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Free competes with paid and abundant competes with scarce

Posted on December 11, 2017 | by Bas Grasmayer

Facebook recently launched a sound library including tracks you can use for free on videos. People criticized the concept in a music business discussion group (also on Facebook, ironically). I would hear the same rhetoric that people have when they say bands shouldn’t perform for free, because it’s not just a bad practice, it is also bad for your peers.

But let’s look at the reality that people in music are complaining about.

1. There are many different types of artists

There are always going to be people who find it awesome to see their music used by other people: even if they don’t get any money for it. They may be college students who are just happy to see their music travel. They may be people working full time jobs who do a little music on the side and don’t depend on the income. They may be professional producers who put out these tracks to libraries as a type of calling card.

Either way: there is always going to be free music and you will always have to compete with it.

2. Giving your music away for free can actually work

You have to have a monetization strategy at the end of this, but the easiest way to win attention online is to make great ‘content’ (in this case music). This content should be available with as few barriers as possible: which means making sure it’s available for free. The second part of your strategy should include steps on 1) how to hold people’s attention after you capture it, and 2) how to identify opportunities to monetize your fanbase (I wrote about it in detail in this thesis).

But sometimes you don’t need a strategy for monetization. It’s not easy to get signed to big labels nowadays and it usually requires you to show that you can build up your own audience. One of my favourite examples of someone who successfully leveraged free is Alan Walker. An EDM artist with tracks that have more plays than some of the most popular tracks from stars like Kendrick Lamar. How? He released his somewhat odd music through NoCopyrightSounds, which specialised in providing YouTubers and Twitch streamers with music they could use for free, without fear that their videos would get taken down. Eventually, they soundtracked the whole subculture and put a new sound in EDM on the map (read more).

3. AI is going to one up everyone

We are seeing amazing developments in AI. The most recent example is Google DeepMind‘s AlphaZero, which beat the world’s best bot in chess after spending just 4 hours practicing. Startups from Jukedeck, to Amper, to Popgun, to Scored are all trying to make music generation easier.

We already see more music being released than ever before, but so far it has still depended on human output. Through AI, music is already being untethered from human productivity. Standing out in abundance is a minuscule problem compared to what it will be 5 years from now.

Free music libraries are the least of your problem

There is no singular music business or industry. Everyone is playing by different rules and all those rules will be upended every time there’s a big shift in technology. From the record player, to the music video, to the internet, to AI and blockchain, music is the canary in the coal mine and you have to have a pioneer mentality or else you are falling behind every day.

The people who are one step ahead may be underground today, but some are the stars of tomorrow.

By all means, let us discuss the ethics. But be careful not to let your opposition blind you to the point where you cannot see how a new generation of music is thriving and leaving you behind. Because then it’s too late. For you.

How will we remember bands when interfaces are voice-controlled?

Posted on October 8, 2017 | by Bas Grasmayer

I have phrased the above question as a problem for listeners, but this is a much bigger problem for artists.

The last few weeks have been filled with big news for those closely following voice interfaces. Amazon just announced a bunch of new devices, including a cheaper version of the Echo and a new Echo Plus, that utilize Amazon’s voice assistant Alexa. Google has upgraded its voice assistant, and has included it in new headphones which can automatically translate what people are saying, alongside a bunch of other devices that quite frankly look more exciting than Apple‘s. And to top that all off, multi-room hifi-set producer, Sonos, has just integrated Alexa in its speakers.

The problem in the title is actually easily solved for a listener: you can simply ask what’s playing. However you simply can’t be bothered to ask what’s playing every other song. So this problem is much more important for the artist, than for the listener.

