More Phonk

Re: Must-Read Article

Hi Bob,

I’ve been a subscriber since I first started in the industry back in 2008.  Long-time listener, first-time caller!  It was a little surreal to see you reference the NYT write-up on Phonk, our label, Black 17, and one of our artists, Hensonn.

Yes, the vertical video play counts are outrageous.  And yes, many of our artists have generated substantial wealth from their music.  I want to give you a little more context  –

We have over 1,500 frontline recording artists and have built organically a catalog comprising more than 25,000 tracks.  Most of these artists are under 25, and roughly half are either Eastern European or South American—meaning much of this music is born amid political and socioeconomic conflict.

To your point, the music speaks for itself.  It has to.  Many of our artists prefer anonymity and aren’t terribly social.  Phonk is outsider music.  And what the NYT article didn’t elucidate is that Phonk has a rabid and deeply connected fanbase, not just a passive vertical video audience.  The Spotify PHONK playlist has 11.4M followers.  We collect revenue in 250 countries.

Black 17 was founded in 2015 in the Sony RED office.  Tyler and Bryan were product managers fresh from the mailroom, Jake was in client services, and I was lower-mid-level finance (and not officially on the B17 team until years later).  Safe to say we weren’t especially pedigreed.  We dreamed of being important in the office, part of the crew that would take top labels out for drinks with Alan Becker and Bob Morelli.  The thesis was to imitate the distribution models David Macias and Missi Callazzo had mastered: find great artists en masse, ensure artists maintain ownership, and fight like hell for them.  Black 17 cut its teeth on SoundCloud rap and then meme rap, learning the game.  It was obvious that music tailor made for the current distribution channels had a greater chance of being heard, and social media was as important a distributor, if not more so, than the streamers.  It was also obvious that transparency, a monthly royalty payment cadence, and not recouping superfluous marketing/promo expenses would earn strong word-of-mouth endorsement.

Fast forward to the present.  We have an incredible team.  INCREDIBLE TEAM!  A band of outsiders uncompromising in achieving results, unburdened by title silos or corporate hierarchy limitations.  We have no office.  We spend 2% of net revenue on marketing.  We are spread across North America, from Miami to Timmins, Ontario, from New York to Los Angeles.  Our content creator is a Lithuanian expatriate living outside of Dublin whom we hired from a factory job.  And his influence on the genre’s visual aspects is unmatched.

We are still with Orchard/Sony (RED merged in 2017), and we are so grateful for their partnership.  It’s humbling and quite a thrill to be one of the labels the C-Suite and Alan Becker host for dinners.  Full circle.  Family.  It’s also fuel to push further.

Diplo was the first major artist outside of Phonk to give us a shot.  It’s been a great success.  And while we won’t abandon our roots, we are confident that our methodologies translate across genre, and we welcome the opportunity.  As Tyler mentioned in the article, in the last 5 years we’ve paid out over $140M to artists, and we look forward to multiplying that number in the next 5.

We appreciate all you do Bob, and thank you for spreading awareness.

Cheers!

Boo White

Boo White
CFO
Black 17 Media
 www.black17media.com

Joel Bernstein-This Week’s Podcast

Photographer Joel Bernstein has tales that boggle the mind, like accidentally shooting the cover of Neil Young’s “After the Gold Rush” as a high school student…you’ll love his stories!

Apple: https://podcasts.apple.com/us/podcast/joel-bernstein/id1316200737?i=1000751733399

https://music.amazon.com/podcasts/9ff4fb19-54d4-41ae-ae7a-8a6f8d3dafa8/episodes/3d8eb756-c4ee-4c46-bceb-b6ec17f9151a/the-bob-lefsetz-podcast-joel-bernstein

Everybody Hates The Rich

And they don’t seem to know it.

We thought that the country was divided by right and left, Republican and Democrat, that hating and owning the libs was irreversible, that the country couldn’t agree on anything. But this proved untrue, everybody hates the rich.

And the rich only found out about this as a result of the last election, where affordability became the defining issue. And it’s not only Trump who is out of touch, who keeps telling us things are great, it was Biden before him, most of the political class, in thrall to the money, is spewing this hogwash, but even worse, they don’t know how the average person lives.

Jeff Bezos and his plastic wife Lauren have been announced as Honorary Chairs of the Met Gala. Does anybody like these people? ANYBODY? No one is as out of touch with people’s perception of him as Jeff Bezos. A nerd who is trying to convince us since he goes to the gym and wears cowboy hats that he is cool. And the two of them are adulterers to boot. And unlike the rich of the pre-tech era, these two keep parading their wealth and their consumption and… You’d be best off protesting the Met Gala completely, it’s out of touch with the times. If I was a celeb I wouldn’t go. Then again, no one can say no.

That’s what we learned from the Epstein files.

It doesn’t matter whether they get Trump, it doesn’t matter who exactly falls, the truth has been revealed…it’s a club, and you’re not in it, as George Carlin said. But it’s worse than that, it’s a club that sucks up to money and gives its members a pass on heinous activities. It’s like high school, but even worse, because of the money. Academics sucked up to Epstein for donations, letting his “girlfriend” into dental school… That’s what colleges care about most, money. If you’ve got bucks, you can get in. Just ask Jared Kushner, whose father gave $2.5 million to Harvard and then his son was accepted.

