The government has been unable to rein in hedge funds.

But the remaining reporters at the “Denver Post” just might.

For far too long we’ve revered money. And believed that those in possession of it know better. We’ve been sold this canard, that the rich are job creators, that if they triumph, so do we, that if we just unfetter them, release them from regulations, we’ll all be lifted up.

Wrong.

This is the story of Trump, this is the story of the Republican Congress. How they’ve lost touch with the people.

Forget “Roseanne,” forget the ignorant angry at immigrants and globalization. They’ve been left behind, unfortunately, they need to be propped up, but it’s the intelligentsia who are going to remake this country.

Remember when that was the goal? To be educated and smart? Before college became a glorified trade school? Before Ivy Leaguers went to Wall Street and became beholden to the Benjamins?

So they shoot black people and the white people don’t care. Some bleeding heart liberals do, but the truth is racism is rampant, despite what the Supreme Court said in its voting rights decision. As for a compassionate America… When scores of Muslims are killed in the Middle East, it barely gets any ink. Seems you’ve got to be white and Christian to matter.

But we’ve got cameras now, we can document and see, and what we view is not pretty.

So then the teachers in West Virginia say no mas. They’re entrusted with our foremost responsibility, educating the young, and they’re treated like fast-food employees, viewed as unreliable unionists who must be quashed.

And then the same thing happens in Oklahoma, a red state if there ever was one.

And the teachers don’t even agree with their union, they want more, they want a fair deal. Why should all the energy companies get a pass?

Why should they be subsidized by the government?

Think about that!

Meanwhile, the Kansas Supreme Court keeps saying not enough is spent on education in a state bankrupted by no tax supply side economics and then students, MERE CHILDREN!, are fed up with school shootings and capture the nation’s attention and not only protest, but produce change.

This was not supposed to happen. The NRA was too powerful, they had politicians in their pockets.

But that’s no match for the truth.

And now comes the story of the “Denver Post.”

You’re supposed to feel lucky you’ve got a job, you’re not supposed to rock the boat. The whole damn country is about not rocking the boat. I’m not talking about the agitated on the internet, I’m talking about the working stiffs, trying to feed their families. Sure, you can be a greeter at Wal-Mart, while you subsist on welfare, but if you’re a professional, you need to shut up, for fear of being squeezed out of the marketplace, especially if you’re aged.

And now these reporters have had enough. The hedge fund owners have bled the enterprise dry, using the profits for other endeavors, including lining their own pockets and building buildings.

When you’ve got nothing, you’ve got nothing to lose.

But even if you’ve got something, and you see it slipping away, living in a game of musical chairs, people are now standing up for their truth.

We’ve been at the mercy of these mercenaries for far too long. They’re billionaires, they should be revered like rock stars.

Only there are no more rock stars.

A rock star was someone who made it on their creativity who was all about credibility and truth and not selling out. If a musician makes it today, they’re eager to make a deal, IT’S ALL ABOUT SELLING OUT! Which is why no one’s listening to them, other than the nincompoops who don’t know what time it is.

But the internet was supposed to save us.

Now the truth is these unregulated pricks in search of bucks have belittled our society. The press builds up Sheryl Sandberg as she destroys our country and our minds. But the woman educating your children is pissed upon, told to make do, get a second job.

Our values are screwed up.

Only they’re not.

The truth is we know better, and we’re finally saying it.

Sure, news is a challenged business. But we don’t need extra layers of challenge added on. The truth is the “Denver Post” owners, as well as Tronc, are all about preserving their profit margins, double-digit ones, as not only reporters lose jobs, but the papers lose relevance. First they came for the classifieds, then they came for the full page ads, then they came for the news… The “Los Angeles Times” is a pamphlet, there’s more nutrition in a box of Froot Loops!

But a billionaire bought the “Times.”

And another billionaire bought the “Washington Post,” which went from also-ran to leader. The WSJ is an also-ran and Fox does little reporting, only bloviating, they’re both reacting to the NYT and WP. And we’ve got a President denigrating both.

