a total of $675,000. There goes the grad school $$$.

He even had a Harvard lawyer. So much for that law school’s reputation.

According to the Associated Press article, The Recording Industry Association of America issued a statement thanking the jury for recognizing the impact illegal downloading has on the music community.

Again, from AP Last month, a federal jury in Minneapolis ruled that Jammie Thomas-Rasset, 32, must pay $1.92 million, or $80,000 on each of 24 songs, after concluding she willfully violated the copyrights on those tunes.

You need to know the copyright law. You may use printed or recorded matter for your personal or educational use. Having it on your car, cell phone and computer exceeds personal use.

If you’re an artist or writer, do you want people stealing your $$$? Sure Seth Godin gives books away, but he also makes a livelihood by selling other books. Amazon makes a living being a middle man selling those books and MP3s, same with Best Buy, Walmart and Target. Gee, looks like there was tons of money behind this case. How much did the jury get? Oh, that’s right, they’re writing a book about it!

Monday, July 27, 2009

Kiss your MP3 goodbye
MP3 joining the 8-track and cassette
Again, why your next computer will be an iPhone 4G

Apple working on digital albums, tablet PC: sources

NEW YORK (Reuters) – The major music labels are planning a new digital album format that will debut with a tablet-like personal computer from Apple Inc in September, people familiar with the plans said on Monday.

The labels are attempting to revive the multi-track album format with new software that packages songs, traditional album liner notes, music videos, and other interactive extras as part of a premium-priced package.

The music industry first proposed the idea of an enhanced album format to Apple in 2007, according to two people who said the labels have been separately working on a project code-named "CMX".

The labels, including EMI Group, Sony Corp's Sony Music Entertainment, Vivendi's Universal Music Group and Warner Music Group had planned to roll out the new album format to all digital retailers this November.

But Apple decided to design its own version of an interactive album, which is expected to be launched with its new unnamed tablet-like device this fall, the sources said.

The Apple album project is expected to work with other Apple devices like the iPhone and iPod.

Industry sources said Chief Executive Steve Jobs would likely unveil the new device at an Apple event in September.

The partnership between Apple and the music labels is tinged with irony as it was the technology company that effectively marked the end of the multitrack album format in 2003, when it opened up its iTunes Music Store.

In early negotiations, Jobs made the labels agree to allow customers to buy any individual track they wanted from an album, in a bid to simplify the purchase process.

But record companies are desperate to breathe new life into the album format, which was responsible for the vast majority of profits when sales were primarily in compact discs.

All music companies have seen their revenues plummet as fans who buy music online choose the 99 cent-priced track they want rather than invest in an album which is typically priced around $8 to $10.

The new interactive format would be sold at a higher price than digital albums now.

(Reporting by Yinka Adegoke; Editing by Richard Chang)