April 2005

    
   
Notes from SXSW
Rising to the 
top of the CMJ charts
Artist Profile: Amy Ray
Tax Relief
April Happenings
Find opportunities 
at the upcoming 
Midwest Music Summit
Check out this 
New Release!
Read more 
and win a copy!

Airshow Mastering
brings years of  experience with 5.1 &  stereo for CD, DVD & SACD. 

Call it March madness
Or call it SXSW
E
very March, the vibrant Austin, TX music scene goes into overdrive. For five days, nearly 24 hours a day, downtown becomes a mad zoo of bodies buoyed by tired legs and feet, all struggling to cut through the musical soup around them. Rock bands, acoustic folk singers, jazz horns, hip-hop beats and country twangs seep out of bars and night clubs and into the streets, mixing with cell-phone chatter and the grinding of cars that whiz by in search of a parking spot.

Welcome to South by Southwest.

For many, SXSW is a continuous swirl of excessive drinking, late-night fried food and second-hand smoke. But it’s also a celebration of music and the music business. It's where people who love music congregate to do some schmoozing, strike some deals and have a whole lot of fun. And of course, it’s an opportunity to see high-energy performances from legendary talent and acts on the rise.

When it comes to SXSW, one thing is for certain: You won't find a bad act here. In fact, you get so spoiled after a couple of days you start to criticize performances that would have blown you away anywhere else. The bar is set pretty high at this conference. That's probably why press, the industry and music lovers keep showing up year after year.

Quirky, warm and brimming with bars and clubs, Austin is uniquely qualified to accommodate the hundreds of sanctioned and non-sanctioned showcases. Outfitted with a convention pass, you can get into just about show. This year, big-name talent such as Elvis Costello, Aimee Mann, Robert Plant, The New York Dolls, Jason Mraz and Fat Boy Slim shared stages with up & comers such as The Legendary Shack Shakers, Jolie Holland, Vienna Teng, Raul Malo (of the Maverick's fame), renowned NYC-based songwriters Amy Correia and Jesse Harris (yeah, the guy who wrote five songs on Norah Jones's multi-platinum album, Come Away With Me, and won a Grammy for Don't Know Why), played to enthusiastic fans in incredibly intimate settings.

But there is more to this conference than exceptional music and free booze. The Austin Convention Center hosted panel discussions covering nearly every aspect of the music business and included an exhibit hall featuring new products and services, as well as awesome album and poster art and swag at The Flatstock Exhibition. 

Across the street at the Hilton, The Musician's Hotel, organized by Electronic Musician & Mix Magazine, featured hands-on demonstrations of products and technologies from Apple, Mackie, Alesis, Shure, M-Audio, Numark, Akai, Sensaphonics, and Disc Makers. You could purchase these, and other company products, in a makeshift store Guitar Center brought directly to the Musician’s Hotel site. And you could rub elbows with, and learn tips from, industry giants like mastering guru Bob Ludwig and guitarist Ronnie Montrose.

Just so you know, I spent a good portion of every day at the convention center. Really, I did! Here's a little rundown of all the hard, grueling work I did and what I learned during the handful of hours of each day that I wasn't drinking or otherwise rocking out to some band:

I gravitated toward the technology panels because it is both the biggest threat and the biggest opportunity for the music industry, depending on who you ask. As expected, I discovered during these panels that both the artist and label sides of the biz are still completely conflicted about peer-to-peer file sharing and what it means for the future of music. Jay Rosenthal, a music attorney at the Washington, D.C.-based firm of Berliner, Corcoran & Rowe and a honcho at the Recording Artists Coalition, didn’t mince words. "It’s stopping new artists from coming forward, and it’s killing mid-level artists across the board," he said. (To be fair, Jay - who I’ve known for years — also said P2P could present huge opportunities for artists who want to participate. He just has a problem with people trading files without artists’ permission). Rosenthal also said he’s "very much in favor of the lawsuits" filed by the Recording Industry Association of America to stop unauthorized downloading because he said it has started changing attitudes, especially among young people. "They feel different today," he said. "They sense that there might be something wrong with it."

Wendy Seltzer, a lawyer with the Electronic Frontier Foundation (a digital rights group based in San Francisco), countered that the lawsuits haven’t done much good at all, merely driving file sharing underground to P2P networks that are even harder to track or stop. "The lawsuits feel a lot like the days of prohibition," she said. Seltzer urged parties to stop bickering and adopt collective licenses or some other mechanism that allows artists to get paid while letting P2P and other technologies flourish. She said rapid growth of Podcasting (see our series on this in the last two issues) presents "a great opportunity for collective licensing." The problem, of course, is in the details. For example, lawyers are still wrangling over whether a Podcast is a download or a stream, which becomes important when trying to figure out whether to apply mechanical or performance royalties. And if it’s subject to performance royalties, is it a public or private performance? No one seems to know.

