Trent Reznor and the Formula for Future Music Business Models

Trent Reznor is a classic example of how artists can make cash without being signed to a record deal. He demonstrates a simple formula that can be used in any business for selling a product.

CWF + RTB = $$$$

(Connect with audience) (reason to buy)

This formula seems very simple to put into practice, however its success is based upon how this is applied. This is where the Trent Reznor case study can be used as an example.

CWF:

To connect with the audience he conjured up an Internet scavenger hunt, in which you could win free gifts and tickets to his concerts. However… this website can only be located on the back of a concert t-shirt, where certain letters of the tour were highlighted and spelled out the website address. This gave a way for the fans to connect beyond the music.

Another form of ‘connecting with fans’:

He dropped USB sticks in the concert venue restrooms, containing new music. They would go home and discover the music, and share it with friends. Causing them to feel special and connected.

RTB:

Very simply, but well thought out…. The CD’s would change color when played. This is something that could not be pirated as an MP3 or download cannot duplicate changing colors.

He then performed the two together:

(cwf+rtb)

He gave his fans options of ways in which they could get hold of the music

1-    A free download of the first 9 songs.

2-    $5 for the whole 36 songs

3-    $10 for a two disk set

The next two options are the interesting ones (and the money makers)

4-    $75 for a deluxe package (box set)

5-    $300 for the ultra deluxe, which were also personally signed

The reason that that ultra deluxe was so expensive was the fact there only 2500 copies. This sped up the buying process and evidently it worked. They sold out in 30 hours and together made $750,000. Over the rest of the week, including the other options, they made 1.6 million dollars, WITHOUT a music label and with free music.

Other similar things he has done through the CWF+RTB formula:

CWF:

·      Download an album for free by simply giving your email address on his website.

·      Maps on Google earth to see where other people were downloading

RTB:

·      The same day concert listing came out so people could buy tickets immediately

·      The CD had exclusive content and material

·      There were lots of new and interesting opening acts, which you could also download (CWF).

His website constantly keeps up his connection with fans by……

Not just professional photos, but anyone who took concert photos and uploaded them to flickr, would go directly onto the website.

There were also wallpaper downloads, which would keep their music in mind.

There was the same appliance for videos and YouTube.

Probably the most important was his email to all his fans, this made him sound human, and put him on a personal level.

The formula can also be known as…

CWF- compete with free

RTB- back to business

How Piracy Effects My Original Ideas for Music Videos

Piracy makes it far more difficult for huge individual stars to emerge. As put by a journalist, " Rather than helping to create a rock 'n' roll revolution, the unwillingness to pay for music means more assembly-line artists." 

'Assembly-line artist' meaning, the cliche popular stars, such as Justin Bieber, Kylie Monogue, Katy Perry, Taylor Swift. All the classic popstars. They produce 'safe' music, something people are bound to like. This is not due to being unoriginal, but due to the threat that piracy produces. Because people can now download music for free, it means the music industry makes far far less money than in previous years, meaning there isn't room for any risk. They must produce something that has some chance of making money. 

This very much effected my first ideas for music videos. I went for three very cliche and likeable ideas, not too original or strange. As I realised that in realistic terms, if this was ever to be released it would have far more chance at making any money, if it were to be mainstream with an 'assembly-line artist'.

However, my first instinct when researching piracy was why hasn't anyone campaigned against this? But, when I looked deeper into it, I saw that some people had attempted this such as Lily Allen, or Lars Ulrich ( Metallica), and the public had severely knocked them down. Lily Allen was made the target of abuse and even death threats at her campaign for copyright enforcement, forcing her to ignore the issue. This shows how difficult it would be to tackle the issue for anybody, especially artists being claimed greedy. It proved to me that one of the only ways to make it out there is to follow the crowd and stay safe when producing music and stars. Essentially this means that any strange or new style of music could never truly make it to stardom, and the genres will continue. 

However I did find one upside to piracy when reading a quote stated by Liam Gallagher, "But as I understand the consumer didn't want Jimi Hendrix, but they got him- and it changed the world. F*** the customer. He doesn't know what he wants. You give it to him and he likes it."

The last part of the Quote above was the part that drew to my attention the most. If people are given something for free they'll take it, because its free, why not? Therefore in the world of piracy a band or artist could make it huge, but make no money, simply because people can listen to their music, people will, and the more do, the more people like it, the more hype it creates. After this, it could lead to bigger things and maybe people will start to buy the music, or buy concert tickets. Here I saw a way for independent music to find its way to the top. Although this method is not guaranteed by any means it is the only way I could see apart from taking the 'assembly-line' artist' approach. 

With regards to my music video it allowed me to think slightly more outside the box on one occasion and one of my ideas became original. Giving a tiny bit of hope that it might have a chance put into the real world.

However, from my experience of producing music video ideas, I do think that piracy is something that is stopping the music industry from allowing it's self to produce new and interesting music, though I cannot see away around this issue due to the previous reaction of the public.