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    Trapital

    Trapital is where technology meets culture. Hear breakdowns on the most important trends in tech, media, and entertainment. Trapital founder Dan Runcie and various guests break down the moves that shape the rest of society. Learn more

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    Latest Episodes:
    Motown Records: The Hit Factory That Changed Music Forever Jul 13, 2023
    Show notes

    Few record labels have left their stamp on the industry quite like Motown. This assembly line churned out hit song after hit song in the ‘60s and early ‘70s. With a who’s-who roster — Marin Gaye, The Jackson 5, Diana Ross, and Stevie Wonder, among others — The Hitsville U.S.A. sign Gordy put on Motown’s front door became warranted. This episode is the story of Motown Records — it’s formula for success, what led to its decline, and where it stands today under Universal. I’m joined by friend of the pod, Zack O’Malley Greenburg. Here’s what we covered in this episode:0:38 Berry Gordy’s origin story8:08 Motown museum in Detroit9:20 Cultivating a culture of creativity13:05 Shifting the sound of Black music20:12 Motown’s knack for discovering talent 34:29 The beginning of the decline36:12 80’s decade of transition39:48 Post-Gordy struggles45:51 Motown’s uncertainty today53:59 Best signing?55:16 Best business move?568:45 Dark horse move?1:01:58 Biggest missed opportunity?1:07:13 Motown big-screen picture1:09:22 Berry Gordy won big1:10:41 Who lost the most?1:14:56 Zack’s Jay Z indexListen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Zack O’Malley Greenburg, @zogblogThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Zack Greenburg: Berry Gordy created with Motown and sort of the Motown genre, which I think really like more than any label has become synonymous beyond just sort of like the name of label itself, you say Motown music, and a testament to the sound that he created,[00:00:13] Dan Runcie Audio Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from the executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:38] Dan Runcie Guest Intro: Today's episode is a deep dive into the one and only legendary Motown records. At its peak, Motown was the most successful black business in the country. It peaked at 30 million dollars of revenue in 1968 and Barry Gordy and his team assembled a sound. a unique genre of music that produced hit after hit after hit and Hitsville USA lived up to its promise.So in this episode, we take you through the origins of how Motown came to be. What are some of the business principles and strategies that worked in its favor? And then what are some of the challenges that Motown faced too? It's now been 50 years since the peak of Motown. And this record label has had plenty of ups and downs and plenty of journeys that we went deep on in this episode. And I'm joined by Zach Greenburg He is a biographer of Jay Z and several others, and he also wrote about Michael Jackson. And in that he talked about Michael Jackson's time with Motown, especially in the Jackson 5. So we had a lot of fun in this one. So come take a trip down memory lane with us. Here's our episode on Motown.[00:01:42] Dan Runcie: All right. Today we're back with another case study style episode, and we're going deep into Hitsville, USA. Motown, baby. Let's do this, Zack, I'm excited for this one.[00:01:53] Zack Greenburg: Thanks for having me as always.[00:01:55] Dan Runcie: Berry Gordy is so fascinating because At one point, this was the most successful black business. They're the most successful black entrepreneur in the country invented a genre.And it's so hard to be able to do that. And that legacy still lives on today. We know so many record labels that have taken inspiration from what Berry Gordy built with Motown records, but let's start from the beginning. What inspired Berry Gordy to even want to get involved with music in the first place?[00:02:23] Zack Greenburg: Yeah. So, you know, Berry Gordy, and his family were in the Detroit area, you know, a bunch of serial entrepreneurs, get a record shop early on, but he was actually like semi professional boxer coming up. And, think one thing led to another and you just kind of saw that, you know, there was a market that was not being served in music.you know, certainly like the business was concentrated, on the coast and particularly in New York at that time, you know, eventually more in LA, but. you know, there was some stuff going on in Chicago. there was some regional acts, regional labels, things like that. But, you know, I think he just basically saw an opportunity, to start something.And, you know, sort of in the way that if you look at, Richard Branson or Puffy or, you know, what are those types of entrepreneurs? It's almost It doesn't really matter what they get into. They find a way to make it work. and they're just always on the lookout for a new sector. That's, kind of, you know, right for some creative destruction, know, and some refreshing or some freshening, some revising, I don't know, whatever you would call it.And, you know, in the case of Berry Gordy. Kind of amazingly, when you think about music over the past half century, he looked around and he thought, well, this is actually, this is a sector that is very promising amongst all the sectors that I could possibly get into. So, that's how Motown came to pass.[00:03:36] Dan Runcie: That point about whether it's Diddy, Branson, Gordy, and I think a lot of the tech CEOs fall in this category as well. You're going to put them in any generation. And I do think that these people would have found a way to make things work. And that's the same point you're making, right? He saw an opportunity to music, but let's say he came 30 years later.It could have been another aspect. Let's say he came today, probably could have been trying to do something in AI or even figure it out, how to make AI, be transformative with his music. And I think a lot of his work, whether you think about how he built derivative work or how he had this process with artists that we'll get into so much of it taps into, okay, here's an opportunity to optimize things.Here's how we can make things work. And music just happened to be the format. He chose it.