Tidal’s Choppy Waves Keep Rolling

The choppy waves keep on coming for Jay Z’s streaming service Tidal, as today it was hit again with another round of criticism. I myself outlined my thoughts on the Tidal service first in a post when it launched, and then again in a questioning follow-up post earlier this week. This time, though, the critique comes not from disgruntled music streaming fans or competitive services, but from Steve Albini.

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Tidal logo

Tidal logo

For those unfamiliar with Albini, he cut his teeth in the mainstream spotlight producing albums for artists like Pixies and Nirvana, and has become an outspoken critic of many of the streaming services in the last decade. A criticism from Albini can’t be as easily dismissed as it might otherwise be particularly because he has both the industry experience and insider knowledge to call those in the industry on their bullshit.

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Steve Albini; Photo courtesy: Jordi Vidal, 2014

Steve Albini; Photo courtesy: Jordi Vidal, 2014

Albini has been critical of the mainstream music machine even before Kurt Cobain’s death, jumping into the mainstream music business debate in 1993 with his piece entitled The Problem With Music. He’s done the math and lived out many of the results, and so when Albini takes aim at your service, you better realize that other people in the music community will take notice (even if the mainstream isn’t).

In an interview with Vulture.com, Albini used phrases like “little streaming fiefdoms” and the “budget version of Pono” when referring to Tidal. While the latter comment is a critique on the mainstream listener’s ability (or even care) to distinguish between lossless quality and normal mp3 audio quality, the former is almost a little more telling. “Little streaming fiefdoms” is pretty telling in and of itself; it’s dismissive of what Jay Z and company say Tidal is (and purportedly will be), instead asserting that the service is yet another little city-state vying for validation in the greater streaming landscape.

Perhaps the most intriguing thing about this particular thought process is what it means for the dynamic of the current landscape; as Albini (and others) become increasingly critical of services that act like little principalities, the traditional walled-garden approach to music seems to be under siege. And there are those of us who rejoice in that. The walled-garden concept works well in numerous areas of tech and business—it’s great for security, healthcare, and finance. But it is not good for media, and music specifically.

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Criticisms of Tidal on Buzzfeed the day after its launch

Criticisms of Tidal on Buzzfeed the day after its launch

Music is freedom, and needs to be treated as such. To constrain music to the dynamics of a walled-garden system is to take away so much of the actual discovery and freedom that is associated with it in its purest form (though many would argue that there’s still plenty of “discovery” to be had). Regardless of this fact though, it remains an important fact to note that people of Albini’s caliber are taking aim at people like Jay Z and services like Tidal.

One might even argue that they—whether they intend to or not—are clearing the path for new music services yet to be launched. Only time will tell in that regard. For me though, this does not go unnoticed. Anyone interested in the future of the music industry would do well to keep these criticisms catalogued and fresh in mind. It’s precisely by graphing these grievances that we will begin to see how the future of the music industry will unfold.

What Does It Say When Mainstream Artists Start Criticizing Tidal?

I’m not much of a Mumford & Sons fan. I have nothing against them as musicians; I just find that my taste in music to be a little different. But I respect the hell out of them for the statement they put out today.

Pulled by Digital Music News from other sources this morning, M&S were reported as disliking Jay Z’s new service Tidal. They’re not alone; other mainstream artists like Lilly Allen and Mariana and the Diamonds have voiced distaste for the service. And that’s not even taking into account the near biblical response from music fans over the service, all of which I spoke about in my coverage of Tidal’s relaunch a couple weeks ago.

But what makes M&S’s statement so stark is the candor with which frontman Marcus Mumford explained the band’s view of the service:

We wouldn’t have joined it anyway, even if they had asked. We don’t want to be tribal. I think smaller bands should get paid more for it, too. Bigger bands have other ways of making money, so I don’t think you can complain. A band of our size shouldn’t be complaining. And when they say it’s artist-owned it’s owned by those rich, wealthy artists.

Wow, some pretty powerful words from the neo-folk rock frontman. I rest my case. I may not be a major fan of M&S’s music, but I for damn sure am a fan of how they see themselves and their fans. They know what they are, and they know what they’re not. And what they’re not is dying for money in the same way an independent artist is. What they are, according to this, are a group of artists who recognize their good fortune. They assert that other artists on their level should recognize similar good fortunes and stop “complaining.”

If this isn’t telling of the splitting we’re starting to see in the music industry, then I don’t know what is. It’s a big day when even mainstream artists are standing up and articulating the difference between themselves and independents. It’s a whole new world.

Today Was Saturday, Wasn’t It?

This morning I woke up, showered, made some coffee, and sat down to work. Only I couldn’t focus.

I sat looking at my computer screen and reading some emails that had come in last night. I responded to a few, but couldn’t quite get “in the zone” to really like I was being productive. After a couple hours I started to wonder why that was.

As I took a break and went for a walk in the sunshine, it hit me: today was Saturday. I’d completely forgotten. So that’s it, I thought, I’m probably burned out from the week. And I was; it’s been a super long week.

On a day which most people take off, I’d woken up as I do every day: ready to work. Maybe it’s a hazard of being in the startup world, or maybe it’s that I love what I do so much that work doesn’t really feel like work (or at least, what “work” is supposed to feel like). Regardless, I work pretty much every day; there’s always something to get done. And most days I enjoy what I’m doing, so I tend to go without noticing the fact that I’m taxing my mental capacity (as any job does). I even find my mind whirring with new ideas as I try to sleep at night.

Yet what today highlighted for me is that it’s important to step back and let your brain breathe, even if you do love the work you do. The reality is that we can’t be on 100% of the time, and even if we try, the quality of our works suffers anyway.

I would love to say that in the future I’ll make sure to keep my work habits under control. Except it’ll probably be a lot more difficult than that. Even when I’m not “working,” I’m still emailing artists, setting up call times, looking for new music, working through new thought processes—this is just what I love to do. I don’t see that changing anytime soon. Perhaps I could benefit from a break over the weekend, but the truth is, if I could be at a concert tonight, “working,” I would be.

