Online Piracy's Future

I came across this great article about online piracy and how it is shaping the future of online entertainment. The battle between the entertainment industry and consumers has been going on for years and yet, only has a slight end in sight. According to the article, 70% of 18 – 29 year olds still download unauthorized music, TV shows or movies, compared with 46% of all adults who’d done the same. With those wide of margins, what can be done to change peoples’ minds about doing the right thing?

Fingers are being pointed at both sides for not trying to nip this problem from the get go. Law enforcement has handed down penalties ranging from fines to jail time, yet the piracy has continued. However, Apple has proven that if you charge a minimal fee, the consumer can download as much as they want without fear of penalty and they are more then willing to do so.

I’ll admit, when Napster first came out, I was all over that site, getting all the music I could get my hands on. The one thing I loved about it was that the whole experience allowed me to try out music that I otherwise would have never given a chance at. Napster allowed me to broaden my musical palette while at the same time, finding older music from some of my favorite artists. I never gave a second thought that what I was doing was illegal. I just thought that it was a great way for unknown artists to finally get their chance to be in the spotlight.

I believe that if more of the entertainment industry were to follow Apple’s business model for online downloading, they would see a great decline in the amount of illegal activity. Sure there are going to be some people that will still try to get it all for free but the majority of the population, in my opinion, would much rather go the legitimate way. When you download illegally, you have to go to sketchy sites that more then likely will give your computer a virus. However, when you download from iTunes, you know that what you are getting will not come with an extra present. So the consumer gets peace of mind on two fronts; their downloading is completely legal and that it isn’t going to have any detrimental effects on their computer.

The Artist Manager's Most Important Role

As I was searching around on the web for some inspirational aspects on artist management, I came across a really good video from Berklee Music’s instructor George Howard. Here, he interviews the former manager of the multi-platinum band Boston, Jeff Dorenfeld.

Mr. Dorenfeld talks about how a manager and artist need to have complete trust in one another in order for their relationship to be fulfilling and prosperous. He also talks about how it’s important for the artist to have a vision of where they want to go, whether that be artistic or financial success or whatever, they need to have a goal so that the manager has an idea of what they need to be aimed at.

Since the band is focusing on the artistic side, the manager is focused on the business side. They guide the band in a way that will make both successful but both opinions need to be accepted. If the band says they don’t want to work with this producer or agent, the manager should respect that choice and vice versa. I liked Mr. Dorenfeld’s analogy of the artist and manager’s relationship being like a marriage. Both parties’ values have to align and it doesn’t take much for either party to lose faith in the other if there isn’t constant communication and trust.

What I liked about this video is that it resonates a lot with my beliefs of how a manager should interact with his clients. A manager needs to handle the business aspects so the artist can concentrate on their work. When the artist starts trying to do both, they loose sight of what got them where they are and it begins to reflect in their work. They begin to see things that aren’t really there or they completely loose sight of what they want because they are too focused on trying to balance everything. I believe that the artist needs to be free of all stress that relates to anything business. Granted, they need to be informed of what is going on and without that trust between them and the manager, they won’t have that freedom. They need to see, believe and understand that the manager is completely on their side, otherwise, neither will get anywhere and something that could have been very beneficial is now ruined.

Negotiating Interview With Rich Denhardt

Recently, I had the pleasure of talking to Mr. Rich Denhardt about negotiations and how he has dealt with them over his extensive career. Mr. Denhardt has been in the music business since moving to Nashville in 1970. He worked for EMI from 1995 to 2006 where he honed his negotiation skills to their fullest. He has negotiated hundreds of deals from new signing new bands to extensions for artists already under the EMI label. Currently, he is one of the lead instructors for the Entertainment and Media Business bachelor program at Madison Media Institute as well as running his own consulting firm. I talked with him the other day and received some very insightful knowledge.

Ryan Howard (RH): How did you deal with artists who believed they were owed the world when they came to you to sign a deal?

