Creative Class

There’s no shortage of debate on this one. But a new report (pointer via Tyler Cowen) by the intriguing combination of Harvard professor of Technology and Operations Management Robert D. Austin and Lee Devinand, a theatre dramaturg, shows there’s really no conflict:

[W]e examine the apparent conflict between artistic and commercial objectives within creative companies … We surface some assumptions that underlie such debates, compare them with findings from our research on creative industries, and identify three “fallacies” that sometimes enter into discussions of art in relation to money. This, in turn, leads us to propose a framework that can support more productive discussion and to describe a direction for management research that might help integrate art and business practices. We conclude that despite an inclination to take offense that often attends the close juxtaposition of art and commerce … the interests of art, artists, and business can be best served if more commerce enters into the world of art, not less.

Check out the other fascinating work on art, music, and management this team is doing.

Dutch start-up SellaBand has built a platform that allows artists to crowd-source funding from music-lovers around the world. Established in 2006 by two Sony-BMG music executives, it provides a Bowie-bond like process for up-and-coming bands to raise $50,000 to record their album by selling ten-dollar “parts” to online “believers.”

Economist Ajay Agrawal has been studying SellaBand’s business model as part of a new MPI program on Innovation and Creativity. He recently hosted an evening featuring a performance from the first Canadian to record with SellaBand, Angie Arsenault.

Hypebot ran this three-part post recently.

Part I: Music & The Creative Class: A Fruit Fly Industry

My colleague Dan Silver crunches the numbers and finds that while Nashville may be at the top of the commercial music pyramid, it lags on genre diversity.

Nashville takes fifth place in terms of popularity of its acts, according to Silver’s analysis of MySpace fans, behind L.A., Manhattan, Chicago, and Atlanta, and just ahead of Brooklyn. It falls to 25th in terms of total (MySpace) acts behind Portland, Austin, and Miami, not to mention leaders like L.A., Manhattan, Brooklyn, and Chicago.

Nashville also lags in the diversity of its music mix, according to Silver. Not surprisingly, it’s way out in front on country with 1,800 (MySpace) bands with five times as many as second-place San Antonio. Nashville also makes the top 20 for Christian music, acoustic, pop, rock, folk, jazz, and indie.

Silver provides further evidence of what he dubs Nashville’s “intensive rather than extensive” music profile by ranking Nashville alongside L.A., NY, Chicago, Atlanta, and comparably sized Portland on MySpace’s “bands with fans” metric (see table below).

Nashville is the national leader in Country and Christian music, and has bands with the top 10 most fans in folk, acoustic, acapella, pop, rock, punk, jazz, and alternative. This is very impressive indeed; Nashville is for sure a hit maker. But, once again, note the steep drop off. The other top 5 “bands with fans” cities – NY, L.A., Chicago, ATL — have high fan rankings across all the genres, with averages of 3, 7, 6, and 18. Nashville plunges to 40. Portland, by contrast, which ranks #19 overall on this metric (14 lower than Nashville), has an average fan rank across genres that is 14 higher than Nashville’s.

So yes, Nashville is more than country music. But, ranked in terms of the sheer cosmopolitan multiplicity of the genres its bands produce and circulate, Nashville is not quite New York City. Or, for that matter, Portland.

Still, Nashville’s music scene remains highly focused on the best-selling and most commercial of genres - pop (fourth), rock (sixth), and punk (sixth) as well as country (first), Christian (first) and folk (second) – compare to its 33rd place finish in Afrobeat and 151st place in death metal – as Silver’s data show.

Boy, Ta-Nehisi’s commenters surely do rock.

A new British study finds that the most pirated pop songs on the internet are those that already top the charts. Instead of giving rise to a “long tail” where small indie acts broaden their appeal online, the study found that digital technology – and music pirating – simply work to reinforce the fat head of mass appeal. From the BBC’s summary:

There was little evidence that file-sharing sites helped unsigned and new bands find an audience … It suggests file-sharing sites are becoming an alternative broadcast network comparable to radio stations as a way of hearing music.

Music critic, Carl Wilson, provides perspective:

This shouldn’t be a surprise ever since the 2006 Columbia University study that showed pretty convincingly that popularity tends to breed popularity whether on the Internet or not: When facing a big list of music, even if you have sampled each song, most people are apt to decide that the best ones are the ones other people also like …

It’s also notable that the Big Champagne study found that most people followed this pattern because otherwise they were overwhelmed by choice (you’ve probably run across Barry Schwartz on that paradox).

What’s more the ensuing exchange of information and opinion is the primary way that these choices become meaningful. A s one of the researchers, Andrew Bud, told The Register: “… it’s through people chatting to each other and seeing the music talked about in the media. That’s what culture is.”

