WTF is Rdio?

No one even knew what Spotify was until Tay-Tay decided to dump on it. But now this also-ran streaming service executes a publicity campaign to get insiders to write about their discount service and somebody thinks this is gonna move the needle? HILARIOUS!

Let’s start with tech. You’re either a winner or you’re not, a player or you’re not. Either everybody knows about you or they don’t. There’s one Facebook. One Google. One Amazon. And one Spotify. And if you think Apple’s gonna enter the sphere and decimate the Swedish streaming company overnight, you probably still subscribe to Beats, a failed service if there ever was one. Come on, Dr. Dre and his cronies could get everybody to buy crappy headphones for hundreds of dollars but couldn’t get these same people to lay down ten bucks a month?

OF COURSE NOT! Because you’re competing with free. And YouTube is free, never mind piracy, and you’ve got to convince people streaming is worth paying for. And you don’t do this by saying so.

Apple has everybody’s credit card number and a blue chip brand, but believe me, if Sprint were free, nobody would subscribe to Verizon, no matter how much better it might be. Jimmy failed already, the brass at Apple is clueless, otherwise how to explain the U2 debacle, and just because Iovine got everybody in the biz to sign an NDA and keeps telling them he’ll promote their records, this means NOTHING to the end consumer.

As for exclusives… I won’t waste my time talking about Tidal.

So what exactly is the Rdio offer?

I get Pandora and downloads for more?

But I already don’t pay for Pandora. And what do you mean by “downloads?” What you really mean is streams can live on my handset until I stop paying. But people don’t know that. Hell, they don’t even know streams can download/live on handsets whatsoever. My inbox is filled with people bitching that they can’t afford the data charges for a streaming service, not knowing that you can sync via wi-fi and it’s just like ownership, assuming you pay every month.

So you’ve got an incomprehensible offer to people who don’t care. That’s a winner, right there.

And speaking of incomprehensible, the bozos in the music business don’t realize Spotify’s free tier is crippled on mobile. You can’t just pick and choose what you want to hear. But they don’t know this because they don’t do the research, they just knee-jerk react against free. The reason Daniel Ek says free mobile converts people to pay is because they want the shackles removed. Try it out, sign up for free Spotify mobile and tell me how much you love the service. As for mobile, we just endured days of stories about how mobile is king, explaining the Verizon/AOL deal, how the switch is happening so fast, yet the music business is still worried about the desktop, and CDs and iTunes downloads. Drives me crazy.

What we’ve learned in the internet era is the consumer is king. People decide what they want, they’re not dictated to by purveyors.

Second, comprehensibility is everything. If I can’t understand it, I don’t want it. Even Apple is dealing with this issue with the Watch, people want to know what it’s FOR, and the Cupertino company has had a hard time explaining this. Sure, early adopters are lining up to buy it, but after that…

Streaming has already won. YouTube has proven this.

Spotify has put a dent in piracy wherever it operates. And this is a good thing.

Jimmy Iovine would like to do an end run around reality by forcing free to go away. Even the government is not gonna let that happen, never mind Steven Cooper. And the reason Jimmy wants that is not to please Lucian Grainge or other execs, but because it’s good for HIS business. If there’s no free, suddenly Apple competes with Spotify on a nearly equal level. Everybody’s fighting for that same ten bucks a month. Most people still don’t pay for streaming music, and if Apple can move the starting line to where Spotify is it has a better chance of winning.

Price does matter. But if you think price is everything, you’re probably buying an Android watch, which they’re giving away.

You’ve got to sell what people want.

And so far, the music industry has done a lousy job of convincing people they need to pay for a subscription to a streaming music service. First and foremost they’d like them to buy an album on CD, because they make the most money that way, even though CD drives have gone the way of cassette players. Then they’d like people to buy downloads as if everybody had a handset with 128 gigs of storage, as if the MP3/AAC was forever. Streaming is an afterthought. Meanwhile, everybody in the biz keeps bitching about streaming revenues. Do you want people to pay for something that you keep saying sucks?

And is this really the big issue, how much record companies and artists get paid for recorded music? Haven’t we moved to a more holistic view, where you get revenue from multiple sources and the come-on is the music?

Don’t get me wrong, I want people to pay for music, I want revenues to grow. I think streaming music is fantastic, I’m a big user. But if you want everybody else to come along and grow revenues you’ve got to have a united front promoting a properly-priced, well-rounded, comprehensible offer.

