Thursday, March 15, 2007

terry mcbride at sxsw

so i'm sitting here at sxsw listening to an interview with terry mcbridge, probably the most visionary record exec operating today. he is saying some interesting stuff. i'll put some notes here, and come back and edit it all later .. .

create a culture of pulling media with the introduction of cds. this runs counter to the majors forcing behavior. you can't legislate behavior no matter what, so you must learn to market and promote to this new behavior and monetize this in the end.

metrics of measurement only getting 50% of revenue or artists like those on nettwerk.
artists are selling memory sticks with shows, albums, etc. totally green, reusable.

consumers should be able to choose how and when they get music.

50/50 split on digital with nettwerk. collapse copyright (publishing, image, synch) to maximize profit. fractured copyright actually holds back ability of artists to make money off those copyrights.

7 of 8 groups are profitable that were launched by nettwerk without any fan base.

one act was able to sell 3-4 thousand, this created market & capital to sell phyical.
getting 1000 tix per day sold on the net.

50-150K units being sold by new artist middle class.

where is your audience?
go there.

millions of customers don't go to itunes, as they view it as a speciality retailer. those big boxy retailers (yahoo, etc) don't want to deal with DRM and the customer issues that come with it. and those millions of customers will not buy until those big box players come into the music sales biz.

walmart has had a bigger impact than p2p. by removing sections of physical cds from stores, and by setting price at $10 max for buying cds.

future is that we'll move into space where fans make money by pushing music.

radio is losing the power to sell music. kids are tuning out of radio. radio going back to the 20's, with news and talk. music industry didn't allow music on the radio in the 20s cause they thought if music was given away on the radio, then people wouldn't buy those cylinders. ha! repeat of history. as terry said, those industry folks are up there saying "yes, go with drm"

now they are headed to q & a, so i am headed out of here . . .

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