SxSW Wrap Up

>>> Glenn @ Cooofer has a right on opinion piece, "The Band Glut And Diminishing Returns"

"…It’s difficult to be remembered given the quantity of bands, the social aspect of the events and the availability of free alcohol. And, most surprisingly, the bands tended to go about their business without properly addressing the glut. Few bands sold merchandise. Many bands I saw rarely said their name during the set. They acted as if simply being there was good enough. Well, it wasn’t. If you played at SXSW, chances are you won’t be remembered."

>>> YouTube has tons of performance video of varying quality.

>>> One unofficial SxSW blog DoneWaiting has a good wrap-up of their and their readers’ favorite moments.

>>> Some great notes from progressive music exec Terry McBride’s keynote interview from Mark Lourie, VP of our sister company booking agency Skyline Music:

"…today is all about monetizing the behavior of the fans instead of selling and focusing on units of any kind.  It’s the overall behavior… give them what they want, and do it as direct and easily as possible.  This is why labels are dying..the future is superserving the fan base"

"…He believes strongly in collapsing the copyrights to one holder if at all possible…  Keep all ownership in one place so you can maximize usage.  All media, all formats can be dealt with easily."

"…overall his DIY model is…sell and give music free of rights management , and lots of live stuff, build strong street team.  Tour hard and super-serve the fan base…"  (more after the jump)

SXSW NOTES FROM MARK LOURIE OF SKYLINE MUSIC –

The best panel I went to was actually just an interview with Terry McBride, president of Nettwork, (Toronto) manager (and label for some of his acts) for Sarah McLaughlin, Barenaked Ladies, Coldplay, Avril Lavigne and many more.  He is leading the way towards new DIY models in the industry for established acts.

He started as a small label and everyone told him they could never make it.  he wanted to just do music and acts he loved and believed in.  it took 10 years to have his first breakthrough with Sarah.   Then he and she created Lillith Fair and off he went.

He says today is all about monetizing the behavior of the fans instead of selling and focusing on units of any kind.  It’s the overall behavior… give them what they want, and do it as direct and easily as possible.  This is why labels are dying.

He feels it goes all the way back to the creation of the CD which created “pull” behavior.   The ability to play one cut over and over without moving an inch.  To play random as well.   With this new model record label margins went through the roof.  They didn’t make things cheaper but costs were way down and they sold all back catalog in cd form too.  They were on a total high and they got lazy and too confident.  They will continue to die until they realize they can’t sell albums anymore at the exclusion of selling singles and they can’t sell tracks for .99 cents, it’s too much.

With Barenaked  they had already learned that they could sell 500k units with a major and still not get a royalty check.  They might get $250k from publishing, but even at that it  only represented 10% of their total gross income.   He figured what did they have to lose by not re-signing.  He convinced them to work out their own label in partnership with Nettwork.  (by the way, in an amusing aside, he said when you need to talk a band into something radically different, you go to a gig on a shitty night… lousy venue they don’t like, crappy weather, band in lousy mood…   then you say… yeah, the world sucks, let’s blow it up and try something different)

In their new model they don’t care if the music is shared, this will only spread the band’s recognition and new fans may buy tix or shwag. 

They sell many of their concerts right at the shows and they now do it on usb sticks not cds.  It’s green cause it can  be erased and re-filled with any kind of data, and  totally portable. 

They went in the studio and came up with 29 songs and rather than cut it to 12 or 14 songs to fit the “standard” cd format they have decided to just release everything…   even live and studio, acoustic and what not.  A lot by download.  They have made 3 to 4 million since becoming their own label, they are in total control, own the property, and they sell it everywhere., unprotected.

He believes the future is superserving the fan base and that is what this band is striving for.

He believes strongly in collapsing the copyrights to one holder if at all possible…  Keep all ownership in one place so you can maximize usage.  All media, all formats can be dealt with easily.

Worked with Chad from dispatch’s band, State radio.  They started by selling several thousand downloads and then had the money to press and without label tour support, simply by touring and offering it everywhere he is a brand new act and is selling about 30k. units of a cd he owns.   Making in the $7-8.00 per cd range and that will now be a cash source to keep cranking it up.

So overall his DIY model is..    sell and give music free of rights management , and lots of live stuff, build strong street team.  Tour hard and super-serve the fan base. 

He believes that Kids are tuning out of radio.  It will go more and more to talk formats.  Any regardless of any level of media exposure the labels try, they will be selling less records due to the blandness of the acts the radio causes to sell advertising.  I liked his radio description…    they look for music that will attract the people they need listening to sell the products they advertise to their planned demographic.

Labels will have to give up on DRM (Digital Rights Management that limits number of plays or copying) sooner or later or continue to sell less and less and once that is gone he believes that google and others like Ebay and everyone else will get into digital downloads and compete the price down.  This will also happen because retail space is disappearing as cd’s become less and less appealing as a shelf item to big boxes.  The downloads need to be between 29 and 49 cents to reach the tipping point where peer to peer is not worth the effort.   Peer recommendation from peer to peer is golden opportunity.  With emerging  technology connecting fans more and more, he feels that eventually the referring person can get paid as a actual “retailer”  with micropayments because of emerging instant click through purchase.   (you text your friend a link to a great new song you love, he buys it as a download and you get a credit)