Everybody wants to fly on the private jet. First and foremost they don’t want to hang with you, the hoi polloi, the great unwashed, but they also like the smell of money, they want to hang with the rich and powerful. Meanwhile, Republicans in Congress say they’re supporting the public but cave in to anything Trump wants and Democrats keep crying their hands are tied.

As for techies…

AI better work for Musk, because Tesla is a disaster. The sale of cars is down, down, down and it doesn’t look like it’s going to recover. As for self-driving, anybody paying attention knows his vehicles drive sans lidar, they rely only on cameras, which are far from perfect. The more we know about Musk the more we don’t like him.

As for Zuckerberg, maybe his wife likes him, but he’s hated as much as the Bezos couple, it’s just that he doesn’t parade his wealth as much.

And Bill Gates? Another philanderer apologizing for his contact with Epstein?

And then you’ve got the California wealth tax. We can debate its pluses and minuses, it’s benefits and costs, but only Jensen Huang was able to say the right thing here, that he would pay it. The rest of the billionaires…they’re all establishing residence outside the Golden State, because god forbid a fraction of their billions gets attached by the government.

There shouldn’t be any billionaires.

“Lifestyles of the Rich and Famous” expired with the last century, Robin Leach is six feet under. But the press believes the public is still in thrall to those with money. And there’s no illusion that entertainers play at the same level as billionaires. You just can’t make that much money in music or movies…then again, techies can buy movie studios!

We keep hearing what they’re doing with their billions, boys with their toys. Meanwhile, we go to the grocery store and buy nothing and it’s $45.

And if you challenge the rich they keep saying they earned it, that without them the country wouldn’t run. When the truth is each and every one of their companies relies on public consumption and the truth is the entire nation runs on public consumption.

It’s hard to be brain dead today. After all, you’re using your smartphone, you’re on social media, you’re exposed to these billionaires 24/7.

As for being inviolate…

Prince Andrew? His fall was as unforeseeable as a Black president.

Which means…another domino could fall.

As for Trump… We all know he was born with a silver spoon in his mouth, but more importantly he has lost all credibility, he’s lied so much that when he talks about the economy and wealth there’s not a soul who believes him, probably not even himself.

The resentment has been brewing and now the Epstein files have tipped the scale.

As for Republicans in Congress…they’re on the wrong side of this issue. If you don’t excoriate the offenders, you’re going to pay a price. No one wants to see someone suck up and protect an offender like Epstein’s “friends” were doing for him.

We can debate all day long Trump’s policies, whether they’re good or bad for the country…but one thing everybody agrees on, except for a tiny slice of wealthy people, is we’re financially f*cked. We just can’t get ahead. Trump ran on saying the game was rigged, and then he took advantage of it, lining his pockets, pardoning criminals and giving a pass to anyone who has money.

There’s a fiction that the president has power, that the government has power, that the press has power, but the truth is immutable, THE PEOPLE HAVE THE POWER!

And they’re pissed.

Our entire nation has bent to the whims of the wealthy. And our interests are secondary, if they’re considered at all. And all we have in the news is horse race discussion about coming elections.

Seemingly everybody in power is missing the point. It is not business as usual. We were in thrall to tech for nearly thirty years, but the game of musical chairs has ended. There’s not a new platform every day, and the titans are established. Meanwhile, they’re building data centers everywhere, hogging up our electricity, on a trip to… Will AI pay off? Many say at this point it has not.

But they want us to fear it so we won’t look at the real issues. And the bloviators of AI, people like Sam Altman, are hated by the public too. Our issues are more basic, like how to make ends meet. The average price of a new car is north of $50,000. The average person is priced out of this and that and…

When will it blow?

We can’t seem to get everybody riled up about Trump’s authoritarianism, but income inequality? That’s something nearly        everyone can relate to, that everyone is aware of. Meanwhile, the rich don’t STFU, they keep parading their money and lifestyles as if we should respect and adore them.

This country is ready for a rupture. A reset. It’s the rich who are tearing up the social fabric and the public is at a boil.

And just like Trump’s election in 2016, the media has no idea what is going on. Because reporters want to hang with the rich and powerful just like the people in the Epstein files.

This cannot go on, it’s just a matter of when it blows.

Hearts and minds… We couldn’t beat the Vietcong, with all our money and power. Hearts and minds have turned off of politics, don’t trust the words of the rich and powerful. All we need is a spark.

E-Mail Of The Day

From: Caleb Keen

Re: Must-Read Article

Out of curiosity, I played the first song on your playlist through the studio monitors in my office. In seconds, my 8-year-old and 11-year-old daughters ran in and started dancing. I clicked to the second track. “Do you know this one too?” “Yes.”Third track?” “Ummmm, yes – I know this one too.”

I’ve never seen them react to music with such obvious delight. I’m an audio junkie with great hi-fi equipment, always keeping my ears open for new stuff. I wasn’t aware this existed ten minutes ago, but it’s already become my kids’ favorite music somehow. Thanks for the tip!