Rich Denhardt (RD): When a band came in thinking that they were above others and thought they were owed some great deal, I just informed them that even though they were well liked by their audience, they were still new to the industry. They had no past performance with working with a label or in any sort of professional capacity so there was still risk in signing them. I informed them that we have no problem with getting them what they deserved when they proved themselves to us. They needed to understand that because they were getting a record deal that they needed to work even harder to prove themselves.  I had to get through to them that they were now professionals and getting to work with a company that wants to see them succeed but that this is also a business and that they need to make sure that the company doesn’t get in too over their heads. They needed to know that they had to earn the respect they believed they were due. If they failed to realize that, then I would have no recourse but to walk away from the table, even if I really wanted to sign their band.

RH: How did you see bands and artists using their BATNA if they had one?

RD: Artists and bands were all over the place with their BATNAs. Some would bring it up right at the beginning without any provocation. Others would plug it somewhere in the middle and then there were the ones that would hold on to it until the end, after we had already given them our offer. There were even times when we would find out on our own before the negotiations even began. This wasn’t intentional but the music business really is a small, tightknit group so it wasn’t uncommon to know what others were up to.

RH: Did you aim for mutual benefit?

RD: Yes, always. It wasn’t in the best interest of the company to try and undercut a band or artist. Reputation is everything in this business and if word starts getting around that you are offering lopsided deals, you won’t be signing many bands. Plus, we always had attorneys present for all involved to make sure that all parties were being fair. By having lawyers present, the autonomy for everyone was kept intact and made for a smooth deal. Our goal was to work as partners because it makes it much easier to work with partners rather than adversaries.

RH: How did you handle in dealing with dirty tricks or tricky tactics?

RD: I was always willing to walk away from a deal. Even if I wanted an artist or band badly, I had to have the strength of mind to just walk away from it if it required me to. If they insisted on trying to play hardball, I would do my best to defuse the situation but if it persisted, I would just tell them, “This doesn’t look like it will work,” and would get up and leave the room. I guess that was my version of hardball but that was the extent.

RH: Lastly, what advice would you give to an individual who is new to negotiating?

RD: I would advise that you should never negotiate with yourself. When you make an offer and the other party just answers that it isn’t enough, don’t make a higher offer. Ask them what it will take to be a fair offer and go from there. The moment you start negotiating with yourself, you give the other party all the power and control. Also, always have a lawyer present at the negotiation table or at least kept up to date with how the deal is going. Lawyers are a great way to make sure all parties are getting a fair deal and that there are no lopsided offers. They will also make sure that everything is legal and on the up and up.

Talking with Mr. Denhardt gave me a great opportunity to understand how professionals go about negotiating. He had great advice for me and the one that stuck out the most was to be humble. As long as you stay humble, it will have an effect on the other party if they come in with a big ego. By holding your ground that way, people have a tendency to be disarmed and want to actually work with getting a deal done with you.

Business' Social Post Pattern

Recently, I was browsing the news feed on my Facebook account and I couldn’t help but wonder why some of my friends’ businesses were posting the things they were. To me, posting personal opinions on your company’s social websites is good way to loose business. I believe that a business should be as unbiased as it possibly can because as soon as you start siding with one thing, you begin a slippery slope that might end up costing you more then you imagined.

I think every entrepreneur should read this article from inc.com. Entitled “What Not to Share on Twitter or LinkedIn”, it is written by Hollis Thomases and she goes over some of the pitfalls of social media. She gives some good advice on how a business should enter the social media network without coming off as unprofessional. Granted, most of what she says is common sense but then again, time in and time out we are proven that common sense isn’t all that common.

According to Ms. Thomases, the first thing that a business needs to have when entering the social network is a purpose. By entering the social-sphere with a plan of how it will benefit the company, businesses can easily avoid falling into the rut of randomness. When a clear goal is set out and followed, companies can take advantage of the power of social networking and really get themselves a credible following.

