Lala.com/From Bill Nguyen

From: Bill Nguyen
Subject:     A submission about lala for your consideration
Date: October 21, 2008 3:46:26 PM PDT

Hi Bob,

Forgive the typing accuracy…it’s coming from a mobile.  

It’s absolutely true that we can make the ideals more simple and that I am not a music biz guy.

It’s also true that anything not running in a browser won’t be around for much longer.  All of the content is there; tv, messaging, investments, photos, and music.   The more things I do in a browser it becomes habit that I won’t do anything outside of it.  Think of the last time you used a PC without a connection.  I can’t remember it.  

Hardware is going to the cloud too.  The iPhone/iTouch increased the price by 50% over the iPod and decreased storage by 73%.  What did we get?  We got an amazing interface but we also got a wireless connection and the first decent mobile browser.  For PC’s it’s the netbook.  Cheap hardware and low prices trump flashy design and overburden software.

So do you really care about the file?  If you can play and share music without ads and never have to sync or find a file again does it matter where the files live?

Applications don’t work well with ads and if you have a moment to play on lala you’ll never want to go to another site again.  Every feature is designed to encourage discovery.  Ad models limit content to control cost and assail us with ads to distract us away.  

Geoff (created Y! Mail with 100’s of millions of users) and I know a lot of virtual services.  Music is moving into the cloud.   No application is a better experience.
Sent via BlackBerry from T-Mobile

Re-Lala.com

Raw insanity.  Right price point, wrong product/service.

Never forget the lesson of Apple, SIMPLICITY!  Which leads to USABILITY!

With x number of people new to Google this year, what are the odds consumers are going to understand Lala’s business model?  Shit, I can’t understand their business model.  I rent the music online, but only online, I can use my own stuff online…what about the rarities, do those get uploaded too?  And, is it so complicated that I ultimately want to use this service?

Bill Nguyen is a smart cookie.  I know him.  But his expertise is in tech, not the music business.  No one understands the music business except those who are in it!  Bill wanted to do right by artists, he wanted to broadcast radio concerts and pay the performers.  GREAT!  Except the record company gets a say.  And so does the publisher.  The former’s rights delineated in hundred page contracts so arcane that you can never get all your royalties because there can never be complete agreement as to what those royalties are, and the latter so concerned with a penny rate and making sure they get paid in the future that they hold up the whole process.

A dime a track…AND YOU OWN IT!

Then it doesn’t pay to steal.

Isn’t that the exercise?  Coming up with a business proposition so good it doesn’t pay to be the criminal kind? It’s not about suing people into submission, but enticing them to do the right thing, BECAUSE THEY WANT TO!

A dime a track sounds good to me.

And it should sound good to rights holders.  Especially when they consider these files are not forever.  Try opening your old VisiCalc spreadsheets in Vista or Mac OS X.  You’re not even gonna TRY!  And you’re not gonna bitch, because you got your money out of that product, and just like you don’t want to watch TV on a tube, you don’t want that old, arcane software program.

In other words, sell it to people now…  AND THEN SELL IT ALL OVER AGAIN!  Kind of like the upgrade from LP to CD, if you think about it.  Who’s gonna want the MP3/AAC when you get pristine sound with something else? Especially when you’ve got to maintain a creaky system to listen to the old stuff!

But the labels are so ignorant, they’ve given up almost a decade of charging to make sure the future is on their terms.  That’s like the oil companies not charging for gasoline for a decade because people don’t want to pay the freight.  Of course, files are digital and reproducible for free, but do you get the point?  THAT DOUGH IS NEVER COMING BACK!

Instead of looking for perfection, the system that works for everybody, how about a little experimentation. Knowing that the future arrives and you always get to come to bat one more time.

Amazon fails because the average person doesn’t want to download the software to get the tracks into their iTunes library.  Who cares if the files have no copy protection, people who are paying don’t care about DRM!

But the freeloaders do.  So, if you create a system with no DRM and you get everything cheaply, how many freeloaders are left?   Those with too much time and not enough money.  Ten percent are NEVER going to pay (according to Michael Eisner).  Are we trying to construct a system that ropes in them, or the vast majority?

The iPod doesn’t come with FM transmission.  You  may bitch, but most people don’t want it.  You buy tracks easily, and they automatically sync to your hand-held device, the iPod.  This is what people want.  If they didn’t, tech repairmen would be out of business, the Geek Squad would go bankrupt.  People don’t know how their computers work and they don’t want to.  They just want utility.  That’s what AOL delivered, utility.  AND, Steve Case was smart enough to merge with the valued Time Warner when it was clear that window of overpriced utility was coming to an end.

Where are the smart people in the music business?  Who will let people like Bill Nguyen free?  Techies who can truly come up with innovative solutions that those in the record business cannot?  You don’t bring your car to the salesman to get fixed, you bring it to the mechanics.  These thirtysomething techies are the mechanics.  But the industry doesn’t want to give them any power, they’re afraid of them.  Because techies don’t cotton to intimidation, they don’t understand bullying. They understand 1’s and 0’s.  Scale.  Return on the dollar.  Honesty.

