“When the history of our digital times comes to be written, one of the questions that will puzzle historians is why the record companies missed the significance of the internet.”

What a great thought (and a very catchy headline). Here is a summary of the article, with some commentary.

Since World War II, the record industry had a total monopoly on the recording, packaging, and distribution of music. They controlled the careers or artists, the way the music was disseminated, and dictated terms to music retailers. When the CD came around in the early 1980′s, and as the article says “recording studios converted the sounds made by musicians into bitstreams – long sequences of ones and zeroes – while, at the consumer end, CD players converted those bits back into high-fidelity sound.”

The sales model for this era was to create the plastic disks and packaging, ship them distribution houses, and then off to retailers. While this model proved to be profitable, the overhead costs were astronomical, with up to 50% of the retail price of a CD eaten up by production costs.

The internet was poised to change all of this for major labels. It presented the opportunity to drop production costs to the floor, while expanding profits. But the internet was ignored at first, and then it was treated as a realm for legal prosecution. Even bands chimed in, complaining about the evils of the internet. This practice got so widespread that the RIAA began prosecuting teenagers and single moms. And as the industry resisted the internet, CD sales bottomed out.

To put it simply, the major labels did not want to let go of CDs in the face of an evolving marketplace. Rather than adapt to the climate, they attempted to maintain the status quo. The writer of the article states “The obvious hypothesis – that the senior executives of all the record companies were idiots – has always seemed implausible to me. Or it did until I read the recent interview in Wired magazine with Doug Morris, chairman and CEO of Universal Music Group.”

Because CDs were so profitable, the music industry turned a blind eye to what was next, and settled into a short sighted approoch rather than looking at the big picture.

Bottom Line: The record industry can turn itself around virtually overnight by embracing and adapting to technology. Welcome to the Future.

The RIAA’s head, Cary Sherman, wants to put encryption on our computer that will force us to decrypt music before listening to it. In other words, the filter will scan all your incoming data and then either allow or deny your ability to listen to it. since this idea likely won’t be popular (who’s going to willingly put a filter on their computer that blocks the files they are downloading?), the next suggestion is to put the filters in our modems.

Despite the predictable public backlash against these tactics (in an environment where the RIAA already has public approval that rivals the US Congress), some ISPs are moving ahead with these filters. The technical specifics are a bit thick, suffice it to say that various file encryptions can bypass these filters unless entire protocols are blocked.

Here’s a video of Mr. Sherman lauding the glories of filtering:

Bottom Line: Being out of touch with your consumers’ needs does not improve your financial picture, or your credibility.

The future for musicians looks like more than just great recordings and live shows. The opportunities that the internet provides modern artists is available to everyone, and thus its potential is diluted. One powerful tool in creating buzz around your project or career is to get noticed. And one way to get noticed is to generate interest in who you are, and what you’re saying. in other words, creating and maintaining a conversation with your audience.

Pop culture can overwhelm us with the personal lives of famous people, and annoy us to no end with the antics of celebrities. Billboard has an excellent article on the effect of this kind of marketing on the careers of the ultra-famous. Keeping themselves in the public eye is a critical element to the careers of these top tier entertainers. Even bad press is good press for them.

For the independent artist, this same technique can yield different results. We can expand our scope and reach by generating attention for who we are, and what we have to say. Marketing a personality is nothing new. Here’s an article from Time Magazine in 1978, looking at the same methods and issues we are discussing today.

Once you have fulfilled your artistic vision, and you’re putting yourself out there, the make-or-break factor in success becomes notoriety. While having ten thousand friends on Myspace seems like a powerful promotional tool, does it really measure anything other than the number of people that landed on your page and clicked add me?

One of the most effective tools for creating a buzz for yourself, your project, and what you’re up to is blogging, and blogging often. If you are anything like me, you spend at least some of your week surfing the internet and consuming content. You have sites that you visit regularly. Consider that what keeps you coming back to a site is the steady stream of new and interesting content. Content that speaks to you.

A healthy career is grown through a fanbase. Radiohead, Nine Inch Nails, Prince, and Madonna are able to free themselves from major labels and even give away their music because their fans are loyal, and people are tuning in.

