I’m in Leeuwarden in the north of Holland today to make a keynote presentation at the Lopend Vuur pitch. Lopend Vuur literally means ‘walking fire’. It comes from a Dutch saying about how rumours are spread – in English we’d probably say ‘like wildfire’.
Over a hundred bands from around the Netherlands applied to be in the Lopend Vuur pitch, and five were selected. Those five bands are being individually mentored and coached by new media-inclined industry experts, to help them get a story, a business plan and a strategy together so that they can make a case for investment. I’m not one of those experts – but I get to deal with all of the bands and their experts together.
Today, after my presentation, they get to sit down and finish working up an initial business pitch to a panel from Sony BMG. But they’re not after a major label deal. Sony have agreed to work with the successful band in a partnership arrangement – not as a ‘signed act’.
They will give the successful band a 20,000 euro investment (not an advance), the band will implement their plan, will keep their master recordings, and the split with the label is a straight 50/50 deal. Sony will weigh in with their marketing muscle and help the act where it’s needed, but the relationship is (ostensibly) as equals.
Now, of course, you can easily unpick that and make the obvious point that if they can get a new, innovative business plan together that’s convincing enough for Sony to give them 20,000 euros, then they could get that investment from elsewhere and not forfeit half of their revenue. But there are two things that make this really work from my point of view.
1) It’s the first glimpse of a major record label being prepared to take in potentially radical business ideas to try and filter some new ways of working through into the organisation. I read this as a positive thing.
2) Artists who have released records are still often immensely frustrated by the problems they have doing it without a label. It can be done – and it can be done very well – but there are access to marketing and distribution channel issues that, if you want to be ‘famous’ and make decent money at what you do, are far easier to solve with the assistance of people who are professionals in that area – even if they’ve lost their way in the new media environment.
In other words – you want a major record label deal? This is by far the less odious way of doing that.
My presentation today made three main points:
1) They need to think about who their audience is
I’m not talking in this instance about their fans. I’m talking about the people to whom they will be making this pitch. What are they looking for? What can we offer them?
2) They need to be bold
This is not a cap-in-hand plea for a handout. This is a surprising and innovative new venture that Sony is invited to participate in. If they choose not to take up the offer, that investment opportunity goes elsewhere.
3) They need to retain some basic marketing wisdom
So many of these bands seem to have forgotten what their USP is. They need to figure out what is different about them, and communicate that as clearly as possible. I pointed out what I think is the fairly glaring issue that none of the bands ever sing in Dutch. They believe that it would reduce their chances of international acceptance. I have a fair bit to say about that.
And I wrapped up with some general points about the new media environment. Hear / Like / Buy, distributed identity, not using your website as a brochure, building relationships, rather than just making sales… that sort of thing.
The sort of thing you already know about, because you read this website, right?
So… the keynote presentation went quite well, and was warmly received. One of the crazy/cool things about this event is that the people here are quite net savvy. The guys behind the pitch have set up what they call a ‘Twitter fountain’ on the Lopend Vuur site, and so people in the audience who twittered during the presentation and throughout the day have their thoughts, quotes and observations appear in a really cool graphical way on the site – overlaid on photos from the event.
I’m spending the rest of the day walking from room to room in the Academy of Pop Culture here in Leeuwarden, dropping in on each band as they work with their mentors, dropping what should theoretically be nuggets of wisdom about their plan, and how they should be pitching it.
Of course, because when I go into these rooms to listen to what they have to say, they’re (quite rightly) speaking in Dutch, I’m not sure how useful I’m being. But I’m having a great time.
Best of all, the presentation was filmed, and I’m going to be allowed to put it up on my website once it’s been edited (it was a 3-camera shoot). Now, I’ve never seen myself present, so I’m a little apprehensive about that, but chances are you’ve never seen me present either – so hopefully there’ll be something in there you might find useful.
I’ll put that up as soon as I have it.
