Music must be marketable to matter

In preparation for my new startup, I've been reading books on various subjects related to business, such as negotiation, accounting, and so forth. One subject that keeps popping up again and again is marketing. Now, in pretty much every music scene out there, marketing is just a synonym for promotion. When you look at the word itself, though, there's much more to it than that. A market is where sellers compete to offer goods and services to buyers. So being marketable means staying competitive in the marketplace, and marketing is really about asserting a constant presence within it.

In every other industry, all of this just goes without saying. Ask a pizzeria owner how they stay in business, and they'll speak in terms acknowledging that their customers might just as easily go to their competitors. But they maintain loyalty by using only the freshest ingredients, offering fast and friendly service, sponsoring community events, and so on. How a pizzeria gets paid is directly related to how it competes in the marketplace. It would never occur to the owner to think any other way.

Ask the loudest people in today's music industry how an artist is to get paid these days, however, and they'll chatter on about new distribution channels, online tools for booking shows, and so on. Almost none will speak in terms acknowledging that each listener's time and spending money are limited, and that a gazillion other bands out there are hoping to claim their share of it.

The worst offenders are those established artists who gained exposure under a previous model, yet are now trumpeting some new model as the road to salvation for each one of the gazillion unknown bands out there. These artists get invited to give TED Talks on "The Future of Music." Any first-year business major, however, can easily out them as snake oil peddlers. Until you've acknowledged the competitive reality of the marketplace, your proposed solution belongs in the fantasy fiction section, alongside hobbits and vampires.

I do get it, though. Rock music has finally reached the point that classical music was at half a century ago, where the most pioneering artists are now the least likely to achieve mainstream popularity in their own time. Given this reality, competition naturally loses any meaning as an arbiter of artistic worth and thus gets left by the wayside. I get that.

But when aspiring pioneers stop competing for financial success, they lose a valuable tool for self-appraisal used by everyone else, including artists from the past, to improve what they have to offer. This makes it easier to neglect their marketability in areas that definitely should matter, such as social relevance and intellectual interest. And then they're left woefully unprepared to compete in the only market that can possibly redeem all their efforts: the marketplace of history.

Consider two frontrunners in today's indie rock and contemporary classical scenes, respectively. Bon Iver might beat Jack Johnson hands down, sure, but he still has to compete against the Beatles. Thomas Adès might have the edge over Eric Whitacre, but there's still Beethoven to contend with. (On a side note, it just occurred to me that Adès and Bon Iver's Justin Vernon share a resemblance, although maybe it's just the beards.)

While both are highly accomplished, neither Adès nor Vernon has invented a new musical language or idiom, which doesn't bode well for their chances at posterity. Sure, it's easy to think of history as an awards show, where one only has to beat the other nominees in one's respective category for any given year. But even if this were a fitting analogy, let's not forget that when we pore over lists of winners past, plenty will fail to stick out as names we recognise, much less care about. Their years are now placeholder years to us; there's no rule saying we must treat them otherwise.

And there's no rule saying that music history can't have its own placeholder years, or even decades. So how does one stay competitive in the marketplace of historical relevance, when the passage of time is forever compounding the artistic worth of those who came first? Where do new musical languages and idioms come from? Looking at past composers and bands who've managed to hold their own against Beethoven and the Beatles, I'd say they come from some weird combination of blissful naivety, relentless ambition, and heightened awareness of history's crushing weight. That's just my guess, though.

But finding a definitive answer isn't my concern here. I'm just pointing out that any artist who remains blithely unconcerned about competing in a marketplace will probably get trampled by history, because history itself is a marketplace. And until this reality is acknowledged, music won't be following us into the 21st century. We need to shout this from the rooftops again, and again, and again.

Music must be marketable to matter. Every other solution being peddled out there is just so much snake oil.

Scalable and non-scalable music

In preparation for my new startup, I spent this past summer reading some books on the subject, including The Lean Startup, The Innovator's Dilemma, and Founders at Work. As it turns out, some of the shortsighted practises they mention as cautionary tales are exactly how many of today's indie labels operate. So I've been trying to draw further parallels, hoping that knowledge of startup culture can lead to greater understanding of the problems currently facing indie rock. But so far, none of my attempts on this blog have really quite grasped it.

Until now, that is. I think I've got it now. And in retrospect, it seems absurdly obvious. It's really all about a distinction that's quite basic in the business world, even as it's rarely acknowledged, if it's understood at all, in the music world. I'm talking about scalability.

Startups such as Blogger, Facebook, and Twitter are scalable. That is to say, they're designed to accommodate unlimited growth of customers and users. This is because what they offer, ultimately, is new ideas. Since there's little precedent to show how well a new idea might succeed, though, startups operate under great uncertainty. A seemingly bad idea today might be worth millions tomorrow. Or… it might just be a bad idea.

