Putting the Business in Music Business

CqE and the Stay Tuned blog is venturing outside just the realm of music to talk about business itself. I am sure most readers want to end the constant working for someone else and would rather work for themselves. Who wouldn’t want to make their own rules?

Well in even in the path of working for yourself, there are some rules you have to follow to get there and to be considered successful. This path may start with your dream and idea. The navigation is your business plan. Having a tangible idea on paper helps other people see where you are going, and in turn provides you with the best chance of getting funding. In the world of entrepreneurs, everyone knows it is good to work with OPM – “other people’s money”.

There are many wonderful resources that can help you start and finish your business plan. One such resource is that of Growthink, a company that helps entrepreneurs get their ideas on paper in order to get help with startup costs. Dave Lavinsky and Jay Turo are the founders of Growthink, and have helped Growthink emerge as a premier strategic advisory and investment banking firms focused on entrepreneurship.

Lavinsky has helped many entrepreneurs and companies prepare for grow and success in the business market. He has an MBA from UCLA’s Anderson School of Management, with a Bachelor’s degree from the University of Virginia. He himself has started many successful ventures and contributes to Growthink’s informational blog, seen here.

Turo has helped to advise many growing, middle marker, and corporate clients in his time at Growthink. These include Infospace, Samsung, Porsche, and also Paramount Pictures. Turo is currently active in angel investing, and also contributes to Growthink’s blog. He holds an MBA from the Anderson School of Management at UCLA as well, and a Bachelor’s degree from Stanford University.

According to the blog, there are several lessons one can learn from Lavinsky and Turo and what investors want to see in the entrepreneur as well as in the business plan.

® DO YOUR RESEARCH – Information is everywhere. That means investors want you to collect some to tell why your venture is better than any other venture in your market.

® INVEST IN YOURSELF – How do you expect anyone else to support or believe in what you are doing, if you can’t prove you are doing so? Investors don’t mind helping or supporting a business if they see proof that the entrepreneur has tried to make it work other ways.

® TAKE RISKS – Exactly what is it that makes you stand out? If you are doing something that is commonplace, or has already been done, what are you bringing that’s new? According to Lavinsky, “every great person in history was an entrepreneur. They tried something new. They took a risk. They overcame odds. They persevered. And, at the end of the day, they made it happen.” This includes people like Milton Hershey (Hershey Chocolate Company), Clara Barton (the American Red Cross), Jim Henson (founder of the Muppets), and Walt Disney.

While there are more points to take away from the Growthink blog, I think the biggest point is, take it from someone who has done it before. We can dream all day, but our business plan should take form from an established formula. This is why people write autobiographies. Whether it is Dave Lavinsky, Jay Turo, Barack Obama, Quincy Jones, Russell Simmons, or Rick Pitino, there is something that they did that worked.

Will you be the next breakout story?

Stay Tuned.

You can check out Jay Turo, Dave Lavinsky, and Growthink at their website or @Growthink

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-Bios found on the Growthink website

-Additional information on Growthink blog posts

A Walk on the Digital Wildside

There are so many avenues you can go to promote and market yourself. This is especially true in the digital realm. In another post, we talked about Product and Artist Management. The key is developing your identity and getting that across to your fans/consumers.

There is a band that takes digital marketing to the next level, and it makes for an interesting result. The England native alternative band Gorillaz has almost eliminated the physical presence of humans by itself being a virtual band. Gorillaz has made itself known to the world with its four band members, Stu “2D” Pot, Murdoc Niccals, Russel Hobbs, and Japanese guitarist, Noodle.

The band, which was created by Damon Albarn and Jamie Hewlett, is tangibly made up of the music and various contributions from different musicians over the years. The main contributor has been Albarn, the voice of 2D in the band, and Hewlett, who is the illustrator. The outlandish cartoon band members have been perfect for digital marketing as it is easy to feature them almost anywhere in visual media, and the music speaks for itself.

In promoting their 3^rd album, Plastic Beach, Gorillaz released several cartoon shorts as well as playing out the story in their music videos about Murdoc kidnapping 2D and taking him to this island called Plastic Beach, to record for this new album. The story continues to play out piquing fans’ interest in what is going on with the band members. The way Gorillaz tells their story has led to them gain fans and album sales.

Gorillaz has since put out iTunes exclusive music, iPad apps, had their songs featured in commercials (Icebreakers) and video games (Guitar Hero 5, Rock Band). The Gorillaz website features a game based around the Plastic Beach album called “Escape to Plastic Beach”, which was also the name of their first world tour. Gorillaz is also working with a new technology for their tour using holograms, giving them a realistic and life-like appearance while on stage. This technology was used at the 2005 MTV Europe Music Awards and also at the 2006 Grammy Awards, featuring Madonna.

