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Four Rules For Music Business Success

The Topspin blog has a story of one of the bands they’ve worked with, a lesser known act called Fanfarlo, that was able to reach some specific goals in promoting itself and building up its fan base, while getting many to commit to paying. From that, the post discusses a four step “formula” that the band used for success (listed here with my summary):

  1. Don’t suck: something that often gets lost in these discussions. The music still does need to be good. All of these business models are that much harder if the music isn’t any good and fans don’t like it. Playing good music is a definite first step.
  2. Get others to introduce you to their audience: This is another good point. I’ve been talking to some musicians lately, who were trying to understand how to best apply some of this stuff, and I often suggest looking for other, more well-known acts, that the band can work with to get some sort of endorsement, or “opening” slot on a tour (or even just a gig) as a way of reaching more fans. The Topspin post points out that some people assume that this is the real story behind the success of Fanfarlo, but the numbers don’t bear that out. It probably accounted for approximately 30% of the band’s sales. Not shabby, but hardly the only reason for the band’s success.
  3. Make those audiences an offer they can’t refuse: In this case, the band offered a download of their album, plus four bonus tracks for $1 for a limited time. Yes, all of the songs combined for a dollar — not each of them for a dollar apiece. While I normally support just giving away the music for free, I can see a reason to offer them all for a dollar in some situations. In this case, it gets more people to commit to the music and the band, but at a price that is much easier to deal with. I’m still not convinced that $1 is better than free, but it sure beats regular album prices. While this offer was for a limited time, after it was over, the band still offered the download cheaply ($6).
  4. Repeat: This is another important one. We keep hearing bands put in place business model promotions that are one time deals, rather than a fully thought-out continuous and ongoing business model. By repeating the process, not only can a band keep making money, but it lets them iterate and experiment, and find out what works (and what doesn’t.).

In this case, it looks like things definitely worked. It was able to get 15,000 new fans on its mailing list, with a rather stunning 13,000 of those buying something (but fans just want stuff for free, right?). Of those who simply viewed the download offer, an amazing 22% made a purchase. That’s an insane conversion rate. Also 30% of the download buyers came back and bought a physical product later (CD, vinyl or special edition).

All in all, yet another successful example of a band figuring out ways to connect with fans while giving them a reason to buy.

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Four Rules For Music Business Success

The Topspin blog has a story of one of the bands they’ve worked with, a lesser known act called Fanfarlo, that was able to reach some specific goals in promoting itself and building up its fan base, while getting many to commit to paying. From that, the post discusses a four step “formula” that the band used for success (listed here with my summary):

  1. Don’t suck: something that often gets lost in these discussions. The music still does need to be good. All of these business models are that much harder if the music isn’t any good and fans don’t like it. Playing good music is a definite first step.
  2. Get others to introduce you to their audience: This is another good point. I’ve been talking to some musicians lately, who were trying to understand how to best apply some of this stuff, and I often suggest looking for other, more well-known acts, that the band can work with to get some sort of endorsement, or “opening” slot on a tour (or even just a gig) as a way of reaching more fans. The Topspin post points out that some people assume that this is the real story behind the success of Fanfarlo, but the numbers don’t bear that out. It probably accounted for approximately 30% of the band’s sales. Not shabby, but hardly the only reason for the band’s success.
  3. Make those audiences an offer they can’t refuse: In this case, the band offered a download of their album, plus four bonus tracks for $1 for a limited time. Yes, all of the songs combined for a dollar — not each of them for a dollar apiece. While I normally support just giving away the music for free, I can see a reason to offer them all for a dollar in some situations. In this case, it gets more people to commit to the music and the band, but at a price that is much easier to deal with. I’m still not convinced that $1 is better than free, but it sure beats regular album prices. While this offer was for a limited time, after it was over, the band still offered the download cheaply ($6).
  4. Repeat: This is another important one. We keep hearing bands put in place business model promotions that are one time deals, rather than a fully thought-out continuous and ongoing business model. By repeating the process, not only can a band keep making money, but it lets them iterate and experiment, and find out what works (and what doesn’t.).

In this case, it looks like things definitely worked. It was able to get 15,000 new fans on its mailing list, with a rather stunning 13,000 of those buying something (but fans just want stuff for free, right?). Of those who simply viewed the download offer, an amazing 22% made a purchase. That’s an insane conversion rate. Also 30% of the download buyers came back and bought a physical product later (CD, vinyl or special edition).