If you haven’t used these devices yet, you may not be aware of some of the challenges, but here they are:

It’s already hard to be remembered – how will people remember you when they don’t even see your name? On our phones or laptops, we occasionally see what’s playing. When we select a playlist, we often see what artists are on there. Something may stick. When we play ask Alexa to play Spotify‘s RapCaviar playlist, we don’t get clues of what’s playing. It’s basically the same as with radio, but at least there you have DJs who will tell you what’s playing. Any music or artist that you don’t care to Shazam will be forgotten.
How do you stay top of mind enough for people to replay you? People often start playing music without looking at their phones or music libraries. This means they request what’s top of mind: artists they remember in that moment, or big brands in music and playlists, such as aforementioned Spotify playlist, Majestic Casual, or Diplo & Friends.
How do you compete with ‘functional music’? The most popular ‘music’ apps on Alexa are all kinds of sleep and meditation sound apps. This list excludes Spotify and other music services, due to a deeper integration with Alexa, but it’s telling: people use these voice interfaces to request music to augment specific activities. Sleeping, bathing, meditating, cooking, whatever.

There are great solutions to these problems. And they’re not hard to figure out (people in hiphop have been shouting their name and their label’s name on tracks for decades).

I may do a follow-up on tactics and strategy for the age of “zero UI”, when the user interface is mostly controlled by voice and artificial intelligence, but for now, I’d love to hear about what you think. Ping me on Twitter: @basgras.

Painting: Wojtek Siudmak – “Le regard gourmand”

The next 3 interfaces for music’s near future

Posted on September 3, 2017 | by Bas Grasmayer

Our changing media reality means everyone in music will have to come to grips with three important new trends.

Understanding the music business means understanding how people access, discover, and continuously listen to music. This used to be the record player, cassette player, radio, cd player, and now increasingly happens on our computers and smartphones. First by playing downloads in media players like Winamp, Musicmatch Jukebox, or iTunes, but now mostly via streaming services like Spotify, Apple Music, but also YouTube.

Whenever the interface for music changes, the rules of the game change. New challenges emerge, new players get to access the space, and those to best leverage the new media reality gain a significant lead over competing services or companies, like Spinnin Records‘ early YouTube success.

What is a media reality?

I was recently talking with Gigi Johnson, the Executive Director of the UCLA Center for Music Innovation, for their podcast, and as we were discussing innovation, I wanted to point out two different types of innovation. There is technological innovation, like invention, but you don’t have to be a scientist or an inventor to be innovative.

When the aforementioned categories of innovations get rolled out, they create new realities. Peer-to-peer technology helped Spotify with the distribution of music early on (one of their lead engineers is Ludvig Strigeus, creator of BitTorrent client utorrent), and for this to work, Spotify needed a media reality in which computers were linked to each other in networks with decent bandwidth (ie. the internet).

So that’s the second type of innovation: leveraging a reality created by the proliferation of a certain technology. Studios didn’t have to invent the television in order to dominate the medium. Facebook didn’t have to invent the world wide web.

A media reality is any reality in which innovation causes a shift to a new type of media. Our media reality is increasingly shifting towards smart assistants like Siri, an ‘internet of things’ (think smart home), and we’re creating, watching, and interacting through more high quality video than ever before.

Any new media reality brings with it new interfaces through which people interact with knowledge, their environment, friends, entertainment, and whatever else might be presented through these interfaces. So let’s look at the new interfaces everyone in music will have to deal with in the coming years.

Chatbots are the new apps

People don’t download as many apps as they used to and it’s getting harder to get people to install an app. According to data by comScore, most smartphone users now download fewer than 1 app per month.

So, in dealing with this new media reality, you go to where the audience is. Apparently that’s no longer in app stores, but on social networks and messaging apps. Some of the latter, and most prominently Facebook Messenger, allow for people to build chatbots, which are basically apps inside the messenger.

Companies like Transferwise, CNN, Adidas, Nike, and many airlines already have their own bots running on Messenger. In music, well-known examples of artist chatbots are those by Katy Perry and DJ Hardwell. Record Bird, a company specialized in surfacing new releases by artists you like, launched their own bot on messenger in 2016.

The challenge with chatbots is that designing for a conversational interface is quite different from designing visual user interfaces. Sometimes people will not understand what’s going on and start requesting things from your bot that you may not have anticipated. Such behaviours need to be anticipated, since people can not see the confines of the interface.

