The Digital Meteor

Crowdsourcing: Hope for Creativity and Profit in the Digital Age?

Some have predicted thatcrowdsourcing is the future of themarketing, advertising, and industrial design industries. The phenomenon, they argue, will accelerate creativity across a larger network.

Others, meanwhile, have predicted this practice of opening up a task to the public instead of keeping it in-house or using a contractor will be the demise of those businesses because of the downward pressure on prices.

BusinessWeek: Crowdsourcing...

Unlocking Digital Creativity and Profit

Business models for content on the Internet are still evolving. But it's already becoming clear that $100-million movies like "Land of the Lost," or even $10-million independent films, may not represent the future of the industry. And new technologies like YouTube, the iPhone and next-generation gaming consoles are opening up all sorts of new, creative possibilities. The artists and business people who will succeed in this new environment are those who are paying attention to the changing behaviors and tastes of this new digital audience -- rather than trying to ignore them or, worse, explaining why they are wrong.

LA Times:  Digital Technology and Dollar Signs

The Failure to Find Profit in Made for Web Content

But unlike other media, where larger numbers of viewers lead to higher advertising revenue, high-volume trafficon the Web hasn't necessarily translated into big money. Advertisers in short-form Internet video pay about $10 to reach every 1,000 viewers, so even a video that gets watched more than 1 million times -- a big hit by Web standards -- might not generate more than $10,000. Three- to five-minute-long "Webisodes" cost $5,000 to $25,000 to produce.

"So many of the major media companies thought they could just make a good show, put it online and sell advertising," said Jim Moloshok, a former Warner Bros. and Yahoo executive who is now chairman of online advertising company Betawave. "That's like taking a radio show and running it on television."

LA Times: Hollywood Hits the Stop Button on High Profile Web Video Efforts

Musician Prince Both Gets and Misunderstands New Business Model for Creatives

...for a while [he] seemed to be the perfect example of a musician who understood how to embrace new business models allowed by the internet. He was creating tons of new music, some of which he was giving away free in order to promote scarce aspects of his business model, such as concerts (he sold out 21 straight concerts in London after giving away his latest CD totally free), while also embracing the idea of getting people to pay him upfront to create music. He also experimented with things like having companies sponsor him, setting up a subscription fan club and even owning a dance club in Vegas where he would perform regularly... And the model was clearly quite successful for Prince, helping him to earn quite a bit of money off of those scarcities. 

Yet, about a year ago, we all began to realize that, as successful as Prince had been in embracing these new business models, he had yet to realize why they worked, and started to attack the very tools that made them so successful...

...he seems totally against the idea of anyone else being able to profit from the music, even if it means he profits more from it. It's a common mistake, but Prince seems to have taken it to extremes. He's benefited so much from these models -- and in misunderstanding them, he risks destroying his legacy. He could have been a pioneer adored by fans, like Trent Reznor -- but, instead, he's been taking a very anti-fan approach. While there are still plenty of diehards, his views have turned off many former fans. 

Techdirt: Prince: So Close...

Ringtones Do Gigantic Business

Rapper T-Pain's digital-only record label, Nappy Boy Digital, claims he has sold more ringtones than any other recording artist -- over 15 million...Hoping this success continues, the mobile media Zed has signed Nappy Boy Digital to an exclusive deal that will see all of the ringtones created by T-Pain and his stable of up and coming rappers released only through its mobile network.

Nevermind that many feel ringtones should be free, since they're just truncated versions of songs we've already purchased whose play button is tied to an incoming call. They're big business nonetheless, due in part to cellphone manufacturers insistence on disabling phones' ability to use MP3s as ringtones.

Top Selling Ringtone Rapper...

Virtual Blues Player Gets Real World Contract

Nashville bluesman Von Johin learned the art of Mississippi Delta-style blues the old fashioned way: by playing small venues across the country. But despite the traditional nature of his music, Von Johin plays weekly shows in Second Life, as you can see in the video to the right. His determination has paid off handsomely, with a record deal believed to be the first ever given to a Second Life performer.

"Never before has a virtual character been signed to a worldwide recording contract," stated Warren Croyle, CEO of Reality Entertainment, the company that signed him. "Von Johin is legendary in the virtual community Second Life for his heart-pounding live shows."

Second Life Bluesman...

New Pay-As-You-Like Digital Music Site

Last year's digital-first release of In Rainbows allowed users to pay whatever they wanted for the download. Now there's an entire Web site devoted to pay-what-you-like: Aralie.com. It's a no-risk way for listeners to discover new music from independent ba

nds. Pay-what-you-Like...

