Scott Borchetta E-Mail Thread

From: Scott Borchetta
Subject: Re: The Changing Landscape
Date: January 10, 2010

The following plays into your ‘corporate vs. indy’ slant…

An independent label had the biggest selling album of 2009 and the biggest selling artist of 2008 who is also the biggest selling digital artist of all time (Billboard/Soundscan).  She has huge online presence and unmatched artist to fan engagement.  The same indy also has the biggest single of Reba McEntire’s career, the current 4-week #1 single "Consider Me Gone", from her soon to be Gold album as well as Billboard’s ‘New Artist of the Year (Country)’ with Justin Moore who has sold over 600k digital downloads and 175k albums scanned/sold.  Justin’s album is only 21 weeks old.  

Three chords and no waiting for these artists’ fans… Whom they all engage directly.

Yes, even Reba is on Twitter!  

Check out Justin’s redneck video blogs – his version of Cribs.  You will laugh your ass off… If you are a redneck… And, actually, I think you are a redneck. 🙂

Whether you are or not, Justin’s fans love him…  And this thing is growing exponentially in the real world.

https://exg5.exghost.com/owa/auth/logon.aspx?url=https://exg5.exghost.com/owa/&reason=0

A lot of great music coming from our little house in 2010…  New Taylor, Jewel, Steel Magnolia, The Band Perry, SHEL and more.

Yeah, I’m working you.  So what.  You work me every time you send a new email or tweet.

We love the changing landscape and we dare to add a brushstroke…

Best wishes for 2010 Scott

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From: Bob Lefsetz
Subject: Re: The Changing Landscape
Date: January 11, 2010

What does Universal do and what do you/Big Machine do?

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From: Scott Borchetta
Subject: Re: The Changing Landscape
Date: January 11, 2010

We are distributed by Universal.  We have full Country crew in Nashville – new media, promo, marketing, publicity.  When I cross something over I work with the Top 40 promo team at Republic in NY.

They have nothing to do with any other aspects of Taylor’s career and they are currently not doing anything with any other artist on our roster.

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From: Bob Lefsetz
Subject: Re: The Changing Landscape
Date: January 11, 2010

Okay, so other than Taylor, all Universal does is distribution?

How many people are on your team?

Where did the funding come from?

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From: Scott Borchetta
Subject: Re: The Changing Landscape
Date: January 11, 2010

Correct. There are three labels under our roof.  Big Machine & Valory are fully independent, owned by me and a small investor group (I am majority owner) and Republic Nashville is a joint venture with Universal Republic.  For all three labels we currently have 37 people.  Three small individual radio marketing promo departments, one main retail marketing & sales department/new media/backroom/HR/accounting (we do our own royalty accounting)/publicity and A&R.  Very small  we all where a bunch of hats.  But we’re having a blast and we don’t have to answer to anyone…

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From: Bob Lefsetz
Subject: Re: The Changing Landscape
Date: January 11, 2010

Meanwhile, I clicked the link and got…an Outlook sign up page.  Was this a mistake?

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From: Scott Borchetta
Subject: Re: The Changing Landscape
Date: January 11, 2010

Hmmmm… Weird about the link.  Here’s the right one:

http://www.youtube.com/watch?v=cbBtmNhNYW0

On YouTube search: Justin Moore Cribs.  They are raw… And his fans love them.  The views aren’t off the hook but the buzz with the early adopter’s is amazing.  

Fans show up at his shows and they know all the songs, even songs not on the album.  We posted all of his songs and engaged his fans to ‘be the record executive’.

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From: Bob Lefsetz
Subject: Re: The Changing Landscape
Date: January 11, 2010

Just so I understand, who’s on Republic Nashville, what’s the story on that.

And how is it decided who’s on which label?

And, why are you guys so successful?

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From: Scott Borchetta
Subject: Re: The Changing Landscape
Date: January 11, 2010

The idea and strategy is to have small rosters with laser focus on each act we sign.  For us it made more sense to go horizontal instead of vertical.  The initial decision to start Valory came because we had acts with great music sitting and waiting on Big Machine and we didn’t have the priority position to put them in.  I then met with Jewel and wanted to make a record and that sealed the vision to do the second label.  Justin Moore and Jimmy Wayne were on the bench and I knew we had a good shot at getting Reba.  So, Valory was born.  I was able to double our output and attack by adding just 6 more people to our Big Machine staff of 17.  Big Machine opened 9/1/05, Valory 11/2/07 and Republic Nashville 06/01/09.

