CAN VIDEO RESCUE THE ENTERTAINMENT INDUSTRY?

BEN CAMERON is a live arts theatre director and a featured speaker on the entertainment section of TED.com. Demonstrating his fervor for the performing arts, he spoke passionately and articulately about the evolution of performance arts in the face of intense media competition. Whether quoting the Judge Judy court program on television, or, assuring the audience of his familiarity with iPod, DVDs or television programs like Law & Order, his entire lecture was laced with humor.  Highlighting the benefits and adversity that technological advancements in entertainment can bring, he pointed out that an aspiring artist must face between 3,000 to 5,000 advertising messages aimed at the average consumer each day; moreover, the average college student spends over 20,000 hours on the internet and 10,000 playing video games.  He also discussed how the closing of the super retail store - Tower records – had made performing arts and other entertainment industries shutter in their worries about being the next industry to fold as a result of technology’s impact on the entertainment industry.  Although the performing arts were facing the challenges with technology, he compared the arts industry challenges of internal fractioning and realignment with religious groups during the reformation periods of history; ultimately, concluding that the performing arts movement will also survive.  The quality of work from professional amateurs (Pro-ams), as well as, a world defined by media participation instead of media consumption will enhance the publics experience with performance arts.  Social activist oriented artists who share their talents for the sake of a social concern instead of mere financial gain would also enrich the performance arts through the use of inter net media.  He also reasoned that an optimistic view of the future for performance arts was extends form its ability to provide emotional intelligence for business assessment.  Ultimately, by articulating his views and insight about technology’s impact on the performance arts, my awareness was improved about how video usage on the inter net can be an indispensable tool for sharing ideas – and for the “salvation” of the entertainment business. Perhaps, unlike real tones, time will tell whether the video will succeed in redeeming or enhancing the music business.

REFERENCES:

1) Ben Cameron speech; www.TED.com 

2) Silvio Pietroluongo and Keith Caufield; Billboard Magazine, December 16, 2010; http://www.billboard.biz/bbbiz/industry/digital-and-mobile/michael-jackson-cracks-top-10-of-social-1004134786.story

A PRECEDENT FOR PROTECTING PROFITS

The RIAA – Recording Industry Association of America – has spend decades combating piracy in the recording industry.  Pursuing legal action, establishing legislative standards, and representing the creative and trade interest of creative trade members are at the core of their mission.

A recent U.S. appellate court victory in the copyright infringement case against file sharing piracy is an example of the type of legal precedents that are vital for establishing and protecting the copyright interest, as well as, trade profiting methods of legit creative businesses in the U.S.

Despite the existence of file sharing companies which encourage “pirating” music, the participation in not paying for the creative works of others has led to waves of layoffs at record companies, the increased unemployment of songwriters, and more difficulties for those artists aspiring a record contract or breakthrough into the industry.  Global piracy creates over 12 billion dollars in loss profit, over 71,000 loss jobs in the U.S., over 2 billion dollars in employee’s earnings, and millions of losses in personal income plus corporate income taxes, according to a report from the Institute for Policy Innovation.

A combination of awareness activities, trade creativity, and policy enforcement are some of the creative trade methods being conducted by the RIAA.

Furthering their anti-piracy initiatives, the RIAA has formally announced its support of the establishment of the Kores-U.S. Free Trade Agreement.  The potential for protecting the rights of intellectual property, reducing international trade barriers, and countering illegal digital business are reasons for the support from the Recording Industry Association of America. 

While digital technology has proven to be a double edged sword for the recording industry – an innovation for legit business and a tool for illegal music piracy – the potentials of establishing legal precedents for expanding trade business, setting up legislative standards for international and American trade activities, and fostering legitimate electronic commerce are the beneficial ways of supporting our recording music trade.  The efforts to establish profit protecting legal precedents of the Recording Industry Association of America and other trade groups, unions, and companies in unison with supporting the U.S.-South Korean Free Trade Agreement plus other legal trade activities are vital to the success of our music recording industry.     

Music Retail - CHANGE IS CERTAIN!

During the last decade, the traditional music retail business has been fighting against the grain of a series of changes. Ultimately, many methods applied by retailers for facing the challenges of changes in the industry lead to bankruptcies and store closings.  The closing of music retailers like Virgin Music and Tower Records were indications of the inevitable paradigm shift in selling pre-recorded music; however, suppliers of pre-recorded music like Super D are banking on factors like strategic positioning, sales channels, and operational / technological edges to ensure their success.

 Super D, a California-based music distributor, is an example of changing some of the factors for achieving success in music retailing.  The recent acquisition of another music entity by Super D was a means to reach several forms of success in the retailing business.

