Sunday 21 February 2010

How do we fix the Entertainment Industry?

First and foremost, I apologise for not having written for a couple of weeks. It's not that I've fallen out of love with you, oh wonderful blog readers, it's simply that I haven't had the time. The problem with this is of course that I now I have a large backlog of things I want to blog about, so you may well get lots of blogs over the next few days.... so there's a bright side :) (That is, if you enjoy reading my blog. If you don't then I'm sure that the news there are more on the way will fill you with dread, but if you don't like them why are you reading this? Anyway...)

There's been a lot of talk recently (and by recently I mean over the last few years) about how the Entertainment industry can adapt and survive due to the advent of the internet. The other day, the wonderful Graham Linehan tweeted about this article in the New York times written by Damian Goulash Jnr, the lead singer of the band OK Go. What makes it interesting is that it is a discussion about the current state of the music industry from the perspective of a moderately successful band rather than a giant star.

In this piece (which I think you should read) he starts by lamenting their record company for not being flexible with regards to the use of the internet and viral videos to promote the band. It's a well thought-out argument, pointing out that when they had put a music video online in 2006, which they had made and paid for themselves, and, in his own words the video"... brought big crowds to our concerts on five continents, and by the time we returned to the studio, 700 shows, one Grammy and nearly three years later, EMI’s ledger had a black number in our column. To the band, “Here It Goes Again” was a successful creative project. To the record company, it was a successful, completely free advertisement."

However, now that the band has released a new album and a couple of videos, they are unable to get the same help in spreading the viral video due to the record companies agreement with YouTube.

As it stood - when they released their first video, it made them no money, but worked as an advert. However, YouTube and the record companies have now reached an agreement for an amount (however small) to be paid whenever the video is watched, but only when it's watched on YouTube's own site, so embedding has been disabled.

And this is the problem. Without embedding the video, large amounts of blogs and sites are unable to promote the music they enjoy.

Damian Goulash (which incidentally is a FABULOUS name) does then go on to say that "It’s decisions like these that have earned record companies a reputation for being greedy and short-sighted. And by and large they deserve it. But before we cheer for the demise of the big bad machine, it’s important to remember that record companies provide the music industry with a vital service: they’re risk aggregators."

And he's right. Who else would pay a bunch of people with instruments to go and make a record that has a 98% chance of being a complete commercial failure? (That figure is completely made up by the way, it's just a guess). But as record companies tighten their belts and only finance the acts that they are certain of, the entire industry is at risk of implosion, with very few new, interesting acts coming to the fore...

Why are record companies tightening their belts? They tell you it's because of piracy. This is a common statement amongst record, TV and film producers, and to an extent, I am sure it's true. I know that I have, in the past, pirated music, TV and films, because I want to hear/see them and don't have any money.

Disney are at the moment having a large spat with Odeon over Alice in Wonderland. This has been going on for a couple of weeks, and is basically due to Disney saying "Because of Piracy, we want to shrink the theatrical-DVD window from 17 weeks to 12 weeks." So 12 weeks after Alice comes out in the cinema, it'll be out on DVD. Odeon feels that this is unacceptable, as it will cause them to lose business if they have to pull the film after 12 weeks.

Now first of all, I can't remember the last time I went to see a film at the cinema more than 2 weeks after it came out, and (apart from possibly Avatar, which I have STILL not seen, which I am aware makes me part of an increasingly tiny minority) I can't think of a film that's stayed in a cinema for 12 weeks! So how, realistically are they going to lose business?

And the second, and more important point, Alice is being strongly marketed on it's 3D. You can't watch proper 3D on a DVD yet... so even if it came out early, surely Odeon could continue to show it anyway?

But on the subject of 3D, I would guess that the very nature of 3D will limit the piracy of Alice anyway, so Disney needn't be in such a rush to release the DVD surely? I mean, I know there'll be a 2D version, and this I am sure will appear online very quickly, but if you want to see it in all it's glory, the pirated version will be nothing like watching the proper, full screen, 3D version. (Of course, this assumes that the 3D will be good, as with Avatar (allegedly), rather than pointless, as with every 3D horror movie ever made)

This spat is just more proof that the industry is in chaos and no-one knows how to deal with it. The only people who have it remotely right are the TV channels. I don't remember the last time I watched a BBC show from an illegal copy, since I can just catch up with it on iPlayer, and now 4oD exists (and works, to an extent) as well as ITV Player (which doesn't work very well at all...) and I'm sure Five have one too which I would try to use except nothing of any interest is ever on Five...

So, the question I am sure you're all wondering, is how would you fix it Brawny? How would you make the Entertainment industry great again?

Well, before I continue, may I point out that I am no expert, and certainly don't think that I should be in charge. But if I was, then I'd do the following...