But the NYT and WP are sticking to their guns. They can handle it, can you?

That’s the story of today. Not about arguing with the other side, but standing up against injustice. When pushed to the wall, people react.

And change results.

This is a wake-up call, as big as the one in the sixties. But then the war was overseas, now the war is right here at home. There’s been a cleaving of society. And despite the b.s., there are facts, and many people know them, and despite the government and the rich trying to lead with misdirection, telling us they know better, we’re not taking it anymore. Because when something smells fishy, it is.

Not every enterprise has to scale like Silicon Valley.

Not every hardworking stiff needs to be discounted because they’re not making beaucoup bucks.

It comes down to people. And fairness. And truth.

And the truth is the nineties are coming to an end. That’s right, forget all that hogwash about the humming economy. The spoils are going to the same sector. A tiny sliver of society. They’ve rigged the game and told us they’re invulnerable. But they’re not.

For twenty years tech ruled. But now it’s hit a wall. Turns out the people steering the ship had no maps for where they were going.

But now we’re here.

Money isn’t everything.

Those who have it don’t know better.

It’s down to you and me baby, we have to change this country, we need to stand up, AND WE ARE!

STAR

Focuses on the single.

JOURNEYMAN

Focuses on the body of work.

STAR

Goes for immediate success.

JOURNEYMAN

Thinks about the long haul.

STAR

Says yes to everything.

JOURNEYMAN

Is worried about their credibility. Only says yes if it enhances the long term career.

STAR

Does privates.

JOURNEYMAN

Does privates, if they can get the work. Everybody’s beholden to the rich people with bucks.

STAR

Does sponsorship deal with anybody who comes to the table.

JOURNEYMAN

Does sponsorship deal only with a like-minded company.

STAR

Views tour as a way to clean up monetarily.

JOURNEYMAN

Views tour as a way to bond with fans.

STAR

Doesn’t bitch about success, is grateful they have it.

JOURNEYMAN

Complains the game is stacked against them, can’t stop complaining about streaming payouts and Ticketmaster. This works for no one, best to do the work and be glad anybody is paying attention.

STAR

Signs with major label. It’s the only entity that can generate that kind of heat and publicity.

JOURNEYMAN

Is fluent financially. Knows reality is more important than image. Doesn’t sign with major label unless it needs radio and publicity, neither of which pay many dividends unless you’re in the Top Forty. Better to keep one’s options open and take the lion’s share of the revenue. Ownership is everything if you’re playing for the long haul.

STAR

Sees music as a stepping stone to something else, it’s all about the Benjamins

JOURNEYMAN

Sees themselves as a musician.

STAR

Spends a lot on recording. 1% makes a difference between a stiff and a hit.

JOURNEYMAN

Spends little on recording, it’s about catching lightning in a bottle.

STAR

Has a rigid, pre-programmed stage show.

JOURNEYMAN

Has a fluid stage show built on unexpected surprises, every night is different, which is why the audience needs to go more than once.

STAR

Has flashy clip for single on YouTube.

JOURNEYMAN

Has lyric video on YouTube, but has tons of live clips.

STAR

Speaks one to many.

JOURNEYMAN

Speaks one to one. It’s amazing how much one single fan can catapult your career. You don’t know who these people are, keep in contact to get lucky.

STAR

Has his label look at the Spotify data.

JOURNEYMAN

Looks at their own Spotify data. Data is everything, it tells you what is reacting, where it’s reacting, which tells you where to focus your efforts, tour and…

STAR

Goes from track to track.

JOURNEYMAN

Puts out a plethora of material. It’s about creating a body of work that someone can explore if they’re interested. Might put it out as albums, but this is a bad course if there’s only one album every year or more, best to put out a continuous stream of music.

STAR

Is shooting for the moon.

JOURNEYMAN

Is bunting, to get lucky.

STAR

Headlines the festival and then is forgotten.

JOURNEYMAN

Plays every festival it can, year after year, honing its live act hoping to infect people.

STAR

Plays to the last row.

JOURNEYMAN

Plays to the front row.

