Just finished reading Free by Chris Anderson (author of The Long Tail). I brought it with me to Austin, so I could read on the plane. On the way down, I was too excited to focus and on the way back I was too tired to focus, so I spent a few nights this week getting it done.
One of the main lines that stuck out to me was, “interoperating with free.” It was put under the context of Microsoft coping with the increased market share of Linux, which is a free, open source operating system. However, it is extremely applicable to the music industry because people are finally getting on board with the fact that free is going to happen regardless. The key is figuring out how to interoperate or coexist with free.
I’ll give you a hint…touring, merchandising, synch licenses, endorsements/sponsorships and premium content have become the norm that allows the industry to interoperate with the piracy of recorded music. This is where we’re at, so deal with it. Waive the free flag.
This book really helped us focus what we’re trying to accomplish. The passage about the Brazilian street vendors touting the upcoming concerts is an excellent example how the ‘first world music industry’ could learn from a developing country’s marketplace and adapt an effective promotional strategy.
Another excellent book along the same lines of “Free” is “The Pirate’s Dilemma”
Since I already accept that “free” is a reality in music, I’d like to move beyond that discussion into what is next. Here’s something I wrote which I hope moves us into seeing what we need to address in the upcoming years.
http://brandsplusmusic.blogspot.com/2010/03/hypercompetition-scarcity-and-economics.html