[00:04:21] Zack Greenburg: Absolutely. And even, you know, when you think about it, he got started sort of mid century 30 years later, he was looking into other things, getting involved in film and TV. And You know, moving the business out West, but, you know, we'll get there eventually, but, he certainly did, you know, find other ways to extend the Motown brand as time went on.[00:04:37] Dan Runcie: So he starts off, he has this record business and things go okay with that. specifically talking about the store. And that was a lot of it was connected a bit more from the family perspective, but then he ends up getting the job at Ford specifically working with that Lincoln mercury plant. And that's when he was only there for 2 years, but he then sees how the process works and the whole concept of Ford is, which is that assembly line process that Henry Ford has been famous for.He sees that and then he taps back into his opportunities with music and he's like, okay. Okay, there's an opportunity to do the same with music. So he sees this assembly line, essentially have all these parts go through the inputs. And then the output, you get this car, he wanted to be able to pull some kid off the street, bring them into the Motown and bring them into this record label facility.And then outcomes a star. And he felt like he had the ability to be able to create that type of dynamic. And it took some time to get there, but that's essentially what he did. And a lot of the creations of what we saw from Hitsville USA was that exactly.[00:05:48] Zack Greenburg: Absolutely. And, he'll tell you that, I've interviewed him a couple of times. Once for Forbes, once for my book, Michael Jackson Inc, where he talked a lot about that. And, you know, he really has a formula, for making a hit song. And, you know, it's sort of like the song has to have a clear beginning, middle at an end. The chorus has to have a sort of grand arc that summarizes the song every time it happens.And then there's a sort of like grand finale bridge ending thing that, brings it all together, always at the end you hear the artist shout out the song's name almost, you know, invariably one last time and you know, that's like pure marketing, right? And you think about it in those days, this great songs on, you're hearing it, but like, you know, maybe you're in the car, it's on the radio, maybe you're artist and a record player.It's not popping up on your phone. So you know what it's called when you hear Michael Jackson shout out, I want you back at the end and I want you back. what you're going to go out and buy, you know what, you're going to call in, you know, to the radio station and ask them to play. So, it's very calculated, it really works and it's proven and, you know, if it sort of seems like, gosh. You know, this is like a cliche. This is obvious. I think part of it is because he helped create this cliche, obvious thing, right? I mean, things become cliche or obvious because they're smart or necessary most of the time.So, you know, at some point it was novel and, you know, very corny, I think was part of, making that whole song structure novel. And, you know, really. When you look at how he executed it, you know, I think a modern day analog, we talked about this, you know, before on our bad boy episode, but so, you know, his role was very much like the Puffy role, or at least the early Puffy role in production. So, you know, he had a hand in songwriting and production, but, you know, mostly he figured out who he wanted to have producing his labels, songs and sort of who he wanted to be in charge of authoring that certain type of sound.So for Berry Gordy, it was a handful of, producers called the corporation, just like Puffy had the Hitmen. And, you know, then he would kind of come in and do his own little thing on top when he thought it was necessary. But, you know, in a way it kind of adds that whole assembly line aspect, right? Where, you know, that there's going to be a certain level of quality, there's going to be like a distinctive sound, whether it's a bad boy or Motown, or, you know, even going back to, you know, what a Ford car was, you know, in those days you had kind of an ideology to get.And I think that's one of the things that really set Motown apart.[00:08:08] Dan Runcie: Exactly. And I think with that too, you have him going through the process of starting this. So this record label started with an 800 with 800. That's what he had initially. And he uses that to then start Hitsville USA. So that's the location on Grand Ave in Detroit.Have you been to this museum by the way?[00:08:30] Zack Greenburg: I did. We did a special event there. One time we had the Forbes 30 under 30, Summit and we did this like, special, like one off private interview where I went there with Quavo and we sat in Motown studios, you know, where Michael Jackson and all them had recorded. and we did a little like video discussion on the state of the music business, I think it's floating around the internet somewhere, but, it's a really cool building. I mean, I think what strikes. Me the most, you know, like the first time I went in is like the fact that just a house.I mean, it really just looks like a house. the rooms are sort of like room size, you know, it's not some sprawling like, you know, I don't know, institutional type place like a lot of modern, recording studios, you know, it's just a converted house but you know, you kind of walk through each room and it's museum and everything now, so you can kind of get a feel for it. It's very different from the modern day glitz and glamour of the record business for sure.