There’s no honesty in the music business and those trying to maintain their power want to continue this pattern. Incomprehensible royalty plans with the company getting the lion’s share of the money with the public as the common enemy.

The company comes last.  First comes the artist, then the consumer.  The company’s job is to facilitate the connection.  But today’s companies just want to inject a toll booth, that’s impossible to navigate.

The JFK Library

My little sister reminded me that I gave all the proceeds from my backyard carnival to the JFK Library.  I’d forgotten.  How did she remember?  She was only nine at the time.

But that’s how we reconstruct history, through the collective consciousness, the wisdom and memories of those who lived through it.  But usually, we’re too caught up in our present petty issues to look back.  But when we do, we’re stunned to find insight into today’s problems, stunned to find  that we’re just part of the giant continuum, of life.

I don’t hear JFK’s name invoked much in this Presidential election.  I’ve heard a lot about Reagan, and a lot about our sitting President, George Bush.  Whatever one thinks of Mr. Bush’s policies, no one accuses him of being an intellectual, a great thinker, a ponderer of the past who brings great insight to today’s challenges. George Bush hears a set of facts and shoots from the hip.  He relies on his advisors.  He’s not an intellectual, he’s a boy prince.

JFK was an intellectual.  Our Presidents used to be the best and the brightest.  But in this country based on illusion, now education and the power of analysis it excretes are seen as the privilege of non-patriots living on the coast, who just don’t have the gumption of a true American.

Jack Kennedy had that gumption.  And a Harvard education to boot.  His college thesis was published as a book and sold thousands of copies.  Jack Kennedy was curious.  Not only did he travel widely as a young adult, he went to the Middle East, to gain a further knowledge of the Muslim world, long before he ran for President.

Sure JFK was born with a silver spoon in his mouth.  But so were all the tramps splashed all over PerezHilton and TMZ.  Wealth and status only give you a starting point.  Where you go from there is up to you.

Walking through the JFK Library, one is stunned that the same issues debated in the 1960 election haunt us now.  Health care, the financial system and national security were key.  But JFK believed government could and should help our citizens.  The coin of his realm was optimism, hard work and sacrifice rather than today’s entitlement.  To view the exhibits is to be alternately inspired and deflated.  Magnetically drawn to the power of passionate people and repelled by the mine for me society of today.

Although we fight terrorists in this decade, the big enemy fifty years ago was Russia, and creeping Communism. Seems quaint now, but when one is confronted with the map of Communist countries in the sixties one can understand the fear that we were on the brink of the dominoes tumbling, of ending up with the short end of the stick.  America wasn’t the bear berating and manipulating so much as the scrappy young fighter standing up and doing the right thing.  The Twin Towers were annihilated by terrorists, rogue agents in this modern world, but missiles were place in Cuba by a very definable enemy, one that not only wanted to bring us down, but dominate the world, and appeared to possibly have that power.

The first exhibit you see at the JFK Library is one of JFK’s youth and adolescence.  And Byron White’s report on the sinking of PT 109.  When you read the previously classified document about how the wooden boat was sheared in half by a Japanese destroyer and JFK swam to shore, tugging an incapacitated seaman along with him, and then swam from island to island, exploring a way to be rescued, you feel small.  You wonder if you could brave these seas, if you’d make further efforts upon reaching terra firma in order to benefit the rest of your crew, languishing behind on the beach.

From there you go into a theatre and watch a film.  Which immerses you in history.  You feel like you’re really living back then.

But what stunned me was the following words, from a speech at Yale University, back in 1962.

"As every past generation has had to disenthrall itself from an inheritance of truisms and stereotypes, so in our own time we must move on from the reassuring repetition of stale phrases to a new, difficult, but essential confrontation with reality.

For the great enemy of truth is very often not the lie–deliberate, contrived and dishonest–but the myth–persistent, persuasive, and unrealistic. Too often we hold fast to the cliches of our forebears. We subject all facts to a prefabricated set of interpretations. We enjoy the comfort of opinion without the discomfort of thought.

Mythology distracts us everywhere–in government as in business, in politics as in economics, in foreign affairs as in domestic affairs."

President Kennedy didn’t know how prescient he was, he was speaking of the modern music business, one run on a set of preconceptions that we must adhere to.

I think it’s great that Doug Morris donated a million dollars to the City of Hope, I just wonder how he became so wealthy, where he got so much money that he could sacrifice a million and so many of the artists he built his fortune on the back of are struggling, barely able to pay the bills, many not even able to play music for a living anymore.

At the same time Doug Morris ranted against theft of his product.  As if it’s truly Doug’s, as if he and Jimmy bequeath this material on the public, primarily for their own benefit.

