I recently read on Hypebot that the Sonicbids band Officer Roseland (whose music I rather dig) offered to pay fans $1 to download their album. The band offers two choices: “TAKE” where fans are paid $1 through PayPal to download their new album; and “GIVE” where fans can make a donation to a charity (Mr. Holland’s Opus; which we also give money to) and download the album.

Obviously, this drew strong reactions from folks — controversy is  an age-old marketing trick — who feel the band is devaluing independent music, etc. I am not sure what I feel about it myself but here are a couple of thoughts:

• PayPal made a multi-billion dollar business by paying people $5 to join the site back in the day;
• ING Direct used to pay customers $100 to open an account with them;
• Nike and Adidas pay money to even amateur athletes for the privilege of giving them even more free stuff (shoes, shirts, etc.) to wear;
• Plenty of companies will pay you money to use their products just to tell them what you think;

What’s my point? Paying folks to use your product, service, etc. is not in and of itself insane — provided that you have the means of making the money in other ways. I’m just not sure if this should apply to music.

Panos

I believe that all companies should be actively participating in their communities and give back through volunteerism. We are, after all, products of the communities we live and work in.

And so I serve on a number of boards for non-profits in the area including Boston Young Entrepreneurs (helps out young people starting businesses); Boston World Partnerships, a non-profit chaired by the Mayor of Boston (see below); CREATE Boston (helps bolster and fund the arts and artists in the city); and the Berklee College of Music Presidential Advisory Council.

The idea for Boston World Partnerships is to create a network of people with Boston connections (like an alumni organization) as a means of creating connections and opportunities for each other — and to help open doors for people looking to do business in Boston or Stateside.

The public launch event for Boston World Partnerships was today. If you’re looking to do business in the US or Boston, check out the Boston World Partnerships site. It’s snazzy and helpful.

Panos

P.S. Great marketing idea: The back of the cards asked us to blog or tweet about the event. Steal it for your band.

While I was at Folk Alliance over the weekend, someone dropped a lollipop in my jacket pocket with the words “Standby Sucks” printed on it. (No I’m not making this up; and yes, I was sober).

I have no way of knowing for sure, but I suspect this may be a reference to the old “Standby” status that we had on Sonicbids for submissions that were not outright rejected by the promoter, but also not selected.

Regardless of the lollipop, the truth is the “Standby” status sucked. Promoters placed artist submissions in this cue and sometimes never, ever got back to them. They just went into this weird purgatory place and understandably people would get upset. (“I paid my money, this guy should at least have the courtesy of getting back to me.”)

This is why we got rid of this annoying message and why we totally changed the way that the Submission Tracker works:

•    There is no longer the option of “Standby” for promoters;

•    A promoter needs to notify an artist by a certain date of what happened to their submission with a clear yes/no. If not, the artist is entitled to a refund of their submission fee;

•    There is now a date stamp for when a submission was reviewed. If a submission was never reviewed, the submitting artist is entitled to a refund;

•    Based on member feedback, we launched a new feedback/ratings system where artists can talk about their experience with a promoter, including rating each promoter on their responsiveness;

We care. Chances are, if you think something sucks, we think so too. Tell us how we can improve it and help us make Sonicbids work better for everyone.

Panos

P.S. All the features listed above were a result of direct feedback and suggestions we got from members at dinners, conferences, and over email and calls. Keep ‘em coming.

So I’m here in Memphis for the day and I love it. This place is steeped in so much history and music, it gives me goose bumps.

Folk Alliance… well you have to see it to believe it. There is music literally everywhere. Every room on three floors of the hotel is converted into a makeshift stage (beds pushed back and all, wine and crackers and chocolate on offer) and you can hear music from all over the world, in short 30 minute sets, throughout the night. (I guess that would be fine and dandy unless you were a hapless, non-music business guest that had the misfortune of staying at the Memphis Marriott this weekend.)

I saw a bunch of Sonicbids bands. Porterdavis and Jonathan McEuen some of my favorites. If you love music, you’ll love Folk Alliance. And there is plenty of real business going on too.

I was also on a panel titled “The Future of our Business” with Micah Solomon from Oasis CD; Derek Sivers, founder of CD Baby; Ken Irwin, founder of Rounder Records; and David Hirschland from Bug Music. Good discussion, great attendance, though I wish we had more time to have a deeper discussion — and spent less time talking about the past. (Check this awesome article that Derek pointed out from Mashable about the funky way that the former Nine Inch Nails drummer is promoting his album.)

