http://blog.case.edu/Racher/ Matt Racher's online journal en-us Sun, 30 Apr 2006 23:59:00 EST Sun, 30 Apr 2006 23:59:00 EST matthew.racher@case.edu matthew.racher@case.edu http://blogs.law.harvard.edu/tech/rss Movable Type v3.121 http://blog.case.edu/Racher/2006/04/30/copyrights_and_the_culture As was witnessed with many cases, including the Napster cases, copyrights are a huge force in the music industry in... http://blog.case.edu/Racher/2006/04/30/copyrights_and_the_culture MGMT251 case cwru Case Western Case Western Reserve University Sun, 30 Apr 2006 23:59:00 EST As was witnessed with many cases, including the Napster cases, copyrights are a huge force in the music industry in terms of protecting a certain product or service from being stolen. Its seems that in an industry that has a more cultural influence than structural, it becomes more difficult for a copyright to protect a certain product. Copyrighted music creates billions of dollars in profit every year and these profits bring in the majority of the money in the music industry. Music is heavily guided by creative expression so it almost seems infeasible to establish copyrights on many of the ideas put forward. This becomes a question of where one should draw the line in terms of establishing a new product or idea and allowing its free use. It is generally accepted that musical ideas stem from ideas within their cultural boundaries so, to what extent should copyright laws affect what is one's property, and what is a shared musical idea?

]]> http://blog.case.edu/Racher/2006/04/30/cultural_impact_of_internet_music In recent years it has been a fairly popular debate to consider the effect internet music is having on the... http://blog.case.edu/Racher/2006/04/30/cultural_impact_of_internet_music MGMT251 case cwru Case Western Case Western Reserve University Sun, 30 Apr 2006 23:49:12 EST In recent years it has been a fairly popular debate to consider the effect internet music is having on the cultures which bring in the business. There is an abstract notion of a certain “space” which refers to the idea that distributing music in its hard-copy form lends itself to creating an environment of listeners. There are many studies taking place to determine any sign of a cultural change over the years, as music is increasingly distributed over the internet. This study is very abstract and it could be impossible to figure out, yet it is an important issue to raise. Since music is a product of the environment and relations within this environment, how will the internet affect is quality of business? If, one day, music becomes an internet based market, then this should have a major impact on culture which could in turn affect the business of music as well as its marketing. Ever since rock and roll sprung from what we call “roots music”, the 50’s through today have allowed for a certain cultural space that utilizes marketing techniques like the popular “word-of-mouth” concept. If the internet breaks down the cultural relations which have popularized music thus far, it is questionable whether or not there will be a negative impact on business in the future.

]]> http://blog.case.edu/Racher/2006/04/30/the_element_of_surprise One issue, which Bolman and Deal highlight in Reframing Organizations, that seems to come to mind when considering entrepreneurship in... http://blog.case.edu/Racher/2006/04/30/the_element_of_surprise MGMT251 case cwru Case Western Case Western Reserve University Sun, 30 Apr 2006 23:33:14 EST One issue, which Bolman and Deal highlight in Reframing Organizations, that seems to come to mind when considering entrepreneurship in Music is the element of surprise. One key fact in managing and organization is that what is expected may not come. The music industry is governed by an incredible amount of external forces and success seems to come from a high rate of selectivity among consumers. This is why the phrase “expect the unexpected” is put to good use when used to describe the music industry. When a producer and an artist want to put an idea out in the open market, it is imperative to understand that expectations can be replaced with a completely different scenario. And, the only way to navigate success through this scenario is by implementing a more adjusted attitude: the use of a business model that takes into great deal the forces which affect any outcome. This idea can help determine different rates of success in the music industry.

]]> http://blog.case.edu/Racher/2006/04/29/marketing_success_in_music_business One of the best marketing tools any band or producer can use is the internet. The internet is becoming the... http://blog.case.edu/Racher/2006/04/29/marketing_success_in_music_business MGMT251 case cwru Case Western Case Western Reserve University Sat, 29 Apr 2006 23:36:06 EST One of the best marketing tools any band or producer can use is the internet. The internet is becoming the leading method of buying and selling products and in turn, it is becoming the best place to “become known.” These days, one of the best things a band can do is set up a website. In Jeffrey Fisher’s article, “Eight Ways to Promote Your Music Industry Career”, creating a website is listed as number 7. Even if the band’s intentions is not to sell music, it is key for them to get their name out and with millions of people surfing the web, there is no better method than setting up a website. A site that includes information about the group, concert dates, and even contact info would serve as a great foundation towards recognition. Another efficient tool, also mentioned in the article by Fisher, is “word of mouth.” This seems to be another sufficient method of gathering a fan base and possibly a large pool of customers. With proper use of the internet, as well as self-promoting, any band can reach marketing success.