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From: Scott Borchetta
Subject: Re: Merrimack County
Date: January 11, 2010

Bob,

Your comparisons strike an interesting chord.  All three songs obviously share the artist/writer’s desire to share where they are from, where they belong and where they long to be.  They all scream to the points you scream about incessantly – engage me, the fan, with something real and make me feel something and I will come back. As a fan it’s a place where I may want to belong.  A place not for everyone and not designed to be. If the artist is interesting and continues to engage, it grows exponentially.  So much of that is why Country Music works, especially in tough times.  Even though the format takes the occasional beating, it’s a place fans go and have a pretty good idea ahead of time as to what they’re going to get and know that their favorite artists will likely meet and exceed their expectations. For a lot of people, it’s ‘home’.  And like all music, it’s generational.  Discovery still rules and age is critical in that discovery time to attain a large audience.  Imagine if Mac McAnally could be a young new artist today!  With the playing field leveled by the web, his brilliant songs and music would have the chance to spread among young people his own age and rise to the top and not be held back because the label didn’t know what to do with it. Justin is young and he’s out there to be discovered.  And people are coming back for more after they find him.  Young artists today have so many more ways to communicate and true greatness may not be stoppable. Exciting times… Thanks for the email conversation.  Scott

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From: Bob Lefsetz
Subject: Re: Merrimack County
Date: January 11, 2010

If I want to reprint our conversation thread, is this o.k?

Not sure if I will, but thinking I do…

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From: Scott Borchetta
Subject: Re: Merrimack County
Date: January 11, 2010

Sure

Scott Borchetta
President/CEO
Big Machine Label Group
Big Machine Records
The Valory Music Co.
Republic Nashville

Carrie Underwood

She’s cardboard.  Two-dimensional.

Carrie Underwood’s not a star, she’s commerce.

Oh, don’t get your panties in a knot.  But all you people e-mailing me that Carrie Underwood won "Idol" and is now a star…you’re focusing on facts, not emotions.  And emotions are the key to stardom.

In the controlled world of Nashville/country music, Carrie Underwood is a star.  I like her records.  But they have nothing to do with her, all she does is sing them.

Now that everybody’s got a computer, even country music has fallen precipitously in recorded music sales.  And, as terrestrial radio fades, will the small coterie of pooh-bah handlers truly be able to control the country market?  Does the public really want all this me-too drivel?  Which used to be about drinkin’ and druggin’, wastin’ and womanizin’, and is now about driving the kids to school in your SUV and lamenting that some theoretical person died overseas?

Yes, I support the troops.  To the point where I believe they should come back home so they don’t get killed.  But let’s not get off point here.  Too much of what passes for country music today is fodder made for a market.  Carrie Underwood is just the best exponent of this.  She’s no Dolly Parton, writing her own material, never mind singing it.  No Loretta Lynn. She’s a product.

And a product is never a star.  Because a product doesn’t have emotions!

Who is Carrie Underwood?  What does she stand for?

If she’s got opinions, which I doubt, other than what dress to wear, she’s not uttering them, for fear someone somewhere will be offended.

It’s rough edges that endear fans to you.  And nowhere were rough edges evident like they were in country music, the real country music, the old country music.

Come on, has anything Carrie Underwood ever done in her real life comported with the lyrics of "Last Name"?  Are the tabloids full of her falling down drunk and acting ridiculously on impulse?

No.  

I don’t approve of Kid Rock’s Waffle House adventures, but he does seem to be the person on his records.  And that’s why he’s one of the biggest acts today.  Not only in rock, but country.

We like ’em authentic.  You  may not start out that way, but once you own your identity and speak your mind, like Hank Williams, Jr., we’re on your team.

Carrie Underwood a star?

If you e-mailed me this you’ve lost the plot, you’ve been in this business too long, you’ve got no reference points, you’re part of the problem, not part of the solution.

Yes, for the time being certain Nashville forces are making money selling Carrie Underwood records.  But underneath the sticky sweet exterior, there’s nothing…except maybe a good voice.  And that just ain’t enough.  Not enough to make us love you through and through.

The X Factor

Simon Cowell is a star.

I like Kelly Clarkson.  She’s cute, honest about her weight/body image and is a good singer.  But she’s not a star.  Her best material is written by others.  And she has the depth of an Oreo cookie.  If I asked her to wrestle between higher taxes and a social safety net, I’d expect her to go blank and suggest we get another drink.

But I’m sure Simon Cowell has an opinion.  Real stars don’t exist in a vacuum, but in the environment, they’re aware of their surroundings, their context.

