Radiohead's Surprise Idea

They changed the game with their proposition of pay-what-u-want for In Rainbows.

This time round, Radiohead have set the price, but The King of Limbs still remains remarkable in it's distribution. No warning, no hype, no marketing - just music. Worldwide, on their site, downloadable at a reasonable price. Available instantly.

It seems incredible, doesn't it. Yet the methodology is simple. Make something, then make it available. Any artist could do this, but few do. We are conditioned to thinking that only bands like Radiohead have the power to be brave because they already have the fan base to do so. The lesson is still the same for every artist - focus energy on building your community. And then give them great ideas to experience.

The album is great, and the band continue to inspire a new industry with a new way of thinking. Thank you.

If you don't have it already - The King of Limbs is yours by visiting http://www.thekingoflimbs.com/

Selling Ideas in Seconds

When we talk about selling within the music industry, we always think of the relationship between the artist and their fans or community. There is, of course, another level - the B2B connection with the various partners that artists must work with: from PR to distribution, other musicians, venues, bookers, etc. Often both sides must pitch to each other to establish the relationship. Its an important sales job, and often a complete disaster.

Check out this clip from Mad Men. Besides being one of the best moments in television that I have seen in a very long time, Don Draper's pitch to Kodak is a lesson in how to deliver a concept in under two minutes. His approach is grounded in what the product is, but at the heart sits the real reason to believe; the emotional hook that draws you in, puts you at the centre of the story, and makes it impossible for you to not want what is being sold.

I once sat through a long meeting with a PR team who were pitching for business with Gaymonkey. They spent the majority of their time talking about themselves, who they were and what they have achieved. After 90 minutes I was no clearer on why they did what they did, what they were offering me, or why they wanted to work with us at all. It was all about them - unremarkable, ineffective, and a waste of time.

A simple rule: the best ideas are sold within seconds, not hour-long presentations.

Marina's Big Failure

For too long we've defined success in the music industry by popularity and sales. Neither of these are values that are inherent to art, so its not difficult to see why artists get discouraged at points throughout their careers. With constant pressure to be the next big thing, ride out trends, fill stadiums and shift units, we can't be successful unless we are the biggest and the best. Right?

Marina Diamandis is angry, feeling "more like a failure than a success". This is despite the launch of her career as Marina and the Diamonds with an album applauded by many, nominated for a plethora of accolades and winning an MTV Europe award. Her debut peaked at number 5 in the UK and made a splash in charts around the world. To many, this would be an achievement. But to Marina, she's a flop.

According to her interview on Australian radio, Marina's ambition is "to be one of the best artists of her generation". Great - but what does this mean? How does she define this success?

In the new industry, with decreased volume of sales, meaningless charts and more and more choice along the long tail, artists need to be able to articulate what success means to them personally. They must establish a vision for their work, with milestones to achieve along the way. For many this will continue to be money, fame, popularity. These artists will inevitably find their work unfulfilling with each missed goal. Only so many can reach the superstardom of The Beatles, Madonna, GaGa - this doesn't mean that other artists should just pack up their kit and go home.

A sustainable career, that allows the artist to continue to stay self-motivated, needs to have more than just goals. The vision must be supported by the artist's own understanding of what success looks like. In doing this they must get to know the feeling of success to them personally - not just create a list of achievements. 

Marina wants to be the best of her generation - this may take decades to fulfil. Will she be miserable throughout her career until she is informed that yes, indeed, she is now the best artist of her generation? It sounds like she has a destination she wants to achieve, but still does not know how she wants to feel.

We become deluded into believing that our success is measured by criteria established by others. Its not your parents, your boss, your label, or your fans that give you success. Only you can define and ultimately recognise it.

The biggest failure is to not take the time to set out what success means to you up front - if you can't establish that, how will you ever feel successful?

His Master's Voice

2011 starts with the news that HMV have announced their intention to shut 40 branch locations this year.

The alarm bells are not only the poor Christmas trading - but the rumour that the company was having trouble meeting their bank loans. 

Over the past few years, it's been clear that record retail - in the form of physical sales - has been shrinking; not only the amount of HMV's shelf space devoted to CDs, but the disappearance of chains such as Fopp and Virgin Megastore. In the case of HMV, I'm neither surprised nor disappointed.

From an artist and a label perspective, HMV's approach to retail is in no one's favour but their own. Their margins are massive and yet they demand one of the highest discounts on PPD than any of the other retailers. This is the set rate that a distributor sells CDs at to stores. HMV then request a discount of 20% or more, depending on the relationship they have with the retailer. Independent stores would get this discount, but because of the size of HMV, the discount is granted.

Distributors love HMV because they buy in bulk volume. HMV has over 250 locations - so each album release could get a hefty minimum order. The problem for the label is that distributors make their commission up front - labels pay around 20% for every unit shipped. If HMV don't sell your album in a few weeks, they return them. And the distributor keeps the commission.