Shawn Fanning: The Comeback Kid?
Okay, you may have wondered what ever happened to Shawn Fanning, the founder of the original Napster. Did he retire to a deserted island? Did he reject technology in favor of a log cabin in the Wyoming mountains? Or did Metallica drummer Lars Ulrich, so instrumental in the original Napster’s demise, lock Fanning up in a torture-chamber somewhere, punishing him in a creative, death-metal sort of way? The answer is…none of the above, actually.

Fanning, who showed up to speak at SXSW, has been hard at work developing audio fingerprinting technology that copyright owners could use to track songs bouncing around P2P networks. His new company, SnoCap launched in December and already has deals with Universal Music Group and Sony BMG, as well as a cadre of indie labels, including Absolutely Kosher Records, Artemis Records/Sheridan Square Entertainment, Gammon Records, Streetbeat Records/Pandisc/Kriztal Entertainment, Nacional Records, Nettwerk Records, OM Records/Deep Concentration, Reality Entertainment and TVT Records. Can you believe it? Record labels striking deals with the father of file sharing? You might call it the Shawnshank Redemption (especially if you’re a writer partial to cheesy wordplay).

The idea behind SnoCap is to enable artists and labels to get paid for P2P downloads. From what I hear, the deals are for the technology and are of course contingent upon it working. What's still unclear however is how the labels will collect the royalties for the songs after they use the fingerprinting technology to track them.

The theory is that identifying which songs are being downloaded over P2P networks would enable companies to divvy up royalties based on those downloads. SnoCap has reportedly been getting a good reception so far despite the notorious Fanning’s involvement (Dartboards in offices all along Sunset Boulevard still bear his visage, after all). In any event, Fanning showed up at SXSW as a changed man, professing that he wished SnoCap’s technology was around years ago. "It’s something I wish would have existed when we were at Napster," he said. "It would have made this so much easier." Ya think?

Fanning views SnoCap as a mediator of sorts—helping to break the logjam between rights holders and the P2P companies (KaZaa, eDonkey, Grokster, etc.) they despise. "All of this fear… means the two parties are deadlocked," he said. "The only way to break that deadlock is to bring in a third party." As for all that history with Metallica, Fanning says it was never personal, and he noted that he ran into Metallica guitarist Kirk Hammett recently and pitched him on SnoCap. "I think he was drunk," Fanning said. We would expect no less.

Rockin’ with Ringtones
You may think that ringtones are boring and, in their current state, they are. But consider this: Ringtones pulled in $250 million in the U.S. last year (more than twice that number in Asia & Europe) and are expected to gross $500 million in 2005. Interested yet? While ringtones are already a big deal, the transition from monophonic and polyphonic ringtones (beepy representations of songs) to master-tone ringtones, which are actual clips of the master recordings, and ringbacks (assigning different tunes to each person in your phonebook) could make them a might big deal in the future.

After all, if someone can download a clip of a song, then why not the full song in an iTunes-like model? And once bandwidth is available, why not download a whole album or just walk around "renting" a stream of music? Donald Passman, a music attorney with Gang, Tyre, Ramer & Brown in Beverly Hills, Calif., wondered aloud whether anyone will need an iPod when people can "just dial it up and listen to it" on a cell phone.

Indeed, those in the know are pretty excited about the potential to turn mobile phones into music centers. "This is your new point of sale," boldly stated Mark Frieser, CEO of NYC-based research firm Consect. "Forget about record stores." A bold statement indeed for, the truth is that cell phones aren’t quite ready to grab the mantle yet. Current bandwidth constraints and handset storage issues now hinder mobile phones in that regard—but the technology progresses every day. And while ringtones are largely a phenomenon for major-label acts, that’s also changing. Indie bands can already make their own ringtones with software such as Xingtone Music and make them available to their fans. (Scott Andrews, senior director of Internet and mobile entertainment at BMI, predicted that bands could send out ringtones to concert goers via a wireless Bluetooth connection. Pretty cool, eh?).

Other panel topics included booking, management and contract issues, as well as pointers on how emerging artists can market themselves on a budget. In addition, organizers set up a series of sessions in which A&R folks listened and evaluated demo submissions. The broad range of topics was a lot to take in. All the more reason that people come year and year. At SXSW, there’s always something new to learn. Of course, I readily admit that I also had some fun in between those moments of cognitive activity. Okay. I had a lot of fun. And to paraphrase Sheryl Crow, I got a feeling I’m not the only one.

(Mike Grebb is a writer, journalist and singer/songwriter based in Washington, D.C. He has written for numerous publications, including Wired and Billboard. He just completed his debut solo record, Resolution, which is available at www.mikegrebb.com).