Tom Silverman’s New Music Model

Today I have a guest post from BJ Jansen of Pitch Artist Services. BJ shot me an email this morning with this post after reading an interview with Tommy Boy founder Tom Silverman on new music business models.

I read through Tom Silverman’s recent interview on the Wired Magazine Blog online and I have to say that there are some strong observations here along with some equally strong opinions. Before going on I wanted to state that although Tom appears to be anti Social Media in this interview, I believe that what he may be alluding to, in my observation, is what I call the Analog. In other words, that Social Media is merely an extension of what you are doing in “Real Life,” that is in-person and the lasting relationships you are building on behalf of your brand. The Analog connection is what forms a strong brand presence online.

I agree with Tom that we need to chuck the traditional adversarial relationship between the artist and business side out the window. The quicker that we do so, the quicker we can start making deals and exploring ways in which to make the business profitable again. The tradition that artists are pitted against the industry is a self-destructive one to say the least.

During the course of his interview, Tom also outlines a model that already exists heavily in the movie business of forming investment corporations or entities such as LLCs to conduct partnerships directly with artists. He points out that this will essentially dissipate the adversarial relationship immediately as the artist and investor must work as a team for anyone to get paid. I wholeheartedly agree here with Tom, this is a no-brainer option for future artist development. Whether the partnership is with private investors, equity firms or other corporations, the money must come from somewhere and investment must return for any of us to make money in the industry.

Tom’s model could be part of the solution if combined with say a strong brand marketing collective as I outlined previously. Even though money greases the wheels of this industry, as with all others, and can help one rise above the clutter, I feel as though membership in a collective of like artists will actually give the artist a truer platform to rise out of obscurity. Tom’s prescription would act as the catalyst to fund the start-up cost, if you will, of the artist’s project or in Tom’s model, business.

We must not also forget that artists are successfully finding patronage from their own fan base to fund projects, without equity stake. Crowdfunding can be a controversial topic, especially when the “clutter,” card is evoked. Tom stated in his interview that, “”Hobbyists… Clutter The Music Environment With Crap.” I would argue that the line these days between the true Art and Hobbyists is a largely blurry line in many cases, with Artists now more than ever maintaining themselves outside of music. This is a side effect of the Long Tail, explosive fragmentation of the industry, and further that the clutter will perpetually present a challenge with no remedy.

The simple reality of clutter and hobbyists in the business is, they’ve always been there and will always be there. The difference is that the internet and the lower costs associated with producing projects forced an economic shift to whereby the clutter could not be as easily controlled as before. Traditional labels, previous to the internet, controlled the ways and means by which a majority of work came to the marketplace, thereby immediately rendering most independent efforts moot. Now with the equalization of the internet and the reality of the Long Tail we have uncontrollable clutter hitting the marketplace,
whether by hobbyists or not.

Clutter, hobbyists and the Long Tail aside, the fact is that if an Artist possesses the heart, talent, persistence and business savvy, they will find a way to become profitable. They will cut through the noise. They will succeed. Unfortunately, in many respects that requires so much more effort out of an artist than ever before, and those who may have a valid message will remain lost in the noise because of inability to navigate the new terrain. The art and craft of this business has not and will not ever change, only adapting it to the constantly changing landscape before us.

We must also realize that as the Long Tail correctly dictates that given the democratization of the web, we will no longer have mega-success on the same scale as before. So, success is in the eye of the beholder and a hobbyist may be content with their own situation. We do have the potential for financial success on a different scale. This is the hand that has been dealt. Tom points out correctly in this interview that the Long Tail is not a friend of the independent artist as it simply banishes most into obscurity. However, since the Long Tail, Technology and Social Media are both the challenges and tools that we must learn to negotiate, harping on it does nothing. Action begets action, which crystallizes change.

I do also agree with Tom that a majority of the industry spends more time worrying about technology, than making things actually happen. Instead they need to learn how to correctly use technology to amplify what they are doing in the analog. Amplify brand strength and bond with consumers. Amplify their possibilities of success.

I’m excited to be attending Tom’s New Music Seminar a week from now here in NYC. I sincerely hope that through logical discussion and forward thought the industry as a whole can dig itself out of the mire of bitterly living in and clinging to the past and start making the deals that will frame our collective future success. Thoughts remain such, unless action is applied, the industry needs action more now than ever.

This post was written by BJ Jansen, the co founder of Pitch Artist Services. Follow him on Twitter.

Top image by lambdachialpha