Dubner, Stephen J. "What's the Future of the Music Industry? A Freakonomics Quorum." Freakonomics Blog, New York Times. 20 September 2007. <http://freakonomics.blogs.nytimes.com/2007/09/20/whats-the-future-of-the-music-industry-a-freakonomics-quorum/>
This 2007 New York Times blog compiles the opinions of five different experts on the music industry. They are asked to reflect on the "future" of music in the context of the digital revolution. One expert is the author of the previously-referenced "Effects of File-Sharing on Record Sales," three are major music executives, and another is the founder of Engadget and a free, online-only music label. Essentially, they all offer disparate perspectives regarding the way in whcih music consumption is changing.
In a paper meant to argue a particular position about the success of new online music distribution methods, any novice or statistical opinion must be tempered by that of the experts. This New York Times column is a unique and valuable compilation of 5 different expert opinions. Largely, everyone seems to agree that the music industry is undergoing substantial change and that the labels must be open to reinvention. One suggestion undrestood by the labels in 2007, it seems, are advertising-supported models. Most interestingly, in their opinions these experts define exactly why the internet has changed the demand for music so thoroughly: it has affected scarcity. This is a crucial basis of understanding for any marketing or revenue model that follows.
tagged digital_media internet marketing music music_industry online by sarahlb ...on 09-APR-09
Anderson, Nate. "Free Nine Inch Nails album tops 2008 Amazon MP3 Sales Charts." Ars Technica. 6 January 2009.
This article summarizes experiemental distribution of Nine Inch Nails's new album and the effects the new online distribution model had on sales. Nine Inch Nails released the album Ghosts I-IV under a Creative Commons license, which allows legal free sharing and remixing. Despite this, the album garnered huge profits; both via digital download on Amazon.com, and perhaps more significantly in limited edition "extras" sets. The Ars Techinca article goes on to pose two questions to Fred Beneson of Creative Commons: Why would fans buy the album when it could be had for free, and would Creative Commons Lisencing work for record labels? Bereson addresses these questions speculatively, with optimism as well as some analysis of the factors necessary for the success achieved by NIN.
This is a major success story for Creative Commons, and an example of a profit-making model that still offers free download and distribution of music. The profits of Ghosts I-IV speak to the appeal for a product that is not available for free download (extras, convenience, or the authenticity of supporting an artist directly). Understanding the presence of this demand is necessary for understanding the way people want to consume music in the digital age. Profits can be achieved via different music products and services.
Accenture Media and Entertainment. "The Challenge of Change: Perspectives on the future for Content Providers." Accenture Global Content Study 2008. Accenture: 2008.
This report is the result of a market research firm initiative, in which they surveyed 100 entertainment executives to determine their opinions on the future of revenue models based on digital media. The results of the survey show that the ad-based model is the most popular model for the surveyed executives, as opposed to subscription or iTunes-like services. Though the focus in the report seems to be on forms of entertainment other than music media, it provides a successful context for profit-garnering models in digital entertainment. It also reflects the point of view of those that will ultimately be responsible for shaping the way that media is transferred to the consumer (legally) online.
This report represents yet another perspective on successful provision of internet content (without greater legislation). The importance of advertising on maintaining free content on the internet cannot be understated -- many argue that advertising-based models represent the future of music revenue. Ad-based music models are already being put into place: the music-search engine developed by Google in China, for example. The Accenture report is important, therefore, because it provides data and quotes from industry experts that address the longstanding relationship between advertising and entertainment.
tagged accenture_global_content_study ad-supported advertising internet marketing media music online by sarahlb ...on 09-APR-09
Anderson, Chris. “The Long Tail.” Wired Magazine Issue 12.10. October 2004. < http://www.wired.com/wired/archive/12.10/tail.html>
Chris Anderson’s article “The Long Tail” (later expanded into a book) introduces the idea of the growing importance of the Long Tail in the way that media is marketed on the internet. It posits that the internet has allowed for a new profitability of the non-“hit” 80% of entertainment product (books, music, DVDs). Ultimately, he argues that the incorporation of the Long Tail into business and marketing models has been advantageous for the entertainment industry, the consumer, and for “culture” as a whole.
The concept of the rising profitability of the Long Tail is a major one in any argument regarding new music marketing on the internet. The Long Tail model is a fundamental example of the way that online consumption of media has changed (and, it is argued, improved) the music industry as a whole. Since 2004, when Anderson first coined his Long Tail idea, we have seen the effects of Amazon, Netflix, and iTunes’s feedback mechanisms for identifying taste and suggesting a focus on less-popular items. Clearly, the exploitation of the Long Tail by these distributors proves the profitability of internet-specific marketing models. Further, I believe that the growth of the Long Tail model has been a taste-making mechanism in the generations that have embraced these internet vendors—not only has the use of the Long Tail shaped marketing initiatives, but it has changed the way the consumer defines their own taste.