Secondly, Ms. Thomases warns of the black hole. By this, she is referring to the amount of time someone spends on keeping up with his or her social updates. With the abundance of social media sites, it is easy to get caught in the net of trying to get caught up with your social network. I myself have been easily distracted by roaming my Twitter feeds and checking Facebook updates. It’s intriguing to see what your friends are up to or how many times something you Tweeted gets re-Tweeted. The key is to not let it interfere with productivity. Make sure you stay on top of the social-sphere but know that it doesn’t need to be constantly monitored. Set aside so much time a day to update your status and whatnot and if you need to, set an alarm so when it goes off, you are back to work.

The third one is an excellent tip for a business: it isn’t all about you. Ms. Thomases analogy of walking into a room full of strangers and talking about yourself is spot on. Sure, as a business, you do want to keep people informed on what you are doing but also informing them of what the industry you are in is up to, is also a positive. When people see that your business isn’t just boasting about themselves all the time, they can start to see the people side of your company. It gives them insight into what your company’s values are. Maybe you post a link to help a cause or charity, or talk about something happening in your city. Whatever you post, try to spark conversation or action. Make your social network postings more responsive as to draw more attention to your company.  

Lastly, should go without saying but for some, it needs to be: don’t post anything you wouldn’t want your grandmother to see. If you think a person, who you respect a great deal, would be offended by what you are about to say, then maybe you should just hold off. It may seem funny or insightful to you, but there are people out there who could easily take it the wrong way.

The bottom line is: just think before you post. It’s easy to get caught up in thinking that what you have to say is grandioso but as a business, you need to adopt a new line of thinking. Besides, if you really have something that you want to post on the social network, well that’s what creating aliases are all about.

Reference

Thomases, H., Dec. 9, 2011, What Not to Share on Twitter or LinkedIn, found at http://www.inc.com/hollis-thomases/what-not-to-share-on-twitter-or-linkedin.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+inc%2Fheadlines+%28Inc.com+Headlines%29 on December 10, 2011

Graffiti Is Art

Looking through my RSS feeder, I came across an interesting article from Rolling Stones website. This article talks about how a graffiti crew from South Bronx is suing Jennifer Lopez and Fiat because of copyright infringement. If you haven’t seen the commercial, check it out here. The dispute is over the graffiti murals that are shown throughout the commercial. It appears that graffiti artwork is trying to take an important step in becoming a more legitimate form.

The plaintiffs, the TATS Cru, claim that Fiat’s commercial blatantly uses their artwork throughout the video. If the paintings were sanctioned work by the building’s owner, then I would have to agree with their argument. Typically, graffiti work is done underground and behind the scenes. Only until recently has it started to get a bit more glorified. Ever since Banksy blew up, graffiti work has gotten bolder. I have been to hip-hop shows where they have blank walls for people to tag. What was once viewed as a brazen form of rebellion is gaining ground as true art form and is even encouraged.

I hope that this suit is handled properly and that these murals are viewed as a legitimate form of artwork and self-expression. Even if they were not sanctioned pieces, they still add to the culture of the Bronx and how that area expresses itself. It could be viewed as a branding dispute as well. TATS Cru has helped develop an atmosphere in that area and to not show these artists the proper respect, well, that’s just wrong. There are some very talented artists out there and many of them are from low-income households. If more attention can be shown on graffiti work, only positives can come out of it. This could pave the way for troubled teens and others to find a creative avenue for venting. Many kids who would have otherwise been performing illegal acts are now benefitting the neighborhood by spreading their work across a city that needs a little brightening up. Who knows, maybe this could spread to more cities and show that graffiti murals have a place in city landscape and truly add to its spirit.

Game-ification of LIfe

I have seen a few TED videos and all of them have been pretty interesting but one that I want to discuss is the video by Gabe Zichermann where he talks about how video games make kids smarter and how game-ification is becoming implemented into some everyday activities. He defines game-ification as using game thinking and function as a way to come up with solutions to problems. Video games have become an intricate part of our society no matter how some people may feel about them. Rather then pushing against this fact, some businesses have accepted this and are developing ways to get people more involved with their products or services by attaching some sort of game element to it.