[00:09:20] Dan Runcie: Yeah, been there twice. it was really cool because just like you said, you feel like you're actually in a home and that's the vibe that the studio gives you. And I felt like the people that were the tour guides as well, they clearly knew their history in a way where it should sound obvious, but that could obviously be hit or miss with museum sometimes.So I felt like that piece of it was good. And it ties back to a few things that tap into the culture that it is. Gordy wanted to create that. I think make it work. He lived upstairs. Studio is downstairs. So he has everything there and he wanted to make this somewhere that creativity could spawn at any particular moment.So he wanted to create a 24/7. Set up where he had made sure the vending machines were always stocked. So people could stay there year, you know, day in day out. If creativity comes to you at 3 p. m. or 3 a. m. you can go right there and do what you have to do. And you could keep things moving there internally.And this is one of the things that I do think worked really well for them because. Although I think the music industry has gotten away from this, there was this era where the culture and the vibe that you could create from a label and all that continuity really helped things. So when you saw how deliberate he was from an assembly line perspective was essentially keeping his product in place and keeping all the materials in place so that it can produce outputs at any given moments to just increase the likelihood that you could have hits coming time and time again.[00:10:49] Zack Greenburg: Yeah, for sure. And, you know, I mean, he certainly spoke a lot about, quality control, which is, it's kind of funny, you know, given the eventual QC relationship, but, you know, I think that's a really big part of it. And when you're that hands on and, you know, in some cases you could say micromanaging, but it does enable you to really have a unified.We can also get into this, fact that at some point it can become a bit of a creative constraint for artists as they mature.[00:11:14] Dan Runcie: Right, because with quality control, there was someone on the team that listened to everything that came through Motown and they essentially picked the best. They brought it to this weekly meeting and most of the Motown artists weren't writing or producing their materials necessarily, but they were going in and you had all these artists that would essentially sing.The same exact song and then they would pick the best version that came out of that to then release the song. Sometimes they had multiple artists that would end up releasing a version. And we saw different versions of this where you had both Diana Ross and Marvin Gaye have their versions of Ain't No Mountain high enough.Granted it was a few years later in different songs, but a lot of that stems from that quality control aspect. And there's this one quote that, was here from One of the books that was written about, Berry Gordy and Motown, where they talked about quality control and they said, quote, the artists were a means to an end in a way, end quote.And that's exactly what we're talking about how the downside is that it could limit creativity, but the upside is that it gives you the opportunity to get the best polished diamond from all of the creations that come from this studio.[00:12:24] Zack Greenburg: Absolutely. And man, there were quite a few, right? I mean, when you look through, I mean, the heydays, Smokey Robinson, the Miracles, Diana Ross, the Supremes, Four Tops, Marvin Gaye…

    Full show notes at the publisher

    The Real Story Behind Hip-Hop's "Decline" Jul 06, 2023
    Show notes

    The media commentary on hip-hop’s decline is stronger than ever. Especially since it took six months for a rap album to top the Billboard 200 in 2023, and no rap song has topped the Hot 100 yet..Is hip-hop slipping? Or is there more to this story? is slipping or others are merely catching up?To break it all down, I’m joined by The Wall Street Journal’s Neil Shah, who has written about this extensively. 0:40 Our take on hip-hop’s “decline”4:51 Upcoming albums that may top the charts8:48 How Billboard charts work17:40 Hip-hop over indexed when streaming took off18:30 Was hip-hop held back in the past?20:26 Implications of chart performance22:55 Gaming the system with album bundles 32:49 Are album equivalent units the best way to measure success?35:13 Hip Hop’s market share in 5 years45:16 Music recycling IP vs. developing new oneListen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Neil Shah, @NeilShahWSJThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Neil Shah: While it looks like hip hop is suffering a little bit right now, or in this cooling period, maybe it's tentacles have stretched out So much, it's influences so total that it's actually become the bedrock of a lot of pop music. [00:00:12] Dan Runcie Intro Audio: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from the executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:40] Dan Runcie Guest Intro: This episode is about the state of hip hop, which has been quite the topic over the past year. So it was right around this time in 2022, when we started to see articles and stories and reports pop up about hip hop's decline in market share. This is specifically looking at the US listening consumption over time for hip hop artists that were producing tracks.And after a record number of years of growth in hip hop is eventually becoming the most listened to genre of music in the 2010s. We started to see that growth slow down relative to other genres. And there's a number of reasons for this, a number of reasons that are unfair, a number of reasons that require a little bit more digging into and to break it all down.I was joined by Neil Shah from the wall street journal. He's written about this himself. Him and I've talked about this both on and offline, and we decided to bring it together to talk about all the various factors. What does this mean for the music industry? What does it mean for the artist in the industry in terms of the budgets that they get?And is this even fair when we think about all of the factors in place with regards to streaming, where audiences grow, whether hip hop artists and their fans are more likely to be early adopters versus other genres, some of the rules that Billboard and other entities make that influence how these charts get factored in vinyl and a whole lot more. So let's dive into the state of hip hop.[00:02:05] Dan Runcie: All right. We're back for another episode this time. Neil Shah from the wall street journal makes his return. Welcome back.[00:02:11] Neil Shah: Thanks for having me.