Posts Tagged ‘music business’

Kanye, the service company

October 24, 2010

What’s the difference between Metallica and Kanye West? These 34 minutes.

Metallica was one of the biggest bands of the pre-Internet world. While they have been busy trying safeguard their turf by waging a war against the pirates, Kanye and other digital native artists have been re-defining the business.

To the pre-Internet mind, a short film that is shared for free is pure madness. We create products and sell them for good money, say Lars Ulrich & co.

But the industry has moved from selling products to selling services. Products (songs) are provided, services (gigs) are sold.

It’s a dramatic change, and there is no stopping it. Broadband has made all content  hyper accessible – all barriers to reproduction and sharing have fallen down. Making money out of that content (i.e. songs and albums and the like), isn’t a sustainable business no more. Concerts offer a non-reproduceable, non-copyable, one-off experience and thus make for a stable earning model.

To put it in a very marketing way: songs are the ads for gigs.