{"id":2178,"date":"2009-08-20T10:37:49","date_gmt":"2009-08-20T18:37:49","guid":{"rendered":"http:\/\/lefsetz.com\/wordpress\/?p=2178"},"modified":"2009-08-20T10:37:49","modified_gmt":"2009-08-20T18:37:49","slug":"update-7","status":"publish","type":"post","link":"https:\/\/lefsetz.com\/wordpress\/2009\/08\/20\/update-7\/","title":{"rendered":"Update"},"content":{"rendered":"

TALENT PRICES<\/span><\/p>\n

Expect those checks to decrease.<\/p>\n

Don’t know if you’ve been following the movie business, but the studios have taken back compensation.\u00c2\u00a0 Rather than give eight digit salaries and profit participation from dollar one, they’re making almost everybody, actors and directors, wait for their money (if it comes in at all!)\u00c2\u00a0 The same thing is going to happen in music.<\/p>\n

The game changed when Robert Sillerman rolled up the promoters into what’s now called Live Nation.\u00c2\u00a0 Seth Hurwitz has been screaming about overcompensation for years.\u00c2\u00a0 But to no avail.\u00c2\u00a0 But now Live Nation sees no way out.\u00c2\u00a0 Despite Rapino’s protestations that the future is just around the corner, the financials continue to be horrible.\u00c2\u00a0 So, expect Rapino to put the big hurt on acts next year.<\/p>\n

Sure, AEG will overpay.\u00c2\u00a0 But they’re not eager to do this anymore either.\u00c2\u00a0 Especially in light of the Michael Jackson fiasco. Furthermore, AEG isn’t in the business of developing new talent, just scraping the cream off the top.<\/p>\n

Live Nation can’t continue to overpay and survive.\u00c2\u00a0 So, they won’t.<\/p>\n

Sure, Rapino tried to institute new, fair, creative deals a couple of years back, but it’s a different era now.\u00c2\u00a0 The customer’s wallet is closed.\u00c2\u00a0 These shenanigans can’t go on forever.<\/p>\n

Expect lower guarantees and a return to revenue sharing deals.<\/p>\n

Acts will have no choice.\u00c2\u00a0 The public has spoken.\u00c2\u00a0 People don’t want to overpay for what they’ve seen before.<\/p>\n

Everybody in this business is going to have to take less.\u00c2\u00a0 And a healthy, profitable Live Nation is good for the business.<\/p>\n

As for a Ticketmaster merger…\u00c2\u00a0 The worst offender re Live Nation guarantees is Howard Kaufman of Frontline.\u00c2\u00a0 How will Irving Azoff handle this thorny issue if the merger goes through?\u00c2\u00a0 Is his loyalty to the acts or to Live Nation Entertainment?<\/p>\n

I expect Irving to finesse this question.\u00c2\u00a0 To make sure the acts make enough money to be happy.\u00c2\u00a0 But that’s the problem with consolidation, the conflicts of interest.<\/p>\n

SPOTIFY<\/span><\/p>\n

Read this article:<\/p>\n

\n
Behind the music: The real reason why the major labels love Spotify<\/a><\/p>\n

No wonder the majors speak so highly of Spotify – they receive 18% of shares in the online streaming service. It’s just a pity that artists won’t get to see any of this<\/p><\/div>\n<\/blockquote>\n

Ironically, this is what Irving Azoff wants to change.\u00c2\u00a0 He wants to put the acts in power.\u00c2\u00a0 He wants to change the game from a plantation\/slave paradigm to one resembling today’s movie business, where talent can sell itself to the highest bidder on a project by project basis.<\/p>\n

The unfettered superstars, like the Eagles and Radiohead, have already done this.\u00c2\u00a0 But those under contract to the Big Four not only get little dough, they’re told what to do.<\/p>\n

The labels got their shares in Spotify for almost nothing.\u00c2\u00a0 If the company is profitable or sold they get all the revenue and the artists get nothing.\u00c2\u00a0 ENOUGH with this paradigm!\u00c2\u00a0 Labels sue online companies, artists get bupkes…HOGWASH!<\/p>\n