By positioning the company to get consumer products from the studios producing DVDs, the ability to provide on-demand services placed Super D in a greater service capacity.  Along with manufacturing, the ability to improve their customer call center was an enhancement to their operational and technological advantages. Moreover, although the company provides web services through its web site, the ability to offer web hosting services was an advancement for Super D’s 3^rd person logistics capabilities.

Although Super D was servicing retailers with over 300,000 music and DVD titles, the acquisition makes them able to provide a greater selection of products, as well as, a greater position in the marketplace – number two.  In the end, the ability to plan for gaining a greater market share by way of operational enhancements, and, the improvement of customer service by creating more title selections and more call service capabilities are the ways in which Super D has accepted that change is certain, therefore, why not change in order to keep achieving success I music retail.     

REFERENCES:

1) Ed Christman; Super D Acquires Infinity Resources; Billboard Magazine; 11/05/2010.  http://www.billboard.biz/bbbiz/content_display/industry/e3i4ef51a35fea2a26d6fe09c7b722c4adc

2) Rhonda Abrams; Strategic Position & Risk Assessment; Successful Business Plan: Secrets & Strategies; pp.136-142.

The Transitional Team Player

In today’s era of digital social networks like Twitter, Facebook and Myspace, there is an often “over rated” value placed on the lack of a need for a “major record label”.  Although promotional, marketing and advertising efforts can be enhanced and in some cases replaced by technology, the need for a great team is an essential need that can’t be abandoned. A case in point, the greatest home studio equipment is no replacement for the keen and discipline ears of a master engineer - a vital team player for producing a quality product for the buying public.  Despite the advantages of inter net viral marketing, essential team players like lawyers, music publishers, sales and distribution staff are vital to success in the music business.  The concept of the competent team is as vital for major labels as it is for independents (if not more so for small labels).  In a time when downsizing, restructuring and layoffs of executives are a constant occurrence at major labels like Warner Music Group and Sony Entertainment, the idea of the indispensable team player may need to be transformed into the transitional team player.  A flexible approach to career advancement in a record company or music industry must be constantly reexamined in order to create an effective strategy for career advancement.  Understanding how or how long you may be able to grow in a company is becoming just as important as knowing how much your work will contribute to being promoted. Whether it is for promotion or preparing for a transition between jobs, keeping a transitional team player frame of mind can be likened to possessing an insurance policy for pursuing careers; keep it handy because you may never know when it may be needed.

REFERENCES: 

1) Warner brothers Shake Up Top Ranks, Layoff Staffers ; Billboard Magazine, Nov. 5, 2010, Ann Donahue. http://www.billboard.biz/bbbiz/content_display/industry/e3i7f28928d88ce98bcad5ce1a0a8768ce2

2) Sony Music Cuts Staff; Billboard Magazine, Oct. 29, 2010; Ed Christman 

http://www.billboard.biz/bbbiz/content_display/industry/e3if5ddbe1f0bbd42ec140a478d93d359d3

Flexibility Ensures Music Retail Success

     In the midst of changes in technology and a decrease in CD prices due to warehouse pricing from Walmart and Best Buy, the retail music store has been feeling the impact and subsequently faltering.  Whether it is the customer’s change in format selection (i.e. changing from CDs to MP3 files) or choosing to download music for free instead of pay higher prices for music, the resulting closure of thousands of independent record stores has prompted a need for restructuring the retail store format and environment.  For example, an independent store in Delaware readjusts his inventory based on demand “several times a year” in order to prevent unnecessary inventory levels; also, he embraces the blog format of the inter net to post information about upcoming music and shows. A Newark based record store provides information about all of the local activities and equipment needs of disc jockeys.  The Philadelphia area record store allows his facility to be used as asset for an inter net video show.  Ultimately, according to the owners of record stores, changing with the present trends, constantly promoting the business, and providing great customer service will help ensure the store’s success. Although the end has come for one of the independent and large chain music retail store's approach (i.e. merely stocking thousands of CD titles, video selections and accessories) there are options for those willing to take the risk.

Please review the article and post comments.

http://www.almightyretail.com/design/press.php?incpage=delaware_music_shops

    

HAD MASTER PLANS...BUT! (Interviewing A Legend in the Music Business)

Stan Champion is a 30-year independent music business veteran, performer, and recent small performance venue owner.  He has been branding his Roots Rock Society band for over 25 years and started his Starstruck Productions five years prior.  Winning various world music and reggae music awards from his hometown of Chicago, Champion has been bestowed the title of a “Legend” by various media and industry professionals in the city and nation.  Following a request via his Twitter (RootsRoom) and a phone call found on his venue web site www.rootsroom.net, he granted this interview about how reality continues to have an impact on his pursuance of independence in the music industry.

COMMANDER:  Presently, how is your journey in Chicago’s music business scene?  

