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Pandora, and arbitraging fame

Started by Q dub · 10 months ago

I wish we didn’t have to have this discussion over at TechCrunch, but it really is happening.  Internet radio and its cousins are facing asymmetric pricing compared to terrestrial radio.  Many call it stupid of labels to cripple internet radio.  After all, doesn ... Continue reading »

2 comments

  • Well said Q. Spot on. Making it easy for listeners to signal preferences in a meaningful way is exactly what we're trying to create at thenextbigsound.com. As audience selected artists become popular their staying power will hopefully hold more weight. Time is another consideration -- it is scarce per person, and this influences consumers ability and willingness to make their preferences known. As the total bandwidth of music increases easy ways to sort through the clutter will become exceptionally important. Curious to hear more of your thoughts on this -- keep posting!
  • The problem isn’t with the labels, the bands, or the internet. It’s a combination. Equilibrium had been reached between the artists and their labels in which the successful got paid on both sides. With broadband internet, free access, and every artist trying to get rich, the balance has been thrown off in unseen ways. Pandora is paying more for rights than regular stations because of its audience, and because of that, the artists are gaining more recognition because of their audience. Immediate exposure has never been so readily available for artists, and labeless exposure has never been possible. The new equilibrium will come, perhaps at the expense of early achievers such as Pandora, but both are still trying to understand and harness new technology. The winner will be the company that provides exposure to artists and incentive for their promoters to work them. As of today, nobody is willing to give a reacharound, which is stunting progress on both sides.

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