[00:02:12] Dan Runcie: And today we're going to talk about a topic. Both you and I have written about, thought about and has come to a head this past year. And that's the state of hip hop and where it lies relative to other genres right now.I'm sure many of you have seen the stats dating back as early as last year. When many outlets really started to talk more about hip hop's market share of its overall listening relative to other genres, which genres are growing at faster rates than others, which are declining. And now we're in this place in 2023.We're still as of the end of June, almost six months through the year, not one rap album has topped the Billboard top 200. And I'm pretty sure that no rap song has topped the Billboard hot 100 either. So Neil, what do you make of all of this?[00:03:04] Neil Shah: It's pretty striking that rap has not topped either of these charts, the Hot 100 or the Billboard 200. To put it into some context, in 2019, 17 rap albums Hit number one on the Billboard 200. 17. In 2020, another 17 did. basically last year, we started to see a slowdown on this front where there were fewer number one hits on these two charts in rap and hip hop and R& and then now this year, we have this striking reality that rap has been absent in this way, which I believe it, we haven't seen something like this. Since about 1993. So yeah, think it's generating lots of discussion and varied opinions. Hip hop has long had ups and downs, you know, in the 21st century, there are plenty of lulls, there are plenty of hot periods, and we could be in another lull. But my gut sense at the end of the day is that this does constitute a fairly significant slowing compared to how hot this genre was running, I mean, just a few years ago. I think it's a marked slowdown. And while one can quibble with the fact of not having a number one, because that can easily change, you know what I mean?Like as soon as Travis Scott puts out Utopia, as soon as Drake puts out For All the Dogs, the picture can change slightly. But even all that quibbling aside, I do feel like it's pretty striking that there is a slowdown.[00:04:51] Dan Runcie: Right, and that's a good point, because we could look at the more specific pieces of it. And yeah, if J. Cole, if Travis Scott dropped Utopia, if any of these things happen in the spring, we may not be having the same conversation from a top headline. Oh, let's react to this thing. But even like you said, you named 17 albums from a couple of years ago.So we're talking one every three weeks, essentially that hit that target, if not more, and we're now 24 weeks into the year and we haven't had any. So there's still a pretty big shift, even if you account for the superstar releases. And if we're looking at the artists that are planning to release albums this year, I was looking through at some of the artists that have.Big albums coming out, and these are the only ones that I thought are certified locks to hit number 1 on the billboard. You have Drake's new album, as you mentioned, Travis Scott's Utopia, J. Cole's The Fall Off, if he drops it this year, Lil Wayne, I think there's another Carter coming, Lil Uzi Vert, who I believe is dropping pretty soon, so he could potentially be the 1st, and then after that, And I hate to say this, but maybe Cardi B.I still think that she's pretty strong, but we'll see it. I say maybe more. So we'll see if she drops an album. And I say maybe to Nicki Minaj too, while I have a bit more confidence in her dropping an album, her last album went number two, second to Travis Scott back in 2018, but it's also been a long time.And some of the other artists who are a few more fan favorites, like Pusha T or A$AP Rocky Rick Ross, even Chance the rapper. Great artist. But it's been a while since any of those artists, if ever have topped the billboard. 200 for album charts. I know Ross and others have in the past, but, so there's a lot of fragmentation.There were, there's still are artists have a shot, beloved albums, but they're not reaching this particular milestone of how people view mainstream success.Yeah, the [00:06:46] Neil Shah: question of who's a lock for number one in the rap community has gotten a little bit more complicated than maybe a few years ago. Some of these people may not be a lock. [00:06:58] Dan Runcie: Do you think anyone I named isn't a lock.[00:07:00] Neil Shah: Drake is obviously a lock. Travis, I would think would be a lock. Vert comes out on Friday, that's a pretty large artist and a highly anticipated album, but I'm not entirely sure. I'm not entirely sure that that would be number one. I'm not sure about Nikki. I would think Cardi, who I believe has been having 2023 in the frame, I would think that Cardi B would be number one.It's just a little bit more complicated than especially with projects from the likes of Pusha T and whatnot. Yeah, there's definitely not a guarantee that even these stars and superstars will perform the way they did. Of course, that's up to the vicissitudes of do they have a hot single or not?How much mindshare are they capturing, you know, these things change from year to year. All things considered, it does feel like, you know, things. I'd be worried about the downside of people being a little bit weaker. We just had Gunna, for example. Gunna, you know, came out with an album. It's been doing pretty well.his mentor Young Thug actually also just released an album. There's a new Metro Boomin version of it that I think came out today or yesterday. But look Gunna back in 2022, last year, hit number one. [00:08:19] Dan Runcie: Outsold the Weeknd [00:08:20] Neil Shah: and what happened this year with this album they're gonna just put out, it hit number three. And even more than that, just the EAU unit figure, the equivalent album units, 85K, 85, 000 is decent, but not the strongest showing. So, I think there is a question about when these stars come back, just how well will they do as the surrounding environment for them is, creating what we're talking about,[00:08:48] Dan Runcie: Yeah, I think there's a few factors here, and I do want to call them out. Billboard, who does reflect the charts, they released a article, 5 Reasons Why a rap album has yet to top the charts and there are 5 reasons are I'll read them here. The 1st is a lack of stars essentially in a fragments in a fragmented landscape.There's so many artists that don't necessarily need mainstream success that billboard relied on. And I think that could be true to an extent. You have their 2nd, 1 here, which is growth for hip hop itself is only up 6. 