A non-scalable business, by contrast, combines time, labour, and raw materials in a way that doesn't easily accommodate new customers or users. A pizza joint is a good example. Since each pizza joint can only make so many pizzas a day, none competes intensely with any other. And everyone likes pizza, so there's no need to create a new market from scratch. The downside of this certainty, of course, is that few in the pizza business can expect to make an easy living.

Since a pizza joint's sales are relatively steady from week to week, whether it can stay in business might depend on the tiniest sliver of net profit on each pizza sold. When I was a delivery guy many years ago, the owner could give me the exact cost, in pennies, of a single handful of each topping. So once a pizza joint is firmly established, its main priority is to extract ever more value from the limited time, labour, and raw materials it's able to invest.

By contrast, what's a startup's new idea worth? Since there's no market for it yet, no one knows. Even a ballpark range is impossible. So instead of fretting about the net profit of each individual user, startups simply work to acquire more and more of them. And since the underlying idea is ultimately what makes or breaks fortunes, they need to stay flexible should their initial assumptions prove wrong. But a pizza joint would be foolhardy to stray from its original mission of making the best pizzas ever.

One last difference is that since startups have no fixed limit for number of users, they're often open to hiring more people. After all, the cost of dividing their fortunes even further is easily offset by the resulting growth to their user base. By contrast, a pizza joint with a fixed customer base shouldn't hire any more workers than it needs to get stuff done.

So which is better, scalable or non-scalable? Of course such a question is absurd. We want online chat, but we also want lunch. We want people out there thinking differently and challenging our basic assumptions about how the world might be. But we also want people out there giving us exactly what we want, the tried and true approaches that keep the world sane and running smoothly. It's pointless to compare the two. They fulfill vastly different needs.

The music world has its own versions of scalable and non-scalable. The former see creativity and the ability to generate new ideas as their best assets, while the latter focus on cultivating skills that will allow them steady work. In the classical realm today, for example, composers generally belong to the former, and performers the latter. And just as in the world of business, it's pointless to argue which is more important. Throughout history, however, the circumstances of the world have not always treated them as equally important.

Even as late as Mozart's time, composers and performers were both treated as tradesmen. In fact, it was the critic who was held in highest esteem back then! (If this sounds bizarre, remember that those doing the critiquing were the nobility.) So both were non-scalable since their efforts weren't appreciated outside the courts that hired them. It wasn't until Beethoven inspired the cult of the "brilliant, tortured artist," and new advances were made in printing and publishing, that the world's first scalable musicians arrived in the form of the Romantic composers. A century later, audio recording allowed performers of popular music to be scalable as well, and everyone was happy.

Unfortunately, scalability didn't (and still doesn't) always equate with quality. New business strategies sprang up to wring maximum sales out of minimal talent, thereby undermining the key premise of scalability, which is that achievement of scale is its own proof that scale is deserved. So when file sharing came along to disrupt this practise a decade ago, most just shrugged, including myself. And since scalability, or the ability to scale, is meaningless once opportunities to scale have been removed, the spotlight has now shifted back to non-scalable musicians, much like in the time of Mozart.

These non-scalable musicians differ from scalable musicians just as pizza joints differ from startups, in that what they have to offer is their time and labour. In other words, their work requires them to be there in person to get paid, usually in small amounts at a time. Not surprisingly, then, for the past decade a certain glee has been palpable in the air now that creative works by themselves, without further time or work put in by the artist, no longer generate the exorbitant earnings they once did.

The newfound attention received by non-scalable musicians also means that they're now filling up the rosters of the record labels, whose business model was optimally designed for scalable musicians. But… this is a problem, isn't it? Because as corrupt and degraded as scalability was at its worst, the historical record will always show the heights it reached at its best. These heights just aren't going to be repeated by musicians holding non-scalable concerns and priorities, and I think they themselves would be the first to agree.

But it's not too late to give today's scalable musicians the opportunity. And if any should succeed, it will probably be the ones who think most like startups. That is to say, the ones offering new ideas, being flexible in their assumptions, and eagerly splitting fortunes with those who can bring them a wider audience. The first thing that smart investors often ask about a startup is, is it scalable? It won't be long before the smart labels start asking the same about the bands they sign.

So now I fully understand what my startup is meant to do. The point isn't to sow tension or resentment between scalable and non-scalable musicians, who fulfill vastly different needs for their respective audiences. We want some musicians to challenge our basic assumptions; we want others to give us what's comfortable and familiar. It's not a contest to determine which is more important. So I just hope to give all musicians, as well as other artists and eventually all individuals, the chance to be scalable by genuinely deserving that scale, in a world where such opportunities are quickly eroding away.

Yeah, that's it. I think I've got it now.