All in all, yet another successful example of a band figuring out ways to connect with fans while giving them a reason to buy.

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Now syncing: Google history on mobile phones

Google made two significant enhancements to Google.com on mobile phones Wednesday.

The first, history sync, now makes it possible to carry over a record of your search queries when you switch between mobile and desktop versions of Google.com. Dubbed “Personalized Suggest,” Google will now remember your searches and will add them into the list of search suggestions you see as you type into the search bar. The new feature saves you from browsing through your history to repeat a query.

Of course, you do have to be logged in to Google for this to work, and you’ve got to have Web History switched on. Enable it on a phone by selecting “save searches” in the Settings menu on Google.com. At launch, the feature is only available in the U.S. on Android, iPhone, and Palm WebOS phones.

Google Local on mobile

Google Local on mobile.

(Credit: Google)

The second addition today similarly gets the mobile and desktop versions of Google.com talking to one another. Google has redesigned local search to make finding places of interest while on the mobile Google site much more finger-friendly. Click or tap “Local” on the mobile browser and you’ll see a Start screen with categories you can browse to find restaurants and other businesses nearby, similar to what you can do on Google Maps. You’ll need to have the My Location feature enabled.

There’s also a category for viewing the points of interest that you starred as favorites on a Google Map. Starring essentially bookmarks the location’s Google Place page. Bookmarking isn’t anything new, but the browsable layout is relatively new to Google, which generally favors bare links to graphical enhancements. This treatment has the mobile Google site looking like a mobile hot-spot-finding app you might find in an on-phone app store. We have to say, it’s a nice change.

The rejiggered Local Search kicks off in the U.S. and China, with support for more regions in the works.

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Connecting With Fans Via Live Theater As Well…

For many years, my wife and I have held a season subscription to the plays at the American Conservatory Theatre (ACT) in San Francisco. They put on some really great shows — a mix of new and old (including at least one play by either Tom Stoppard or David Mamet pretty much every season, which is great, since those are probably my two favorite playwrights). This latest season kicked off with a bang a few weeks back with an amazing adaptation of Noel Coward’s Brief Encounter, done by the Kneehigh Theatre group from the UK. Having attended dozens of plays at ACT over the years, I can’t remember any that I thought was quite so amazing or that made me want to run out and tell lots and lots of people to go see it. It’s the most imaginatively staged play I’ve ever seen, and you have to have a serious psychological disorder not to smile through most of it (despite the serious subject matter: marital affairs). I think the opening line to the SF Gate review summed up my thoughts exactly:


Every so often a theater piece comes to town that is so brilliantly conceived and executed, so entertaining on every level, that you want everyone you love or even like just a bit to see it. Kneehigh Theatre’s “Brief Encounter,” the opening show in the American Conservatory Theater’s new season, is that kind of experience.

You kind of have to see the play itself to understand what’s so creative about it, but as a hint, before the play even starts, the actors show up in different parts of the theater and start playing instruments and singing songs — totally unannounced (and many in the crowd ignored it) right up until the play starts. Then, during intermission, they ended up doing something similar in the bar area (downstairs, not upstairs), before mingling with the crowd as everyone made their way back to the theater. Considering most of the actors are on-stage close to the entire time during the play, it’s noteworthy that they then end up extending things both before the play and during the intermisison. It really is a neat way for the actors to more closely “connect” with the fans at the show.

Anyway… that, by itself, obviously isn’t the sort of thing we post around here, but when I saw the news that the engagement had been extended for another week (the second time already) due to popular demand, I wanted to send that news to a few friends who I knew would enjoy the show, and did a quick search to find that SF Gate review (separately, I believe the play is heading to NY and then Minnesota in the coming months, for folks in either place). In doing so, I came across a blog post from a dramaturg who works at ACT talking about how the artistic department of ACT is trying to get much more involved in meeting people at the theater and improving the overall experience:


An idea I had over the summer, the SHOP puts the creators of
Words on Plays (my supervisor and me) in the theater to personally sell our product and discuss it–as well as the play itself and the theater more generally–with our patrons. Part of our theater’s mission is to encourage conversation; we’re taking this tenant literally. Previously Words on Plays was sold at the merchandise counter, but that counter is remaining unmanned this season because of low sales. So our timing was good.