3% compared to country and Latin, which are growing much faster. I have some thoughts on that, but that was their 2nd point.They made the 3rd, which is related to Gunna here. They talked about guns, violence, drug abuse and courtroom legal battles as well that have slowed down or halted the production of many promising stars. Whether you look at XXXTentacion, Juice WRLD, Pop Smoke, and then you look at Gunna and Thug and others that have been battling legal challenges as well.The fourth one they mentioned is just stagnation. At the charts, which I think may be a bigger thing where if you look at the charts this year, at least for the billboard 200, it's been SZA, it's been Morgan Wallen and a little bit of Miley Cyrus. And that's pretty much been it for most of the year. So it's not even the way that it was in the pre pandemic years where every week there was a new album that seemed to have its glory moment.It's the same artists that are staying at the top. And in some ways, it almost feels a little bit like a throwback to days before streaming when we saw a little bit more stagnation there. And then their 5th reason is not enough dance music because they talked about albums like Renaissance or Drake's Honestly, Nevermind, Dua Lipa and Future Nostalgia and how they feel like post pandemic people want to get out there and how a lot of hip hop music has been a much more slow chill, especially in the streaming era.And I think that each of those are valid points, but I think there's a few other things that weren't mentioned in billboards article that they themselves as the entity that decides these things has a big influence. We mentioned several of those Pre pandemic years. 1 of the biggest things is how billboard itself. Change the rules and album bundles is a big thing. Ironically, they're actually going to be coming back with album bundles in a few months, but this was their way to be able to help preserve the sale of the album and have artists combine their album with a merch item, whether it's a T shirt or some other type of item.But like anything, people started to game the system and people felt like it wasn't necessarily about album sales. It was more about people trying to sell these items. And I think we saw that most to extreme degree with what Travis Scott did with Astroworld, where he literally had an e commerce machine that was running, in perpetuity to help make sure that album almost doubled in its expectations of what people thought we just hadn't seen that much of a outpaced growth, but he saw the way the system was and we'd into it.So I think that's one thing. That's a big factor, a second thing that I look at is just what we consider hip hop on these charts, because of course, billboard itself is it's reporting things based on us listenership. But we know that Latin music is very popular as well. Just considering how well bad bunny did on the charts.But as you and I've talked about, bad bunny is labeled as Latin. He's not labeled as the actual genre that he performs. He's more categorized based on the region he's from. And for all intents and purposes, he considers himself a rapper. He considers himself a hip hop artist. So if hip hop was given some of that region agnostic glory that pop music or others get, maybe we would see, maybe we would even be having this conversation and we think about the global aspect of it.So those are two things. There's a few more, but I wanted to get your thoughts on those.[00:12:44] Neil Shah: Yeah. So let's start with that last one, what if hip hop is suffering from its own success, hip hop has had booms. For decades now, but what we saw in this back half of the 2010s was something fairly special and now we're at this juncture right now and so it just raises the question of like it looks like we're in a cooling period for hip hop, but hip hop is It's tentacles are reaching into, I mean, almost all of the other genres that are capturing the imagination of music fans right now.I mean, often Morgan Wall in the country star sings with rap like cadences. one reason why [00:13:25] Dan Runcie: Hip hop sounding beats too.[00:13:27] Neil Shah: Yeah, even the tracks hip hop. Some of the bedrock, some of the sonic structures of Morgan Wallen's music are inherently, deeply hip hop. One reason why BTS and a new crop of Kpop stars have thrived so much, especially in the U.S., is their hip hop fluid. You can go down the list. I mean, the regional Mexican music craze that's going on right now. there's a ton of hip hop there, reggaeton, Afro beats. and then of course, Latin music and figures like Bad Bunny, Who's rapping and due to billboard nomenclature is categorized as a Latin artist, so one could look at the phenomenon differently and think, actually, while it looks like hip hop is suffering a little bit right now, or in this cooling period, maybe it's tentacles have stretched out So much, it's influences so total that it's actually become the bedrock of a lot of pop music. And then while rap stars are not thriving the way they did, say, between 2016 and 2019, in particular, because that's the period we're coming down off of, one could argue that it's. In all of these other places.And in fact, in this age of, hip hopping everywhere, of everyone sing rapping, essentially the boundaries bet…

    Full show notes at the publisher

    30 years of Bad Boy Entertainment (with Zack Greenburg) Jun 29, 2023
    Show notes

    We can’t tell the story of hip-hop without mentioning Diddy and the record label he started. Bad Boy took off in 1993 after Puff was fired from Uptown Records. He brought TheNotorious B.I.G. with him from Uptown Record, and signed a 50-50 deal with Clive Davis’s Arista Records, and it was off to the races.Bad Boy survived the tragic fallout of the East Coast vs. West Coast rivalry, and reached even bigger heights after Biggie’s death. Puff began to rise as a solo artist, but did the rest of the artists suffer as a result?Friend of the pod, Zack O’Malley Greenburg, joins me on this episode to cover 30 years of Bad Boy Entertainment. Here’s what we hit on:0:35 Sean Combs come-up story5:16 Diddy breaks in with Uptown Records8:22 Starting Bad Boy Records14:11 What sets Diddy apart21:04 How Diddy controlled the narrative23:58 Bad Boy’s formula for success 29:00 East Coast vs. West Coast rivalry30:39 Bad Boy’s historic 1997-98 run45:42 Bad Boy curse?48:44 Diddy’s reputation compared to Cash Money54:50 Best signing? 