The labels’ greed is insuring their death.\u00c2\u00a0 360 deals are actually hurting the majors.\u00c2\u00a0 Worried about their bottom line, their land grab is alienating anybody with pure talent.\u00c2\u00a0 Who will go to Irving or someone new, not beholden to the system, and own all his own rights and make all his own money.<\/p>\n

NETTWERK<\/span><\/p>\n

"Tremblay Exits Nettwerk, Launches New Management Shop"<\/p>\n

Terry McBride is a brilliant thinker, but his innovations mean nothing without hit acts.<\/p>\n

You can’t jump into the future, you must straddle the past, present and future all at one time.<\/p>\n

This is a business of talent.\u00c2\u00a0 You’ve either got to be the act or have the rights to a hit act.\u00c2\u00a0 Otherwise, what you’ve got to say is hot air.<\/p>\n

SHERYL CROW SELLS MUSIC CATALOG FOR ABOUT $10 MILLION<\/span><\/p>\n

My Mama told me to NEVER sell my songs.<\/p>\n

Granted, Sheryl hasn’t had that many hits, but isn’t it short-sighted to sell now?\u00c2\u00a0 Unless she’s got a big investment she wants to make, with the market at its lowest point ever.<\/p>\n

I’m not privy to her annual statements.\u00c2\u00a0 These are deals based on math.<\/p>\n

But I will tell you one thing.\u00c2\u00a0 Those songs pay off year after year.\u00c2\u00a0 That money you get in a payout?\u00c2\u00a0 Where you gonna put it? GM stock?\u00c2\u00a0 It can evaporate.\u00c2\u00a0 Whereas songs will be performed for eons,\u00c2\u00a0 will continue to pay out and STILL be worth something years later.<\/p>\n

And only ten million?<\/p>\n

\n
Sheryl Crow Sells Music Catalog for About $10 Million<\/a><\/div>\n<\/blockquote>\n

INNOVATIVE MARKETING, BUT WHAT ABOUT THE MUSIC?<\/span><\/p>\n

\n
Moldover’s Album – Circuit Board Instrument<\/a><\/div>\n<\/blockquote>\n

It’s easier to come up with a great marketing idea than a hit song.<\/p>\n

Just like it’s easier to promote the endorsement deal you made with an athlete as opposed to BEING that athlete!<\/p>\n

Sure, marketing is a talent.\u00c2\u00a0 But not in the league of musicianship\/artistry.\u00c2\u00a0 Sure, great marketing campaigns are legendary, but a shitty song is just that…no one wants it.\u00c2\u00a0 Whereas a shitty marketing campaign just might have some traction.<\/p>\n

The Internet has provided innovative thinkers the ability to hype their wares in innovative ways.\u00c2\u00a0 But being able to come up with a cool idea to sell your music does not make the MUSIC good!<\/p>\n

Very few people have the ability to make music many people want to hear.\u00c2\u00a0 Never forget this.<\/p>\n

WHY AT&T KILLED GOOGLE VOICE<\/span><\/p>\n

Just like most of the public knows nothing about health care reform, most people have no idea how the cell phone business works.<\/p>\n

Read this article and be OUTRAGED!<\/p>\n

\n
Why AT&T Killed Google Voice<\/a><\/div>\n<\/blockquote>\n

Can we at least stop paying for incoming calls, like Europe?<\/p>\n

<\/p>","protected":false},"excerpt":{"rendered":"

TALENT PRICES Expect those checks to decrease. Don’t know if you’ve been following the movie business, but the studios have taken back compensation.\u00c2\u00a0 Rather than give eight digit salaries and profit participation from dollar one, they’re making almost everybody, actors and directors, wait for their money (if it comes in at all!)\u00c2\u00a0 The same thing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2,5,8],"tags":[],"class_list":["post-2178","post","type-post","status-publish","format-standard","hentry","category-music-business","category-online","category-technology"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p96vPs-z8","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/comments?post=2178"}],"version-history":[{"count":1,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2178\/revisions"}],"predecessor-version":[{"id":2179,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/posts\/2178\/revisions\/2179"}],"wp:attachment":[{"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/media?parent=2178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/categories?post=2178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefsetz.com\/wordpress\/wp-json\/wp\/v2\/tags?post=2178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}