RoyaltyShare Lends Transparency and Accessibilty to Digital Music Royalties.

Just beautiful.  Why couldn't this be worked to apply to video content as well?  Imagine the windfall for creatives and those that service them (agents, unions, etc).  Big media saves on accounting and legal and creatives get what's owed them.  With digital transparency, everyone can win.

There are several competing ways that music can end up in an online music store, but RoyaltyShare's approach offers an interesting advantage: they attach rights information to each song, so that all royalties are automatically generated for every song sold. Compared to the opacity of traditional royalty reporting, this transparency is a welcome change for artists, because each stakeholder's share is perfectly clear.

For labels, the allure of RoyaltyShare is that they don't have to do royalty calculations, and can spend more resources on signing and developing acts. Once RoyaltyShare's system learns the royalty rate due to the studio tech who subbed in on bass guitar on one and a half tracks during a given album, it knows how much the label owes him each month for sales. All of this reporting is available via a simple web interface.

RoyaltyShare Music Distributor Expands...

Google and Lionsgate Hope to Turn Piracy into Profitability

Starting in September, Tinseltown's largest indie studio will be able to monetize those film clips using Google's AdSense service: Sharing, uploading and "mashing up" those clips will be encouraged, because Lionsgate will profit from Google ads sold against them.

Google's collaboration with a Hollywood studio stood in stark contrast to the adversarial posture that Hollywood's other entertainment conglomerates have adopted when it comes to YouTube: On July 15, Google complied with a federal judge's demand that it turn over YouTube viewer data to Viacom as evidence in a billion-dollar lawsuit that alleges widespread piracy of Viacom content, including shows such as "South Park," on the video-sharing site.

It was, Mr. Schmidt said, a perfect example of how Hollywood needed to change to adapt the "'anytime, anywhere' consumer model," vs. what he derisively termed "the lawyer model."

Entertainment Will Be the First Through the Gate...

Trent Reznor Makes Being a Fan Fun

I always like seeing examples of creative-types embracing the new digital frontier instead of shrinking from it.  Reznor is a great example of this.  He had been hiding usb drives with his songs on them in bathrooms at his concerts which fans would discover, take home, listen to and share.  Also, low tech scavenger hunts like this:

Take, for example, this story in the LA Times about Reznor hiding concert tickets around Los Angeles, under rocks and in drainpipes, and then putting up coordinates and clues on the Nine Inch Nails website, sending fans racing across the city to see if they can find the free tickets. While it may be a little silly, it is yet another way for Reznor to build up a really loyal fanbase. He's making being a fan fun.  Sure, it's not for everyone, but it's certainly adding value to the "true fans" that support Reznor.

Techdirt: Trent Reznor...

Author Niel Gaiman Gives Away Books Online and Sells More Books in Stores

This famous fantasy author tried giving away his book online as an experiment, hoping to incite readers to buy more of his books.  Looks like it worked:

Given that Harper Collins sold a lot more of all my books while the free American Gods was out there, with sales of all my titles up 40% through independent bookshops, I think I can safely say that we'll be doing it -- or rather, something similar -- again.

Niel Gaiman's Journal: The Results of Free...

Band Radiohead Releases New Video on Google

Another interesting move by Radiohead-- a band that is way ahead of the digital curve.  They've released a new video not on MTV but on Google:

Google-Radiohead Partnership...

MySpace TV Helps Sell DVDs of Old Kids Shows

MySpaceTV has launched "The World of Sid & Marty Krofft," a channel that will draw from the duo's library of quirky children's skeins of the 1970s and '80s...

"When we made these shows, we barely had VHS," said Marty Krofft. "Now we can have new fans looking at Krofft Kwikies and sliding over to buy them."

MySpace has already had success with condensed versions of Sony TV skeins such as "Fantasy Island" and "The Partridge Family." Brooks said the most successful minisodes have drawn "tens of thousands" of viewers. Total minisode viewership is 5 million.

Although there is a strong movement toward Web syndication, Brooks says exclusive deals work well when the creators have a strong following. MySpaceTV also features Web originals such as "Roommates," "LonelyGirl15," "Quarterlife" and "Prom Queen."

My Space Launches "Krofft Kwickies"

Writers Launch Web-based Strike.TV

As Hollywood braces for an actors strike, an entrepreneurial band of screenwriters idled by last year's writers strike is launching Strike.TV -- an ad-supported web-video venture that allows creators to retain ownership of their series.