And the other thing that I got out of today is that I am completely sold on Keynote over Powerpoint. Despite being a Mac user and a regular presentation-giver, I hadn’t used it till today. I’m never going back.
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[...] Andrew Dubber:”It’s the first glimpse of a major record label being prepared to take in potentially radical business ideas to try and filter some new ways of working through into the organisation. I read this as a positive thing.” [...]
[...] but that’s a long story — and I’m delighted to say she was the winner of the Lopend Vuur Sony BMG pitch in Holland last [...]
[...] Een verslag van pitch-expert en keynote speaker Andrew Dubber van de eerste editie kun je hier vinden. February 18th, [...]
16 Comments
What’s “USP”?
Sorry – marketing term. Unique Selling Point.
It’s like with a stationery shop. They all sell pens and paper – what is it that makes YOUR stationery shop the one to visit?
Gotcha, thanks!
Sony are actually contemplating doing that? It’s a perfectly sensible idea, but I’ll believe it when I see it.
On the language issue though: how many bands do you listen to, that sing in Dutch?
This is something we’ve been trying to do from the beginning with the World-Around Records project I’m a part of — and this is also something Bruce Warila has talked about several times.
The traditional record business was built on vague promises and unlikely payoffs — unlike most industries, where business is built on the exchange of contractually defined services. If Sony’s marketing couldn’t make you a star, it’s not like they were under any obligation to pay you back.
The old arrangement was also far too indulgent for artists, who rightly assumed they didn’t have to be involved with marketing and promotion, which was “someone else’s job.”
So I’m very interested and encouraged to hear about this: treating music like an actual business. Currently, there’s no real standards for evaluating the potential profitability of a music venture. There’s no band/artist equivalent of the classic “Business Plan” template.
And, there should be. With World-Around Records, creating an easily understandable and BROADLY USEFUL template is a more central mission than building a profitable company for ourselves. That’s based on the assumption that if we can create a model that works for other people, we’ll obviously be able to make it work for ourselves.
I’m definitely curious to see your presentation and grateful that you’d share it.
What is the format of the accompanying documentation for these pitches the bands will make? Is there a template for that?
What are the core metrics and indicators that the labels themselves are looking for?
To answer a couple of these comments:
- Sony are actually doing it. I met their representatives and I have seen this with my own eyes.
- I don’t listen to any bands that sing in Dutch. I don’t know any bands whose music I might like, that sing in Dutch. I wish I did.
- Yes, there is a template. Lopend Vuur paid me to create it. I’ll be interested in the feedback I get from the artists to see how useful/usable that is.
- I don’t know by what measure Sony are judging this. The end result is entirely their choice. But I think I challenged them to take a bit of a risk…
And a good job you did. We’ll see what comes of it.
This is indeed positive news I think. There is a sense in the “blogosphere” (if I may use such a gruesome word) that the major labels are baddies and have no interest in adapting to the new environments.
Marketing muscle is important even in these days of DIY viral marketing and Sony should be applauded for realising that they need to evolve. I assume it’s hard for these companies to bite the bullet.
On another note, I have a friend who’s band (they’re Scottish, “Les Bof”) sing garage punk rock in French. They are inundated with offers to tour the continent.
There’s a market for non-English and it’s one that is easy to reach.
That’s great news. The year looks like it’s starting well for you!
The idea of a business partnership is one that bands use with their managers. So it makes perfect sense to do that with a label.
Now that there are concrete things that both sides can do in both PR, web and marketing it could work really well.
As long as there is a plan and everyone knows what they are doing, everyone can work to their strengths, and although bands will have to work harder, they won’t suddenly have the reins taken away on signing, being told ‘our guys are working on it now’
We know that doesn’t work anymore. Looking forward to seeing your template.
Keith, you are right about the rise of the need for marketing in a DIY world.
Everyone can get some form of distribution, others are finding innovative ways of seeking investment or don’t need it given the decreasing costs of music creation.