CHAMPION: I’ve had master plans but couldn’t bring home the championship. [Sometimes] you have to take steps back to go forward like a student reviewing previous chapters in the book or like using a reference library.

COMMANDER: What needs reviewing?

CHAMPION: Getting people to know about the music plus the venue and taking it to the streets [with] content and substance – always! It is like in the beginning when a Disc Jockey from Fort Wayne, Indiana asked to send Roots Rock Society music to the College Music Journal for a review.  The result was that 7 college stations requested copies, thus, A REASON TO MAKE MORE PRODUCT!  It was important because back then, college stations could reach hundreds of thousands of people in Chicago, however, post 911 [September 11 World Trade Center) – even accessing college radio stations have become difficult for independents to access due to increases in security; also, an independent could get various support for music recording releases by using accumulated “playlist” from stations where stars were also being played. Even then, James Brown had control of six stations; now, even that is changing with technologies impact on terrestrial radio.  [Nowadays] we are playing RRS music in the venue and making sure the sound crews at our live shows play the music between sets in order to get some audience responses…Some blip on the radar is better than none.

COMMANDER:  What do you think about operating the venue?

CHAMPION:  Well, you have to understand that the club – like the music and CMJ response - fell into my hands, but, since the club is a non alcoholic place and I’m not an alcohol drinker and nor do I want to know about it, then, I don’t know anything about operating an alcoholic bar. Most performance venues use music in association with beer and alcohol.

COMMANDER:  Any advantages with the local community, colleges or students?

CHAMPION: The only advantages are when there is openness in college.  Progressive communities are more potentially favorable, however, closed mindedness to new community entrants tends to create a closed minded response. In other words, different ethnic groups tend to stay to themselves.  Some people are U.S. friendly but adamantly closed off to other ethnic communities. The merchants will take your money, but, stay to themselves…until more comfortable at letting loose… Diversity initiatives are a relative new phenomenon…Even costumers go to places for familiar services but they don’t get beyond curiosity.

COMMANDER: What are some of the greatest values from being an independent?

CHAMPION: Potentialities are the values…but some people say you can’t make money on potentialities.  Maintaining the RRS brand is a value.  Now we can get airplay and direct people to our venue, instead of hoping a venue would let us bring our audience to their club.

COMMANDER: What are some of the challenges?

CHAMPION: We have a legacy and a museum to feature products and brands. Also, joining and pushing compatible brands like the food from Martha’s kitchen next door and the RRS music.  I’ll have to keep the promotional events running at least ten times in order to get some results.

COMMANDER: Are you still testing a variety of initiatives?

CHAMPION:  Yes, since day one we couldn’t get a license at first, then, the Alderman said that as long as we are not a nuisance we could operate; therefore, we walking on egg shells while keeping Community Area Policing and the Alderman about our activities so that we wouldn’t get a cease and desist letter.

COMMANDER: What has been some of the strike outs or misses?

CHAMPION:  The unknown community responses from businesses, colleges and citizens.  Discerning the progressive propaganda and images from progressive realities like the presence of conservative tendencies and community reluctances. Although I’m on the community board and it has helped with certain issues, only one of 30 community board members actually came to the venue.  There is a resentment to change that exist in the community from conservative and orthodoxy leanings.  There are more economic factors for the ethnic diversity within the formation of the community (for example lower rents and housing) oppose to cultural and social connections.

COMMANDER: How is technology helping to get your audience to your venue?

CHAMPION: Not much….the Roots Room is a special place for special people. Technology is a let down, because it is technology for ‘nerdship’.  Social networking is in essence anti-social because folks stay in their rooms.  There is less formation of cliques - now they’re just clicking and want people to bring everything to them. They remind me of my early days when there were musicians who just played instruments in their room and not in front of audiences.  Although they are getting an increase in clicks (hits) it is not translating into club visits [at that rate] maybe it would take years to have a LIVE audience built upon those results. On the other hand, seeds come up in seasons so you have to constantly be planting seeds.

COMMANDER: Do you feel like the current industry has a sort of catch 22?

CHAMPION: Well at least we have a place, we are releasing product and we are a traveling band, which means you can always take it to the streets.  The artist was long in existence before the industry…[You] must have patience, like a plant growing without us seeing the photosynthesis process: you will not blossom until it is your time.

COMMANDER: How long do you give the process?