STAR

Has a famous manager, who oftentimes manages multiple acts..

JOURNEYMAN

Has a manager most people have never heard of who works 24/7 managing this one act, maybe one more.

STAR

Has an agent who promises movie and TV roles.

JOURNEYMAN

Doesn’t care about movies and TV, has an agent who cannot only get gigs, but thinks about the career.

STAR

Makes a splash and is then forgotten.

JOURNEYMAN

Sneaks up on you, is hiding in plain sight, and then goes supernova.

There is no other place I want to be
Right here, right now
Watching the world wake up from history

The old President is going to jail. Which means he can’t run for President again. Serendipity delivered me to Rio on the biggest day of the year, the Supreme Court was deciding the future of the country. The nation had descended into lawlessness, the statutes on the books were useless, and not only did that leave havoc unchecked in the favelas, the rich were profiting and never going to jail for their corruption, they just appealed until…well, basically forever.

So, last night the scheduler of the second stage for Rock In Rio was streaming the hearing to his iPhone. The organizer of the conference was giving us a lesson in history, in politics, how we got here. You see there was 80% inflation PER MONTH! If you were rich and had investments, you were cool. But if you lived on your paycheck, it was insanity. But a new President came in and stabilized the country. And when he termed out a new guy replaced him saying he was for the poor while stripping the cupboards bare. That’s the guy caught up in operation Car Wash, the one they nailed after midnight last night. He coasted on the coattails of his predecessor and got rich in the process, kinda like Trump and his cronies, did you read about David Pecker?

Then again, maybe you don’t believe it, just like some people, the poor people, still believe in the Brazilian ex-President.

But now there’s a path forward. Although the U.S. papers say the country could end up with a military dictatorship, people want order, people might want a strongman.

Which is what we’ve got in the U.S.

Before lunch I met the U.S. consul, Tommy, from South Carolina, kinda aw shucks, very nice, I realized I could never be a diplomat, I can’t sling that much b.s. But I enjoyed Tommy, he was likable, he lived through Afghanistan, in July he’s going to VENEZUELA! Living in the city we focus on money, but there are other routes to fulfillment.

And then I went to the Museum of Tomorrow, with its exquisite structure exceeding its exhibits, but there was one about population and the challenges coming and it made me feel good I wasn’t gonna live that long, then again, most of you are, it’s time to deal with what we’re doing to the planet, actions have consequences, plan today for tomorrow or you’re gonna be obsolete.

Like my driver, he’s never seen a Tesla, he was fascinated by my stories, but he’s smart enough to get out of the game before driverless cars put him out of business. And he’s asking my advice, about pursuing your dream, going back to college, even at age thirty. I told him to. You want every advantage you can get.

And then on to the historical museum to get the Brazilian history we never learned in school. They had a huge slavery problem. Coffee is a staple of the economy, as are minerals. As for destruction of the rain forest…

I was told last night that Roberto Medina of Rock In Rio planted a zillion trees, that the problem is passe.

Then again, people have to live, people have to eat.

So it’s off to dinner with Ed Cherney and Geoff Emerick and crew and…

Right now, there’s no place I’d rather be, as I hear about the making of Bonnie Raitt and Bob Dylan records, as I hear about working with Paul McCartney. The lessons are so insightful. Dylan told Cherney to make it dirtier, he could hear every instrument in the mix and didn’t want to!

And that’s all history, but you’ve got to study it so you don’t repeat it.

There’s your sign of the times.

“Lula, Brazil’s Ex-President, Can Be Jailed, Court Rules”

Right Here, Right Now – Spotify

Right Here, Right Now – YouTube

Distribution is king, never forget it.

All those cable channels disrupted by Netflix and the internet? The systems distributing them are doing just fine, better to own the pipe than that which flows through it. As for Netflix…

It owns both content and distribution.

Which is why Disney is trying to imitate it.

As for HBO, it’s caught in the “Innovator’s Dilemma,” so busy trying to protect its old model that it can’t jump into the new. As you will remember, Clayton Christensen said to build your competitor across the street, and when the time is right, you JUMP! NOW IS THE TIME!