And Rdio at $3.99 is certainly not it.

The greatest record company in the history of the music business was Warner/Reprise.

Don’t confuse today’s enterprise with yesteryear’s.

And as great as Ahmet Ertegun was, Atlantic was no match for its west coast counterpart.

Warner/Reprise had SOUL!

Let me take you back, to an era when music drove the culture, when young ‘uns were addicted to the radio and could sing every song on the hit parade, whether they liked it or not. This lasted until about 1968, when underground FM got started, and that’s where Warner/Reprise thrived.

It was Jimi Hendrix. It was the Grateful Dead.

It was Joni Mitchell and Neil Young when he was a nobody from up north from a failed band.

Warner let you do what you wanted, it was all about the bands and their music.

But the image came from Stan Cornyn.

He wrote a book, but today everything lives online, and there’s no shrine to the man…who made Warner/Reprise hip, who made youngsters all over this great country of ours believers. We wanted to go to 3300 Warner Boulevard not because of Mo and Joe so much as the culture, we wanted to be where the irreverent people who knew no rules were changing our society day by day.

That’s what Stan Cornyn did.

I remember running into his trade publication “Circular” at a record store. I wrote a note to the company asking to be put on the distribution list. I was for a while. It was like getting a note from the Pope, after all, music was my religion.

Not that Cornyn was famous. Other than the occasional credit. It was all done in service of the company, of the artists.

And now Stan Cornyn is dead.

He lived to 81, that’s a good long life.

And if he were here, I don’t think he’d be asking for either praise or remembrance, but my inbox is filling up with testimonials from those who knew him.

Warner/Reprise stood for something. And we knew it because Stan Cornyn said so. He was head of “creative services,” whatever that was, he was the person who rallied the like-minded troops into changing our country.

You can read his book:

“Exploding: The Highs, Hits, Hype, Heroes, and Hustlers of the Warner Music Group”

Or you can just know that people make a difference. That life is a team effort. And that it’s our wackiest, outside the box thinkers, those who prod tradition, who take risks, who change the world.

Stan did.

 

Bob

One of your “Old Farts” died this week. Stan Cornyn had an enormous impact on Warner Bros/Reprise Records during the years when we became a powerhouse regarded as Super Hip.

He changed some of the old fashioned marketing, advertising presentations and we became the envy of much of the industry.

Contrary to your oft repeated indictments of the above mentioned Old Farts we had a group of people who loved the music, went with our own tastes and methods.

In fact it was the Erteguns, Clive, Mo and myself and a few others who shook off the Corporations and went our way and built a business. While we all did well financially no billionaires arrived.

You should recognize Stan in some way. He was the ultimate image maker and no one came close to his style, content and approach

Joe Smith

Sticks and stones may break your bones
But words can break your heart

So I’m driving to Capitol thinking about who’s in my rearview mirror. Not literally, although traffic was squirrely, with the Vine exit closed, but figuratively, as in Hale Milgrim, Gary Gersh, Andy Slater, Roy Lott… Decades have gone by and what once was isn’t. The music train keeps rolling along, but the most interesting thing I read this week was Tad Friend’s article about Marc Andreesen in the “New Yorker.” Silicon Valley wants to change the world, Hollywood just wants to get rich.

And after parking my car in the back lot, it’s all about parking in Los Angeles, I take the elevator up to the top where Toni escorts me into Steve Barnett’s office where he and Ambrosia are listening to a record, not a word being said, Steve staring rapturously at the wall.

This obviously wasn’t done for me, I caught them in a moment. And what was playing over the speakers was…SPECTACULAR!

So I go from caring not a whit about the music business to being totally riveted, feeling that I’m back to where I once belonged.

And when the track finishes Steve tells me it’s the album of the year, which sounds reasonable to me, since this is the guy who built Sam Smith in the U.S., and he’s going to do his best to deliver this 67 year old another hit.

Huh?

Now I’m completely confused. So I ask “Who is this?”

DON HENLEY!

I was completely flummoxed. I’m a fan, you’d figure I’d know his voice anywhere. But the room was vast, with the B&W speakers against the far wall and very little sound-absorbing material, and I figured it had to be someone new.

But it wasn’t.