It may not even be as extreme as that; maybe I just need a Netflix-binge tonight to purify the system. Then back to work tomorrow. It’s a good thing Family Guy and Friends all on for instant stream. Break well deserved.

If You’re an Independent, Kiss SoundCloud Goodbye

The Partnership with Zefr Isn’t the Real Story

News broke today both on The Verge and TechCrunch that SoundCloud is looking to step up its drive towards revenue by signing a deal with Zefr. For those unfamiliar with Zefr, they’re the same partner who works with YouTube to track content and brands. Part of what makes Zefr so helpful to YouTube is that they are able to track media files as well as specific brands like Nike or Coke.

But that’s actually not the story here. The real story is buried deep in the TechCrunch article. Helpful though Zefr may be to and for SoundCloud, they can’t help with the larger problem that SC has created for itself. No, that has to do with the licensing quagmire that SC is increasingly encircling itself with. It goes like this.

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SoundCloud, now a platform for major labels and advertisers

– SoundCloud, now a platform for major labels and advertisers

SoundCloud blew up as an independent-driven engine way before major label music was even a thought. It was the place for the singer/songwriter in his basement, or the newly formed doom metal band, to post their recordings and attempt fan acquisition. It was beloved by independents the world over because it was a free, easy way for them to distribute their material and make a name for themselves. That’s where SC started, but it’s not where they now find themselves.

Legal Problems That Were Never Solved

Of course SoundCloud’s rich environment of remixes and covers led to a legal quagmire that saw them losing material as complaints were brought against them from the original sources for copyright infringement. While Zefr does help specifically with this, it’s effectiely irrelevant, as independents will begin to migrate away from SC amidst a new major label focus anyway. I can imagine it was a major headache for SC as remixes and covers are particularly popular in certain genres of music. Thus began the drive away from remixes and towards “more mature” content. For those who care, this is basically code for major label content.

soundcloud_logo

And thus, instead of solving the more challenging problem (the legalities associated with remixes and covers) SC rather decided to chase the major label route to better compete with services like Spotify and Rdio. (Again, as noted above, partnering with Zefr does help, but will essentially become irrelevant in the bigger picture). In doing this, they basically told their grassroots fanbase (you know, the people who gave them love and support (and traffic) before anyone else) that they didn’t need them anymore.

Rather than spend the few million dollars of their funding figuring out the legalities they were faced with (which probably couldn’t have amounted to more than ~5M), they made the choice to look towards the major label paradigm for music content. Frankly, the partnership with a company like Zefr which helps in the copyright arena may not be too little, but it is too late. Let’s examine how this worked out for them.

Buying Into a Broken Business Model

Back in November of 2014, SoundCloud signed a licensing deal with Warner Music Group (one of The Big Three) to bring onto SC’s platform the music which Warner controlled through itself and its subsidiary labels. My assumption was (is) that SC is looking towards the other two big labels (Universal and Sony) to sign similar deals, and step up to the same level as a service like Spotify. Here’s why that was a bad business decision:

1. A Bad Business Model 

SoundCloud already had a dedicated userbase of independents who used it, without demanding licensing money upfront. To put this in perspective, the deal which SC signed with Warner most likely cost them ~45-50M for a 1-year contract. This means that they paid somewhere in the neighborhood of 50M to license music content from Warner for a year. This in turn means that they will most likely need to renegotiate sometime later this year; those licensing contracts are not static agreements. It also does not account for the royalties which they will need to pay on the backend. So, to recap, multi-million dollar expense on the front-end (which will need to be renegotiated eventually) and multi-million dollar expense on the backend.

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What the major label industry really looks like; The Big Three

– What the major label industry really looks like; The Big Three

2. You Can Only Have One Priority #1

Business 101: You can only have one priority #1 in the morning. SC’s priority #1 used to be its independent artists/users. Now it’s not, and it can’t be. How do I know? Because Warner now holds the power in the relationship. In providing SC with major label content, they have eventually shifted the paradigm of SC’s focus from independents to Warner’s major label artists. This means that, eventually, independents will begin to understand that they are no longer the priority, and will migrate elsewhere. That’s not a guess, that’s fact. Look at the migration patterns:

MySpace==>Purevolume==>Facebook==>SoundCloud==>?

The reality is that independent artists are loyal only insofar as they are the priority customer base. Why would they be loyal beyond that? They don’t have major label deals and massive radio play on FM radio to fall back on. And they’re not signed to a powerhouse like Warner or Universal. Which means they don’t need to settle for anything; they’re free to do whatever the hell they want.

3. You Should Never Depend on Anyone Else

SoundCloud has basically tied itself to the major label paradigm, which could cost it. It’s never a good business decision to tie your company’s future to the company structure and revenue of someone else. You should never be dependent on another company’s good fortune for your own upward trajectory. But in signing a deal with Warner, that’s effectively what SoundCloud did.

It goes like this: As the independents begin to see that SC has shifted its focus from their desires and needs to those of Warner’s major label artists, they will begin to look for other options. SoundCloud can’t really do anything about that because they’re now tied to Warner (and searching for deals with Universal and Sony). That means that as the independents begin to trickle out, they can’t market any sort of real campaign to woo them back; Warner wouldn’t let that happen. And if I was Warner, I wouldn’t either. Why would I? I want all the focus on my artists, not some independent artist who might be taking ears away from my stable of talent.

Once the independents start to trickle out to somewhere else, SoundCloud is essentially locked in to the major label paradigm. It will effectively need to renegotiate with Warner (and the others) because their major label content will become its lifeblood. If Warner decides not to renew their contract with SC (which they could do, since they have Spotify, Rdio, Deezer, etc. to fall back on), one could see the music-life sucked out of SC in a heartbeat. With no major label content, SC could become a shell of its former self, begging the independents to come back (which takes years, if it ever happens at all, just look at Purevolume and MySpace).