Gorillaz has used digital marketing to their advantage by making themselves a virtual band. This is digital marketing at its finest. What will you use to brand yourself and put yourself out to the masses? In marketing there are four people: Creators, Innovators, Imitators, and Spectators. Creators use their own ideas to their advantage. Innovators take someone else's idea and build on it, or make it special in their own way. Imitators obviously take a proven formula someone else created and stick to it. Spectators take it all in, yet put nothing out.

Which “-ator” are you? Stay Tuned.

For more on Gorillaz, check out their Facebook, Twitter, YouTube, Wiki, or their own website.

the Digital Divide

With so many innovations like iPads and eReaders, it is obvious we are embracing a digital format. The best way for entertainers like musicians to succeed in this new technological atmosphere, they have to adapt their marketing efforts to include digital media. This is the major record labels are having troubles with P2P sites and other forms of digital media.

The advancement of technology and the internet have giving record label another problem: independent musicians don’t need them. There are now sites and software that give the power to the artist and cut out the “middle-man” of the label. An artist can easily promote their product(s) through social media like Twitter, Facebook, or MySpace and sell it through sites like iTunes, Amazon, or CDBaby. Therefore keeping them in touch with the most important people of all: consumers.

For those that are still vying for that coveted recording contract, there are plenty of stories where someone has gotten signed from current social media. Hip Hop artist Soulja Boy Tell ‘Em gained his fame and contract from exposing people to his music through P2P sites. Current Bad Boy Entertainment artist Cassie found herself a contract by being discovered by writer/producer Ryan Leslie from MySpace. And let’s not forget pop star Justin Bieber, whose YouTube videos were viewed by the right people and provided him with a contract.

Digital marketing has changed the landscape of the music industry. Besides taking the D-I-Y approach, or attempting to get heard/seen by the right key people, there are many major signed recording artists who are taking it upon themselves to still use social media and other sites to promote and keep in touch with fans. In older days, the best way for fan interaction was at official autograph sessions or backstage after a concert. Now artists can interact from their cell phones with a tweet or status post.

An artist or record label would be silly not to take advantage of popular trends. If it is popular, this is where most of your fans and consumers will come from. Right now, things like Twitter, YouTube, UStream, Facebook, and Skype are popular among the people. In order to put yourself at the best advantage, you have to put yourself on the same level as the audience you want. Sales 101 has always been “the customer is always right.”

As you think about marketing your music and media, remember to take advantage of trends and fads as much as you can. The internet is an unlimited resource for digital marketing and getting the exposure you desire. Also consider internet radio sites like Jango who put your music out alongside the major artist. This is much easier than getting your music on a terrestrial radio station. Learn to use your resources to get you where you need.

Stay Tuned.

Where is Your Music Going?

I meet a lot of starving artists and aspiring musicians who seem to have a one track mind about the music business. Many people want to spend their time in the studio recording music so that they can perform to either release a cd or get found/signed by a major label. While this is a very realistic dream in today’s world of instant signees, this won’t make you much money, or even give you that much longevity. There are plenty of artists who get signed by record labels whose projects never see the light of day. The reality is getting a contract is not all that difficult now and days. What is hard is getting the label behind your project enough to promote and release it to the nation and the world.

Even if you do get released, what is your focus? An album on a major label? Placement on a Billboard chart? A Grammy nomination/award? A grand international artist? A lifetime achievement award in your genre? The question you really must ask yourself, is what makes you different or better the top artists in other genres as well as your own?

Is your music worthy to top the charts with Katy Perry, Beyonce, Lady Gaga, B.O.B., or even Jay-Z?

The focus of this post is not to criticize you or your music, but to strengthen your focus on your music and where it is going. It is good to have aspirations to sell out shows and perform worldwide. But how does your music do when you are not in the room?

One of the biggest apps in the Android and iPhone App Store is Shazam, which tells the user what song is playing when they can’t identify the song or artist. The key to this app and this situation is song placement. Your music should go further than just sitting on a cd or digital MP3. It should be broadcast all over.

Think about your favorite tv show. Who sings the song for the intro? Why isn’t your song on the intro of a show? When Remy Zero decided to record “Save Me”, did they know that CW show “Smallville” would allow it to be broadcast into viewers’ homes for over 9 years straight?

Speaking of hip hop artist B.O.B., he has had numerous Grammy nominations from his Atlantic Record debut “B.o.B Presents: the Adventures of Bobby Ray”, and has recently added a song placement credit to the new game "Crysis 2". He has had numerous placements in commercials and tv shows for his singles “Magic”, “Airplanes”, and “Nothing on You”.