Chatbots are set to improve a lot over time, as developments in machine learning and artificial intelligence will help the systems behind the interfaces to interpret what users may mean and come up with better answers.

VUIs: Alexa, play me music from… uhmm….

I’ve been living with an Amazon Echo for over a month and together with my Philips Hue lamps it has imbedded itself into my life to the extent that I nearly asked Alexa, Amazon‘s voice assistant, to turn off the lights in a hotel room last weekend.

It’s been a pleasure to trade in the frequent returns to touch-based user interfaces for voice user interfaces (VUIs). I thought I’d feel awkward, but it’s great to quickly ask for weather updates, planned activities, the time, changing music, changing the volume, turning the lights on or off or dimming them, setting alarms, etc. without having to grab my phone.

I also thought it would be awkward having friends over and interacting with it, but it turns into a type of play, with friends trying out all kinds of requests I had never even thought of, and finding out about new features I wasn’t aware of.

And there’s the challenge for artists and businesses.

As a user, there is no home screen. There is nothing to guide you. There is only what you remember, what’s top of mind. Which is why VUIs are sometimes referred to as ‘zero UI’.

I have hundreds of playlists on Spotify, but through Alexa I’ve only listened to around a dozen different playlists. When I feel like music that may or may not be contained inside one of my playlists, it’s easier to mentally navigate to an artist that plays music like that, than to remember the playlist. So you request the artist instead.

VUIs will make the branding of playlists crucial. For example, instead of asking for Alexa to play hiphop from Spotify, I requested their RapCaviar playlist, because I felt the former query’s outcome would be too unpredictable. As the music plays, I’m less aware of the artist names, as I don’t even see them anymore and I hardly ever bother asking. For music composed by artificial intelligence, this could be a great opportunity to enter our music listening habits.

The VUI pairs well with the connected home, which is why tech giants like Google, Amazon, and Apple are all using music as the trojan horse to get their home-controlling devices into our living rooms. They’re going to be the operating system for our houses, and that operating system will provide an invisible layer that we interact with through our voice.

Although many of the experiences through VUIs feel a bit limited currently, they’re supposed to get better over time (which is why Amazon calls their Alexa apps ‘skills’). And with AI improving and becoming more widespread, these skills will get better to the point that they can anticipate our intentions before we express them.

As voice-controlled user interfaces enter more of our lives, the question for artists, music companies, and startups is: how do we stand out when there is no visual component? How can you stay top of mind? How will people remember you?

Augmented reality

Google Glass was too early. Augmented reality will be nothing like it.

Instead of issuing awkward voice commands to a kind of head mounted smartphone, the media reality that augmented reality will take shape in is one of conversational interfaces through messaging apps, and voice user interfaces, that are part of connected smart environments, all utilizing powerful artificial intelligence.

You won’t have to issue requests, because you’ll see overlays with suggested actions that you can easily trigger. Voice commands are a last resort, and a sign of AI failing to predict your intent.

So what is music in that reality? In a way, we’re already there. Kids nowadays are not discovering music by watching professional video productions on MTV; they discover music because they see friends dancing to it on Musically or they applied some music-enabled Snapchat-filter. We are making ourselves part of the narrative of the music, we step into it, and forward our version of it into the world. Music is behaving like internet memes, because it’s just so easy to remix now.

One way in which augmented reality is going to change music, is that music will become ‘smart’. It will learn to understand our behaviour, our intentions, and adapt to it, just like other aspects of our lives would. Some of Amazon Alexa‘s most popular skills already include music and sound to augment our experience.

This is in line with the trend that music listeners are increasingly exhibiting a utilitarian orientation towards music; interacting with music not just for the aesthetic, but also its practical value through playlists to study, focus, workout, clean the house, relax and drink coffee, etc.

As it becomes easier to manipulate music, and make ourselves part of the narrative, perhaps the creation of decent sounding music will become easier too. Just have a look at AI-powered music creation and mastering startups such as Jukedeck, Amper, and LANDR. More interestingly, check out Aitokaiku‘s Vimu, which lets you create videos with reactive music (the music reacts to what you film).