]]> http://blog.case.edu/Racher/2006/04/29/the_elevator_statement I was reading a passage on Marketing in the music industry and I learned a little bit about an interesting... http://blog.case.edu/Racher/2006/04/29/the_elevator_statement MGMT251 case cwru Case Western Case Western Reserve University Sat, 29 Apr 2006 23:05:12 EST I was reading a passage on Marketing in the music industry and I learned a little bit about an interesting topic: The Elevator Statement. This idea focuses on the importance of marketing one's products in a unique and concise way. This concept can apply to anyone in any business yet it seems to be a growing necessity in the business of music. The name is derived from a simple scenario. If you are on an elevator and someone is interested in learning about your product or service what are you going to say in the few seconds of conversation time? The fact of the matter is, the only thing that should be said is the distinguishing element of your line of work. It is a question of what makes you different (not necessarily better) from everyone in the industry that you are competing with. In the world of music it is becoming increasingly important for bands to market themselves and not only sell their music, but sell the idea behind the music. It is essential for a band to market themselves in a simple and identifiable way. This technique is not only becoming popular, but the Elevator Statement may soon prove to be the key factor that determines a band’s success.

]]> http://blog.case.edu/Racher/2006/03/31/culture_and_industry It is arguable as to whether culture creates industry or industry creates culture. Do record labels dictate the culture we... http://blog.case.edu/Racher/2006/03/31/culture_and_industry MGMT251 case cwru Case Western Case Western Reserve University Fri, 31 Mar 2006 17:46:37 EST It is arguable as to whether culture creates industry or industry creates culture. Do record labels dictate the culture we live in today or do people guide the record labels in congruence with the culture that they see is necessary. When I speak of people I do not mean one culture, but many cultures and sub-cultures. Most industries seem to be guided by a direct knowledge of what consumers want and need, yet the music industry fluctuates as tastes evolve to meet cultural desires. For instance, you will not find a mass majority of college aged students listening to Elvis on a regular basis, not to say that many don’t have his albums in the depths of their music collections. There seems to be an invisible force guiding the tastes of music listeners and there is no single entity that is proven to have control over it.
Record labels control what is spread universally, yet the people control what becomes popular in a certain genre of music. If record companies don’t have the control many would claim they have over listeners, then who should have the most power in this industry? This is a debatable question, yet it will always remain an issue as music continues to progress.

]]> http://blog.case.edu/Racher/2006/03/31/path_towards_a_digital_world As recent articles make it clear, digitally distributed music will represent about 40 percent of U.S. music sales within five... http://blog.case.edu/Racher/2006/03/31/path_towards_a_digital_world MGMT251 case cwru Case Western Case Western Reserve University Fri, 31 Mar 2006 17:08:53 EST As recent articles make it clear, digitally distributed music will represent about 40 percent of U.S. music sales within five years. Some companies expect downloads to exceed 2 billion in 2009, which is clearly a vastly greater difference from last year’s 140 million downloads. Some predict digitally delivered music as well as mobile music to make up around 37 percent of all music sold. Some have previously predicted that piracy would slow down the growth of music, but it seems as though profits will continue to soar. This is determined because the public enjoys an innovative and user-friendly space for receiving music. It is easier to download a song than it is to go out and buy an album. Apple iTunes and LimeWire are the two most popular digital music services. It is becoming easier and easier to access music over the internet.
Record companies argue that the profits made by internet music services represent their losses in the world of music. It is hard to prove this yet it is easy to see that more of the world is becoming turned on to internet based music because of its easy accessibility. This will only continue to grow and may in turn lead to more profits for artists rather than labels. This increase in internet-based music may eventually force record companies to decrease prices and give into the needs of the artists rather than control the needs of the artist. Only time and profit maximization can tell where the future of music will lead us, and so far, it’s leading us to a digital world.

]]> http://blog.case.edu/Racher/2006/03/31/the_beginning_of_a_new_age_in_music The Artic Monkeys, a band hailing from Great Britain released an album that became the fastest- selling debut album.... http://blog.case.edu/Racher/2006/03/31/the_beginning_of_a_new_age_in_music MGMT251 case cwru Case Western Case Western Reserve University Fri, 31 Mar 2006 14:47:23 EST The Artic Monkeys, a band hailing from Great Britain released an album that became the fastest- selling debut album. Some refer to them as the next Oasis. Their album “Whatever People Say I am, That’s What I’m Not” sold about 360,000 copies in the first week of its release. How exactly did this group become so popular? There goal was not to make millions, but to get on stage on put on a show that no one would forget. The spread their music starting in 2004 by handing out free cd’s after shows. The diehard fans who loved their music made their songs available to be downloaded from the internet, and in turn, this wide spread outbreak of music became the reason why they are so well known right now. It is interested to analyze a case in which the artists pursued their own goals through their own efforts and not by means of a record label. Some would say that handing out free music and allowing it to spread freely across the internet is a poor business decision, but it can be argued that the continued success of the Artic Monkeys is due to this strategy. Some would view this as piracy but in this case, it is seen by the Artic Monkeys as the reason why everyone is buying their music right now. This distribution of music over the internet is only one example out of the many, in which artists and fans become connected through more personalized means rather than through corporate means.