4. The Big Kicker

Now here’s the big kicker for SoundCloud: they have not yet been able to secure deals with Universal or Sony—only Warner. This means that they are effectively straddling two completely different music industries moving in opposite directions: the major label machine and the independent arena. Precarious though this may be, it’s not a secret. And the independents know it. Artists I’ve spoken to are already looking for more alternatives because they recognize that SC will soon become the same sort un-level playing-field as Spotify or Rdio, where they essentially stand no chance against the Taylor Swift’s and One Direction’s of the world.

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SoundCloud only has a deal with Warner as of now

– SoundCloud only has a deal with Warner as of now

If I’m SoundCloud, I’m driving hard at those Universal and Sony deals because I can’t backup. If I try to, that will send a message to Warner that I’m not really invested in their business model, and since Warner essentially now holds the keys to my content, that could be a major mistake. But if I continue to pursue those deals with the other major labels (which I can pretty much guarantee is what SC will do) I will lose that attractive quality that made me popular among independents to begin with.

Except these aren’t really the thoughts going around in SoundCloud’s head; they already made their decision when they inked that deal with Warner last November.

SoundCloud’s Independent-Focused Days Are Over

The options for SoundCloud as I see them now are really only to double-down on the major label paradigm and business model. They need to out-Spotify Spotify; and that’s going to be very difficult. Rather than sitting pretty as king of the hill with the ever-growing base of independents, they made the decision to move towards the major label content arena.

Does this mean that they are destined for failure? Of course not; they may in fact find a way to play the major label game better than even Spotify or Rdio. That’s entirely a possibility. Really only time will tell if that is what becomes of SC’s new business trajectory.

But it does mean that SoundCloud will play less and less of a significant role in the independent sphere, possibly moving mostly out of it in the next few years. It makes no economic sense for them to stay, now that they are pursuing the major label route. They may host independent material, but the independents will never be their bread and butter again—those days are coming to an end.

Independents aren’t stupid; they go where the best opportunities are for them. They don’t stick around too long where they’re not wanted or cared for. I wouldn’t, not if I was free to do what I wanted. Which begs the question: where will they go next?

Lending Artists Millions of Dollars Is a Terrible Idea

The Setup

This morning, Peter Kafka posted an article on a new company seeking to make its name in the evolving music industry: Alignment Artist Capital. The company, according to Kafka’s piece, wants to essentially work as a lending institution for artists who need the money. Except instead of doling out a couple hundred bucks here and there, it will have the resources to lend millions at a time.

money_bags

A Completely Outdated Business Model

This, for anyone who didn’t already think so by this sentence, is a terrible idea. It’s a rehashing of the same dynamic the record labels have had with artists for decades, sans the ownership percentages over artists’ creative material. Kafka is aware of this as well, noting that, “Alignment isn’t the first entity to advance money to artists…lending money to musicians is one of the core functions of music labels.” [1] That’s very true; lending money to musicians is one of the core functions of a music (record) label, and it’s one of the main reasons their obsolete business model is failing them now.

Don’t be discouraged, though. There’s still plenty of money to be made in the music industry. In fact, it’s on an upswing. But not in the major label space, or using any of the traditional business models of those labels. The new upswing is with the independents—that’s where I would lay my chips.

With all the tools now cheaply (or freely) available to budding new artists, the traditional artist/record label model doesn’t apply anymore (something which Kafka notes as well as “harder to justify”). The reality of the situation is that most artists can get the basic things that they need—access to distribution, access to recording equipment and programs, access to merchandising platforms, access to producers/promoters, etc.—without signing away anything. That begs the question of why they would choose to take a monetary loan if they can do most (if not all) of the necessary things themselves.

New Artists Don’t Need Millions (of Dollars)

And there’s something else: funding an artist (band or solo) like a startup is indeed a unique idea—but a misguided one. Artists don’t need millions of dollars out of the gate to be successful in today’s market(s). The sums of money are too large to apply to most of the new artists who might be interested in taking it, precisely because the economics don’t work in their favor; it’s highly unlikely that throwing a million dollars on your fire will create a lasting fanbase for you. Core fanbases are made on the road, sleeping on couches, driving crappy vans, connecting with your real fans—all things that can be done without a multi-million dollar loan on your shoulders.

In the startup world, there’s a delicate balance between taking VC money you know you’ll need to survive (to the next round), and not taking so much that you end up diluting yourself beyond reason. The same principle holds true here: the concept that new artists should take millions at a time is analogous to a startup raising a Series B when they only need a Seed investment of possibly a quarter of that.

Why Incur Debt You Don’t Need?

AAC cofounder James Diener is quoted in the article saying “We’ll give the artist and their entity financing so they can go build a record label.” That’s like giving someone financing so they can go invest in a line of new and improved floppy disks—i.e. obsolete and irrelevant. The fact that this seems to be one of the main drives behind AAC’s plan tells me that they are still mentally tied to the old model of the record label, only now they’ve decided to cut their prospective losses by dealing only with the financial side (and not the creative one).

Based on my years in the independent music arena, I see these sorts of monetary entities as having a very difficult time breaking into the independent spheres—essentially where they need to be in order to really thrive. Buying streaming services, record labels, summer homes—these are things most artists don’t care about and don’t think about. I suppose a few do, but the numbers of those people are well below anything you can build a real solid business model on. The Jay Z’s of the world are astronomically outnumbered by the independents who are on the rise, now with distribution at their fingertips.

I wrote last week that artists are becoming savvier business people, and I can see them steering clear of these sorts of institutions at all costs. They understand that injecting millions of dollars into their brand image doesn’t buy them fans—that’s a belief propagated by the major label industry. Rather, they know it has to be done by way of live shows, personal attention, and appreciation of core fans; all things which can be done on their own, and without incurring debt (remember my article on crowdfunding?). I suppose there will be some customers of course, but I don’t see this ever catching fire in the independent industry. And that’s the next growth phase of music.