Imagine releasing songs in such a way that fans can interact and share them this way, but even better since you’ll be able to use all the data from the smart sensors in the environment.

Imagine being able to bring your song, or your avatar, into a space shared by a group of friends. You can be like Pokemon.

It’s hard to predict what music will look like, but it’s safe to say that the changes music went through since the proliferation of the recording as the default way to listen to music are nothing compared to what’s coming in the years ahead. Music is about to become a whole lot more intelligent.

For more on how interfaces change the way we interact with music, I’ve previously written about how the interface design choices of pirate filesharing services such as Napster influence music streaming services like Spotify to this day.

If you like the concept about media realities and would like to get a better understanding of it, I recommend spending some time to go through Marshall McLuhan‘s work, as well as Timothy Leary‘s perspective on our digital reality in the 90s.

Is killing privacy the best we can do against secondary ticketing?

Posted on March 6, 2017 | by Bas Grasmayer

In its push to become a data-driven business, event organisers smell opportunity by connecting ticketing to real identities.

It’s estimated that the market for secondary ticketing is worth $1bn in the UK alone. It’s a problem for fans and artists, since tickets are often bought in bulk by resellers and sold at a much higher rate to fans. None of that added margin goes to the artists (although there are some allegations…).

Recently, Iron Maiden opted to go ‘paperless’ for their UK arena tour in order to curb ticket touting. With success:

“In 2010, 6,294 tickets appeared overnight on three of the major resale platforms — Viagogo, Seatwave and Get Me In! — on the day of sale. In 2016 this had dropped to 207, all on Viagogo, as Live Nation/Ticketmaster had agreed delist the tour at Iron Maiden’s request.”

The tour didn’t go fully paperless, and paper tickets were available, but came with strict requirements towards the fans:

Tickets must carry the name of the purchaser;
Ticketholder must present ID and credit card at the door.

While effective, this is worrying and certainly not a “victory for concertgoers” as Iron Maiden manager Rob Smallwood called it.

It’s not just ticketing: privacy is under attack from all fronts. Many events have decided to go ‘cashless’, requiring people to top up chips in special event wristbands. This way, you know exactly who is ordering what, where, how much, and at what time of the night. If you’re a large organisation like Live Nation, you can build up an extensive profile of users over time.

Valuable data, which may help secure sponsors for alcoholic beverages and helps you to target fans with specific offers, but that data comes with a great responsibility.

Privacy in the age of artificial intelligence

The first multi-day conference and festival I attended that was nearly completely cashless was Eurosonic Noorderslag, earlier this year. It’s a music business conference and showcase event, and has lots of bands playing every night in nearly every bar and club in its host city, Groningen, in The Netherlands. It presented cashless payments as a convenience (ie. to reduce queues at bars).

I immediately researched ways to opt-out and found no good way. It was possible to ‘anonimize’ your chip, but you still have to charge it with your bank card, which ties your identity to it through the transaction records. I had good reason to opt-out and so do you.

On its own, “Bas entered venue X at 21:03 and drank a beer at bar Y at 21:24” seems like useless information. And it probably is. I’m not from a country or culture that frowns upon alcohol, so I’m unlikely to be blackmailed with such a bit of information. However, it is possible for someone to claim they met me there and try to pull some sort of scam. Or worse, for someone to claim they are me by using anecdotal evidence based on these random bits of data, and then scamming someone else.

Criminals are moving from the higher risk ‘traditional crime’ into ‘cybercrime’ which is perceived as lower risk.

More than how someone might use a specific data point, what we should really be worried about is larger data leaks. There are parties that try to collect all information from big leaks. Some use it for good, like Have I Been Pwned, where you can search your email address to see if your login info of any site has leaked. But some people store it for more malicious purposes.

Over time, patterns can emerge in these data sets. These become easier to identify through machine learning algorithms, which can go through large datasets faster than a person could, and can get better over time at making sense of data. Many great ones are open source, like Google’s TensorFlow.