]]> http://blog.case.edu/Racher/2006/03/31/royalty_fees_in_the_record_industry http://www.nydailynews.com/entertainment/story/60991p-57008c.html offers an interesting case study on a band that basically received no pay for their great contribution to a... http://blog.case.edu/Racher/2006/03/31/royalty_fees_in_the_record_industry MGMT251 case cwru Case Western Case Western Reserve University Fri, 31 Mar 2006 12:42:58 EST http://www.nydailynews.com/entertainment/story/60991p-57008c.html offers an interesting case study on a band that basically received no pay for their great contribution to a record label’s profits. The 15 % royalty fee the band, Grunthead, received turned into an even greater expense in the long run, when they had to pay for other deductions and costs. This case demonstrates the large gap in profits between producers and artists. It is debatable as to how much each participant in the production of an album should receive, but it seems as the though the artist should receive much more than 15% with no strings attached. For each artist to only receive about $40,000 after producing a gross profit of over $6,000,000 is not only unreasonable, it is almost as drastic as stealing ones fortune. The artist produces the music, while the producer puts the artist’s work into production. It is true that a label can be solely responsible for the fame and recognition of an artist, yet that should not serve as a reason to basically steal the artist’s profits. This large gap should and eventually will close as the artist seeks to utilize more independent labels that serve to maximize profits for the artist as well as the producer.

]]> http://blog.case.edu/Racher/2006/03/01/music_and_file_sharing_a_way_to_higher_profits Rock star and actress, Courtney Love gave a speech at a New-media conference in Manhattan's SoHo. Her message stunned the... http://blog.case.edu/Racher/2006/03/01/music_and_file_sharing_a_way_to_higher_profits MGMT251 case cwru Case Western Case Western Reserve University Wed, 01 Mar 2006 00:02:32 EST Rock star and actress, Courtney Love gave a speech at a New-media conference in Manhattan's SoHo. Her message stunned the many audience members who listened. "Stealing an artist's music without paying for it is absolute piracy," she said. "And I'm talking about major-label recording contracts, not Napster." As many people already know, recording contracts are made for one simple reason: record labels want to maximize profits by limiting the profits of the talented artists they produce. Of course, these artists can do well for themselves, yet it is a question of comparison. Who makes more money, the label or the artist? And, who deserves to make more money? In the case with Courtney Love, she wanted to leave Geffen Records, which is owned by the Universal Music Group, and find a more independent label that appeals to the needs of the artist. In fact, Love visualized the growth of music based file- sharing as a chance for artists to leave the constraints of the music industry and make their own regulated profits. This idea would certainly give artists more freedom in sharing the music they want at the prices they want, yet would it maximize their profits? Record Labels distribute music rapidly and worldwide, and the web does the same thing, yet the web may be limited in the number of capable and willing users who would buy the music. Although computers continually evolve technologically and their numbers within households continually increase, is it certain that this would be the best way for artists to share and control their music in a way that would lead to the greatest profits?

]]> http://blog.case.edu/Racher/2006/02/28/filesharing_and_copyright_infringement Before the turn of the century, many of you may recall a case with Napster. For those of you who... http://blog.case.edu/Racher/2006/02/28/filesharing_and_copyright_infringement MGMT251 case cwru Case Western Case Western Reserve University Tue, 28 Feb 2006 23:13:36 EST Before the turn of the century, many of you may recall a case with Napster. For those of you who may not know, Napster software would users to log onto its servers and make their personal MP3 collections of music available for any other user to download. The Recording Industry Association of America (RIAA) accused Napster Inc. of violating federal and state laws through copyright infringement. Napster, as well as many other web-based sites, was becoming tools for downloading and distributing free copyrighted music. Cary Sherman, senior executive vice president and general counsel for the RIAA at the time, stated that "Napster is about facilitating piracy, and trying to build a business on the backs of artists and copyright owners." Some artists, including Metallica took great offense to the world Napster was creating and sued Napster.
The interesting issue here is that Metallica became popular through the distribution of free, boot-leg music. This underground distribution allowed their name to get out, and in turn allowed them to land a record deal. With Metallica, it seems as though once success was reached, there was no need to depend upon their name getting out. After the 80’s people knew who they were and with great confidence, knew that they would continues to rock for a while. Metallica viewed the illegal distribution of their music as a hindrance to profits and a copyright infringement, yet did they overlook the fact that their popularity was attainable through this type of distribution? The question to ask is, do websites such as Napster hurt the artist, or help build the artists reputation? Of course, free music is a great thing but how does it affect successful artists and how does it affect artists who want success and more profits? These two questions could demonstrate different outcomes due to file sharing. These examples and more will be investigated in future blogs to come.