So why would artists incur massive debt if they do’t have to??

I wouldn’t.

Would you?

 

Notes


[1] Notice here that Kafka used the term “music labels.” I have a friend who used to work for Warner Music who explained this phenomenon to me. The reason that the term “music” has replaced the word “record” is because the major labels have become so bloated with an obsolete business model, they need to start making money off of revenue streams that they traditionally never touched: live ticket sales and merchandise sales. Traditionally, their main revenue streams were from record (or CD) sales, hence the term “record label.” Yet in the wake of the massive disruption of their business model, they have taken to calling themselves “music labels” in order to explain their practice of now taking money from revenue streams traditionally left for the artists.

An Artistic Analysis of Four Tech Investors

Seeing the World Through Artistic Eyes

Part of being an art student is that you inevitably see art everywhere, whether it’s meant to be noticed as art or not. This goes for anything—drawings, graffiti, cars, apps—and most recently for me, Twitter profile avatars.

Twitter avatar profile pictures of Fred Wilson (top left), Brad Feld (top right), Hunter Walk (bottom left), and Marc Andreessen (bottom right)

Twitter avatar profile pictures of Fred Wilson (top left), Brad Feld (top right), Hunter Walk (bottom left), and Marc Andreessen (bottom right)

As I was scrolling through my feed the other day, I saw a number of avatars go by, and my resulting thought process surprised even me—I thought wouldn’t it be cool to analyze those the way I used to analyze art pieces for my art history classes (well, cool is relative I suppose, but I’m an art nerd, so there). So that’s what today’s post is about: no talk of music, apps, or any major tech trends. Just an artistic analysis of the profile avatars of four tech investors. I wasn’t sure exactly how to order these, but I decided it would interesting to go according to an art history timeline, rather than simply by alphabetical order. Let the analyzing begin.

Fred Wilson

Fred Wilson‘s Twitter avatar is one of my favorites from an artistic perspective because of its striking power. I look at Wilson’s picture, which sets a large facial portrait against a lime-green background, and think immediately of the work of modern Austrian painter Egon Schiele (something which I’ve tweeted about numerous times). For those unfamiliar with Schiele’s work, he redefined the concept of portraiture in the early 20th century by daring to accentuate bodily features way outside their normal proportions. Some common aspects of Schiele’s work are overly-large eyes, and a strong, set jawline, usually defined by a sharp contour, which can clearly be seen in his pieces “Self Portrait” (1910) and “Self Portrait with Physalis” (1912).

Egon Schiele; left:

Egon Schiele; left: “Self Portrait” (1910); right: Self Portrait with Physalis” (1912)

Looking at Wilson’s picture, the enlarged eyes and clearly defined jawline fit the mold of Expressionism which Schiele helped to pioneer. The eyes are deep-set—almost sunken—but with a gleam that seems to burst from the canvas, made even brighter by the bold green that encapsulates the pupils. The cut jawline is mirrored at the top of the piece by raw, almost rugged strokes of brown making up Wilson’s hair. Yet while the zig-zag strokes chisel the top of the portrait in an almost sculpted way, the slight waviness of the hair on either side of Wilson’s heads help to capture a curved smoothness which bleeds out into the dynamism of the green background.

Fred Wilson Twitter avatar

Fred Wilson Twitter avatar

The life of the piece, though, is centered in the eyes, and the cheeks. The eyes swirl knowingly—disjointed only by the large space between them. The cheeks meanwhile, glow warmly with the only hot colors on the canvas: a roughly hewn pink which darkens towards the face’s edges. Even the the portions of the piece where the paint seems too thin are almost indicative of Schiele’s practice of leaving paintings unfinished. Collectively, Wilson’s avatar contains deep traces of Expressionism roots, though nodding to a lighter palette than was typically used in Europe at the time.

It’s also worth noting, however, that Schiele is not the only art master represented. Henri Matisse seems to make an appearance as well, mostly in the nose-area. While the nose seems almost too large for the face surrounding it, it nonetheless conjures up images of Matisse’s “Portrait of Madame Matisse (The green line)” (1905), or even his “Self-Portrait in a Striped T-shirt” (1906). Intentional or not, I nonetheless look at Wilson’s picture and see Schiele’s Expressionism and Matisse’s Fauvism and Modernism.

Henri Matisse; left:

Henri Matisse; left: “Portrait of Madame Matisse (The green line)” (1905); right: “Self-Portrait in a Striped T-shirt” (1906)

Brad Feld

Brad Feld‘s picture is similar to Wilson’s in that it’s a painted portrait. That, however, is where the artistic similarities end. Whereas Wilson’s piece drips of early 20th century Expressionism and Fauvism, Feld’s portrait exhibits a more mid-century style. The thinner mouth and quirky glasses add a Pop Art flavor to the portrait, a fact that’s exacerbated by the bright greens and purples that play through both the back and foreground.

Brad Feld Twitter avatar

Brad Feld Twitter avatar

While still set amid deeply defined contours, Feld’s jawline is nonetheless more curved and flowing than Wilson’s, and with the light stream of pink that follows the chin-line, Feld’s smile is captured perfectly. The curvature of the lower half of the portrait plays on the wavy strands of hair which sit at the top, floating in a controlled messiness which adds a sense of jubilance to the work.

The most striking feature, though, is Feld’s eyeline. Encased in straight-edged square glasses, the eyeline cleanly divides the portrait into two halves, thereby introducing a sense of order into an otherwise happy-go-lucky piece. The Andy Warhol-esque psychedelic color-scheme in the background is indicative of mid-’60s Pop, as is Feld’s mauve shirt collar. Seemingly taking direction from color-schemes like that in Warhol’s “Marilyn Monroe” (1962), Feld’s avatar bleeds with a real ’60s flavor.