Now, your attendance of live events and what exactly you do there can be tied to your hacked LinkedIn or Dropbox account. Whoever holds that data has power over you.

Artificial intelligence could be trained to send hypertargeted scam emails, which use all the data available about you to trick you. This could result in ransomware being installed on your computer, which often means your hard drive is encrypted and locked and the key to decrypt your data is only turned over after paying a certain fee (usually done through Bitcoin, which makes it harder to track the perpetrators).

This could happen to your phone, but also to your car, or any other devices which are likely to be connected to the internet in a few years from now.

The important take-away is that the more data someone has about you, the wider their ‘attack vector’ becomes. This means they have more paths to target you. Any data point on its own usually doesn’t have much value, but it’s when large amounts of data get combined that value emerges. Facebook, a data company, has a market cap of nearly $400bn.

Privacy in music should not be an afterthought

We have learned a lot from events. We’ve learned not to use biker gangs for security. We’ve learned to have first aid staff at festivals that are trained to dealing with the effects of alcohol poisoning and mishaps with drugs. We have come a long way to providing experiences that are exciting and safe at the same time.

Now it’s time to worry about our guests’ safety before they arrive, and after they leave our events. Let me be clear:

If you request your guests to sacrifice their privacy for ‘convenience’, and you get hacked, leading to people getting blackmailed or scammed, it is YOUR responsibility;
If you request this data from guests, make it clear and easy for them to find out how you’re storing the data, what you’re using it for, and when it will be deleted. Don’t just refer to some boilerplate privacy policy full of legalese;
When things go wrong, be honest about it and communicate it immediately, so people can take security measures;
Never store data about people for longer than you need it. Not storing data is the best way to prevent it from being leaked.

(small sidenote: if anyone ever sent you a picture or scan of their passport, go delete that file and email now)

What can you do as a fan?

Do whatever best protects your privacy. If it feels like you’re being a pain in the ass by requesting an anonimized wristband, great. You should be a pain in the ass. Pain is a great motivator for change. So by all means, request information about how your data is stored and protected, how long it’s stored, for what purpose, etc.

Perhaps the hardest part is willing to skip concerts that don’t have privacy-friendly options. As a consumer we should understand that solving ticket touting by sacrificing guests’ privacy is not a solution. It just shifts the issue and places an additional cost on the consumer on top of the ticket price.

Event organisers need to find a way to mitigate or at the very least minimize that additional cost. This means ticketing organisations have to take measures to invest in technology which helps protect and secure guests’ privacy. But they need to feel pressure, or pain, in order to that.

Data, for ticketing companies, is the same as it is for malicious hackers: the more data you can get on a person, the more valuable it becomes.

The 2010 Google Patent You Should Know About in Pokemon Go’s Wake

Posted on July 26, 2016 | by Bas Grasmayer

Six years ago, tech media widely reported a Google patent that would let it replace real-world ads on billboards, with virtual ones in Google Street View. Google, after all, is in the ads business, so if they create a virtual layer that represents the real world, they’re going to place their ads in that virtual layer.

The VP of Product for Google Maps and Street View at the time was John Hanke. Hanke is also known for being the founder of Google’s internal startup Niantic, which was later spun off and created Pokémon Go. The game uses Google Maps for its virtual layer and has its own information layer on top of that. Pokémon Go has tens of millions of daily active players and has managed to do what Google Glass was supposed to do: make augmented reality mainstream.

Augmented reality is an excellent space for advertising. It generates a ton of data on users that helps you serve them with relevant, local and timely suggestions. The company to make the most money off of this, is not the one that does the advertising, it’s the one that owns the network. The large investments we’re seeing in virtual reality by the tech giants have nothing to do with games, or even the mundane applications of the technology they’re investing in. The investments are about who is going to control the primary augmentation layer people will use.

For some, it might be a lifelong dream to just create a cool augmented reality game that gets people off the couch and into the real world. But for others, this is about more – it’s a virtual land grab and defining the rules before others do, so they can scale these patents to their full potential.

Go deeper: read my longer think piece on augmented reality, advertising and music on the Synchtank blog.