Carles. "Animal Collective is a Band Created By/For/On the Internet." Hipster Runoff. 13 January 2009. <http://www.hipsterrunoff.com/2009/01/animal-collective-is-a-band-created-byforon-the-internet.html>
In this blog post, satirical/ironic blogger "Carles" produces one of the most-discussed theses on Internet music of 2009. He posits that the band Animal Collective's most recent release, Merriweather Post Pavillion, was successful specifically because it catered to the tastes of it's internet-savvy audience. In doing so, Animal Collective has thereby defined what it means to be an "internet band": how to walk the fine line between mainstream and authentic taste; how to produce internet hype without immediate backlash; how to produce revenue despite a full-album leak. Hipster Runoff also references the importance of online-criticism mediums like Pitchfork and meme-production in determining the success and respectability of a band. Ultimately, he concludes that the success of Animal Collective is not only the result of but also a reflection upon the band's internet following: a "symbiotic relationship" uniquely achieved.
This Hipster Runoff post is important in the way that it was reflected on throughout the blogging community; it was taken with unusual sincerity, and both praised and criticized. The story of Animal Collective's new rise to prominence (Merriweather Post Pavillion is their fifth album) tells the story of the new internet marketing machine. This CD epitomizes a particular kind of marketing and revenue model on the internet. The Hipster Runoff post takes this a step further, as it analyzes how and why the internet-branding of Animal Collective was successful, and the way the branding of Animal Collective simultaneously contributes to a branding of self. Animal Collective and the Hipster Runoff analysis is an example of the way that online music critics, independent bloggers, and their music-savvy audience are responding to a particular kind of online music marketing.
tagged animal_collective hipster_runoff internet marketing music by sarahlb ...on 09-APR-09
This piece seemed to lament the fact that the Super Bowl advertisers were not able to monopolize traffic to the ads post-game. It sympathizes with the disappointment these giant companies must be feeling over only getting several hundred thousand hits (instead, presumably, of the several million which they no doubt deserved). Then the article goes on to give the companies tips for how to increase traffic next year, and strategies they should employ if they want fully capitalize on the online branding opportunity. This article testifies to the corporate interests of many media outlets, and can only be of interest if read for what the article is doing, not saying.
For my project, though, this piece is very relevant. It shows the way that commercial interests are sometimes subverted, and how in order to “set things right” (i.e. stop subversion of corporate interests) plans are being made to integrate the very thing that was the cause of subversion. Thus we see how the article calls for the companies to “work with” (i.e. subsume) those aggregator sites that so wickedly usurped their web traffic. This, then, is another example of how commercial interests appropriate more independent forms of media distribution.
tagged Advertising Amateur_Video Internet Internet_Culture Marketing Participatory_Culture User_Generated_Content YouTube by blueher ...on 12-MAR-07
This article is an interesting, albeit dated, piece. It brings up some relevant concerns about what happens when community based sites like YouTube are bought up by giant corporations, and does a mediocre job of reporting the ambivalence surrounding this issue. On the other hand, this article lacks a good deal of information that seems critical for understanding exactly what it means that Google has purchased YouTube. For example, it mentions that YouTube is already selling homepage space to advertisers, and this will only increase under Google’s control, but it does not explain what space it is talking about. Are these advertising videos parading as user generated content, or simply banner ads asking you to join Match.com or other such ubiquitous internet advertisements? This would be good information to know since advertising is such a protean, mutable form. Also, the article mentions that YouTube has already made deals with several other large companies (e.g. CBS, NBC, etc.), but does not explain what these deals entail. Do these companies post fake user generated videos that are truly advertisements, or do they simply get to advertise on YouTube in some other manner? So, while this article does touch upon some interesting issues surrounding both the dot.com universe and marketing, it also fails to provide sufficient information to make it a truly useful document.
This article relates to my own project in its focus on corporate conglomeration and marketing. Similar to how Google subsumes a digital community like YouTube, companies like Dorito’s are appropriating the work of independent, non-professional individuals. While this article expresses some fear about the implications of a company like Google buying YouTube, my project will express a good deal more skepticism about what happens when companies like Dorito’s start soliciting user generated content.
tagged Advertising Amateur_Video Google Internet Internet_Culture Marketing Participatory_Culture User_Generated_Content YouTube by blueher ...on 12-MAR-07
This article discusses the ways in which record companies are compensating for their losses through marketing. After the Sony/BMG merge, Columbia Record Executive Charlie Walk, leads the way. He asserts his belief that for the majors to stay in on the game they need to legitimize the online music downloading space and create alliances with consumer-goods companies to make a profit where it is being lost. Thus downloading has changed artist marketing too.