55:19 Best business move?57:19 Best dark horse move?1:00:19 Missed opportunity?1:08:52 Possibility of biopic?Listen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Zack O’Malley Greenburg, @zogblogThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Zack Greenburg: Diddy's ability to sort of walk the line and step back, you know, I think that's what ultimately kept Bad Boy in the position that, you know, that stayed and kept him in the position that he continued to be in.[00:00:09] Dan Runcie Outro Audio: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from the executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:35] Dan Runcie Guest Intro: Today's episode is another case study style breakdown, and this time we chose to dive deep on the one, the only Bad Boy Entertainment when it comes to branding and when it comes to marketing. I don't know if there's another record label that has as identifiable as a sound of vibe as bad Boy, you knew what that vibe was.Puff said it himself, they take hits from the eighties, but do it sound so crazy? And that was the formula, and it worked time and time again. What Puff did was smart, it was a modern approach to how Berry Gordy approached the record business with Motown. But then he put his own spin on it, interning with Andre Harrell at Uptown Records, learning from him and then putting his own spin on it even more, making it relevant for the 90s and truly becoming the icon that was synonymous with shiny suits with that Bad Boy flavor.And so much of the success of one of the best MCs ever, the Notorious BIG, some of the most iconic R&B groups at the time, and singers such as Faith Evans, 112 and many more. And plenty of artists that unfortunately also had plenty of challenges and issues when it came to payment, drama, legal disputes and more.And we dive into all of that. I'm joined again by Zack O'Malley Greenburg. He wrote a book called Three Kings, where he dived deep into Diddy, as well as Dr. Dre and Jay-Z in this book, so he's well-versed and shared a bunch of great stories in this one. So let's dive in, really excited for this one. Hope you enjoy it.[00:02:06] Dan Runcie: We are back to talk about the wondrous world that Sean Combs built himself Bad Boy entertainment and joined by the one and only Zach Greenburg. Welcome back[00:02:15] Zack Greenburg: Oh, thanks for having me, Dan.[00:02:17] Dan Runcie: Bad Boy is so fascinating because Puff is someone who has in many ways been this larger than life character even before people knew him externally as that.And he has really stayed true with that throughout his time in hip hop and even before then. And most people know the origin story starting back in his days at Howard. But I think based on the research you've done, I know you have some backstory with some of the lessons and some of the things he did even before that.So walk us back. Who was puff in the early days before the world? Got to know him.[00:02:52] Zack Greenburg: Yeah, I mean, you know, I think the funny part is that, that puffy was always puffy and, you know, it just took a while for a little while for the world to kind of figure it out. But you know, there are these kind of consistent themes when you go back through his youth and you, kind of get a sense of who he was.And, you know, I remember writing my book Three Kings, you know, Diddy being one of these kings, talking to people who grew up around him. He really was that same guy from the very beginning. So even when he was a kid, you know, he spent his very earliest years in Harlem, but then moved to Mount Vernon, kind of a suburban neighborhood.you know, just north of the city limits. And you know, he had not just one paper route, he had multiple paper routes and on every, you know, every route. He had this philosophy of like, he wasn't just gonna take the paper and fling it into the family's yard. He was gonna get up and he was gonna go, you know, open the screen door and put the paper in between the screen door and the main door so that people didn't have to go up and do so like he was, you know, that dedicated, that hardworking from the very beginning. you know, I think another story I learned from his youth, Puffy was like, there was some, Some debate, you know, some kid had a pool party and, Puffy wasn't invited. there may have been some racism at play, we don't know. But anyway, Puffy's solution was to convince his mom to build a pool in their backyard and then start his own pool parties and, you know, I mean, it's like the most puffy move ever, right? So he just ended up finding, you know, wealthier and wealthier backers to build the proverbial pool as the years went on.[00:04:23] Dan Runcie: That is the perfect story to encapsulate him because I feel like I could imagine other people having white parties. He doesn't get invited to the white party, so he's like, all right, bet I'm gonna go start my own white party. And now it's this annual thing, however many years running.[00:04:37] Zack Greenburg: Exactly. I mean, and you know, you know, as you kind of trace his evolution, you know, in between it was the same thing. So, you know, we all know the Howard Days, he was taking the Amtrak up, sometimes hiding in the bathroom, so they didn't have to pay for the tickets. He didn't have any money but, you know, he would go up back up to New York on the weekends, he would plan these parties.He started to build a name for himself. and it was exactly that, you know, so from the pool parties, in Mount Vernon to the parties that he was throwing, you know, his colleges to the White party, you get that through line of Puffy that, you know, kind of continues all the way through, through the Ciroc era, you know, I think, which really makes this sort of art celebration, ethos, you know, all the more credible, right.