And now Spotify is worth more than all three major labels COMBINED!

Think about that, Spotify is worth more than Sony, Universal and Warner put together. Talk about leverage! And that’s what Spotify plans to employ, it’s right there in its investment materials, they want to drop the cost of wares.

Will the labels say no?

Well, when Spotify owns the marketplace, it gains power. Never forget that, in internet world one entity controls 60+% of the vertical. Can you say Google in search, Amazon in retail, Facebook in social networking? All the competitors are also-rans. The music business thought it was building a competitive distribution marketplace, but with all outlets just a click away, people gravitate to the one with the best user interface where their friends are, as long as you continue to innovate, you win, until someone comes along and completely disrupts you. Could that disruption be voice control? Interesting. But right now, we are in the heyday of on demand streaming.

Which the music business infrastructure fought for eons, some of the musicians are still fighting it, even though streaming has caused recorded music revenues to spike by double digits, because they just can’t understand it, and refuse to accept that music is now akin to the rest of the world, the rich get richer and the poor…stay that way. Although with Spotify data you can build a cottage industry, you just won’t get rich on recordings, but you can tour and sell merch but you won’t be ubiquitous.

The labels screwed up. Primarily because they are public companies without vision, everybody’s on the short term payroll. Did you see that Sony dropped a ton of Spotify stock yesterday? Maybe they were acting as a market mover, but that’s a contracted exec for you… Cash out on my watch, so I can get my bonus! All those label incubators, they’ve delivered bupkes. As for 360 deals, now you can build yourself online and negotiate them away, and the labels never added any value, it was all a land grab, while the labels were protecting their margins, like the newspapers, they faded the same way.

So…

Can Spotify eradicate the majors, or at least their power?

That’s what the company so publicly states, that it wants to cut out the middleman, i.e. the major label, to increase its margins.

Well, Spotify will never become a label, never buy a label, you don’t compete with your suppliers, especially when legacy assets are worth so much. Amazon tried to do this by starting a publishing house, they were frozen out. Furthermore, it’s bad business. Without said catalogs the labels would be in the toilet, catalog, already paid for with low royalty rates, props up the majors.

But beginners are pissed at said loyalty rates. When they can make a direct deal and earn a multiple.

BUT HOW DO YOU GET STARTED??

Spotify went public to return value to investors. Can you make it without investors?

Some can, most can’t.

You don’t need a label, just someone with deep pockets. But odds of success are so low, deep pockets are hard to interest. And, deep pockets want a ton of upside, that’s right, Daniel Ek may control Spotify with Martin Lorentzon, but they don’t own the majority share, that’s the way business works.

So majors give cash for low royalty rates because they can survive on catalog and hits, and so far no one’s come up with a better business model. Most managers refuse to spend and…until someone does, we’re stuck with the same damn system.

Marc Geiger said WME was gonna lend to artists, but we haven’t heard him talk about that in eons.

And in today’s cacophonous world, if you don’t have the investment to raise your profile, forget it.

But Chance succeeded on his lonesome. Buoyed by the hip-hop culture online. That’s right, cultural capital can be as valuable as cash.

So, Spotify has a cost issue, it prevents scale, they say they’re going to attack this via leverage with the major labels and going direct with the indies, they’ve delineated their strategy, disregard it at your peril.

But there will be some movement along the way..

And sure, Spotify stock could crash, like ArtistDirect, but Spotify’s an ongoing concern with income, unlike ArtistDirect, it won’t go to zero.

So, we’re in a new era, the shine is off the major labels. Hell, if you want cash, you’re better off going to a concert promoter, who’s got it, will spend it and will take very little in return.

Proving, once again, the lack of importance of recordings in the ecosystem. Hell, if you’re a great performer you don’t even need a ton of streams. But if you’ve got them, you’ve got people who want to see you in a world based on experiences, i.e. live.

So Spotify now has more power than the people it licenses from. They did this by building a better mousetrap and being respectful, taking the fox into the henhouse.

They’re gonna start eating the chicks soon, just you wait.