As for the other "Idol" winners…

Clay Aiken couldn’t admit he was gay.  Oops, he wasn’t the winner that year?  Well, he got the longest ride, which is just about over.  A real star is not afraid of who he is, he owns his identity, he doesn’t fake it.

Adam Lambert played coy with his sexual identity until the competition was over.  Stars don’t leave us guessing about where they stand.  And after coming out, selling his music, Adam resembled nothing so much as a cartoon.

Let’s see, other "Idol" victors…

I just can’t think of one.

Oh yeah, that young woman, the plump one, what was her name again?  Jordin Sparks…  Let’s see, we’ve got Jim Morrison, college-educated, writing poetry, and Jordin’s number one asset is her smile.  Whoo-hoo!

I’m not saying "Idol" will crumble without Simon Cowell, although I do expect it to sustain a deep ratings hit, but the reason the show has been so successful is because of this one man, who won’t wear a tie on camera, who smiles like the Mona Lisa, daring us to wonder what he thinks, and when he speaks states his own, unequivocal truth.  That’s a star.

That’s why we revere stars.  They’re not beholden to a boss.  They do it their way.

Mmm…  God, everybody on the hit parade seems to be beholden to someone else.  Thanking their sponsors…  Doing whatever their labels tell them to do…  Unwilling to offend anyone in their pursuit of the brass ring.  No wonder the public likes the song at most, and why music doesn’t drive the culture.

Steve Jobs?  The biggest rock star on the planet.  Does whatever he wants, is beholden to no one and releases the best damn products.  Don’t agree?  That’s just the point, stars have haters, from the beginning of time.  At least people CARE, have an opinion.  Who’s got an opinion on all those evanescent singers in the Top Forty?

Somehow, in the dash for cash, we’ve given up searching for stars.

Stars are uncontrollable, they break ground, they need to do it their way.  Why, with millions on the line, would investors want to spend money on people like this?

But they used to.  When there was less money at stake.  When labels weren’t owned by multinational conglomerates, when those truly in charge were willing to take risks.

Risks…  What’s the cliche, no reward without risk?  That’s true.  There hasn’t been any risk in the music business for eons.  Except by no-talents pissed no one’s paying attention.

Speak your mind.  Take a stand.  Don’t be afraid to offend.  The opposite is death.

We love to watch Simon Cowell.  Because we truly believe it’s his opinion.  That he’s not second-guessing us, is not beholden to the sponsors or Fox.

And like a true star, Simon is willing to strike out on his own, to bet on himself.  We don’t begrudge stars their success, we feel they’re entitled.

Love him or hate him, you pay attention to Simon Cowell.

"X Factor" will succeed, this is assured.  As for your next record…odds are not so good.

How To Try Spotify Immediately, No Matter Where You Live

It no longer works, so don’t trash your mouse or trackpad clicking away.

But read this article, read the comments.  What we’ve got here is demand.  For a legal service.  Not yet launched in America.

Demand.  That’s not only the foundation of the music business, but every business.  You think record retail is a gauntlet? Try getting a product in a supermarket.  You pay a slotting fee, and if it doesn’t sell, you’re yanked from the shelf, no matter how much money you want to throw at the proprietor.  Supermarkets only want what the people want.

And the people want Spotify.

Isn’t this how the music industry got in trouble?  By refusing to deliver what the public wanted?  First with Napster, then with DRM-free tunes?  Eventually the music business comes around, even stopping the dreaded RIAA suits.  Why wait now?  Why not allow Spotify to launch and ride the wave.  Which for all we know may have the lifespan of MySpace, Spotify being superseded by even a better service.

No one computes on OS 9.  Or Windows 3.0.  But that’s what the CD is.  That’s how the rights holders operate.  Afraid of the future, of what could be lost, they try to prevent it from happening.  Kind of like Warner and NetFlix.  Yup, if we delay the rentability of titles then people will just buy them.  Huh?  No, they’ll just STEAL THEM!

Technology moves faster than ever before.  The landscape is littered with the detritus of software that was once king and is now history.  Like WordStar.  Hell, remember when everybody used a dialup modem to access AOL?

Spotify is not stealing.  In its free version it allows people the functionality of iTunes paid for via advertising.  Maybe not paid enough, but once you get people hooked they’ll pay for usabilty, functionality, and access on their mobile devices. Hell, isn’t this how Apple won?

If you don’t love Spotify, you just haven’t used it.  Just like if you didn’t love the original Napster, you never used it.  We’ve got people clamoring for the product, in a way they used to desire our acts, when they had something to say, when they weren’t "brands" eager to tie in with corporations.  When you’ve got demand you feed it, you don’t ignore it.