[00:05:16] Dan Runcie: Right, and you mentioning him taking Amtrak. Of course, that's him going from DC to New York to go to Uptown Records where he pushes and fights to get his unpaid internship. Working with Andre Harrell, who was on the Ascension himself. He had started that record label in the mid to late eighties. He then sees the rise.He's early on, new Jack Swing has so many of the early folks making that sound there. And then Puff comes in, he sees a opportunity to elevate and position that brand because the whole thing that Uptown was about, they were trying to push Ghetto Fabulous. They wanted to show that there was a opportunity for people who grew up with nothing to feel like they had that release.And Andre Harrell, he since passed away a few years ago, but he spoken about this a few times and you can see how Puff at the time adapted a lot of that. He worked with Jodeci. He was so integral with how he styled them and making sure they had the right jackets. And at the time, Jodeci was very much seen as this alternative to Boys to Men, Boys to Men was a bit more buttoned up.They made music that was G-rated that you could play everywhere. And Jodeci definitely leaned into the sex appeal, which is something that we saw continue play through with. Bad Boy records of Bad Boy Entertainment in the future. He did similar with Mary J. Blige, taking her from just being a R&B singer to giving her more of a hip hop Ben, and doing a bit more of that crossover vibe, which is something that we saw again with Bad Boy too.And as Puff continued to show his influence, things started to clash because the intern then becomes VP of A and R, and that VP in A and R starts to butt heads and really challenge Andre Harrell on a number of things.[00:07:06] Zack Greenburg: Yeah. And, you know, I think, you know, like you said, Puff really had an idea of what Uptown could be that was, you know, a little bit different from Andre. But it really worked, right? It was the idea that it was, it had a little bit more of an edge to it. you know, like Jodeci had a little more edge than boys to men.you know, that every artist that was gonna be out on Bad Boy would have like, you know, would have that level of class, but also would have kind of like, you know, kind of like a street smart edge. And so, right, it was like the Tims and the backwards hat, but, you know, maybe you had like a nice jacket.It was that kind of mix. And it was very much like in line with Puffy himself. and I think, you know, it's a theme that you kind of started to see. as kind of, he moved on, you know, whether it was Bad Boy or Roc or whatever it was, the thing was synonymous with Puffy. Puffy was synonymous with the thing. But as he began to later on build these assets, you know, he could sell the businesses in a way that he couldn't sort of sell his own image and likeness necessarily. So, that started with, Uptown for sure, it was Andre's thing, but it started to feel like it was Puffy's thing.And I think there was some thought that, you know, that there sort of couldn't be two kings in the castle. And Andre eventually pushed him out and, you know, that kind of left it, the Diddy, you know, in his early twenties kind of figuring out like, Hey, you know, what am I gonna do next? How am I gonna really start my own thing here?[00:08:22] Dan Runcie: And I have this quote from Andre. This was from a documentary a few years later. He says, when Puff got fired, he was on payroll and his artists were on payroll. He's still recording his artists, but he was able to find the best deal, so we never fired him to hurt him. But he fired him to basically make him rich.I will say that quote is much nicer than certain things that Andre said immediately after that firing, especially in the 90s. But it was cool to see the two of them find opportunities to continue to work together after that. But I think the key thing from his time in Uptown is that he was able to find and work with art is that eventually he started working with on Bad Boy.That's when he first works and discovers Big. That's when he first works and really begins to hone in on that sound. And then he officially launched Bad Boy in 1991, but it really wasn't until 1993. He starts working with Big, he starts working with Craig Mack and then it all leads up to this deal that he ends up signing with Arista records to officially do this joint venture with Arista.Arista, of course, was run by Clive Owen, legendary music executive, and they do their 50 50 split. And as the story goes, Clive was on the fence. At first he wanted to hear more, but then Puff Plays flavor in your ear. Craig Max first single, and he was like, all right, I need to be part of this, whatever it is.So that was the song that took things off and made it happen.[00:09:50] Zack Greenburg: Yeah, I mean, Clive Davis, of course, you know, legendary, record men, you know, discovered Janice Joplin, Whitney Houston, Puffy, like you could say, he discovered all these people. they were, they were kind of there already, and, I sort of suspect they would've had their success even if it were not for Clive Davis.But, you know, that, we could debate that. But, know, Clive Davis certainly had an eye for talent, one way or the other. So, I mean, I think what's really fascinating too is, you know, you got think where Puffy was at that point in his life before he got that deal. He was shopping Bad Boy around right?To a bunch of different labels and it says so much about him and his whole ethos, the way he approached it, and this was another anecdote that I found in my reporting, by one of the founders of The Fader who happened to work at EMI at the time. He was in the room when Puffy brought the Bad Boy deal, to the folks at e Emmi and, you know, so like, just to refresh, here's Puff early twenties, just been fired.Just had his first kid, I think. And also, you know, he'd been a part of, this charity basketball tournament at City College where a bunch of people got, crushed in a stampede. He was ultimately found, you know, not guilty of any kind of criminal charges or anything, but his name was all over the papers.Like there's a lot of negative press around him. He was kind of, you know, almost radioactive at this point, or at least one might have thought that turned out he wasn't. But, so anyway, he goes into this meeting with e Emmi and, you know, Their big thing was, Vanilla Ice. And he sort of goes into this meeting and he's like, that dude's corny.Like, I have no interest in anything having to do with Vanilla Ice. Let me tell you how to run your business. And, you know, so he proceeds to like, give them this vision. And then at the end of it, I mean, and I'll read the quote cause it's just so good. he says, when