OH… AND THE FANS.
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Did AMA Winners Thank The Right People For Their Awards?

By Moses Avalon

On the night of November 18, 2007, millions tuned into the American Music Awards to watch their favorite pop artists thank the Lord, Clive Davis, their record companies and others for the awards they took home. But did any of them get it right?

Thanking Jesus at awards shows has been obligatory (even if you're Jewish) since the 1990s, when Gospel had a brief pop resurgence. It seemed even artists who were fresh out of rehab and hadn't been near a church in years were thankful for the almighty's favor.

However, in the last two decades we've become more of an agnostic culture. Atheists suing schools over "under God " in the Pledge, and a host of other cases have made it hip to be a non-believer. Therefore, to keep the spiritual theme, many performers, instead of thanking a deity, expressed thanks for "Being able to get up every day and do what they love. " It's a softer way of thanking God even if it did have me wondering if they all hired the same media coach.

The one thing I didn't hear with quite as much zeal as in previous years was the thrown-in additive, "Oh, and the fans. " Yes, after each list of CAA executives and A&R zombies came the customary obilgatoration, "The fans, without which I'd be nowhere. " It was still there, but this year they said it as they shied back from the microphone.

What this really meant was, thanks to everyone who still pays for music. There must still be enough of them to justify the cost of hiring Jimmy Kimmel to host the show and pay $350K for a thirty-second spot. Advertisers would not pay for time on a show that had irrelevant people performing. So, what do these corporations (and their very expensive market research) know about the music business that many ignorant bloggers and mainstream reporters seem to be missing?

I'll tell you. They know what the artists know. They know how to read a royalty statement. They know that despite the 100s of millions of P2P thefts, CD sales and legal downloading are still viable business models. Yes, yes, there's the big-bucks licensing stuff. But, "the fans " does not mean when Pfizer licenses "Celebrate" for their drug Celebrex. It means when an average Joe/Jane goes to the store and buys a track or a disk.

In fact, this entire situation has me wondering what artists should be learning from the current writers' strike. For those not following the walk-out, the issues are simple: movie and TV writers are asking studios for a share of internet advertising revenue. Studios/producers say there is none, but everyone knows they are lying. They will eventually buckle and give up a small piece.

So, why aren't record companies asking shows like the AMA and the Grammy's for a share of ad revenue for the artists? The reasons are complex but boil down to this: artists are too scared.

When they are thanking "the (paying) fans " they believe that they are thanking fewer and fewer people each year. But they believe this only because record companies and the media has brainwashed them into thinking the business is doing badly. This justifies smaller budgets, mass firings, lower advances, longer terms for royalties, reserves and number of albums, and it discourages audits.

How do I know I'm right? Simple. If major labels artists were really living in the light and seeing the truth they would not be thanking God or the fans. They would be thanking those creating new ways for them to sell their music. They would be thanking those who have created the new revenue steams and technologies that help them connect with more fans than ever before and not un-coincidentally, those who paid the most amount of royalties to artists/labels over the past few years. But can you imagine what that acceptance speech would sound like:

"I'd like to thank Steve Jobs and Apple, Verizon, Yahoo, Google, Microsoft and Bill Gates, Facebook, and Al Gore for inventing the internet. Oh… and the fans. "

Happy Thanksgiving.

Mo Out.

STEVE'S SCREWY DECISION
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Apple POs 500,000 iPhone Buyers

Did Steve Jobs have to spit in the eye of all his early adopter customers?

For those who missed all the drama it's basically this: Apple hypes the iPhone as the greatest thing since sliced bread; making the public believe that it's worth every bit of the $600 price tag. Then less than two months after hundreds of thousands of people wait in line to buy one, as if they were Stones, tickets, Steve drops the price $200. What a douche bag.

But did he have a choice? I think not.

In the next year several companies will be launching an iPhone-like device for about $100 (with mail-in rebates). It's the natural Darwinism of technology. But didn't Steve know this? He's fond of saying in his recent "explanation " that he's been in technology for 30+ years and seems to know what's best for the world's only cult computer company. So why didn't he see this one coming?

[http://www.apple.com/hotnews/openiphoneletter/]

Well, he did of course that that's why everyone's pissed. Who will trust him when he hypes the next big Apple widget?

Think this is no biggie? It is.

Apple's computer sales have slipped in market share by half a point last year despite selling more computers. That means that even though they are increasing sales, they are not retaining any traction as the computer market grows. iPods have reduced the company to little more than a gadget factory. Nothing wrong with that, but a gadget factory needs one thing to be the best—credibility.

Your entire market is early adaptors who buy the latest widget for b/c we want to be the first to have it. We want the attention at parties and the leverage to negotiate when something goes wrong (Time Warner dreads costumer services calls from me. I subscribe to every imaginable Cable TV up-sell.)

But the one thing you can do to destroy your cred with people like us is to drop your pants too soon. We all know that the price will eventually go down, but TWO MONTHS!!! Jesus, what was Steve thinking?

Well, he's thinking that the Holidays are coming up and I have the biggest Albatross product in the market; an over-priced phone that everyone renewing their phone plan can get the equivalent of for about $50. Oh yeah, and I didn't meet my sales projections of 1 million unites by even half. My stock holders are wondering if I'm a total loser because I've alienated the biggest record companies in the world. What the F am I gonna do?

Well, pissing off his loyal following was the wrong move. Offering them a $100 credit at an Apple store isn't going to smooth them over either. I'm no CEO of a publicly traded company, but I'm pretty sure I'm right about this one. It would be as if L Ron Hubbard told millions of Scientologists--who spend thousands on courses--that he was only kidding, but they can still get a $100 credit towards a new lecture tape.

Gambling that the public has a short memory, Steve is hoping that the next time Apple launches a "groundbreaking product, " that we'll all forget that it's just Steve's pathological enthusiasm.

Steve, you need a vacation.

(PS: I have the new LG enV VX9900 (on Verizon). Great deal. Web 2.0, 2.5 mpxl camera, MP3, Video, text, the works. Retail $350. But, $50 with mail-in rebate and a two-year contract.)

Mo Out