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The SXSW 2007 Music panel Idiots Unite! takes place Thursday, March 15th at 2:45 PM in the Austin Convention Center.

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    February 27, 2007

    The Fan as Catalyst and the Value of Property

    Posted in Latest News by scott at 3:24 pm

    Yobie, I love the idea of the fan becoming a catalyst for awareness and sales. I have no problem (and even applaud) the idea of the fan sharing in the profits of selling an artists’ music. What I don’t want to see happen is the devaluation of the musician’s property - the song. I have absolutely no problem with all of the old ways of selling music going away. I personally will miss the physicalness of records (meaning vinyl) and CD’s. My first job at Sound Warehouse in Midwest City, Oklahoma was selling 8-tracks (I’m 41 now - so it was at the very beginning of my career there - but it does show what a difference 25 years makes) - so there has always been a physical side to music for me. That is changing, my 3 year old son will probably think of CD’s the same way I do the 45’s from my childhood when he hits his early teens. Already, there is a 2 terrabyte hard drive at my house over half way full of music (all from my personal collection by the way). What I’m hoping is that just because there isn’t a physical aspect to the music distribution now, that the value of music doesn’t disappear.

    I wish it could all be free. I argued with WB to begin streaming (and even let people download) the last Lips record before the CD was even released. I believe that for every 20 people that download 1 or 2 will actually purchase it. But, just like people who design software, or write books, or make movies how do we decide on a value of the product that is passed on to the consumer.

    The reality is just as Yobie described, “bands and musicians have to greatly expand touring, licensing and merchandising to make meaningful money.” Is that fair to the artists? Maybe it is. I don’t know. If we are talking capitalism - the consumer decides the value of the product. So, perhaps, the music is not valuable, but the business of music around it is. What does everyone else think?


    3 Comments

    1. Interesting comments here!
      Beginning with the statement “If we are talking capitalism - the consumer decides the value of the product. So, perhaps, the music is not valuable, but the business of music around it is.

      Ultimately the consumer does decide the value of the product in as much as they decide what they are prepared to pay. If they deem it too much they wont pay it! So they do have a say in the value of the product. However it would be totally incorrect as I am sure you know,bit of tongue in cheek coment,to say that perhaps music is not valuable. Without the music there is no product and therefore no value! The business can not survive without its product or service. In a way its a bit like a supermarket where the owners of the marchandise they have bought and advertised seeing the customers loading up baskets full of stock and walking out without paying for it! I can see where the Big Supermarkets in this example are getting upset!! If the customers keep doing this then they will soon be out of business and will have lost all the investment they made.

      On the other hand as a customer, i am almost cheering because i have watched these supermarket giants rip off the public and their suppliers the artists for generations.
      Likewise there will always be customers who dont like paying for anything at all who give no thought to their averice as they shoplift everything in sight.They dont realise that they too are harming the distribution of the product and those that produce it. The majority i feel are more likely to want to support rather than just take.

      The idea of streaming the Flaming Lips album was i feel a good one.It has been going on for years in different formats, so why not? You used to be able to go into record shops and listen to your favourite music in booths and then went on to buy the record. If not full streaming,what about partial streaming of songs to give tasters that way? Surely that would give the customer at least some incentive to go out and download or buy the full thing?

      The fan profit share could be workable too. We see it happening a lot with companies in other fields giving incentives to their customers to promote their product.
      Deals could be done by getting fans to register to a bands website which has a shopping facility And sell the music on the basis of registration. The main site could be open to everyone with music samples available. But if you wanted the album you could register and get an individual code for downloading from the members section or from wherever the music was hosted.
      Anyone who actively promoted it to their friends or whoever would get benefit either in kind by merchandise or my discount off their next registration. registration periods lasting for the length of time between albums. alternatively if some wanted to make more out of it there could be some sort of commission scheme in place where they earned money from promoting and sellins the album.

      I dont know how viable these thoughts are? After all i am just a fan, what do i know?
      Whatever,there must be ways to make things more viable than they are at present,and at the same time getting the music industry , the fans and the artists to cooperate for the betterment of all.
      I guess it really is a case of back to the start of this blog. How???

      Comment by Rod — February 27, 2007 @ 7:51 pm

    2. I agree with Scott’s concerns about the devaluation of the song. At the same time, I agree with Rod’s frustration with the way big record companies have been ripping off artists and the public forever. But the problem is that now, more often than not, the artist is the record company. The fans may not understand that an artist still has to play the game the record company used to pay (radio promotion, pr, distribution), and that all costs money. Maybe some fan education is in order - maybe if listeners really understood what artists have to deal with, they’d be more inclined to pay for music. Thoughts?

      Comment by Rain Perry — March 7, 2007 @ 10:32 pm

    3. As a fan I am probably a bit more aware than most Rain, but obviously still have a lot to learn.
      However i think you have a very valid point re fan education on what artists and bands have to contend with. In fact there a considerable number of aspiring new artists who dont have a clue whats in front of them unless thay are given good advice or taken a specially tailored college course as they have over here in the UK in various places.
      I feel that if there were some way of getting this message across to the general record buying public then that would only result in better awareness and cooperation all round. after all genuine fans least of all want to see the artists and bands they admire suffer through ignorance.
      Education in whichever way it can be delivered is always a good thing because it should apart from raising awareness also raise understanding and cooperation in working together to achieve common goals.

      Comment by Rod — March 12, 2007 @ 7:25 pm

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