A few years ago, you could really get rich with one magical song, says Steve Greenberg about Hanson’s mmm bop song.
Getting on the radio was the only way to get a successful song. Most important was not if people were eager to buy a record, but if a song had a high positive reaction. The positive feelings about it is the most important, so that people won’t turn off the station.
He decided to start is own record company, using Internet to put a record out in 2000 (who let the dogs out) the last moment in history you could sell millions copies of albums with just one hit song.
Fountains of wayne (stacy’s mom) didn’t sell that much, mostly because it was the number one illegal downloaded song on Napster.
With Joss Stone wasn’t about a magical song, was about the carreer and the Álbum. A new way of thinking about the music industry taking the Internet in consideration.
Widget became the new hype with Jonas Brothers, relating music with content, by creating webisodes by 2006.
Everything changed, and Steve’s ideas managed to create a new business model, creating hits and massive sales before a song be played on the radio. And today, more than just negotiating music, his company is mostly using 360 strategies, managing the rights of the bands.
The original 360 model, or as I should point out, the horizontal consolidation was invented in the early 30’s, because when radio became mainstream, the music industry collapsed.
To summ, in the old days, there were few thing you had to do well. Today, record companies have to be aggregators and deal with lots of other companies, aggregators, Internet entities and independent labels.
And the idea that everything will become live, like if concerts were the main revenue is wrong. Artists wanted to replace their album selling loss by touring more. The deeper issue is that as became clear that we haven’t developed stars that will move people and fill arenas (Lady Gaga is an exeception). Is much of a disposable industry, because there are no stars. U2 are there, but they were ‘created’ when the industry was developing artists rather then singles or hit songs.
Mobile and tablets help to change the mindset on the free content idea over the Internet, because people are happy to pay for the contents they have on their mobile phone (for instance, people don’t pay 99 cents for a song, but gladly pay 1.99 for a ringtone).
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