Dave Dederer, who sang two velvet underground songs to set the stage for some of the debate, has some ideas for how music artists can monetize their hard work.
Business models that may work for artists:
- (1) Dave no longer tours with the Presidents of the United States any longe, but to tour you need an artist manager (20% of gross), business manager (5% of net), lawyer (5% of gross), publicists etc (infinite $$).
(2) Master recordings - usually artist doesn't own (record company owns these, but there are more independents these days) make records, dowlnoads.
(3) Publishing - just the words & melodies (mechanical royalties, synch licenses w/ film/ads etc., folio publishing)
(4) performance income (ASCAP, BMI, SESAC).
(5) Merchandise - lots of opportunities.
Dave - found the iTunes space the most important place to put the energies of his band in the past year. He was trying to figure out how to do this. He suddenly realizes that he's not in the music business anymore. Instead, he's in the on-line commerce business. His words: "Holy S*#t" what does that mean?"
Dave asks the audience 2 questions: how and when will the record company people get it? what's the end game? This led to some interesting debate/responses including talk about how artists need to work with the people in this room, some Apple develper policy bashing, talk of the sex and glamour of the music industry, what exactly record companies do other than take your money, that Dave things the download market is about 2% of what it could be (is this accurate?), whether big record companies are really evil, and IODA's new deal with Harry Fox.
Towards the end (it went a bit long because Senator Edwards' arrival time), Dave mades a comment that drew a chuckle about how he heard on NPR this morning that Osama Bin Laden announced his latest method to take over the world, and of course Bin Laden made that announcement over the web, and at the same time we cannot put music on a website witout violating any number of US and international laws. What's wrong with this picture?
With that, I'll close out this entry and now listen to the keynote presenter, Senator John Edwards...