Henley told me years ago that he was working on a new album. At this point I figured it’d never come out. After all, even Paul McCartney can’t have a hit. Tom Petty ramps up publicity but after a week, no one cares. But one listen through this track and I was hooked. It was the lyrics above, sung in a plaintive voice Henley owns the patent on, I couldn’t get them out of my head.

Ain’t that the truth, especially as you get older. When you leave the schoolyard behind. It’s what people say that you can’t get over.

Not that this was the agenda for our lunch. But as we walked to Katsuya, as Steve told me about the new Capitol Records, I couldn’t get the Henley track out of my mind.

First of all, how did Steve get it?

From Irving.

But how does Steve know Irving?

Steve called him when AC/DC were doing their Wal-Mart deal. Irving was supportive of him getting the Capitol gig.

And that’s when Steve launched into his rap about it all being about people. That he learned that from his dad, that that’s what separated the great teams from the also-rans. It was key that he assemble the best team at Capitol, and he believes he has.

And it’s also about the plan. You’ve got to have all the pieces put together and execute flawlessly. It starts with great music, of course, but being tied up with Pittman and iHeart, SNL, the promoter, you’ve got to have it all lined up to succeed today. Because there’s so much noise, it’s hard to break through the clutter.

Not that Steve has all the answers. He told me he changes his mind all the time, when his people confront him and give him new insight, show him another way of doing things.

And A&R is a thing of the past. Sure, you need scouts. Yes, it’s great if they can help make the records. But today it’s about the audience and your gut. If the audience embraces something, go for it. Even if others say no. Hell, 11 out of 12 people at Columbia said no to One Direction. Steve went with the act anyway, based on his long relationship with Richard Griffiths, and as they say…the rest is history.

Furthermore, having had success, most prominently with the aforementioned Sam Smith, talent now calls him. Because people want to be with a winner. And a team succeeds on momentum. One success begets another, players believe they can win, no matter what anybody else says.

And we talked about the streaming wars and the concert wars. Steve said physical and downloads have another 2-3 years, that they’re not dead yet. And that even though Neil Diamond’s new album may not have set sales records, the ensuing promotion ended up moving over a million units of catalog.

And Steve is thinking of new ways to skin the cat. I can’t reveal them all, but I will tell you that an audience of a few hundred thousand, paying five bucks a month, gives you MILLIONS at the end of the year. How do you find acts with loyal fanbases, how do you tap into those fanbases… It doesn’t matter what everybody else thinks, only what you do!

And Katy Perry is gonna go back into the studio soon. She’s eager to hold on to her cap as the teen queen dream.

But I couldn’t stop thinking of that Henley song.

How could it be a baby boomer could write a song encapsulating truth in a way no one younger seems to be able to, all the while singing mellifluously with changes that resonate?

We went back to the building and I sampled the rest of the record.

This is the Eagles album you’ve been waiting for.

But is anybody waiting for an Eagles LP?

The truth is we’re waiting for music that speaks to our hearts, about the human condition, that makes us feel connected as opposed to alone, that we hum in our head as we’re elated and depressed, that rides shotgun in this crazy adventure we call life. That’s how the Eagles got so damn big to begin with.

And the album’s not coming out for months. And I can’t predict radio success.

But I do know someone who cares, who knows it’s all about what’s in the grooves as opposed to the sponsorship deal, dug down deep in an effort to get it right and he did!

And with Steve Barnett’s help you’ll become aware of it.

And you’ll be glad you did.

P.S. All you Eagles and Henley haters can hold your breath, put your fingertips away, because the truth is in the modern world hate is irrelevant, it’s all about love. No one cares that you pooh-pooh this or that, all we care is that someone loves something. And if enough people do, you have success.

“Tomorrow’s Advance Man, Marc Andreesen’s plan to win the future”

Broke the mold.

It posited that there was unheralded talent that the usual suspects, the major labels and their A&R teams, were unjustly ignoring, and that by scooping up singers the public could decide who was best and a star could be born.

It worked.

And everybody making music the old way HATED IT!

That’s the story of “Idol,” how someone, in this case Simon Fuller, decided to turn the model on its head. It’s the story of the twenty first century, with Napster and now Spotify, those willing to think different to the point where those continuing to think the same are scratching their heads, not only wondering where their cheese went, but worrying if they’ll ever eat again.