While it may seem like the forward momentum is slow, steady and regular content on your project webpage, blog, or social networking page is critical to bring people back. And the more time people spend on your sites, the more interested they will be in supporting your cause.

I am guilty of not providing a steady stream of information on my blogs at times, and it impacts my return traffic, and the hype around my own projects and Polyvibe. I am preparing to condense this blog with my personal blog, providing the same great content with half the work. Like Uncle Scrooge says, work smarter, not harder.

For any artist who is committed to bringing viability to their career, having a powerful voice, and keeping the conversation going are critical elements to success.

I invite you to comment on this post with your opinions. If the waters ripple, we’ll talk more about creating a cult of personality, the results people are seeing from this kind of grassroots marketing, and methodology that can be implemented to increase your results.

Limewire was sued recently by the RIAA in yet another attempt to control the public’s consumption of media.? Once again, the RIAA has selected their own interpretation of MGM vs. Grokster.? Although that case defined the infrigement as having to be active by a group or service, the RIAA and MPAA continue to chase any group that offers p2p portal sfor file sharing. They contuinue to claim that organizations like Limewire bear the entire responsibility for how their users behave.? I always love this argument, becuase it;s the same as saying that if you sell a gun to someone, you are responsible if they use ti to rob a bank.? Of course, there’s no constitutional amendment protecting our right to bear file sharing software.
So now Limewire has filed a countersuit, accusing the RIAA of anti-trust violations.? This suit claims the RIAA is trying to “destroy any online music distribution service they did not own or control, or force such services to do business with them on exclusive and/or other anticompetitive terms so as to limit and ultimately control the distribution and pricing of digital music, all to the detriment of consumers.” (Counterclaim, paragraph 26, page 18)

It’s good to see that someone is finally standing up to the transnational conglomerates, although it remains to be seen what will come of it.? The good news about all this is it would appear the balance is finally tipping, and the death knell for the music ‘industry’ is ringing louder than ever.

Read the article here.

This is a great article about Dynamic Range, and how it’s gone out of style.? In the frenzy of making music louder and louder, modern music has become a static filled mess of clips, where the loudes and softest sounds are often almost identical.? We highly recommend you check this article out.

If you haven’t heard of RightCart, we invite you to check them out.? This e-commerce technology is fully integrated into any webpage running their code .? And the code required to use RightCart is only 3 lines long, and given to the user.

We recently launched our Polyvibe Store using RightCart.? If you check out our catalog page, you will see the RightCart is snugly plugged in to the right column.? You can add things to the cart and check out without ever leaving our page, and it’s totally secure.

We think this is the coolest online checkout we’ve ever seen, so we want to share it with you.? You can see how it works for yourself.? It’s even Myspace friendly.

We <3 RightCart, and we just wanted to share our enthusiasm with you.

So to review for you, TorrentSpy points you toward people who are sharing files you may want, and that’s all they do.? They don’t suggest you steal stuff, and they don;t promote any method of copyright infringement. According to the Supreme Court, that means they’re not breaking the law.? The MPAA (and the RIAA, too) don’t really care if the Supreme Court allows TorrentSpy to point you toward copyrighted material that’s shared.? They are going to sue us all until we pay what they feel they deserve.? And if that isn’t enough, they twist the meaning of copyright to protect themselves, and not the artists.
Now I am all for the protection of copyrighted works, and I don’t see a problem with the moral issue that somone’s movies or music shouldn’t be free _if there is percieved value._? But if reality is that people are sharing media, and that most people _still_ buy media, then there is a softer hand to be used to convince us to buy stuff.

As an aside for Americans, these big companies are just going to keep sidestepping the law, and continue to force our government to protect their interests, at the expense of ours.

“Linkie Winkie is a bit of a social experiment and we want to see what happens. We’re not going to tell you much about it, except that its a very altruistic little site and loves to be talked about.

So if you can work out what it does, and get your timing right, then Linkie Winkie might help you out for a while.”

From what we can tell, by giving a shout out to Linkie Winkie, they will in turn to give you a shout out. How it does this, is still a mystery, but one blog discusses the effect of Linkie Winkie, while the other provides a bit on who is behind the experiment.

I’ll provide an update here if anything comes of this, but participating in a social experiment of the web 2.0 variety just seemed like a fun think to do on a Friday evening.