The Hard Sell

Went to an industry shindig here in LA the other night and all the free drinks and booze on offer couldn't eclipse the fact that many of the people in that room are doomed...or at least their jobs are.

This was a small group of highly intelligent music industry veterans - people from every corner of the business, including label reps, artist managers, publishers, social media honchos and press. The conversation was candid and free-flowing, with opinions galore. But one fact kept coming up: if you're in the business of selling digital media - whether it be music, video, books - you've got a very tough road ahead, one that I and many others believe could eventually end at a cliff if you refuse to accept the reality of what's happening around you.

I often appreciate the fact that we here at Brandracket are not in the business of selling content. We're essentially a broker; we facilitate mutually beneficial relationships between rightsholders and companies who want to license content for both paid and promotional uses. As long as copyrights exist, we'll have a business, though it will surely have its ups and downs.

But what about record labels, film studios, music and book publishers, and others who are in the business of bankrolling content, then charging for it? Will they have sustainable businesses 10 years from now, when technology has made pirating content almost telekinetic, and bands, filmmakers and authors no longer need a traditional infrastructure to distribute, promote and place their works? (This is already the case, actually.)

I think the answer is yes - for those who understand the space and where things are headed. Because while I do think that the traditional label/studio/publishing house model is on its way out, artists will always have a need for someone to help them distribute and promote their works to the world at large. I think there's a huge opportunity for well-organized, smart and experienced people to position themselves as mid-wives to these artists.

There was one gentleman at this industry confab who was quite vocal in his belief that the path to a sustainable future for rightsholders lies in 1) monetizing absolutely every shred of content and 2) selling more of it for less. It's all about micro-payments this guy was saying; forget about selling an album for $9.99 on iTunes - knock the price down to $3 and sell a lot more. That sounds to me like one helluva gamble for rightsholders (and a tough pill to swallow for artists), but he might be right. In the Age Of Free, rightsholders might need to take prices way down if they want any hope of people buying.

One thing is certain: any rightsholder standing still hoping that the problem of his dwindling sales will magically go away is on a collision course with extinction. Content owners: you are at DEFCON 1 ("Cocked Pistol" in the parlance of NORAD), a truly adapt-or-die situation. I would encourage you to experiment with different models, take some chances, make some mistakes (or victories) and learn. But whatever you do, do something. You can start here. ~ Tim