When Mr. Zichermann started to talk about how a teacher by the name of Ananth Pai implemented a video game based curriculum of his own design into his class of 3^rd graders, it caught my attention. Mr. Pai used video game consoles you can purchase right off the shelf so that nothing had to be custom made and used these games to teach his math and language classes. In the span of eighteen weeks, his class went from a below 3^rd grade level in reading and math to a mid-4^th grade level in those two areas.

What made this curriculum a success was what the kids thought of it. When asked about Mr. Pai’s class, the kids responded with two recurring themes; the learning was fun and that it was multiplayer, meaning they were able to interact with other kids in completely different locations in the country or world. If there are more classes that can be taught in this fashion, why not utilize it? I’m sure that there are plenty of kids out there who would greatly benefit from this style of education that are not succeeding in traditional teaching methods.

Game-ification has crossed over into the automobile industry as well.  There is a hybrid vehicle out there that has a plant that grows when you are being more environmentally conscious with your driving and withers when you are being less. They have also incorporated game-ification into speed cameras. These are the devices that cops set up in certain hot spots and take pictures of speeders and send them a ticket. Ken Richardson came up with Speed Camera Lottery, a game that uses those cameras a type of lottery system. He took his idea to Sweden where those cameras are used and also where they send you a ticket not based on how fast you were going but how much money you make. Well if you are driving under the speed limit, you are entered into a lottery for some of the money from the fines of the less fortunate drivers.

I can imagine that this line of thinking will begin to filter into many areas of life as time progresses. If a person can harness a way to make mundane tasks fun and interesting, they would have a very valuable service or product on their hands. The less people think they are working, the more likely they will be to donate their time and engage in what you are trying to accomplish.

SXSW: Guerilla Gear's Target Market

Since its inception in 1987, South By Southwest (SXSW) has increasingly become one of the premier entertainment conventions in the world. In the span of nine days, it covers the three main entertainment mediums; film, music and interactive. Beginning around the second week of March, the city of Austin, TX becomes one of the most popular and busiest cities in the country with the amount of visitors, exhibitors and artists that converge there. Not only can you show your video or have your band perform there, you can network with some of the biggest names in the industry as well as promote your product at the trade show they have.

What really caught my eye about this convention is that it is geared toward every level of entertainment. Whether you are a new up-start or a savvy veteran, everyone is accepted and can participate in anything they feel would benefit their company, band or themselves individually.

What I’m focused on is the Film Conference & Festival, which has been described as “a five-day crash course on guerilla filmmaking and marketing” (sxsw.com/film/about/history ¶5). During this period, Guerilla Gear would be able to display and demonstrate its product. With as many indie and up-and-coming videographers that attend, the likelihood of our products striking a cord with them is quite good. Our product is aimed at the striving videographer. It lets them shoot with their DSLR camera like a traditional video camera but at a fraction of the cost of other similar products. The market for DSLRs has continued to rise so this gives us the confidence that the market for our product will continue to rise as well.

Since SXSW is looked at as more of a collaborative festival then a festival where many of the films that are there are there to find a buyer, you are more likely to find people who are interested in what you have to offer. We have a product that is attractive to individuals who are just starting out to ones who are in the transition of using DSLR cameras to shoot video. Our product and business model fit in well in this environment and I believe that we could only benefit from going.

SXSW is also a great opportunity to network because of it being a collaborative festival. It is more inclusive so it attracts talent that is still being developed and because so, it is getting more renowned and garnishing more attention from distributors and agents. This can only mean a constant and steady supply of potential customers. As more and more videographers begin using DSLR cameras for their projects, the more opportunity Guerilla Gear will have of establishing a solid foothold in the independent filmmaker market.