The idea is to get more in touch with the fans coming to the theater and build a stronger relationship, while still offering “reasons to buy” (the whole RtB part…). While it sounds like direct sales of the book weren’t a big deal, it is still helping more people connect with the theater overall and come back to see more plays (a bigger moneymaker than any book…):


Our patrons are most familiar with our theater’s hospitality and fundraising staffs. Certainly not a bad thing, but what if this model was exchanged for one in which representatives from the artistic staff were always present to discuss what the patrons are really there to think about–the art?

This is how smaller theaters have to do it because everyone is doing everything. The artistic director is the ticket taker. The playwright is the one who knows where the fire extinguisher is. And it’s lovely. Every show you are being welcomed in by a family.

This is where my thinking started. I would stand at my booth selling my product and furthering conversation about the show. But I think I may have been thinking too small. Last night I sold five copies. Commendable but negligible. But I also sold at least two couples on November, our next show, by simply telling them how funny a script it is. I spoke to another gentleman about his time in England. I made a handful of people laugh when I directed them to the new location for the hearing devices: “Why don’t you put a sign up?” “Because then I wouldn’t get to talk to you.”

Indeed. Over the last few months, we’ve been seeing how the whole CwF + RtB concept isn’t just working for musicians, but authors, movie makers, photographers and many other content creators as well. Most of these experiments are still early, but you get a sense that actually building real connections with fans is really working for those who truly put their hearts into it. And, oh yeah, if you’re in San Francisco, you really should go check out Brief Encounter

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YouTube Musicians Form The DFTBA Label

As part of its MusicTuesdays, YouTube posted a brief plug for DFTBA Records, describing the year-old record label that supports musicians on YouTube. As you might expect, these musicians understand that sharing their music on YouTube is one of the best promotional channels on the internet. So it’s not exactly shocking that DFTBA officially encourages anyone to use its music (ok, not all of its music, but most of it) in the background of other original YouTube videos — which is similar to Moby’s gratis license for independent films.

It’s good to see that DFTBA Records is yet another example in the music industry of a business that has picked up on connecting with fans, and it even has a built-in reminder with its name (Don’t Forget to Be Awesome) to keep its audience happy. Perhaps Warner Music can learn something from these artists: instead of going after fans to punish them, it’s better to be awesome and grow a fanbase. Especially since it’s becoming clearer every day that musicians can connect with fans on their own, and some artists are beginning to wonder what traditional labels really have to offer.

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Bad Ideas: ACORN Sues Videotapers For Illegal Wiretapping

Sometimes these things just make you wonder what people are thinking. If you follow political news at all, you’ve no doubt heard about the whole ACORN scandal, with workers at the organization being filmed having no problem offering advice to a fake “pimp and ho” on how to handle the tax implications of trafficking in underage sex workers. The whole thing has been pretty ridiculous, with pretty much everyone holding any sort of political office shoving each other aside to distance themselves (and any gov’t funds) from the organization. Honestly, if you’ve ever watched Candid Camera (dating myself) or any of its modern equivalents, I’m not really sure that getting a few people to do stupid stuff on camera really says all that much about an organization, other than that it needs to better train people, but what really calls ACORN’s judgment into question is its decision to sue the folks who made and financed the videos for an “illegal wiretap.” Even if they broke wiretapping rules by recording the meeting without letting the worker know, no good can come from this lawsuit. In that link, Andrew Moshirnia from the Citizen Media Law Project goes through a variety of reasons why it makes no sense to sue, even if they have a chance of winning the lawsuit. All it does is call more attention to the whole thing at a time when the organization should be apologizing profusely and detailing what steps it’s taking to make sure such things never happen again. Suing just makes the organization look like it still defends those actions. ACORN screwed up big time, and it’s only adding to its troubles by trying to sue those who exposed the organization for an illegal wiretap.

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Judge Says Video Games Can Use Sports Stars Likenesses

Earlier court rulings have found that sports leagues cannot stop videos games from using player stats, since that’s factual information. But, what about player likenesses? Many had assumed that was still forbidden without a license, but a new court ruling has found otherwise. Former football player Jim Brown had sued EA, claiming the use of his likeness violated his rights, but a district court judge has dismissed the case, saying that video games are “expressive works, akin to an expressive painting that depicts celebrity athletes of past and present in a realistic sporting environment,” and thus are protected by the First Amendment. The case will almost certainly be appealed, but for now, it’s a big win for video game makers and their ability to use player likenesses in their games without licensing them first.