Andy Warhol;

Andy Warhol; “Marilyn Monroe” (1962)

Of particular note, though, is Feld’s smile, which reminds me of pieces by a famous Pop artist, though not one the mainstream is too familiar with. James Rosenquist emerged separately from Warhol and Roy Lichtenstein, but is notable for his use of “the grin,” which can be clearly seen in the baby portion of “F-111” (1964-65) and in President Kennedy’s smile in “President Elect” (1960-61). The grin which plays through Rosenquist’s pieces finds a home in Feld’s piece as well, framing the portrait in visions of Pop from all styles of the decade.

James Rosenquist; top:

James Rosenquist; top: “President Elect” (1960-61); bottom: “F-111” (1964-65)

Hunter Walk

Hunter Walk‘s Twitter avatar isn’t hard to place; one look at it and the first thing any art student or aficionado would think is Roy Lichtenstein. The cartoonish quality of Walk’s picture is not only evident, but is the main focus of the piece itself. Whereas the previous pictures exhibited more subtle elements of the art movements which seem to be at play in them, here there is no question. The animated nature of the piece has a disarming effect on the viewer, making Walk’s smile seem all the more friendly.

Hunter Walk Twitter avatar

Hunter Walk Twitter avatar

Much like Lichtenstein’s “Drowning Girl” (1963), Hunter Walk is portrayed in a series of curves and flowing lines. Though obviously different subject matter than the aforementioned painting, there is nonetheless a similar ebb and flow that connects the two. Walk’s hairline is jagged only in certain spots, leaving the rest to create a circular movement around his head. The dynamism that this movement contributes to the piece cannot be understated because it is precisely mirrored by his shoulders and neck tilt.

Roy Lichtenstein;

Roy Lichtenstein; “Drowning Girl” (1963)

Rather than appearing stilted and set, Walk seems to lean into the movement, adding to its run through the picture. Even the shadowing of his beard and smile accentuate the flow of the centripetal movement. The darker shade of gray used for the beard moves along the face smoothly in some areas, and yet is cut sharply in others, much like the movement of waves splashing up against a cliff. The smile, meanwhile, is simple, but creates an eddie around which the flowing contours of the beard and facial lines must move.

Perhaps most interesting of all, though, is the way in which Walk’s beard in the piece seems to harken back to Lichtenstein’s common use of pointillism. While clearly one solid color throughout, Walk’s beard is nonetheless styled and colored in such as way as to appear to be more individualized than it really is. When compared to Lichtenstein’s oil piece “I Can see the Whole Room…and There’s Nobody in It!” (1963), Walk’s avatar seems to take on a different sense of shadow. As the man in Lichtenstein’s painting is lightly shadowed along his face to create a deeper perspective, so too does Walk’s beard in his avatar create for him.

Roy Lichtenstein;

Roy Lichtenstein; “I Can See the Whole Room…and There’s Nobody in It!” (1963)

Marc Andreessen

Perhaps the most post-modern piece of the four is Marc Andreessen‘s avatar, done in a way which most would describe as “South Park-ish” owing to its cut-and-paste style. While this is actually a good description based on South Park popularizing the cut-and-paste style in the last couple decades, it begs the question of what does that mean artistically? Is it just a cartoon? If so, why doesn’t it look like Hunter Walk’s Twitter avatar, which also exhibits a clear, cartoonish quality?

Andreessen’s avatar is a mix of post-modern, cut-and-paste qualities, but it also employs a sense of Pop which is prevalent in the other avatars. The sharp, clean lines cast the picture in brisk light, asserting that it’s so simple, there must not be anything under the surface. But there is.

Marc Andreessen Twitter avatar

Marc Andreessen Twitter avatar

The cartoonish Pop quality hides the other influences which dance through the piece. The basic oval-shaped hands, straight-line eyebrows and simple circular head harken back to the bare-bones approach towards geometry of Cubism, while the flat, cut-and-paste quality is indicative of the Superflat movement. As Cubists like Pablo Picasso and Juan Gris attempted to unravel the notions of geometry in art, so too did post-modern artists like Takashi Murakami desire to understand depth in a different way.

Right: Pablo Picasso;

Right: Pablo Picasso; “Girl Before a Mirror” (1932); left: Juan Gris; “Harlequin with Guitar” (1919)

The simple, circular curvature of Andreessen’s head in the avatar seem to mirror the circular head of the girl in Picasso’s “Girl Before a Mirror” (1932), while his egg-shaped eyes mirror those of the man in the Juan Gris painting, “Harlequin with Guitar” (1919). The flat quality of the avatar, however, jumps almost a hundred years forward, to the Superflat movement of the 2000s, pioneered by Murakami. As Murakami explored the flatness that depth could have in pieces like 2001’s “Tan Tan Bo,” so too does Andreessen’s avatar explore concepts of flatness and depth (perhaps without even knowing it). In its exploration of depth and geometry, Andreessen’s avatar is thus more artistic than it initially appears.

Takashi Murakami;

Takashi Murakami; “Tan Tan Bo” (2001)

Art and Tech Intertwined

Though these are just four analyses of four Twitter avatar’s it’s become clear that art and tech are more closely intertwined than perhaps initially thought. This might explain why I see pieces by Basquiat and other artists come up so often in the tech industry. But it may be even simpler than that—it may simply be that art resonates with people in the tech industry precisely because they are also in the business of creating as much as painters and sculptors are. Or maybe they just like how it looks, that’s a valid point too. In the end what matters is what you see when you look at pieces and avatars like this. For me, I see art that is deeper than what’s on the surface. What do you see?

Tidal Is Really Just a Ripple in a Larger Ocean

The Basic Background

Yesterday, Jay Z and company relaunched Tidal, the new music streaming company that they’re convinced is “the future of music.” After a $50+M purchase of Tidal (in the form of Aspiro) last year, Jay Z has been bending our ears with how the rerelease of the new service will be the best thing ever for artists, revolutionize the music industry, provide the best listening experience…blah, blah, blah. Only it likely won’t do any of those things.