It gets worse. HMV orders weekly, with each store putting a separate order in to the distributor. So even though you may have returns from the Glasgow branch, the next week might see orders from Bristol. The same CD returned to your distributor could be resold to HMV, and then even returned again. 

As an artist having your CD in HMV once gave you credibility. But once the discount was applied, you weren't making much in revenue from your sales. Then taking into the account returns - well, you could find yourself losing money on a release.

This distribution-retail relationship has always been one of my biggest issues with the record industry. Digital music has none of these problems - music is shipped and sold on demand. With this in place and available to all, there is no need for physical product or record stores like HMV.

If you're one of those who still insist on buying a physical album, there are great independent stores and Amazon who you can go to. For artists, get your CDs out of HMV now - there's no prestige in seeing your work sink with the ship.

Image from Flickr by Max Sparber

How Great Brands Begin

The greatest brands often have humble beginnings that start as the spark of an idea. 

Ikea's founder wanted to bring the things people need direct to them at low prices - he started out selling stationery before the flatpack revolution began. The first Apple computer was built from scrounged parts financed by promises that a single shop would stock them. Innocent smoothies launched as an experiment at a stand at a music festival.

These stories are inspirational. Anyone can build an empire from their dreams. All it takes is a great idea, a strong intention to drive you, and investment of time and resource. Along with a plan to get others to believe they need you in their lives. Basically - its hard work.

Great brands have strong leaders driving them. Individuals who won't let obstacles get in the way of their goals. These brands inspire us because the people who started them were inspirational.

None of the great brands I mentioned earned their place in the market by winning a popularity contest on television, or by sending random unsolicited samples to other brands in hopes they might join their product line. They bootstrapped themselves and worked their way into our lives.

Why do artists think that the way they enter the game should be different?

The Volume Issue

Having the capability like never before to produce, distribute and market your music comes with a catch - too much volume.

The democratisation that allows anyone to get in the game and release their work means that more people will take advantage of the opportunity. More releases = a greater volume of choice.

And with this wave of availability comes an even greater volume issue. Shouting.

Artists and labels still believe that the louder you shout about your work, the more it's likely to be noticed. The problem is - you can't outshout the big guys. Major labels with more manpower, access to the mainstream media and advertising spend are great at shouting. We've suddenly realised they are all yelling at us about the same thing:

LOOK AT THIS NEW ARTIST AREN'T THEY THE BEST EVERYONE LIKES THEM SO SHOULD YOU.

For the rest of us, the temptation is to shout along - especially as there are more voices vying for attention. With this much noise going on - not only from the music industry, but in every consumer market - people just stop listening.

The only way around this is to start a conversation amongst your community with a great story. Its not good enough to be a fresh new artist and next big thing. You and your art must speak to a community that wants to engage because they get something out of the connection.

This is why social media has become such a powerful tool for musicians. Those that use it well will be able to form strong ties with their fan base - and keep it alive. Those that use it simply to keep shouting will fail to see the benefits.

Amazing photograph of Žilvinas Kempinas' work - www.transmediale.de/en/white-noise - by weexinsitu on Flickr

What Next for Goldfrapp?

Alison Goldfrapp made an announcement last week that the band has ended their contract with EMI. This news does not come with any concrete detail - simply that their "time with EMI has come to a contractual end". Speaking on 6Music (according to popinstereo.com) Alison stated that the split is exciting - a new chapter with an "endless world of opportunity".

Goldfrapp are in an enviable position, and I certainly hope they use this transition zone to do something revolutionary. They are one of those groups who have built a strong community globally - through creating a diverse catalogue and a fantastic live show. Despite the relative lack of critical acclaim of the latest album Head First, their popularity has not significantly waned over the past decade (for the record - I thought the album was great). Which makes them an attractive proposition for any label or investor.

But will they go down this route? What stops them from setting out on their own - using their experience to establish their own business, record a new album, and embark on another tour. Or will they simply head off on the tried and tested route and find another big label? And if so, what would stop that relationship from going the way of their dealings with EMI?

My hope is that it is the former. I want a group like Goldfrapp to take control of their next step and set an example of a new model for the artist within the music industry. The band has every asset at their disposal - distribution, marketing, and a community that is waiting for their next move. Establishing their own strategy for this new phase of their career would demonstrate to others that this can be done - in fact, anyone can do it right now. Artists dont need to be discovered or fight for their place on a label roster - they simply need to understand what they want to get out of their careers, and take the right steps to achieving that vision.

My suspicion is that the band got out of a sinking ship and is now looking for the next one. Alison's statement of "what will we do and will anyone want us" is not suggesting the fans will turn their backs, but betrays a fear that the group feels it may not find another label home.

It may seem easier to put your career in the hands of someone else, but will it achieve your vision of success - or will you be fighting to realise theirs?