We must stop speaking of the theft of our music.  We must stop thinking of sale of individual tracks, never mind albums.  We must confront the reality that citizens now own a plethora of music, of many different genres, and if we were to charge them what said music was worth under old pretenses, they’d be bankrupted.

We don’t have percentage mechanicals, preventing distribution in accordance with consumption, all because publishers don’t trust labels.  The public is ignored.  Everything is done for the benefit of the fat cat, the businessman, who has succeeded, in the case of the record labels, in destroying a great deal of the value of the companies they lord over.

There’s a myth that a number one record should translate into millions of sales, and that a single should sell albums, even though people are abandoning radio and everyone knows the odds of the rest of the album being good are almost nil.

We’re supposed to believe in these artists, even though they’re quite clearly tools of the corporation, who are primarily in it to get rich themselves.

And getting rich is harder than ever before.  Because with multiple avenues of exhibition and distribution, it’s hard to gain critical mass.  But we don’t see the lumbering labels adjusting for this.  They just overpay their executives and hemorrhage worker bees.  And ask for more rights from the artist to better their bottom line.

For an industry that wants things to continue the same way they were in the nineties, it’s astounding that there’s a refusal to look back any further.  To see that the sales boom was started by the Beatles, an act so good that they’re the top selling catalog act almost fifty years on.  To see that bumps in revenue came from format change, from LP to CD, and a new method of exhibition, music on television, i.e. MTV.

MTV was not the enemy.  The labels owned the clips that the music channel launched on.  But the labels couldn’t see how to monetize them.  The labels cannot see that the Internet is about opportunity, and that the way to make money is to try new things, not to kick the tires and ultimately say no.

People want to own their music.  At least for now.  Streaming on MySpace is like taking a taxi when you want to drive your own car.  But MySpace Music fits the label’s requirement of control.  But the labels don’t realize they’ve given up control, it was snatched from them years ago.

JFK did not say we should stop progress, that we should leave the government out of business.  He said we should rally around our challenges, together, and march into the future.  The space program not only put men on the moon, it ignited technology firms in America, it jump-started so much of today’s computer world.

I don’t want to criticize, I want to believe.  But in order to make progress, one must run against the old men, who insist that there be no change, at least not without them getting their cut.  That formula resembles nothing so much as the Mafia, which Robert Kennedy did so much to undermine and eliminate.

It’s no longer a top down music business.  Everybody’s chasing the customer, everybody’s vying for attention. Attention comes first, then monetization.  And said monetization may not resemble what came previously, and the revenue generated for each act may be much less.  But to deny this is to believe in the myth, that somehow we can go back to an era where the major labels dominated, when diamond selling acts plundered like pirates all over the world.  We can have no progress until we all get on the same page, and not only admit our problems, but accept reality.

Reality is music is the most powerful art form on earth.  TV and movies pale in comparison.  Video games too.  A great record can inspire you, coddle you, give you hope and drive you to excellence.  And no matter how many times you play it, it doesn’t lose its power.  It’s not an evanescent commodity, but a life force that needs to be respected by its purveyors.  The audience, the consumers, the public, they already respect music more than you ever will.  They live for it.  Stop beating up on them, not only are they the future, they’re already one step ahead.

Commencement Address at Yale University

President John F. Kennedy
June 11, 1962

Levi Stubbs

Hey, did you see that Levi Stubbs died?

It took me a while to get into Motown.  I think "Bernadette" clinched the deal.  Or maybe it was "Reach Out (I’ll Be There)".  I remember driving to Becket, Massachusetts with the Resnicks to pick up Doug from summer camp.  I heard that Four Tops song twice on the way up and a few times on the way back.   It closed me.  Because of the power.  Of Levi Stubbs’ voice.

Sometime in the future these old acts are gonna pass away.  Stunningly, that time is now.  Levi was 72.  Even Ringo Starr is 68.  We thought they were going to live forever.  But even we got gray and lost our hair, and have slowed down.  A younger generation has taken over for us, but kids still listen to our music.

It wasn’t only one man who was responsible for the Four Tops’ success.  There were writers and producers, but without Levi Stubbs, the records wouldn’t have been elevens, they wouldn’t sound so pristine, wouldn’t evoke a time and a place, whether it be that drive or that bar mitzvah party or just spinning records alone, in your basement, dreaming of a better life to come.

It saddens me when these performers die.  It’s like a candle has been snuffed, there’s a little less light in the world.  But when I hear their music I know that they’ll live on in hearts and minds for generations, because they were just that good.

Will we ever revisit an era where acts as diverse as Louis Armstrong, the Four Tops and the Beatles can coexist on the airwaves, the music of all emanating from the same station, so dominant that everyone knows the licks?  I don’t think so. That’s a bygone era.  We don’t even have a new "Bonanza", and there are many more records than TV shows.

So raise a glass to the golden era.  We lost another soldier in the music wars.  One who gave his all, just so your life could be a little bit better.

Levi Stubbs?  I can’t help myself for loving you and your music.  Wherever you are right now, I hope you know that!