The Science of Communicating & Marketing Your Business

Yes, I'm still catching up on emails.

Also, yes, this one actually caught my attention as something I might have some useful input on. NextStage has been exploring the concepts Radiohead is using to promote "In Rainbows". We just call it Democratized Talent and MiniMarkets.

Here were the questions we were asked:

• Other artists such as Nine Inch Nails and Prince have also release albums for free via digital download on their websites as well recently. How will this phenomenon affect the traditional recording industry?
• Do you think that Radiohead's faith in their fans will pay off?
• Is this a good business move?
• Will the publicity of a (theoretically) free digital download draw more fans for Radiohead?
• Who is most likely to purchase the collectible discbox?
• How will Radiohead make money on an album that is available for free?
• Do you think people will pay a fair price or will most try for the free download?
• What kind of buzz will this create for Radiohead who has not release an LP since 2003?
• Discuss this release as it relates to the "digital revolution" and recording artists ability to buck the system in ways they could not before.

• Other artists such as Nine Inch Nails and Prince have also release albums for free via digital download on their websites as well recently. How will this phenomenon affect the traditional recording industry?
  The traditional recording industry? I think that industry has suffered so many blows and from so many directions as of late that it's down for the count. Again, we're writing about the traditional recording industry. The number of bands and individual performers who are putting out high quality music with excellent production values with nothing more than a home computer and a few hundred dollars of software is astonishing. Ex: folks in my NH neighborhood get together once a week just to unwind and share. One of the things we share are the latest internet music finds. Some of these finds are such elegant performers with such rich instrumentals that I'm stunned (it might be worth noting that I've been playing music for about 45 years now and use to play at the orchestra level).
  Another blow to the traditional recording industry comes from distribution outlets. My generation may be the last of the CD buying breed. Most people younger than me (and quite a few in my generation, for that matter) prefer to purchase single songs off the 'net. The "concept" album is gone, me thinks. The traditional recording industry can't afford to produce and market Tales from Topographic Oceans or Sargent Pepper's Lonely Hearts Club Band or Thick as a Brick anymore because the market (and this might go into attention spans) no longer exists.
• Do you think that Radiohead's faith in their fans will pay off?
  Yes, and only if Radiohead is willing to go the long haul with them.
• Is this a good business move?
  Yes, and again only if people are prepared to go the long haul.
• Will the publicity of a (theoretically) free digital download draw more fans for Radiohead?
  I don't know if it will draw more fans. I think it'll give the curious a chance to become fans. Essentially the strategy is "Try Before You Buy" and the key ingredient is how large an audience will appreciate Radiohead's music, ie, if "In Rainbows" isn't a mass market album they may have shot themselves in the leg if they're goal is to create and sustain mass market appeal.
• Who is most likely to purchase the collectible discbox?
  Well...uh...gee...maybe Collectors? I'm not being glib. Free downloads versus discboxes are designed for different markets.
• How will Radiohead make money on an album that is available for free?
  This is one of the most discussed questions in neuro-economics today. The question isn't "How will they make money on it if it's for free?" it's "How many people will find sufficient value in the offer to reciprocate with value?"
  Remember that the reciprocal value can take many forms; attending concerts, promoting the band through blogs, links, columns, WOM. Considering the number of NPR and PBS stations still on the air, I'm guessing the basic model has merit and that Radiohead will be able to pay its bills at the end of the day.
  (yes, I'm preparing a column on this topic)
• Do you think people will pay a fair price or will most try for the free download?
  Again, two different markets and pretty much answered above.
• What kind of buzz will this create for Radiohead who has not release an LP since 2003?
  Well..umm...we're blogging about it, aren't we? I mean, we were asked to blog about it and I'm sure we're not the only network to do so. There is neither good nor bad buzz, there's only buzz.
• Discuss this release as it relates to the "digital revolution" and recording artists ability to buck the system in ways they could not before.
  This is where NextStage's investigations into Democratized Talent and MiniMarkets fits in.

This ability for anybody who wants to to put themselves out there is the democratization of talent. All that is needed for some of these folks to feel they've achieved their goal is to have one person -- the ultimate minimarket -- contact them with "I loved your music, your book, your movie".

There is, of course, a financial aspect to be considered. The minimarket can only be as small as the talent is willing to be democratized. Too small and audience and, like politicians, the band, author, movie director or creative artist can't survive on their artistic income alone.

This is a rich topic and I will cover it in more detail. Stay tuned...

Please contact NextStage for information regarding presentations and trainings on this and other topics.

Upcoming Trainings:

• Audience Focused Optimization

• DC Emetrics Summit on 14-17 Oct '07
• Society for New Communications Research Annual Research Symposium & Awards Gala on 5-6 Dec 07 in Boston.