When you think about where to go with your music, go beyond getting your music on radio. Your music should be in video games (think about the Madden franchise), tv shows, live shows (like the music pro wrestlers come out to), film, commercials, and other places. One of your singles can be the theme for a PPV, movie, tv show, product, or a big event. Who knows? It may be another avenue to you getting your contract and international exposure…only now you have leverage.

Stay Tuned.

Research Discernment

As technology evolves and expands so do the many ways we have to research and find information on the internet. There are so many resources for people to find information on anything they need, that there is almost no excuse to not to succeed if one really wanted to. With that said, we also need to have discernment over what is credible and what is valuable to us.

There are many people toting advice and giving expertise on how to make it in the music business. But who are they? What is their credibility? Who co-signs for them?

These are things to think about when looking for research. Two people that have been tearing up the internet with advice are Ty Cohen and David Hooper. This is no slight to either fellow or their prospective businesses, but more of a glance at how to find research discernment.

Ty Cohen and his Platinum Millennium Publishing provides various advice on how to start your own record label, using entertainment contracts, and other “courses” he is selling on “making it” in the music industry. I have personally been on the buying end of a few of his products, and in my own review, while relevant, most of the information offered is information you can get for free. When you search for “Ty Cohen” at a search engine, the first few pages of results are his own websites or sites he has input on. This can be a red flag in determining research validity. There are no valuable resources that vouch for him. When you search deeper you find reports and forums that elude to Cohen being a scam artist with his products. This is not exactly what you what in dealing with research.

There are tons of resources and pages of advice that don’t require a PayPal account. And while David Hooper does have products he is selling, if you follow his blog or his Twitter page, there is plenty of advice he is giving out for FREE. Hooper and his Kathode Ray Music is all about promoting your band/brand and advertising in the music business. In comparison to Cohen, Hooper has little to no scam reports. While free advice isn’t always the best advice, it is something to consider when looking for information on the internet.

You can check out Ty Cohen at http://www.tycohen.com/ or @MusicBizCenter; and David Hooper at http://www.musicmarketing.com/ or @davidhooper to make your own judgments. Be mindful of who you take advice from, and what you believe in research. Take everything you read with a grain of salt.

Until next time, Stay Tuned.

Music & the Law Pt. 2

I have been taking an Entertainment Law class at Full Sail University. It has been interesting to learn about trademarks, copyrights, and the protection of intellectual property. The blog entry will stand to share what has been observed and learned throughout this course. This article is written in hopes that it is of assistance to any reader who is searching for understanding in the entrepreneur and entertainment worlds.

In a recent podcast from Entertainment Law Update, they talk about Subway’s use of the word “footlong”, and how the submarine sandwich company has attempted to gain a legal trademark of the word. Subway is not the first to sell or distribute submarine sandwiches that are approximately twelve inches in length. In a recent court case, an independent Iowa restaurant has filed suit against Subway for sending them a “cease and desist” order for using the word “footlong” to pertain to their sandwiches. The courts have decided that “footlong” is a general term and in fact cannot be trademarked. The podcast agrees that Subway could have a valid claim in registering the trademark “Five Dollar Footlong” (or “$5 Footlong”), but not in the regular word, “footlong”. The podcast also makes a valid point in explaining that when you hear the word “footlong”, you may think of a hot dog instead of a sub sandwich. It is interesting to note that the US Patent and Trademark Office has denied Subway’s application to file the word as a legal trademark against other restaurants.

In the entertainment industry, there will always be someone ready to make “bogus” claims in the fight against copyrights. Subway is not alone n this issue. Suffolk University’s “Intellectual Property Law Podcast Series” brought to my attention a case of the US v. the American Society of Composers, Authors, and Publishers (ASCAP). It talks about ASCAP considering downloading a song as “public performance” and how the United States disagrees. The US District court has decided that by definition of the Copyright Act, “perform” means “to recite, render, play, dance, or act it either directly or though a device or process”. Downloading is merely a means of delivering the song(s), and is in no way a “performance”. So while sites like Yahoo! are not entitled to paying copyright owners or ASCAP a performance fee, the podcast does mention a reproduction fee that is required through the Harry Fox Agency. In a sense, the copyright owner does not have to worry about how they will get paid, but rather who will pay them.

