dekstop: weblog

2005-09-16 15:30-16:30
Moderator: someone from Musikwoche

We were told that the panel was about the evolving possibility of artist self-management, which sounded pretty exciting; but as with the previous panel, turned out to be too business-focused and didn't contain any really new ideas. I expected some thoughts about Internet distribution and new communication channels, but those topics didn't appear at all.

Surprisingly the most interesting aspects of the panel were the insights into DJ Bobo's business life; take a closer look at his numbers quoted below. The overall theme of the panel seemed to be: it's less about the music, and more about creating new streams of income.

Interesting: the sole major label representative in the panel took an apologetic position rather quickly, so even if the topic looked blatantly business-oriented to an outsider like me, all is not well in major label land. But we knew that already.

Someone in the panel translated the panel's topic into a question: Are managers the major labels of tomorrow?

Keynote: René Baumann (DJ BOBO)

Participants:
Louis Spillmann (Gang-Go Music, LO:GO Records, Yello's Managerex-Phonogram)
Alexander Maurus (Warner, Phonographische Wirtschaft e.V.)
Moderator: Christian Radke (Fastbreak Entertainment)
Axel Schwarzberg (Rechtsanwalt, firehous Artist Management; Nina Hagen's Manager)
René Baumann

(Note the one-sided composition of the panel: only business representatives were present, no Internet indies or such.)

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Keynote:
DJ Bobo: Brand with 96% name recognition
9 full-time employees (Label, etc)

1993: Tour to promote the album
Today: CD as tool to promote other activities

Development of turnaround
2003: 25% Audiovisual media, 43% Tour, 13% Sponsoring, 9% Merchandising
2004: 4% Audiovisual media, 38% Shows, 48% Sponsoring
2005: 14% Audiovisual media, 39% Shows, 30% Sponsoring, ca. 15% Merch

Role of Management: not to represent the artist's position, but to build up a long-term plan of the artist's career

Goals:
as an artist: foster your career; all decisions must be supported by a long-term plan
artist, label, management: blabla, ..., find new sources of income, ...

Managers are not tomorrow's major labels, but remain to be a mediator towards other interest groups

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Panel transcript

Q: Is it legally possible to manage an artist and be a label at the same time?
AS: risk of conflict of interest (you either represent label interests or artist interests)

Q: why should established artists stay with you (Warner)?
AM:
- they need distribution partners.
- risk is still with the record companies, because deals made usually guarantee a certain amount of albums to the artist.
- marketing is getting more complex, many formats, many levels of promotion.
- a major relieves the artist of responsibility. "the risk involved is getting higher."

Q: You started in Labels, now are Management. Reasons?
LS:
- Curiositiy
- the business has changed. promotion -> "marketing". songs -> "content". etc
- I agree with Alex: the A&R's role has changed. labels are more involved in distribution and marketing; I want to be more involved with the artists
- we have decided to be a production company for dance music: cheap to make (CDs, Vinyl)
- it's different with Yello: takes a long time to produce
- if you want to do everything on your own: good luck. Paperwork etc is huge. You have to be an expert of many things; artists usually want to be creative instead.

AM:
- to LS: you're a good example of the current landscape
- in Germany there is no long tradition of management
- but: market has changed, people lost their industry jobs and decided to become managers instead
- we will see some sort of new management culture, managers with experience of what's important to our side (of the major labels), which is good for the artists

Q: do you use majors to export music to other places?
Bobo: depends. We're currently selling well in Asia, because we have a good man in Asia
- to AM: record companies can't give you a focus for 4-5 albums any more
- CD is only a promotion medium

AM:
- majors will only be able to "do what they do" if they can participate in the other business models
- especially true for long-term contracts

AS: artists still need a certain degree of success to be able to risk leaving major labels and doing everything themselves

LS:
- founding a new label takes $ 50 mill. Who will give me this much money?
- managing an artist is a different game. You're a one-man show. You need to concentrate on a small number of artists
- new players: during this popkomm a concert promoter started a label ("license us your music")
-

AM: I'm so happy that everybody likes me although I'm the major. (paraphrased, but that's basically what he said)

...

BOBO to AM:
- when working with majors: all our contacts are regularly being fired. We need continuity.
- we need a guarantee of long-term support.

(AM is sweating)

AM:
- market breakdown has improved us as a company
- we know now: we need to concentrate on a smaller number of artists
- we no longer can support the 90% failures

AS:
- but you stopped accepting risks
- you don't build up artists any more

AM: (lame excuse)

BOBO: (doesn't buy it)

AM: ...

...

Audience Question to AM: You still haven't answered Bobo's request for more reliable contacts on the side of the major label. Please do.
AM: (makes a lame attempt to not answer the question)
LS steps in to help AM: "this is not socialism" (succeeded by a lengthy monologue with little actual content)

Audience Question:
- erosion in label A&R: they expect fully produced products
- management is the new A&R

LS: true.

AM: (doesn't disagree)

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