Strike.TV is designed to "provide the studios with a risk-free testing ground" that will allow web series to build audiences before potentially transferring to TV -- "just like comic books build an audience for film studios at a very low upfront cost," he said.

Dramatically lower digital-video-production costs -- an HD camera now runs only $3,500, and Final Cut Pro a mere $500 -- mean that writers are able to shoot and edit their own material, then distribute it on the ad-supported service.

Writers Decamp to the Web

Seth MacFarlane to Produce Web 'Toons for Google

A major Hollywood studio and online search engine Google Inc on unveiled separate moves on Monday to put movie and TV-like content on the Web, highlighting the way in which both see the Internet as critical to reaching customers.

Web search and advertising company Google has signed a deal with Seth MacFarlane, 34, creator of the Fox animated TV show "Family Guy," to produce short cartoons for the Web...

The cartoons will be paired with advertisements placed on targeted Web sites, and will also be available on the Google-owned video-sharing site YouTube.com, Rubin said.

Hollywood Studio & Google Forge New Ground on Web
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The shorts are essentially like little Assisted Ad Delivery Devices, intelligently targeting advertisements at those receptive to viewing them. “We believe the revenue could be formidable,” said Karl Austen, a lawyer who worked on the deal. “What is exciting is that this is a way to monetize the Internet immediately. Instead of creating a Web site and hoping Seth’s fans find it, we are going to push the content to where people are already at.”

Seth MacFarlane's Cavalcade of Cartoons...

With thousands of web sites picked for the distribution deal and serious advertising dollars lining up, the search giant hopes to break new ground in Internet video distribution. Seth MacFarlane’s Cavalcade of Cartoon Comedy across thousands of web sites Dubbed the "Google Content Network," this service will run 50 short episodes of

Google, Family Guy Creator to Shake Up...

Coldplay Give Free Concert to Promote Smash New Album

Despite the steep drop in overall album sales in recent years and tumult within Capitol’s parent company, EMI, the opening-week numbers for “Viva la Vida” are roughly equivalent to those of Coldplay’s last album, “X&Y,” which sold 737,000 copies in its first week three years ago and went on to sell three million. Apple, the dominant online seller, said “Viva la Vida” had the best advance and first-week sales of any album in the five-year history of iTunes.

Coldplay Album Sales--

Atom Films Still Offers 50/50 Profit Split with Creators

Like the old Atom Films, Atom.com will share a percentage of ad revenue with creators that achieve "pro" status. Theoretically, a viral video that gets 50% of Atom.com's traffic would get 50% of the revenue paid to contributors. The site inherits 1.9 million monthly uniques from Atom Films, the company said.

Viacom Relaunches Atom.com...

Trail-Blazer "Nine Inch Nails:" View Music Downloaders on Google Earth

[Nine Inch Nail's]...latest project [...] was to take the data [of who downloaded its music] and load it into Google Earth so that people could see a geographical representation of where the most album downloaders are from.

NIN Releases Album Download Details...

Gene Simmons Gives Digital Music Fans the Kiss-off

An interesting commentary on Kiss' Gene Simmons' grumping about digital music:

What's with all these old fools trying to make a name for themselves in the music business again by speaking out against piracy? First it was Metallica, who hated on bloggers, but came off its high horse only after we took the band to task. And now, it's Gene Simmons of the once-important KISS, who is blaming fans and peer-to-peer networks for the destruction of the poor music industry...

Gene Simmons Shows His Age...

HBO Buys Into Funnyordie.com

HBO is getting into bed with Will Ferrell's FunnyorDie.com Internet vid venture.

Pay cabler has bought a small equity stake in the 2-year-old comedy website and has commissioned 10 half-hours of programming from Funny or Die as part of the deal.

HBO Joining Forces with Funnyordie...

Trent Reznor Shows the Way for Digital Creative Profit

Trent Reznor is busy demonstrating how a bankable artist can go independent, give away music for free, and still make a mint.  Though he initially expressed concern over an album he produced for hip-hopper Saul Williams that was released as a "pay what you will" download, he's changed his mind and now considers it a success — mostly because Williams made more money even with only twenty percent of fans paying for the album than he ever did at a label. And maybe more importantly, far more people heard the music.

Digital Music- Trent Reznor...

YouTube: You Make the Content and $Ads

Google has struggled to find the best way to monetize YouTube. The latest idea: Let content creators sell ads.