Photo courtesy of http://www.ridelust.com/

Toyota’s Scion brand is turning to hipster culture in its attempts to lure Gen Y (h/t: Ian Swain).

Photo Courtesy of White-Stripes-Lyrics.com

Ludovic Hunter-Tilney elaborates in the Financial Times noting the shift from the shredding solos of Hendrix, Clapton, Page, and Beck to the “shimmering” contextual tones of U2’s Edge or Jonny Greenwood of Radiohead. What about Jack White?

But the enormity of the creative destruction sweeping the industry goes far beyond the iPod killing off the CD. The Gang of Four’s Dave Allen argues that we are seeing the “end of the album” – a construct initially created by the limitation of vinyl technology in 1930 – as the organizing principle of musical production. He sees this as potentially liberating for musicians – or those musicians that can adapt. Industry veteran Bob Lefsetz predicts a return to the pre-LP era, when artists constantly pumped out singles and toured. He even draws a comparison to the way that Toyota has succeeded by building a reputation for reliability gradually through word of mouth.

Technology is also changing the way we experience music. Strange as it may seem to vinyl purists out there, many of the net generation increasingly prefer the “sizzle” of compressed MP3s to the sound of higher-quality files. Some musicians now check their final mixdowns on cell phones.

But not all the results are positive. Mark Fisher counters that the ubiquity of digital recording is again changing the way we experience music. As more and more people produce their own music, and with more music to consume online and elsewhere, we have less time to actually experience music. We now take our music in small bits, seldom listen to anything “whole,” and have precious little time left over for live events. Like a digital-age Walter Benjamin, Fisher argues that such instantaneous exposure deprives cultures of the time and space they need to germinate and grow.

Technology and music have long interacted as economist Peter Tschmuck has shown. On the one hand, new technologies like the long play (LP) record, the synthesizer, and now the iPod have changed the music industry and led to the rise of whole new music genres. But, on the other hand, music has also powerfully affected the rise and dissemination of new technology. Without music and some ingenious entrepreneurs in the music industry, the phonograph would still be used as Edison intended: to dictate letters and store phone calls. Radio was seen as a “wireless telegraph” until one of Thomas Edison’s researchers broadcast himself playing O Holy Night on the violin on Christmas Eve 1906. And we’re all familiar with the way the MP3 popularized peer-to-peer file-sharing and broadband internet connections. But, It’s about more than just technology, actually.

The way I see it, that music is a “fruit-fly industry” – one that can tell us a lot about the nature of technology, new business models, and the economy in general. Music is a highly competitive business – a hyper-competitive market in miniature, where competition for sonic, technological, and talent advantage spurs rapid evolution and change. New recording and network technology means that barriers to entry are lower than ever. Music is often the first sector to experience the full force of disruptive technology. It was the first industry to face the file-sharing crisis, and other industries like film and publishing are now learning from its experience. Musicians are quintessential examples of free-agent workers, mixing income and seeking out affordable, creative places to do their work. And the concentration of musical talent and firms into clusters and scenes – in an industry which requires little in the way of capital infrastructure and fixed costs – can help us better understand geographic clustering across a wide variety of fields.

Two members of rock-n-roll royalty are getting married. A couple of weeks ago, news broke that White Stripes drummer Meg White and guitarist Jackson Smith (son of legendary MC5 founder the late Fred “Sonic” Smith and singer-songwriter Patti Smith) plan to tie the knot later this month. While both are born-and-bred products of Detroit’s legendary music scene, their nuptials will take place 500 miles south in Nashville, Tennessee.

A few years ago, Meg’s ex-husband and current bandmate Jack White made the move from Detroit to Nashville. Inspired by his time there producing Loretta Lynn’s Van Lear Rose and the city’s warm embrace of those who aim to “write hits,” Jack White now lives there full-time with his family, and his new side project: The Dead Weather is based out of his new multi-purpose headquarters in the city.

The White’s trips down I-75 are part of a broader trend. While conventional wisdom holds that modern technology allows musicians to work from anywhere they choose (while weakening the influence of traditional record labels and rights-management organizations), the reality is music, like many other industries, is actually becoming more concentrated and clustered over time. 

(Source: Martin Prosperity Institute, Music and Entertainment Economy Project)

In 1970, Nashville was a minor center focused on country music. By 2004, only New York and L.A. boasted more musicians. The extent of its growth was so significant that when my research team and I charted the geographic centers of the music industry from 1970 and 2004 using a metric called a location quotient, Nashville was the only city that registered positive growth. In effect, it sucked up all the growth in the music industry.