The same podcast from Suffolk University introduced me to a new case taking its place in court soon. The case of Axl Rose v. Activision, and breach of contract is being discussed as will be sent to trial in January 2012. According to Rose, he only agreed to license Guns N’ Roses music (specifically “Welcome to the Jungle”) for Activision’s Guitar Hero III on the basis that the game would not feature the likeness of ex-band member Slash (born Saul Hudson). Anyone who has played the game, seen the cover of the game, or wants to do a general Google search of “Guitar Hero III” will see Slash front and center on the game’s cover image. According to Rose, he was told the image and likeness of Slash is only for promotional use and would not be used in the final game. The podcast goes on to say that Rose is suing Activision for deception and deceiving him. It is interesting to note that according to Hollywood Reporter, Gwen Stefani and her band No Doubt are also filing suit against the video game publisher for misusing licensed rights.

In conclusion, I would have to say that you should know your limits when it comes to trademarks, copyrights, and licensing agreements. As you dive into the world of business and entertainment, make sure you know what you can and/or can’t do when it comes to protecting yourself and your company. If you don’t need to go to court, stay away from it. But should you find yourself in a situation like Axl Rose, get EVERYTHING agreed upon in writing. Cover all you bases to make sure the next court case we review isn’t you. Until next time, Stay Tuned.

Music & the Law

Today, the Stay Tuned blog will focus on some pivotal and recent court cases that have impacted the recording industry. The use of intellectual property in music will always be a sensitive subject with some folks. For how can you really put a copyright on a thought or idea, and say no one else can stumble upon the same idea? The music industry is pregnant with various claims of copyright infringement and people who mistake inspiration for duplication.

The first case to discuss is Fantasy Records, Inc vs John Fogerty. For those don't know John Fogerty was the lead singer and songwriter of Creedence Clearwater Revival (CCR) who was signed to Fantasy. In a nutshell, CCR broke up and the only way for John Fogerty to get out of his contract was for him to turn over all his rights to all the songs he wrote for CCR. Later, in Fogerty's solo career, he released "the Old Man Down the Road", which Fantasy decided sounded exactly like the CCR recording "Run Through the Jungle" but with new words. Of course, Fogerty wrote the song, but Fantasy owned the copyright. This cases teaches a few different things besides its outcome that elaborated the standards that factor into district court's decision to award attorney's fees in copyright litigation.

1. Pay attention to your initial contract and fulfill your obligations
2. Don't put yourself in a position to sell your "soul" (or rights to your music)
3. If you have to give up your rights, keep a percentage. Never give all of your intellectual property away.

The next case is more recent and deals with the music industry trying to deal with illegal downloading. Capitol vs Thomas is said to be the first file-sharing lawsuit that went to be tried before a jury. The case shows that Jammie Thomas-Rasset was found liable for infringing songs by downloading from P2P site Kazaa. The RIAA sent a cease-and-desist letter to Thomas-Rasset and a settlement, but she refused to settle. This led to the court case we have before us. Thomas-Rasset was ordered to pay Capitol and the RIAA $222,000. In a retrial by her request, a jury still found her liable and order her to pay $1,920,000, which was later reduced to $54,000. the RIAA would not except the reduced amount and was granted a third trial. The jury awarded the RIAA $1.5 million against Thomas-Rasset.

From this trial we learn, if you are offered a settlement, take it. But seriously, the RIAA and the music industry attacking consumers isn't exactly the correct way to handle piracy and illegal downloading. While trials such as this one may scare a lot of the downloading industry, where there is entertainment you have to pay for, there will always be a way to get it for free. The entertainment industry as a whole combats this by offering interactive content with DVDs and bonus tracks on music albums. I think as technology evolves there will always be a way to cheat the system. Attacking all people who download is like starting a war on all of terrorism...

The next case is the RIAA vs LimeWire, which seems to mean changes to file sharing within the United States. This seems to be the RIAA's backup plan to attacking the illegal downloading. Why attack the user, when you can attack the user's tools? The RIAA in the past attacked P2P site and softwares like Napster, Morpheus, Grokster, Kazaa, eDonkey, iMesh, WinMX, I2Hub, BearShare, Shareaza, and now LimeWire. The other P2P sites could not stand up to the RIAA, and it seems LimeWire may fall to the same fate.

The P2P industry can argue several different points against the music industry. P2P is not all negative. For many students who want to put music to a powerpoint, home video, or other project, isn't it easier to boot up LimeWire and download that one song you need instead of having to search through multiple paid libraries just to find that the song you need is not licensed by that library; or you have to buy a whole album for one song? yes, there are negative uses for the P2P industry, but there are also beneficial uses, especially for the little person who just needs one song from time to time.

In conclusion, the music industry will always have those looking for a cheap way out or who "infringe". While the Fogerty issue is hard to combat unless you have a good lawyer and some sense of reality at your contract signing, there is a way for RIAA to take care of file-sharing. If you know there is a need or desire for something, create it. If the RIAA created its own file-sharing site/software for a reasonable one-time fee, would you participate in it?

Stay tuned...