Rhapsody | Solveig Whittle

10 Reasons Seattle Is Great For Indie Musicians

March 19, 2014 1 Comment

You’ve probably heard people talk about how if you’re “serious about your music career” you should move to Nashville or LA.

I’ve been thinking lately, however, about what makes my hometown of Seattle such a great incubator for talented musicians.

It’s not just the recent blockbuster success of (multi-category) Grammy winners Macklemore and Ryan Lewis. A lot of really great music and music production has come out of Seattle over the years. From the Kingsmen and Bing Crosby to Jimi Hendrix, the Sonics, Quincy Jones, Heart, Nirvana, Soundgarden, Pearl Jam, Alice in Chains, Queensryche, Mudhoney, Tingstad and Rumble, Sir Mix-A-Lot, Danny O’Keefe, Alice Stuart, and Kenny G all the way to current success stories like The Head and The Heart, Brandi Carlile, Blue Scholars, Shabbaz Palaces, Allen Stone, Kris Orlowski and Shelby Earl. (I’m not even counting Dave Matthews, although he does live here.)

Here are some of the special things about the Emerald City which make it a better environment than Nashville or LA in which to nurture a music career:

Conferences, Music

Lessons From Hit Songwriters Of Every Genre And Race

April 8, 2013 7 Comments

The issues faced by DIY (Do It Yourself), DTF (Direct-To-Fan), AKA indie musicians cut across both musical genre and race. Many of the sources of information for musicians today seem to come in silos delineated by genre: hip hop artists read hip hop books and blogs, and get advice primarily from hip hop industry people; jazz, rock, metal, pop and folk artists do the same. Yet we all face many of the same issues, and these sources of information repeat much of the same advice to those who want to make a career in music. When we all share our experiences, though, we see how universal it is to be a musician, no matter what type of music we make, what cultural background we are from, or what age we are.

I was reminded of this when I attended the Pacific Northwest Recording Academy’s (Grammy organization) inaugural Songwriter’s Summit this weekend at Seattle’s EMP (Experience Music Project). There were people of every age and color at the Summit, but the concerns and frustrations voiced by the attendees were nearly identical:

How do I make a living in this crazy business that I love, but which changes under my feet every year, every week, every day?
Where is the real money to be made in writing and recording music?
How do I write a hit song? Then, how do I write another hit song?
How do I rise above the noise in the music industry and get my music heard?
How do I register and copyright my music so I can get paid?
How does the byzantine world of music licensing work?
Is the music business still all about relationships and who you know, or is the internet the great equalizer?
What is a mechanical license, what does a publisher do, who is SoundExchange and why should I care?
(and why does Rhapsody hold 30% of their licensing revenue from streaming plays because they cannot figure out who to pay? This amazing statistic courtesy of Jon Maples, Vice President of Rhapsody Product Management)

Music

Streaming Music: A 5 Horse Race?

November 12, 2012 2 Comments

***UPDATE: Google To Launch Music-Streaming Service (Market Watch, May 14, 2013). This could be a game-changer, as Google is a major infrastructure challenger to Apple. Also missing from my analysis below is Amazon, who could also become a major player, and does have a cloud-based music storage system today.

On the eve of the Future of Music Coalition’s Summit, where music licensing is prominent on the agenda, it appears that the horses in the streaming music race are finally lining up. Now, I could be totally off base on this, I’m just an indie musician with a software background and not a lot of insight into the behind-the-scenes happenings, but I think it’s shaping up to be an interesting race. I believe there are some silent bettors, the major music labels and Google, and it’s not really clear (yet) whom exactly is betting on whom. These players are listed in no particular order:

First, we have the apparent favorite, Spotify (16 million active users, 4 million paying, subscriber-revenue-driven). They’re about to close another $100 million round of investments led by Goldman Sachs, who knows a good investment when they see one, right? Why is Spotify such a good investment when they are bleeding green? Because it reportedly has licensing agreements with the major labels that guarantee it will make a 25% margin, while handing over 75% of its revenue to the labels. Some view this as a millstone around Spotify’s neck, but if Spotify can hold on long enough to dominate the market and achieve some kind of workable cost model, they become a utility: an entity with a guaranteed margin and guaranteed income.

Music

The Un-Virtuous Music Industry Business Cycle

September 1, 2012 2 Comments

***UPDATE: Google To Launch Music-Streaming Service (Market Watch, May 14, 2013). This could be a game-changer, as Google is a major infrastructure challenger to Apple. Also missing from my analysis below is Amazon, who could also become a major player, and does have a cloud-based music storage system today.

***UPDATE: Apple announced a streaming music service on September 7, 2012, causing Pandora’s stock to fall precipitously. The impact of this service, which was also reported by the Wall Street Journal, is likely to be profound, although EricA Ogg of GigaOM speculates on whether Apple will succeed in this space given the relative lack of visibility of iMatch.***

It’s fall, the season when fruit ripens and leaves let loose and tumble to the ground. As I was walking my dog this morning, I was reminded of the stark difference between fruit and leaves. One is sweet and ripe, heavy with the burden and promise of life. The other, cast off like snakeskin, is the detritus of the season, dry and lifeless.

It’s the fall season in the music software industry as well. Every software business has predictable cycles for startups, and the music industry software startup cycle is no exception. The clock is ticking, and some music software businesses seem on the road to becoming lifeless, a step from being cast off from their investors like so many drying leaves. It’s not clear if any will bear the fruit – the financial returns – their investors were hoping for. It’s hard not to take as a warning the fact that projected 2012 Facebook revenues were downsized by $1B . Even this relatively successful consumer software platform continues to struggle to generate return on investment. Also in news this week, TuneCore founders Peter Wells and Jeff Price were ousted by the Board (read: major investors in the company take the reins, looking to change company direction to increase profitability). Slightly older news is that Spotify and Pandora are not yet close to profitable as of mid year 2012, and in fact, Spotify profitability appears to be moving in the wrong direction. Rhapsody was revived by absorbing Napster in a buy-in from Best Buy, and they are still owned almost 50% by RealNetworks, so theoretically they have deeper investor pockets. They are supposedly close to profitability, but their revenue and cost structures are less well understood. I’ll believe it when I see the numbers.