In a world where people have an opportunity to access so much music choice, not just from this week, but from the last 60 years, an artist has a lot on their plate to get themselves heard and seen. Having a myspace page and hoping is not going to do it. Innovative marketing is going to be needed.
At In The City last year, I ran a panel on the rise of DIY music culture. With everyone saying the future is DIY, I wanted to get a reality check on what the implications are for artists. Getting noticed was the top issue that came from the panel and the audience.
Hi
I know its hard to believe for some of you but yes, SONY BMG is doing this. I was at seminar Noordermatch in Groningen last year doing a speech and the Lopend Vuur guys were in the audience …cornering me afterwards, zooming in on my statement “I’d rather spend 10.000 or 20.000 euro’s on supporting innovative ideas to help young/new bands than 100.000 euro’s on a video of ego band Kane (local dutch multi platinum act). The rest is history (in the making). So …remain sceptical and anti “major” but in meantime we will move on.
Maarten Steinkamp
President C Europe SONY BMG
Hi citizensound, would be interesting to know what the other issues came up on your panel if you have the time.
With regards to getting attention, I think it’s crucial for bands to be precise about why and by whom they want to be noticed. My own anecdotal evidence would suggest that a lot of artists still have a “just get noticed by anybody” approach and “hopefully get picked up by a label.”
In this world of access to the last 60 years of music and with the tools now available to nurture real relationships with our fans, a new mindset could be more profitable. New skills are required. Like you say, having a myspace page and hoping is not going to do it.
I hope Sony are encouraging artists to acquire these new skills because a lot of it has to do with personal interaction rather than interaction with a PR person.
Getting noticed is a bit more of a science these days. Creating and interacting with your mailing list should be module 1 in music colleges round the world!
page digged :) nice Blog
Hi Keith
Maarten is right that one can spend only so much time going on that record labels are the devil, or that they are completely finished. Inspiring and inspired artists with the ability to get their music made and heard has to be the goal. If they feel this can be delivered by the majors, then that’s ok by me. THe artist chooses. They are the client, not a piece of office fixture & fitting (sorry Mr Hands, but you really do not get it).
As for DIY, it all comes down to the definition. For some, DIY means going with a smaller label. For others, DIY is seeking the investment yourself, distributing yourself and marketing yourself. For others, DIY is about wanting complete control. So what happens if they get control, but with a major? Is that still DIY? If all majors go down the route of SonyBMG as laid out by Andrew and Maarten, then the majors are partners in DIY (according to some definitions).
Such a huge amount to manage does put off many artists. They look to their manager/representatives to take the pressure off of them. After all, a number of artists I know just want to make their music and rely on people they can trust to get the music made and out there. Yet, are all managers equipped to manage all of the elements of the DIY puzzle? Not every manager is a Gary McClarnan or an Ian Grenfell.
In the DIY panel, this issue came up time and time again. For some, the record label (big or small) offers the security and services they need. For others, they are just not that confident to go down the DIY route, as they do not feel able to manage all the elements. Those who are focused on the DIY route are looking for those who can help them achieve their goals. The artists with a clear understanding of who they are, and who their fans are or could be, will have a greater chance of getting ahead. This is where my worry is for many artists and their managers. The opportunity to get poor advice is immense.
There are many companies now offering 360degree solutions, investment opportunities and marketing expertise (including citizensound). Ultimately, some artists will get great advice, some will get their fingers burnt whilst others will keep looking for the right model and nail it by themselves.
As you rightly say Keith, the artists need to learn new skills. And so does the whole music industry. The key though will be a sense of shared learning. There are artists who have a greater understanding of leveraging the digital platforms better than many labels or ‘marketing’ specialists. There are managers who have pulled off brilliant investment deals. There are labels who are developing marketing models that others could learn from. Shared learning to me makes sense.
Good panel from Sony BMG!