Second summary of an article

Article = Trent Reznor and the Formula for Future Music Business Models, by Mike Masnick

"Connect With Fans (Cwf) + Reason To Buy (Rtb) = The Business Model ($$$$)

Summary of video presentation by Mike Masnick

http://www.techdirt.com/articles/20090201/1408273588.shtml

• This presentation is a case study on how Trent Reznor (artist of Nine Inch Nails) represents the future of the music business.
• Masnick's company works with various companies helping them to understand new media and social media trends and how to connect with various communities.  In this presentation, he claims   how he believes Reznor has figured out how to connect with fans (Cwf) and given them a reason to buy (Rtb) his products with a successful business model that has made money by doing various things even when signed to a major record label
• Before releasing his first album, while signed to a record label, Reznor used Internet Scavenger Hunt/Alternative Reality Game by using a top which in code spelt out his website iamtryingtobelieve.com.  This connected with fans beyond music and attracted a wide audience.  Reznor also left USB sticks that included new music of his in bathrooms at gigs for fans to find a leak to his fans as well as many other things.  
• After his first album, he was no longer signed to a record label.  However, this didn't matter to him as he knew his business model worked.
• Rtb = added features, such as free download of  9 out of the 36 songs of his next album.  The album itself was only $5 (a lot cheaper than iTunes) and what made his music really stand out was that he was selling deluxe edition packages for $75 and and ultra deluxe limited edition package for $300.  As a result, the limited edition (only 2500 were made and all personally signed) were sold out in under 38hours.  This added value to Reznor's music and gave the audience a reason to buy his songs. 
• In addition, in the first week $1.6 million were made with NO record label and music virtually selling for FREE.  This is a key example of how price isn't an issue when creating a promotional package, it's all about giving a reason for the audience to buy the product.  
• Reznor sold his third album entirely for free:  all fans had to do was put their email address in and they received good quality music.  What made Reznor earn money as a result of this was the fact that CD limited versions were being sold at the same time as well as concert tickets (concert listing was shown at the same time as album being released).  This was a very successful marketing approach for Reznor as fans wanted to hear the music live that they were listening to for the first time:  they were excited.  
• Reznor's (Nine Inch Nails) concerts also included  big screens  and other bands (their music was also available to the fans to hear on the CD's), which made their concerts more entertaining and fun compared to many other artists.  Fans were able to watch a variety of things at their concert: Reznor's concerts were worth the money fans had to pay, especially considering the fact that most of his albums he released for free/leaked to his fans.
• Reznor's website was another way of connecting with his fans and giving them a reason to buy his product:  it is an ongoing connection by using forums, chats etc.  This site doesn't involve lawsuits or any payment, which influences me in my ideas for creating my own promotional package.  If I choose to create a website homepage for a band or artist, I could use Reznor's ideas, by getting fans more involved using the internet:  a cheap and easy way of marketing a product.

TO CONCLUDE

Reznor's business model is something I can take into account when producing my own products as it uses simple, free and easy ways to connect with fans and give them a reason to buy the product.  In other words, it's a way of earning lots of money and popularity without having to worry about the problems of piracy or being a 'plastic pop star'.

You DON'T need licensing/copyright/lawsuits and therefore it works for big and small artists.

IT'S THE FUTURE OF THE MUSIC BUSINESS

Summary of an article that raises issues about the way in which I might construct my product next year

Article = Why Piracy is Perpetuating Plastic Pop, By Helienne Lindvall

"Rather than helping to create a rock'n'roll revolution, the unwillingness to pay for music means more assembly-line artists" 

• This article discusses how the problem of piracy affects the way music is presented by institutions nowadays to attract a mass audience rather than producing niche artists that attract certain audiences.  
• A quote from Lily Allen's argument on the matter, "most younger artists would never get the chance to even make a living from music" is a perfect example of how new technology has changed the way audiences appreciate and respect music.  Clearly, audiences do not appreciate opposition to piracy as it is easier and evidently cheaper for them and therefore it is hard for artists to speak out on their opinions.  For example, after Lily Allen put her opinion across, the article claims how "this made her the target of thousands of incredibly abusive messages - even death threats".
• The article describes how Massive Attack's 3D (part of British DJ/trip hop duo) explained to the BBC "how frightening it was to see the total amount of downloads on unlicensed sites".  The fact is this will cause music to cheapen, eventually compromising artists as it will force the business to take more drastic action, resulting in listeners being compromised in the music that will be available for them to listen to.  Less 'alternative' artists will produce music and it's possible that "piracy and the unwillingness to pay for music" will create a "self-perpetuating conveyer belt of cookie-cutter pop stars" that a lot of people will not appreciate, regardless of the mass audience that listen to the 'plastic pop stars', such as artists from the X factor.  
• Billy Corgan of Smashing Pumpkins is a perfect example of an artist who is expected to fit in with the new culture that technology has pushed music into, "the fact that technology now allows  people to choose to not pay for music has turned music culture into a service culture".  He claims how artists now have to "beg for attention" to earn money and that nowadays, if someone like him could be manufactured they'd pick someone with "Straight teeth, a better attitude and music that was much more palatable to a wider audience".  
• If I based my promotional package for my artist/band next year purely on this article alone, I would be forced to create a false 'plastic' character that fits in with the characteristics and genre that society expects artists to be nowadays as a sort of false role-model.  However, I do not agree that because of the difficulty of piracy and new technology today that artists have to fit in with this "conveyer belt of cookie-cutter pop stars"and that the right marketing strategy and business model can be successful and earn money by still giving that interesting and alternative edge.  This article seems to force me to challenge these views and use an artist or band that is individual and exciting and use those characteristic to interest and engage fans.  This idea was also influenced by the another article 'Trent Reznor and the Formula for Future Music Business Models, by Mike Masnick' (shown in my next blog)
• Because of piracy, artists and institutions are forced into changing their actions considerably to earn money.  For example, Noel Gallagher claims in the article "That's why tours are becoming so long" "Records don't get any cheaper to make"
• I believe that when producing my own products, I am obliged to attract a wide audience even if my artist isn't 'plastic' by interesting advertisement.  Jamal Edwards, Founder of online music channel SBTV is a very influential character for me when considering how I will create a promotional package for the launch of a band or artist's first album:

Short summary of 'A biog of Jamal Edwards, The Guardian'

• When reading about Jamal Edwards, I find what was so successful about his actions were that he discovered something that was open in the market, "the space for an online channel dedicated to grime music was wide open".  This pushes me to think of something different and new when creating a promotional package so audiences are engaged and interested to see what it is.  
• Jamal's music videos are "raw and often thrilling", which proves that you don't have to produce 'plastic' advertisement to create a successful piece of work that is popular because it is exciting.  
• Instead of making money through the artist, the channel makes money from advertising and does this because Edward's attitude towards his work as "racked up 50,000 subscribers and a total of 39 million video views".  
• Jamal advises people to "chase your dream, not the competition, because looking at the competition will cloud your vision and mess you up in the long run".  I hope to make use of this notion when producing my own products by creating 'rebel' like advertisement that is fun rather than following the normal conventions of music videos that attract a mass audience that are false and plastic.