Professional content producers -- those who come equipped with their own ad-sales teams -- are now able to sell advertising on their YouTube channels. That includes the click-to-expand overlays that run across the bottoms of YouTube videos and display units on the page that hosts the video player. The revenue is split between the content creator and YouTube, just as it would be if YouTube sold the ads.

YouTube: You Create the Content, Now Sell the Ads

Rolling Stone Magazine: Forget CD's- Sell Other Stuff

Basically, bands today aren't relying on CD sales to make money (or even as a measure of their own success).  Instead, they're using the music to sell all sorts of other things having to do with themselves. While the article does focus a lot on licensing deals, the much more interesting deals aren't the ones where songs are licensed, but where the musicians themselves are being paid to create new music. That's what the guys from They Might Be Giants are doing: Dunkin' Donuts is paying them a million dollars to create new music for Dunkin' Donuts commercials.

The article also touches on how important the video game market is for the music industry these days, talking about efforts by bands to license their songs into video games, knowing how much more attention it gets them. While some video games will pay good money to license songs, it seems like bands are so eager for the exposure that many would (and probably should) do it for free -- knowing that the increased exposure will help them with everything else they do.

Rolling Stone Recognizes...

Fan-Financed Album Offers More Than Music

A hundred bucks Australian buys his fans a one-in-a-thousand chance to win a ten day trip to Los Angeles to see Crighton recording the album he plans to finance with $100K generated by one thousand fans.

Even if they don't win the trip, those who join this thousand-strong record-financing fan club will get free entrance into Crighton's live shows for the rest of their natural lives, a signed pre-release CD of the album and a membership card...

Australian Artist Launches Intriguing Fan-Financed Album

Making Money When CD's Don't Sell

CD sales are no longer the yardstick the band uses. While hip-hop and pop artists ranging from Jay-Z to Britney Spears have long used recordings to sell every- thing from perfume to liquor, rockers are only just starting to think of album sales as a component — rather than the sum of — the commercial equation. Spoon have been actively licensing their music for use in films, television shows and a Jaguar commercial, making money, gaining exposure and moving up from clubs to 3,000-seat venues. Album sales are down 25 percent since 2000, leading to widespread predictions of the record business' demise. But smart artists and managers are finding new ways to reach fans and make money. "For some bands we represent, there's more licensing income than record sales..."

Rock's New Economy...

Making Money with YouTube

Someone creates a video that goes viral and generates millions of views, and for some this flashes and fades, but others are parlaying these flashes into commercial success.

Rise of an Internet Star...

New Access for World Talent to Hollywood: Filmaka.com

"We are in the business of getting behind the talent and building their careers," Chief Executive Nayar told Reuters in an interview in New York. "This is a place for anybody from anywhere in the world to have that opportunity."

For aspiring movie makers, it offers a new entryway into the ranks of Hollywood, with a deal to introduce its top talent to the William Morris Agency for possible representation. To date, Filmaka has received submissions from nearly 3,600 filmmakers spanning 95 countries.

   

Hollywood Veterans Build Digital-Age Studio Filmaka

Filmaka Site

Motley Crue, Def Leopard Releases Singles on Video Games

Mötley Crüe became the first band to release a new single exclusively through the popular video game Rock Band today, in a move that could spark a trend as groups look to capitalize on the game's popularity.

Motley Crue Releases Video Game Single

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Both Rock Band and Guitar Hero III have become big business in the gaming world, and with the opening of the online music store in Rock Band, it seems that games have become yet another way for labels to push their music to the masses. Rock Band's music store allows gamers to browse by band, by song, as well as to look at cover art from the album and hear previews of the songs before they are purchased.

Rock Band and Guitar Hero 3 New Home for Metal Debuts

Will Indies Be Shut Out from MySpace Music $$?

MySpace Music is a joint venture between the major labels and News Corp. Without a seat at the table, the indie bands that practically invented the idea of MySpace as a music destination could see money generated from their traffic flow to News Corp., the major labels and major label artists.

Orchard Voices Concerns Over MySpace Music
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Radiohead Launches Social Network

As their former label readies a greatest hits compilation to showcase their past, Radiohead continue to forge an innovative path into the future. The band has unveiled a social network where fans can post videos, remixes, blog posts, photos and up to 100 music files each.

Just when you think Radiohead can't possibly think of another great way to use technology to reach their fans, they go and pull something like this. Unbelievable.

Radiohead Launches Social Network
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