1) Embrace the Internet
This is, in many ways, the most important thing. The industry is slowly beginning to do this, but it's taken way too long. The internet isn't just a more modern poster where you can put trailers or clips from your film/show/album, it's a genuine two-way communications device between you and the people who are going to part with money for your creation. Work with them. Find out what sort of thing they want to hear/see and work out how to fill that gap. If 1000 people on the net want to hear a jazz/techno trio, then work out a rough estimate of how many people that'd translate to in the real world, set aside a percentage of budget that covers that many sales and then get the album made (Yes, I am aware it's impossible to create accurate projections from what people on the internet say they'd like, but you could try...)

2) Use Common Sense
If you come across someone using your music/video in order for them to make money, then arrest them, sue them, do whatever you want with them. A fan has put a home made video up on Youtube soundtracked by your song? Leave it alone... I know that finding the dividing line is hard, but surely the interest generated by the non-commercial use of your song/video pays more in goodwill than demanding the video be removed...

3) Don't expect to wipe out the Pirates.
Piracy exists. It will always exist, no matter how hard you try. You can't erase it, so instead try and learn from it's distribution methods etc...

4) Control your overheads
You know that there is a niche for a film about a fish who wears a top hat and speaks only in rhyme? Then make the film on a low budget - don't risk all your money on it. On the other hand, don't spend $209 million on Superman Returns because A) it was a rubbish film anyway (although Kevin Spacey was a delightfully scene-stealing Lex) and B) it means that the studio consider it a disappointment when it brings in a box-office return of $391 million...

Seriously. Name me another business to whom a profit of $182 million is a disappointing return??

5) Buy from the internet
If you're a film distributor/music publisher, look around online for low-budget home-made films / albums and embrace them. Quite often these types of projects could easily be tidied up and released with very little extra money spent on them, so why not do so? The artist will be grateful for the exposure and you might make some money out of it

6) Don't give up.
At the moment the music industry seems to be financing more and more manufactured artists and mega-stars, because it thinks that they will definitely sell. There's much less innovative, new, and interesting music being released, certainly by major labels.

7) No more staggered releases
Films that come out in the UK three months after the US? Why? That's more than giving the pirates a window, that's leaving a window open, turning the alarm system off and providing them with a map of the house that clearly shows the value of every item within it...

8) Make legal downloading easier
Now don't get me wrong, whilst I prefer to buy a real, physical product (I love CDs, and Vinyl, and DVDs) it's pretty easy to download things legally right now (and much as I hate it, iTunes is a big part of that) but I still notice that we, as members of the UK audience, pay more for things than our US cousins. The way around this from my perspective is - create a new currency.

Now before you think I've gone insane, let me clarify. This thought came to me the other day, when I recieved a paypal payment for a CD i sold. This payment was for £12, which is a small amount, so Paypal would charge me a percentage for withdrawing it to my bank account. I am therefore left with money that I may as well spend on something on eBay, or CDWOW, or CEX, or anywhere else that takes Paypal.

If you had an equivalent of this for music or film, then people would buy it rather than be penalised for returning their money to their account, and also you could side-step all currency issues, meaning that everyone gets a fair deal.

9) Everything has an audience.
And as a studio / record label, your job is to find it, not to tell the artist that it doesn't exist.

And before you think I'm blaming it all on the companies, I have a word for the artists too..

Make it because you want to make it.

I write scripts and stories, record music, make films and short videos because I want to. Do I want to be paid for it? Sure, that's the dream, but just because I don't doesn't mean I'll stop doing it... I may even self-publish my novel if I feel like it and I can establish whether more than 5 people would buy it (once I've finished the endless re-write process)

So that's it. Brawny's suggestions. And it's not like not saying that I should be taken as a "Voice of the People" because I'm a voice of one person. Me. But something needs to be done, because just blaming the internet as the source of all evil hasn't worked so far...

So as a bonus to you all - some bands who are on minor labels / self-published that I think you should check out:

The Wildhearts - Fabulous Rockers - Used to be on a major label, now kicking ass on their own. Also, their frontman Ginger has several wonderful solo albums and side-projects.
Jackdaw4 - Lighter Rock, but still wonderful musicians
Reel Big Fish - The SkaPunk kings. Again, used to be on a major label, now doing fine on their own
Brawny - Because I may as well plug myself :P (Also, check out my Youtube for my videos and film)

If you have any further suggestions please post in the comments, and I'll update this list.

Apologies for the length of this post, I promise I'll be back with something short and irreverent soon. (Well, maybe just irreverent.. I've always been bad at short posts!)

1 comment:

Sprog said...

Alice In Wonderland's 3D will most likely be pants compared to Avatar, as it's all being done in post-production, rather than in-camera like Avatar was.