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Google Destroyed Missent Bank Info Email Unopened… As More Legal Questions Are Raised

Last week, Google was ordered to deactivate someone’s Gmail account, because Rocky Mountain Bank had totally screwed up and sent the Gmail account holder an email by accident, which contained all sorts of confidential information. It’s still not at all clear how Rocky Mountain Bank made such a monumental screw up, but we’ll leave that aside for now. On Monday, the two companies asked the judge for permission to restore the email, after they realized that the email in question had never been opened, and Google had deleted it from its servers. Case closed?

Well… not so fast. Paul Alan Levy, from Public Citizen, sees a number of serious problems with the whole episode, starting with the legal complaint in the first place — which offered no opportunity for the email account user to speak up and argue for his or her own rights, against having the account deactivated. But just the legal proceedings themselves suffered from some serious problems:


First, the complaint. Rocky’s complaint is based on the contention that, having botched its obligation to keep its own customers information secret, it was obligated under various state and federal banking regulations to seek to recover the information and prevent its further dissemination. The complaint further alleges that regulatory officials expressed their endorsement of efforts by the Bank to protect the confidentiality of the information. The complaint sought a declaratory judgment that Rocky Mountain was entitled to information about the account holder, and that Google was obligated to prevent use of the information sent to the account. It sought an injunction enjoining Google and the account holder from accessing or distributing the information mistakenly sent to the email account, and compelling Google to identify the account holder. But curiously absent from the complaint was any allegation about how either Google or the owner of the gmail account had violated the plaintiff’s rights, or any assertion of a cause of action against either Google or the anonymous account holder, that would form the basis for granting relief against either. Nor did Rocky Mountain’s papers explain why section 230 of the Communications Decency Act entitled it to bring an action against Google, or to obtain any relief against Google, even assuming that it had a claim against the gmail account holder. Without a cause of action and without a violation of the plaintiff’s rights, why was Rocky Mountain entitled to relief, and why should the defendants be subjected to an injunction? Neither the complaint, nor the brief in support of the TRO, explains this.

Second, the lack of federal court jurisdiction. Although the complaint identified only Google as a defendant, Rocky Mountain asked for relief against the anonymous gmail account holder, which is obviously, therefore, a defendant just as Google was. Indeed, if either Google or the account holder was the right defendant here, it is the account holder. But this poses a serious problem, because the law is clear that a Doe defendant cannot be sued under diversity jurisdiction. If there had been any party with any incentive to protect the Doe’s rights in this case, that party could have pointed this jurisdictional defect out to the Court, which would therefore have been obligated to dismiss the case instead of issuing a TRO.

Oops. And, from there, Levy also wonders why Google was so quick to roll over without trying to defend the user’s rights:


Rocky Mountain’s papers recount that it asked Google for help freezing the account and identifying the account holder but that Google refused to do so without “a valid third party subpoena or other appropriate legal process.” Yet despite the filing of plainly defective papers, there is no indication in the publicly filed papers that Google either opposed the requested order or insisted that it be given the opportunity to notify the Doe gmail user so that he or she could obtain counsel and oppose the requested order. Nor do the papers contain any discussion of efforts to notify either Google or the anonymous user about the requested order, even though Rule 65(b)(1) of the Federal Rules of Civil Procedure requires either notice to the parties sought to be enjoined, or a compelling explanation of why notice was not possible. (Because the Bank noticed the problem on August 13, and waited until September 17 to file its suit, it is hard to believe that a few more days’ delay to give proper notice would have been catastrophic). And within a day of the issuance of the order (one day before the compliance deadline), Google provided the court with a document explaining how it had complied with the TRO and asked, jointly with Rocky Mountain, that the TRO be vacated.

Indeed. It’s certainly understandable why everyone wanted to make sure the data was not compromised, and in this case, it sounds like the account in question was probably inactive or rarely used (or the email went to spam). So everything may have ended up okay. But that’s no excuse for potential violations of an individual’s rights in trying to correct a mistake by the bank.

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Twitter launches ‘Lists’ in limited testing

Twitter on Wednesday announced a long-awaited feature to a small subset of its user base for testing. “Lists” lets users group Twitter accounts together for easy filtration.

For example, you can create a list of all of your work friends or one for all of your drinking buddies. By default, lists are public (although private ones can be created), so they can be shared with anyone on Twitter. Other users can then subscribe directly to one of your public lists if they are interested.

Twitter's new Lists feature.

(Credit: Twitter Blog)

List sharing opens up a lot of possibilities for list curators to emerge on the service, creating a whole new class of influential users. This should help with the discovery of new Twitter accounts and hopefully help to keep fresh content flowing to you.

