Music

UPDATE: This was very much a stream of consciousness blog post, where I wrote down my thoughts as they occurred to me. Among other things, this meant that it lacked a good summary of what it is actually supposed to be about. The basic idea was/is to take Clayton Christensen’s theory of disruptive innovation in business and apply it to music and (by extension) to other arts, with a goal of sketching out a “unified field theory” that (with suitable elaboration) could potentially explain how music evolves not only from an aesthetic perspective but also in terms of the sociology and economics of the communities of composers, performers, critics, educators, audiences, etc., who participate in particular musical traditions and movements. I referenced Kyle Gann a lot because for a while I’ve been reading his blog and his writings on “downtown” vs. “uptown” music, but the themes of the post are really more in line with the writings of people like Alex Ross and (in particular) Greg Sandow who’ve been writing about the future of classical music in relation to popular music and the rest of contemporary culture. ...

Given the extent to which Michael Jackson the person was crushed beneath the weight of Michael Jackson the commercial phenomenon, it’s sadly appropriate that his death should allow Sony Music Entertainment and eMusic to conduct a natural experiment in maximizing profits through price discrimination. Jackson’s death has rekindled interest in his music, to the point where Michael Jackson albums now dominate the charts at the iTunes Store and Amazon. As far as I can tell all the Michael Jackson digital releases on the iTunes Store are being sold at full-price; the same is true for Michael Jackson releases in MP3 format at Amazon. Individual Michael Jackson tracks range from $0.99 to $1.29 on both services. ...

In my previous post I lamented the demise of eMusic as I’ve known it, and in preparation for the future discussed my “jobs to be done” related to discovering and listening to music: Casual listening to familiar music at my computer. Casual listening to familiar music when I’m offline. More focused listening to a) familiar and b) less familiar music while driving. Auditioning music for inclusion in my core collection. Here’s how my jobs to be done match up with various digital music products and services being offered today: ...

In less than a month my grandfathered eMusic Basic 2-year plan (40 tracks per month at a cost of $7.49 per month or $0.19 per track) will end, and I’ll face a choice of what to do next. eMusic’s suggestion is that I go for a eMusic Plus Annual plan: 35 tracks per month at a cost of about $14.33 per month or $0.41 per track. However rather than simply going along with an almost doubling in cost of my music buying habit, I’ve decided to rethink how I actually discover and listen to music, and look at additional possibilities beyond eMusic (or to supplement eMusic) that might serve me better at a comparable cost to what I’ve been paying. This also leads to some thoughts on how eMusic could become a better service from my point of view or, alternatively, how a new service could replace eMusic in my affections. ...

Most of the press coverage of the eMusic/Sony agreement has been either regurgitated press releases and echoes of the original New York Times story, or stories about the backlash from eMusic subscribers. I have a standing Google search for “eMusic” and see tons of this stuff. However there is actual smart analysis being done out there, and here are two examples. As seems to be typical nowadays, these are not from traditional media or business journalists but from a blogger turned pro and a musician who blogs. ...

As is amply clear from recent postings on the eMusic message boards and comments on 17 Dots, eMusic pretty much made a hash of its announcement of the Sony agreement, angering current subscribers not just about the accompanying price increases but also the way in which eMusic CEO Danny Stein’s 17 Dots blog post addressed—or rather, didn’t address—those increases. While I’m quite unhappy about my personal eMusic habit more than doubling in price, I can also see the economic justifications for why eMusic did what it did. I thought it would be an interesting experiment to create a fictional letter to subscribers that Danny Stein might have written in some alternative universe. ...

Well, I significantly underestimated how far eMusic was willing to go in terms of changing its pricing to attract major label content. My personal guess was that Sony demanded a minimum price of at least $0.30 per track, but based on the new US pricing it appears that the new floor is actually $0.40 per track. More specifically, the plan changes are as follows: The eMusic Basic plan is still $11.99 per month, but has been reduced to 24 downloads ($0.50 per song) from the previous 30 downloads ($0.40 per song), or a 25% per-track price increase. The eMusic Plus plan is now 35 downloads for $15.89 per month ($0.45 per song) vs. $14.99 per month for 50 downloads ($0.30 per song) under the previous plan, or a 50% per-track price increase. The eMusic Premium plan is now 50 downloads for $20.79 per month ($0.42 per song) vs. $19.99 per month for 75 downloads ($0.27 per song) under the previous plan, or a 56% per-track price increase. The eMusic Connoisseur plan is now 75 downloads for $30.99 per month ($0.41 per song) or 100 downloads for $40.99 per month (also $0.41 per song) vs. 100 downloads for $24.99 per month ($0.25 per song) under the previous plan, or a 65% per-track price increase. Also, the new Connoisseur plans are available only as upgrades from another plan, and require a minimum 3-month commitment; previously the Connoisseur 100 plan was offered as an option at sign-up time, with no minimum commitment required. People with annual and 2-year plans will be moved to higher-priced plans when their old plans refresh. In my case the default choice offered is to move from my (grandfathered) Basic 2-year plan offering 40 downloads a month for $89.91 per year ($0.19 per song) to a standard Premium Annual plan offering 35 downloads a month for $171.99 per year ($0.41 per song), or a 119% per-track price increase. When downloading at least some complete albums with more than 12 tracks, only the first 12 downloads will be counted against the subscriber’s monthly quota. Booster pack downloads now range from $0.60 per track (when bought in packs of 5 or 10) to $0.50 per track for a pack of 50. I don’t have a complete record of the old pricing, but as far as I’m aware this is not a major change from previously. eMusic is offering a free one-time 15-track booster pack to subscribers who stay with eMusic past July. I’ll have more to say about the overall changes at eMusic in future posts, but for now I wanted to note a few additional points regarding the new pricing: ...

Danny Stein, eMusic’s new CEO, dropped some major news just now on eMusic’s semi-official 17 Dots blog. As reported in more detail in the New York Times, Sony Music Entertainment (home of Arista, Epic, Columbia, and RCA, among others) has decided to release its back-catalog material (anything over 2 years old) to eMusic—basically what eMusic management has apparently been urging them and other major labels to do for ages. (For example, David Pakman addressed this in several of his interviews.) ...

Bob Lefsetz recently published another broadside in his continuing crusade to drag the music industry into the 21st century. In this one he asked the following question: How long until there’s enough unfettered new music, tunes the creators control as opposed to the fat cats, that someone from the outside can roll up these rights and create a viable alternative to the established game? This I think is the key question, since I agree with Lefsetz that industry incumbents are extremely unlikely to innovate, and long copyright terms, existing contracts and statutory licensing arrangements, and political battles over compensation (e.g., regarding performance royalties for terrestrial radio) will slow down if not halt altogether any major revamp of business arrangements for existing works. In particular I doubt we’ll soon see Lefsetz’s preferred “all you can eat for one monthly price” scheme for legalizing P2P downloads of major label content—a skepticism shared by others. ...

In the latest of his Lefsetz Letters” (not yet online) Bob Lefsetz touches on the strategy behind Radiohead’s “pay what you want” album release: How do acts establish a direct connection with their fanbase? How do they entice listeners to join their e-mail list, with authentic e-mail addresses? That’s the number one lesson of Radiohead’s “In Rainbows.” Give away something desirable and you get the right to make contact with your fans thereafter. At MIDEM the co-manager of Radiohead said the “In Rainbows” release allowed the band to collect 3 million e-mail addresses, and ultimately play to 60,000 in San Francisco as opposed to 25,000 the previous time through. And isn’t live where it’s at? ...