Not the First Anything

In order to understand why Tidal likely won’t make good on any of the things Jay Z and his companions have promised, one needs to understand how the music industry works. First, let’s get something out of the way that’s been bugging me since I heard it during the launch party last night: “Tidal is the first ever artist-owned music service.”

No it’s not. NoiseTrade has been around since 2006, and was founded by singer/songwriter (that means artist) Derek Webb. So already it’s clear that the Tidal team needs to do a better job of researching their claims before making them.

No, It’s Really Not “Artist-Owned”

Next, the phrase “artist-owned service” is nice and poetic, but it’s frankly wholly untrue in this respect. Let’s examine the laundry list of artists now attached to the Tidal moniker and company:

  • Jay Z – Signed to Roc Nation (which he owns, and which had distribution deals with Sony Music (2009-2013) and Universal Music (2013-present)
  • Rihanna – Signed to Roc Nation (see above)
  • Beyoncé – Signed to Columbia (which is owned by Sony Music)
  • Alicia Keys – Signed to RCA (which is owned by Universal Music Group)
  • Daft Punk – Signed to Columbia (which is owned by Sony Music)
  • Madonna – Signed to Interscope (which is owned by Universal Music Group)
  • Kanye West – Signed to Def Jam (which is owned by Universal Music Group)

I could go on, but you get the point. This is not the “first ever artist-owned music service.” Frankly, it’s not really even “artist-owned;” it’s “label-owned by extension.” Let’s call it how it is, and pretending that these major label artists are independent operators is to fabricate an ideal (but false) reality. While it looks as if these artists belong to a whole slew of different labels, as my previous post on major label monopolies shows, this is a misleading thought process as they are more or less all owned by the Big Three. If anyone thinks that any of these artists will have the power to do things outside the interests of the three major record labels, they’re dreaming.

(click photo for larger preview)

The Big Three Major Labels and Their Subjects

The Big Three Major Labels and Their Subjects

Basically the Same Layout

Next, let’s talk about why the business model of Tidal is fanciful and unrealistic. TechCrunch reported earlier some details demonstrating that Tidal’s layout and functionality are basically a ripoff of Spotify’s layout. From what I’ve heard, Tidal basically copped Spotify’s layout, changed the colors, and added a few tweaks—but it’s not really all that different.

Married to An Obsolete Business Model

In terms of business model, what seems to make Tidal the most different is its decision not to offer a free tier (as Spotify and most other music services do). Rather, they will offer a high-quality lossless music experience for $20/month, and a downgraded, “premium” lower quality experience for the same $10/month that Spotify and other services charge (which, by the way, is an obsolete business model anyway). Jay Z and others at Tidal are banking on the hope that the rabid music fans out there will want to pay more money for higher quality music, in addition to more exclusive content on the Tidal service first.  While some music fans may in fact do this, it’s not a scalable hope because those fans are not the majority of music listeners.

Also, note that I said “more exclusive content on the Tidal service first“—which means it will definitely be available on other services too, just maybe a week or two later. And why not? Do you really think that the major labels who work with these artists are going to forego any revenue stream, just to keep Tidal more exclusive than the rest?? I don’t.

Tidal logo

 Tidal logo

So basically Tidal is going to offer the same major label music that is available everywhere else (including on non-music centered services like YouTube), but they’re going to nix the free tier (where most of Spotify’s conversions come from anyway) altogether and double the going rate for a monthly subscription. All the while, they will be aiming their service at a more niche market while providing non-niche music. Here’s my reality based on my experience in the music industry: high-fi, low-fi, it really doesn’t matter if your business model is outdated and your marketing strategy is insufficient for an overcrowded market. But yeah, this will definitely end well.

An Unscalable Model and Too Many Cooks in the Kitchen

Let’s move on, and I can’t believe no one has really focused in on this, especially those within the tech community (though it was mentioned a bit in the TechCrunch report): Jay Z has enticed these other major label names into becoming a part of this service not by offering them money up front, but by actually giving them equity percentages of the company. As reports that the equity numbers hover somewhere around 3%, this is an admirable shot by Jay Z. He’s trying to tie those artists’ respective loyalties to Tidal by making the service’s benefits their benefits. If Tidal does well and goes up in value, so do their stakes.

There are only two problems with this: 1) it’s not scalable, and 2) too many cooks in the kitchen. In an industry (tech startups) where founders are always told to limit the number of cofounders (the “too many cooks in the kitchen” nightmare”), Jay Z has amazingly disregarded the whole thought process and it seems no one has really noticed. What’s more, conducting company decisions in a “town hall” style is going to spell disaster for Tidal; you just can’t run a company like that. There needs to be one captain at the helm of a ship; any more and the ship will capsize. Also, keep in mind many of these artists don’t even work well with others in the studio—now they’re all going to run a company together? Right.

So to recap: unscalable business model and too many cooks in the kitchen.

More Dedicated to the Needs of Which Artists?

While I admire the desire by Jay Z and others to create a service that is more dedicated to “the needs and rights of artists,” let’s also be clear which artists those people are. They are not the artists the world-over who are coming up and trying to find their fanbases; they are the artists who already have legions of fans all over the world. We’re not talking about the girl from Minnesota who wants to be an R&B singer, or the punk band from Toronto who want to find their core fanbase. We are talking about (mostly) pop, rap, hip-hop, R&B, pop-rock, and other well-known stars who want to extend their control beyond their music to dip their toes in the music-tech industry.