]]> http://blog.case.edu/Racher/2006/02/28/observing_the_music_industry The Music Industry is a fascinating sect of the business world we live in. Music, unlike food, water, and shelter,... http://blog.case.edu/Racher/2006/02/28/observing_the_music_industry MGMT251 case cwru Case Western Case Western Reserve University Tue, 28 Feb 2006 23:06:50 EST The Music Industry is a fascinating sect of the business world we live in. Music, unlike food, water, and shelter, does not stem from a need, but a desire. Along with desires, come opinions and these opinions that exist in the population of music listeners governs the success of various artists within the music industry. I hope that this blog will give some insight into the determinants of an artist’s success, and the structural guidelines within organizations (record labels) that determine the level of success. The blog will also give light to the relationships within components of the music industry and the outcome of certain cases; i.e. the effect downloading music over the internet. Of course, with evolving tastes come different outcomes in terms of music. It will be interesting to observe how individual and group opinions in the market for music affect the music industry and the structural relationships within.

]]> http://blog.case.edu/Racher/2005/12/11/what_should_be_done_about_mendola I think the Tom Mendola case was too brief to really figure out who was to blame. It was clear... http://blog.case.edu/Racher/2005/12/11/what_should_be_done_about_mendola MGMT250 case cwru Case Western Case Western Reserve University Sun, 11 Dec 2005 23:40:40 EST I think the Tom Mendola case was too brief to really figure out who was to blame. It was clear cut: he was a kid, he had A.D.D., and he wasn’t paying attention to the duties his job required. I don’t see a way for any manager to sympathize with the guy. It is quite simple: he didn’t do his job, as was stated when he received the job. Maybe the manager expected a certain level of maturity and focus that he didn’t have. If that was the case, then the manager should figure out a new way to test employees before he hires them, e.g. see if the prospect can do his job in an environment of constant distractions. If the prospective employee leaves every time he hears the ice cream truck roll around, then the manager knows he’s no good. Focus is a really important aspect of any job. If a worker does not have discipline and focus, then that worker needs outside training, most likely by his parents. Tom, if ever he is to raise a family and make a decent income, needed more discipline instilled in him. As sad as it may be, that is not the job of the employer. Their job is to hire him and, if he doesn’t perform well, fire him. There is no room for a manager to level with the employee in terms of sympathizing with his situation. That would not work out for the good of the company. If every manager got involved in their employees’ personal lives than the company would eventually be overrun my competitors.

]]> http://blog.case.edu/Racher/2005/12/11/learning_from_your_hr_team This semester I really did enjoy working with my HR group. We had some good discussions, but more importantly, I... http://blog.case.edu/Racher/2005/12/11/learning_from_your_hr_team MGMT250 case cwru Case Western Case Western Reserve University Sun, 11 Dec 2005 20:22:48 EST This semester I really did enjoy working with my HR group. We had some good discussions, but more importantly, I learned some necessary skills that are needed when working in a group. The only groups I have ever worker in were sports teams. I had never really worked in a group for a long- term project before. There were other aspects of my group that went beyond the stated goals. Over the weeks we developed a sense of trust with the other members. No one worried about whether or not someone will get their job done because we recognized that everyone had an equally important role to the success of the group. I think this sense of trust becomes important when you are a leader in a workplace. Once you can trust the people you work with, they gain respect for you, and in turn produce better work. Basically, I feel as though the HR project had more meaning beyond the standard level of input and results (given the fact that I thought our results were random at times). It developed a true sense of what it is like to work with other people for a given period of time, and even if people feel as though they didn’t learn much from it, maybe they can find meaning in that.

]]> http://blog.case.edu/Racher/2005/12/11/effective_feedback I think that the only effective feedback is the truth. It takes no more than good, honest remarks or suggestions... http://blog.case.edu/Racher/2005/12/11/effective_feedback MGMT250 case cwru Case Western Case Western Reserve University Sun, 11 Dec 2005 17:24:11 EST I think that the only effective feedback is the truth. It takes no more than good, honest remarks or suggestions to let a person know how he/ she can improve. In any workplace, whatever the boss has to say must be said, and I disagree when people say, “well… I think the boss should be nice and respect the emotions of the employee.” The manager should say exactly what needs to be said to motivate the employee. That’s not to say he should scream his head off, but he should be firm and commanding when conveying his point. I also think that it is partly the manager’s fault if the employee reaches a point where he is completely slacking off. The manager should constantly keep tabs on the employees under him. This would ensure that every small problem in the level of efficiency or quality of work is taken care of in a timely manner.

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