Innovation, it’s where it’s at.

Smart people embrace streaming and figure out how to utilize it to get ahead.

Dumb people rail against payouts, as if constantly complaining that landlines deliver better fidelity will wipe out mobile.

So we must look to the future, not the past.

What else did “Idol” teach us?

That stars matter. And you can mint them overnight. And the main criterion of success is honesty.

That’s your explanation for Simon Cowell, an unknown Brit who became a household name and incredibly wealthy just by speaking the truth. Because, everybody knows it, and they want to hear it.

But no one involved in “Idol” could see that it was time-stamped, that it wasn’t forever, that it broke the mold but something else would break the mold after it.

Cowell thought it was about singing shows, that if you just messed with the formula just a bit you could make even more money. But “X Factor” failed in America, because everyone had already seen the trick. It was like Mariah Carey singing the same old songs but in a different key. Been there, done that, the public is not interested, the public wants NEW!

And despite being a ratings juggernaut, the “Voice” has not minted any stars. Because it’s about resuscitating the careers of old ones. Bitchiness ruled, competition was heavy while on “Idol” niceness prevailed, the judges were famous, but they were nonentities.

And now we’ve got Harry Connick, Jr. on “Idol,” even Scott Borchetta, believing if people see you you’re successful. But in the modern world everybody has a home, everybody has a presence, everybody’s available, and we’re only interested if you’re new and exciting, if you’re doing something different. And these guys are following the formula, through and through.

So what happens now?

The next revolution in music is coming, online.

It’s already happened in visual entertainment, YouTube stars are huge, bankable and rich.

And Justin Bieber was discovered online. Credit Scooter Braun with figuring out the new paradigm. He moved in when “Idol” was dying. The story isn’t so much about Bieber but Braun, as it always is. The star is just the face.

But Braun didn’t realize we’re living in an age where you’ve got to erase your past as you move ever forward. Not only the cassette and the CD, but the old game of finding nascent talent and faking hysteria to riches. All Braun did was raise money on his past efforts, now those people want their money back.

So it’s about revolution and stars and money.

Let’s start with the last. The culture has changed. People choose professions for cash. If your charge isn’t willing to do anything to make it, to become rich, find someone else.

As for stars… There’s a fascinating story circulating online about the decline of one hit wonders. Turns out there’s no room for them, everybody wants history, an imprimatur of success.

“The Death of the One-Hit Wonder”

As for revolution…

Same as it ever was.

The Beatles, Bob Dylan, they turned the past on its head.

Even Boy George and Culture Club, almost openly gay and dressing in caftans all while singing modern English music filtered through the blues.

And then there’s prog rock… If we know how to play, what can we do with our chops?

And then rap. If we speak the truth the public will resonate, and everybody loves a beat.

And now we’re in the twenty first century, in a lost era for music. Because everyone’s complaining and no one’s innovating.

The public mints winners, especially in the modern era, middlemen are toast.

And the public only lays down a lot of cash when something is new and different.

What is new and different?

Well, someone who yields comprehension from chaos. We’re ready for an online tastemaker, who will have so much power he can monetize it, but we’re living in the old paradigm where everything is great and everything deserves a listen, while the public is overwhelmed.

The labels act like venture capital firms to a degree. They want to see evidence of success and a plan. Their only problem is they refuse to fund revolution, for fear of losing what they’ve got. Incubator, schmincubator, Universal is clueless.

Today it’s not about promotion but virality, assuming something is truly revolutionary. If it’s that good, people will spread the word.

The last thing that good was the aforementioned Napster. It might have been free, but at least people WANTED the music!

Music, when done right, scales.

Stop listening to the old fogeys. Stop learning how it used to be done. Know that in order to succeed you’ve got to turn the world on its head.

Let’s make it simple… How about finding ugly people who write their own songs? That’s changing everything everyone in power believes in.

How about putting music in BuzzFeed movies?

How about a music site that is all about the customer as opposed to shoveling the same information on the dungheap. That’s right, a place where the biggest fans are categorized, a giant competition to anoint the greatest music fan in America! You send in a video why you should be chosen. You score points by going to shows and not only streaming music, but gaining followers. Why in music don’t we make the fan the star, as they do on Facebook, Instagram and…

Because we’re clueless and wedded to the past.

Put your thinking cap on.