I’m only critical because these are exactly the kinds of artists who really don’t need help right now. They have enough money, and even if they hop from label to label, their fans will follow. They have already found their fanbases and core listeners. It doesn’t matter which label or service they’re on, those fans will still find them and listen to their new albums and go see them on tour. So basically this is yet another rehashing of the same major label music that we’re already drowning in anyway. And while I’m a fan of some of these artists myself, I nonetheless am critical of what appears to be another desperate money grab. As the following screenshots demonstrate, though Jay Z and others may not see it that way, the point is that most of their fans will ( and do):

(click photos for larger previews)

Comment from BuzzFeed coverage of the Tidal release, number 1

Comment from BuzzFeed coverage of the Tidal release, number 1

Screen Shot 2015-03-31 at 3.12.36 PM

Comment from BuzzFeed coverage of the Tidal release, number 2

Screen Shot 2015-03-31 at 3.12.56 PM

Comment from BuzzFeed coverage of the Tidal release, number 3

Screen Shot 2015-03-31 at 3.13.12 PM

Comment from BuzzFeed coverage of the Tidal release, number 4

Screen Shot 2015-03-31 at 3.13.28 PM

Comment from BuzzFeed coverage of the Tidal release, number 5

If these artists really wanted to distance themselves from the major labels and the current music business dynamic, they would look for ways to explore other paradigms, rather than look for ways to make an obsolete system work.

In the End

In the end, I commend these artists for taking a step into a new arena, but I question their motives and the realities surrounding Tidal as a company. Personally, I think Jay Z way overpaid for Aspiro, and is seeking to build a service that really only artists (and that is to say a select kind of artist) will really appreciate and use. I don’t think that Tidal sets itself apart enough to really take over the demographics targeted by either Spotify, Apple Beats, or even SoundCloud. I think it’s a lot of bluster, but without any real solid business prospects. Only time will tell, but I think that Tidal is going to have a very tough time right out of the gate. We’ll see if Tidal is part of a rising tide, or simply another ankle-slapper service.

Artists Are Not “Bad Business People”

Two Differing Opinions

“Artists are not good business people; they need to be told what’s good for them.” Those were the exact words that came out of his mouth. And I disagreed with every single one of them.

But let’s back up. Last summer, I was having a conversation with an entrepreneurial peer of mine about the current state of the music industry, and possible avenues forward. He’d had some success with a small company working with a few venues, and with some other music industry professionals (who, as shall he, remain nameless). By all accounts, I thought my peer would have a positive outlook on the future of the music industry as he, like me, had experienced numerous problems that could be solved. And yet, his outlook was dreary at best; and at worst, insulting.

When we began discussing what possibilities there were to build tools to better enable artists to make informed business decisions, his response was terse, arrogant and negative: “Artists are not good business people; they need to be told what’s good for them.”

It’s All About Access to Knowledge

Immediately I knew our opinions on the evolving music industry would differ from then on. First, no, it’s not a true statement to say that artists are “bad business people” anymore than one could make the insinuation about construction workers, for example. In an industry where so much of the business has traditionally been done by a major label or other third party, artists are just now realizing that they have access to the tools to simply learn about how to be good business people, and many are taking advantage of the opportunity. No one would expect someone who’s never had access to a certain type of education to understand the intricacies of said education.

It comes down to simple access to tools and means of learning, traditionally things that have been outside the reach of most artists—after all, educating artists on the inner working of the music business never was in the best interest of the major labels. So if this is the case, why then would one criticize artists for not having knowledge of business dynamics when they have traditionally been denied such knowledge and experience in favor of a more “savvy” entity (a management firm or label, for example)?

Who Actually Knows “What’s best”?

Second, the statement that someone needs be told “what’s best” for them is beyond arrogant: it’s plain insulting. Many of the evolving concepts of business strategy that are popping up in the music industry nowadays I find are coming from the artists themselves. These are the people who are looking to new vehicles of distribution like the internet and new business models such as free or freemium as viable ways to push their careers forward. And from what I can tell, they’re getting pretty damn good at it. I find the things I learn that should have been so obvious to me many times come from discussion with artists themselves, opening my eyes to a reality I may not have previously considered or understood.

So if artists are continually researching and discovering new methods of business strategy to effectively compete in the new digital era, why is there still this pervasive view that they “need to be told what’s best for them?” Perhaps it’s just a difference of worldview, as with between my peer and myself. Whereas he appeared to see the world through a lens that was dismissive—and even bitter—I see possibilities abounding for how the industry can change with the technology available to give artists more power over their own careers. It’s arguable the in the end, the only opinions that matter are those of the artists, as they are the ones producing the material that so many other people are trying to find ways to monetize.

My Bet

Whatever the next big thing will be (and it’s anyone’s guess in this sort of fickle content market), what I don’t doubt is that artists will begin to step out from behind their guitars and amps to shape their own futures (much like programmers are being encouraged to step out from behind their keyboards and aspire to roles in management). I wouldn’t be so quick to underestimate the artists out there. In fact, just the opposite: they know what they want, and now they’re beginning to see how to successfully get it. For me, my bet’s on the artists 

 

Thanks to Mom and Dad for reading early drafts of this.

Four Music Industry Posts Refocused

This week I threw a lot of notions and facts about the music industry out there, so I thought I would take a moment today to help refocus on them. Rather than write another post and add to the pile of important things to understand, I thought it better to simply restructure this past week’s posts in an easier, more digestible way of reading them. Here’s a short list for a few posts that went up this week, with a short description of each.

1. Two Stories of Sexism in the Music Industry – Two stories of my own experience that illustrate the sexism and gender inequality in the music industry that needs to be rooted out and eliminated. As with the tech industry, the music business has refocused and taken aim at gender discrimination, but these two short examples prove how things need to be better.

The sexism problem that needs to be solved

The sexism problem that needs to be solved

2. The Lie of “Live Won’t Save Music” – The wonderful adage of “Live won’t save music”—and why it’s a flat-out lie. The dynamics of the “live” factor in the music business (including the economic realities), and why “Live won’t save music” only applies to those artists and music professionals still grasping at the old, obsolete business model. An examination on how people need to restructure their thoughts on the music business if they want to be able to create a new, more lucrative business model.

