Music Executives and VCs Meme

4 thoughts on “Music Executives and VCs Meme”

  1. Om,

    Wasn’t trying to start a meme so much as put some observations down. Would have credited your post had I known about it (only started reading your blog the last few months). Btw, Gerd Leonhard & Dave Kusek have written a book about the Future of Music where I believe they propagate the meme(s) in question (labels as vcs, music as a service, et al). http://www.amazon.com/exec/obidos/tg/detail/-/0876390599/ref=ase_sixapart-20/102-5683680-2124166?v=glance&s=books

    I think the crux of it is that I believe labels — yes, in a broken industry/model — should act more like VCs in taking a piece of the entire pie instead of just the recorded music income.

    Raghav

  2. Rags had some suggestion on how to fix a broken business model by emulating a business model that seems to be still working.

    I think it was a great post and that’s why I blogged it.

  3. Rags & Fred

    both of you basically missed the point – we end up at the same conclusion, some earlier than later. anyway it is not my idea and one of my readers came up with the comparison.

    having said that i don’t think the label model can be fixed. i think the model is too inefficent and in many ways the VC model is also inefficent. i think it doesn’t make sense – chris anderson’s model of long tail makes labels and the economics of modern music business irrelevant.

    hey guys no hard feelings – difference of opinion is what i say

  4. no hard feelings taken! indeed the meme has been around for a while (i think the first time i heard the comparison was actually in ’99 at a webnoize show).

    i agree that the (major) label model is broken, and that things will become less hit-driven. still, the functions of a label (A&R, marketing) will need to be played by someone. so i think what we call labels today will morph into what agents/managers do today, but with capital to fund records, touring, etc.

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