One of the big complaints about Twitter is that after you pass a certain number of people that you are following, the stream of tweets is impossible to keep up with. By giving users the ability to group people together, it becomes a lot easier to keep track of the accounts that you are interested in at a given time. This will certainly allow people to use the service much more effectively.

Lists has been one of the most requested features for Twitter for some time and it’s great to see that they are finally rolling out the functionality. Twitter has said that information on how Lists will work in their API will come in a few days.

Originally posted at The Web Services Report

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TechStars’ young entrepreneurs head to Silicon Valley

MOUNTAIN VIEW, Calif.–Among the tech industry’s up-and-coming, ad-supported business models appear to be out of fashion. Or at least that appears to be the trend among the companies that just graduated from the annual Boulder, Colo.-based incubator program TechStars. Representatives from some of those start-ups convened for an “Investor Day” at a Microsoft-owned auditorium here on Wednesday morning.

Founded by venture capitalists David Cohen and Brad Feld three years ago, TechStars accepts a total of 20 participants in both Boulder and Boston for a summer of development, seminars with industry veterans, and a small amount of seed funding. Thirteen of those 20 companies were advanced enough to earn spots at Wednesday’s Investor Day, in which they offered short presentations to more than 100 members of the venture capital community who are actively interested in making early-stage investments.

And not a single one was offering a strictly advertising-supported business model, something that would’ve been pretty unthinkable not so long ago.

“(These companies) are the future of the entrepreneurial ecosystem as it evolves,” Feld said to the audience midway through the morning. “We think these are all very fundable companies. In fact, most of the companies that you’re seeing today are either well down the path of closing financing, or have closed financing, but for many of them there’s still room.”

Unlike the TechCrunch50 start-up pitch event earlier this month, none of these companies were actually launching out of a total stealth mode. Some had already experienced a sort of PR blitz–travelogue site Everlater generated some buzz when people were using it to map their plans for airline JetBlue’s “All You Can Jet” promotion, and unofficial Twitter app store OneForty experienced the usual tech-blog mayhem earlier this week when it launched in private alpha and set off a flurry among the early-adopter crowd as people scrambled for invites.

But like TechCrunch50’s array of start-ups, most of the TechStars lineup had productivity on the brain. Gaming and entertainment companies were limited to TakeComics, which aims to bring an iTunes-inspired business model to the digitization of comic books, and AccelGolf, a decidedly hardcore set of mobile and Web-based applications for avid golfers.

Business-focused applications were far more commonplace. Retel Technologies has built security-camera software enhanced with data and analytics, NextBigSound tabulates bands and musicians’ popularity on social-media and music sites to roll up into a product sold to industry professionals; SendGrid offers e-mail marketing services to businesses at a variety of price points; and HaveMyShift, built by a former Starbucks barista, offers an exchange for hourly employees at major chain stores to swap and pick up shifts.

The companies were a mixed bag, and so were the entrepreneurs behind them: many fell into the young-entrepreneur stereotype of puppy-faced young men who could use a haircut along with that seed funding, but others strayed from the norm. OneForty’s Laura Fitton is already a respected Twitter consultant; Raj Aggarwal, CEO of mobile data start-up Localytics, is an Apple veteran who had helped construct the original business model for the iPhone; and the founders of mobile contact management company Sensobi professed to earlier entrepreneurial experience in the chocolate industry.

Of the entire lineup, Everlater–founded by two childhood friends who had quit their Wall Street jobs to found the company–offered the closest thing to the typical ad-supported consumer model that was so ubiquitous in Web 2.0’s heyday a few years ago, and even still, the founders plan to sell customized scrapbook and postcard products as well as offer branded packages to travel companies hoping to get their name out there.

A few other TechStars presenters said they hoped to use a free, ad-supported model as an entry point for the subscription services where they plan to make more significant money: video-based language learning system LangoLab, for example, hopes to strike deals with online video hubs like Hulu and then charge for access to lessons based around that “premium” content, and open-source forum software Vanilla charges for the hosted version of its product.

Granted, these business models still have their pratfalls: namely, the fact that they actually have to find individuals or companies who are willing to pay, something that often requires the formation of a solid marketing or sales department before profits can start to roll in. That was why many of them said they were looking to close early-stage funding rounds soon.

But those solicitations for funding were not lofty. Almost all of the TechStars presentations provided a target amount that they were seeking for their angel or Series A rounds (a few had closed rounds already), and the vast majority were south of $1 million–far south, in some cases.

Originally posted at The Social

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