3. Why Isn’t the Music Business Fully Crowdfunded? – Inspired by some things which I heard VC Fred Wilson postulate during the LAUNCH festival earlier this month. Discussions of the freedom that crowdfunding has allowed artists, and why it’s contributing to a trend towards staying independent. More than that, though, an examination of how artists can leverage the dynamic of crowdfunding for a better return in their own pockets.

4. Tell Me Again How There’s No Monopoly in the Music Industry – A simple chart that shows the incredibly monopolistic spiderweb of the major record labels and their subjects. With SONY in blue, Universal Music Group in green, and Warner Music Group in red, it’s not hard to see how three CEO’s (of these respective companies) essentially control all the music in the mainstream. If that’s not a monopoly, I really don’t know what is.

(Click for larger preview) 

The Big Three Major Labels and Their Subjects

The Big Three Major Labels and Their Subjects

New articles coming next week. There’s a lot more in the music industry to uncover, and definitely a lot more than needs to be changed.

Two Stories of Sexism in the Music Industry

The kind of BS sexism we need to eliminate

The kind of BS sexism we need to eliminate

The Scourge of Sexism

With the issue of gender equality fast becoming one of the central topics in Silicon Valley (and by extension, the tech and startups industries) at the moment, I can’t say I’m anything but pleased. The problem of gender discrimination and the glass ceiling is long overdue for a solution. While I harbor no fantasies that such a solution will be found overnight, I am nonetheless pleased to see that there is a major effort being made to reform these shortcomings in the tech industry.

As a male, I can confidently say that gender discrimination hits very close to home for me; my parents both practice civil rights litigation, with a focus in employment discrimination and sexual harassment. I grew up seeing cases of blatant discrimination (and unfortunately it makes me angry to say I still do), where the the ugly beasts of intolerance and sexism were clearly visible. The latter, in particular, surprises me again and again because we are taught to believe that we’re moving forward in eradicating sexism—but not fast enough in my opinion. We still have a lot of work to do.

While the tech industry is starting to really spotlight and root out sexism within its ranks (as well it should), other industries are lagging too far behind in my opinion. The music industry, for example, is still too hampered by outright sexism for my taste, even after movements like third-wave feminism and Riot grrrl punk began to shatter the mold. It’s not a foregone conclusion by any means, and there are many within the music trenches who are trying very hard to change it for the better—to level the playing field so that gender becomes irrelevant—so that talent is acknowledged and validated by its inherent existence, regardless of the artist’s gender.

But let me provide two examples of what can be changed, and how people can step in to make the music arena more tolerant and progressive. Neither example makes me happy to share (less happy to have experienced), but perhaps that underscores their importance.

The Sleazy Promoter

The first example happened a couple of years ago, in the spring of 2013, and goes like this: I am good friends with a band whose members included a female element (the singer and drummer). The group was set to work with a promoter to book shows in their home state (which, though eliminated by name, I can say is quite a big market for independent music). The promoter made inappropriate and unwelcome advances towards the female band member(s) and the group cut ties, not wanting to work professionally with someone of such poor character quality. The promoter then retaliated by threatening to call every promoter within the state, seeking to destroy the group’s reputation, thus effectively cutting out their feet from under them. (In this particular state, I can say with confidence that there are at least seven major cities and/or scenes that they most likely split their time between).

I was in Amsterdam at the time, on my study abroad program. I woke up one day to a frantic “what do we do?? we’re going to get totally screwed by this person!” email from the singer. Even through text it wasn’t hard to clearly read her fear and anger over the situation. So her solution? Reach out to me in search of some advice.

The response I sent her was simple: I explained to her that I was behind her, and would throw the entire weight of my blog and radio show behind her and the band (and would bring in other artists I knew for support if need be). I even offered to write a letter as a professional contact (DJ and journalist) attesting to their quality as a band and professionalism as people, which they might use to send to anyone to rebuke the slanderous threats of this sleazy promoter. She seemed calmed by that offer (and most thankful, as you can imagine!) and we decided to see just how events would proceed.

In the end, the promoter never made good on his threats, and the whole situation seemed to blow over. But I never forgot that frantic email (I’m sure she hasn’t either), and to this day I’m still good friends with her and the band. The point is this: such a situation should never have occurred, and it very quickly seemed to spin out of control. But in situations like these, one needs to have the wherewithal to step up for what’s right. I didn’t do anything I didn’t think others wouldn’t do in the same situation. You don’t do it for pats on the back—you do it because it’s right.

The Sexist Tweeter

The second example happened more recently, during the Super Bowl this year. One of the Super Bowl commercials was to promote the hashtag #LikeAGirl to promote gender equality. This is one commercial I loved and supported, and I made so known on Twitter. This was the result:

The sexism problem that needs to be solved

The sexism problem that needs to be solved

I was actually staggered by the sheer sexism of the comment that I saw on my post. Someone telling me that I was sure to “get laid” for supporting “those feminists.” I was angry—actually I was seething. Not only had this person insulted the women that my comment was meant to support, but had dragged my name down too by insinuating that my motive was “to get laid.” I work with numerous artists—many of them with a female element—and I was pissed that this person had seen fit to insult not only people I work with, but people who are my friends.

The music industry is like the tech/startup industry in this respect—not perfect by any stretch of the imagination, but trying very hard to get better. And here was someone dragging us back to the dark ages. This is exactly the sort of thing that people in both industries (or any industry) need to find and root out. The people who make these comments and hold these views are toxic. It’s not (and won’t be) easy, but it has to be done. And it will be.

I for one will be on the lookout for it in the music industry, and will call anyone on it. I encourage other to take aim at sexism and gender discrimination in their respective industries which they know best. Music is my world, and I will not have it polluted with this sort of poison. Don’t step into my house and disrespect my business contacts and friends, it’s as simple as that.