I also took some personal time to visit Graceland. I got into music after I saw Elvis in a movie called “King Creole” when I was about six or so, so visiting his house and his grave site was an amazing, moving experience – that took me 30 years to fulfill.

Elvis Lives, man.

Panos

P.S. That’s an anagram by the way.

I am heading to Folk Alliance in Memphis later today. If you are there, walk up and say hi.

I’ve been asked to be on a panel  to talk about the future of the business, along with Micah Solomon, my buddy from Oasis CD, Derek Sivers, founder of CD Baby, and moderated by Dave Marsh.

I gave a similar talk at Tufts last night, so here’s my notes:

•    The niche will rule. Making a living playing music is no longer about reaching the mass market but rather creating a unique and deeper relationship with your own niche audience;

•    No one will control our “play list”. We will discover music, based in our own personal tastes, through a variety of formats and “curators” including bloggers, websites like Last.fm, video games, etc;

•    The future of music is a conversation. Deadmau5 new application points towards a new world where music is no longer just a passive activity. We want to be a part of the creation of art, not just an observer;

•    The value of recorded music will gradually go to zero, but replaced by other revenue streams. Think Netscape and the web browser which once cost $50 but eventually became commoditized and free – but paved the way for other revenue models;

•    Consumer brands will replace record labels are the primary underwriter of talent. Just like art patrons in the medieval ages, consumer brands will become even more important in the funding of art by partnering with artists;

Panos

P.S. This is my first time in Memphis. I can’t believe I’ll finally get the chance to visit Graceland.

In the past few weeks (and at MIDEM) there’s been a lot of talk (again) about labels pressuring Internet Service Providers (ISPs) to cut off internet service for people who “pirate” music, or to impose a tax of sorts on ISP providers to cover the cost of “illegal” music downloads.

I was asked by Glenn People’s from Coolfer to share my thoughts.

My feeling about all this is that the record industry is once again fighting yesterday’s war, all the while refusing to accept that consumers have moved on — and what is really needed is a complete reevaluation of the basic value that these labels offer as well as a complete reconstruction of their business models.

The longer it takes for them to accept the new reality, and the longer it takes them to invest in this future, the more they hasten their demise. First it was RIAA lawsuits. Then it was DRM. Now it’s ISPs. See a pattern here (other than the acronyms)?

Back in the nineties, labels lobbied congress and passed a bill that effectively gave them a royalty for every digital recording device sold (except PCs — go figure). Well, that did not change anything in the long term (other than kill the DAT which was a pretty promising format).

I think that ISPs know that the power rests with them today, so I do not feel they will willingly give into what the labels want, risk alienating their customers, and play watchdog. (As far as government intervention, Congress has bigger fish to fry right now, doesn’t it? Plus, its track record on getting these things right, is not all that great in the past 15 years as technology and consumer habits change very, very quickly.)

Unfortunately this is very consistent with the recording industry MO of the past decade: blame everyone else but your self; sue if you can’t get what you want; avoid reality at all costs. Hardball tactics (which worked perfectly well for 40 years), just don’t go down as easily in today’s open, web-centric environment where the individual (and the niche) rules.

Panos

I’m about a month late with this post but better late than never. It took me a while to get the photos developed. (That was a joke).

Really, MIDEM was great. It’s one of the most insane, exhausting, talk-til-you drop music business events but nothing beats MIDEM when it comes to the sheer amount of contacts and business you do while there. Attendance was probably 20% down (the economic downturn spares no one) but at least you knew the people who were there were damn serious about getting business done. No event has done more for expanding Sonicbids outside the U.S. as MIDEM has.

For the fifth year in a row we sponsored an emerging artist showcase called MIDEM Talent. The showcases (which featured 16 bands from all over the world) took place at a venue called Magic Mirrors which is absolutely breathtaking. It’s an old, wooden, portable venue (looks like a circus tent)  that back in the 1920’s traveling orchestras in Belgium would set up while traveling from village to village and people would dance to old jazz and gypsy music (think Django).

The stage is special source of pride for us as five or six years ago MIDEM did not have a showcase venue for emerging and indie bands — and little live music was performed. Today, thanks for our sponsorship and involvement, the Sonicbids MIDEM Talent stage is a MIDEM staple.

We also had our now customary member dinner in Cannes (of all places) and yes, the food in France is out of this world. Check out the photos above.

Panos

P.S. Check out my Obama inauguration photos (happened while we were in France) here.