CHAMPION: I don’t know, until the money runs out.  I don’t know when the season is going to be.  I wouldn’t want to reach an age to never find out what it would have been like to try.  I wouldn’t want to carry that anxiety.  The fact that some businesses can keep their lights and phones on is progress to me, and not the excess bling bling like cars and boats.  Whether creation or business the journey is like a calling or a way of life.  If I don’t farm I don’t eat; sometimes even if you farm you don’t eat; and sometimes there are years when you can’t even plant!  That’s why they say that you shouldn’t do anything that you don’t have a passion for because your passion will get you over the hurdles.  The test is not how well you do when things are going well, but, how well do you deal with things when they are in discord or don’t go your way.  In my case, I heard a voice two years before I made a move and I thought it was the devil telling me to leave my job!  When I was in the private sector I had no security, but when I went on my own I paid attention to resources, etc.  Some of those who can’t handle these realities of not having jobs in the current economy are committing suicide. In order for me to live the lifestyle I’m living today, I’d have to be signed with a label and selling over 600,000 units. Some people who took that path do not even have a venue or anything else.

COMMANDER: What is the difference between suffering for the private sector and suffering for the independent sector?

CHAMPION: Well, that’s a good question that you just made me think about.  Its like going to school and being approached by bullies and gangs. Suffering or persecution comes more when you are an independent. It is one thing for colleges to train you for employment as an undergraduate; however, business ownership should be the thinking of an M.B.A. eventually.  You could be rich with the money invested in the college education if you were marketing some kind of business up start.  The corporate influenced ideal is to feed the corporate machine to their benefit instead of competing with them. You may be chosen, but, you are chosen to suffer too; the next question is “why do I suffer so?”.

COMMANDER: What enables you to discern corporate influences and be an effective independent?

CHAMPION: I was part of the private sector in the middle 60’s and I know what you are dealing with. Even my mentors at the time were limiting because they had NEVER been outside the private sector.  The other side of the corporate coin is “who do you think you are to step in this arena and be better than us?” Sometimes competition intensified unjustly or discriminatory and not from strictly business oriented biases, not just that the best man wins, but, often because of the best fair head and ethnic orientation. There were traps and pitfalls being laid.

COMMANDER: Is it best to take a wholelistic approach to a niche rather than a single concentration in a segment of a niche?

CHAMPION: Yes, because of lack of opportunities.  You have to take whole approach; as long as people buying it and liking the product, then, keep on selling.

COMMANDER: So is suffering redemptive?

CHAMPION: If you stay around long enough. Buddy Guy and Coco Taylor were not the only blues singers and legends but you have to stay around long enough it been said that recognition comes to both an old architect or an old prostitute.

COMMANDER: What is the goal, achievement or honor as an independent?

CHAMPION: There is a difference from not being paid and not being recognized i.e. the Funk Brothers from Motown who got paid but was not recognized. Back when I started most musicians were not playing instruments for money, just playing was the satisfaction.

COMMANDER: Are you in business to protect a legacy and passion or to get paid?

CHAMPION: Because of growth it came to where it is (business) but I still play for people for nothing, like being a human get well card in hospitals and other places. I’ve left a mark that can be recognized.  I’m still playing my guitar in the way I first started playing in 1965.  The business makes you do it even more because its not just music . [The business] it makes you want to sing a song of joy and praise for the gift. Today, my schedule is based on a demand for the music.  That is the biggest tribute instead of negotiating to get appearances.

COMMANDER: Where does integrity fit into the independent journey?

CHAMPION: Buccaneers, Pirates, Marauders, American business and capitalism was built on non-ethics and amorality. They tell me all the time [Champion] that is why you are not a success. When you explain the ethical dilemma in front of students, some students reply (mockingly): “so that I can end up like you?”; at that point, I just let my actions speak and not argue. I just give them time. I plan on outlasting everyone. You can have the lungs and legs to play the game, however, can you win the game and the championship? When I was first starting on this journey and an accountant told me that I could turn my Starstruck Production thing I had going on the side into a legitimate entity and have a tax write off, I said: “you mean its not legal!” This was in 1976, two years after they started the “business and the arts” courses at Columbia College of Chicago.

(Image Below - right to left:  Stan Champion, Vernin White of Earth, Wind, and Fire, Jakiyah of RRS, 

and 'The MO Amper' Commander performing at the Earth Wind & Fire concert.) 

NO EXCUSE FOR IGNORANCE...

Welcome to the Handle Your BITSness blog!  This blog exist for the purpose of exploring issues about niche music business marketing.  For starters, the word 'niche' is in itself another way of saying a 'BIT' or part of a whole industry.  "BITS", in short, is another way for saying "parts"; so, handle the "parts" needed for success in the music business or niche within the music business. Also, handle the 'parts' of the overall music business in order to increase the chance for success.

Well, identifying the terrain or part of the trade of interest is one of the first 'parts' of the puzzle (i.e. What is the music business? Area of interest?). These questions should be made regarding the 'music' and the 'business' side of the trade.

In order to stimulate some discussion, review video #1 and return with questions about music business part called "the terrain". Here is the link: http://www.moamper.com/handle_your_bitsness.html

Episode #1 - The Terrain (Marketplace)