you guys get in a room with all them suits and you're gonna decide what you're gonna pay Puff, just when you get to a number that you think is gonna make Puff happy, I love how he was referring to himself the third person, right?He says, get crazy on top of that. And then when you're there, I want whipped cream and a cherry on top. and this is the best part, he goes, I don't even want to think about the money. That shouldn't even be an issue. Don't be coming at me with no n-word money. Goodbye. And like that was vintage puff.Like that was billionaire Puffy. Before he was billionaire, before he even had. Like before we had a company. So, you know, I think there's just such a great lesson in there, which is kind of like, you know, the sort of, if you can pull off the, fake it till you make it, if you can have that kind of swagger. And to be fair, not available to everybody and like, you know, don't try this at home, kind of if you don't have it.But man, if you can pull that off, if you have that kind of confidence in yourself, you can accomplish some pretty incredible things. He didn't even, you know, end up going with EMI but I think he made a similar pitch at Arista and, you know, and that ultimately got him the deal, that created Bad Boy and, you know, that was really the engine for so much of, what he ended up achieving as the years went on.[00:12:46] Dan Runcie: That story is one of the reasons why he has lived on to become meed and in many ways become a bit of a gift himself. Whether you lo…

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    Why Music Streaming Can’t Agree on a Payout Model (with Lucas Shaw) Jun 23, 2023
    Show notes

    Music streaming’s payout model is under a microscope. The industry’s stakeholders — the labels, DSPs, artists, and rights holders — all want more of the pie, but no one can agree on how.Should we stick with the pro-rata model that pools all streams together? Or move to the user-centric model that some DSPs have tested out? Should longer songs count more than a 30-second audio track? What if that artist you choose to start your music session with gets paid more than an algorithmic play? How can we stop the fraud? Would all these problems get solved if prices increased?. These questions are all up for debate. As growth slows down, everyone wants more of the pie. To discuss, I’m joined by Bloomberg’s Lucas Shaw to break it all down. Here’s everything we discussed: [0:42] How this debate started[6:59] Proposed multiplier model[10:43] Pro-rata vs. fan-centric models[13:54] Factoring streaming duration without fraud[17:38] Will big players budge?[19:22] Monetizing fandom[27:21] What if Spotify raises its prices?[29:48] 2024 predictions [32:11] Bloomberg’s Screentime conferenceListen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Lucas Shaw, @Lucas_ShawThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Lucas Shaw: The artist are one constituency, and the record labels or another, the artist could say, well, we might be happier if the record labels gave us a bigger share. And so, the best way, again, to keep all of those constituencies happy is to just grow the pie instead of reallocating and trying to sort of tilt it towards the big player.[00:00:29] Dan Runcie Intro Audio: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from the executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:55] Dan Runcie Guest Intro: Today's episode is all about streaming. It's the platform that saved the music industry, and lately it's been the platform that has sparked countless debates on how best to compensate rights holders, the artists, and the underlying companies that provide these services. This has been a polarizing topic ever since the beginning of streaming, but these topics have intensified recently for a few reasons.First, growth is starting to slow down. We're no longer in the 2017, 20 18, 20 19. Fast growth rate of streaming. Growth is starting to slow, and whenever the pockets tighten up, people get more concerned about how that current pot of money is split. Second, two of the biggest major record labels, universal and Warner, have went public in recent years, and there's more pressure, especially from those new shareholders.That wanna see returns for the big investments that they made. So how does this all shape the broader questions around how big the pie is, how the pie gets split, and what are the best ways to increase that pie? So join me in this discussion. I'm joined by Lucas Shaw from Bloomberg. He also is a frequent guest on the Town with Matt Bellamy, highly recommend that podcast if you haven't yet. And on today's episode, Lucas and I break it all down, all the facets, all the interests of the various stakeholders. It would make a few predictions in how we think this whole dynamic, this whole debate, how we think it plays out. Here's the episode. Hope you enjoy it.[00:02:16] Dan Runcie: All right. We have Lucas Shaw here with us from Bloomberg. First time on the pod, welcome.[00:02:21] Lucas Shaw: Yeah. Thanks for having me. Excited to chat.[00:02:23] Dan Runcie: Yeah. This is a topic I know you've written about. It's something I've been thinking a lot about. I feel like for years now, the debates around music streaming, model payouts have been going on for a while. Things definitely intensified the beginning of this year, and we're seeing more comments, more partnerships, but still not much movement.But every time I see this, I feel like I just always gravitate back towards. The record labels and the streaming services have two different incentives on what growth looks like, what success looks like, and I feel like that's the underlying problem towards, with so much of this. What's your take on it?[00:02:59] Lucas Shaw: Yeah, I mean, it's funny for a while there Well, when YouTube first came around and Spotify and streaming, there was all this tension between music companies and streaming services because music companies felt like tech companies had sort of killed their business, and blamed them for a lot of their problems.And were always complaining about royalties and all that. And then I would actually say for the last five years there's been relative like calm and happiness because music industry revenues have been going up. All the record labels are doing pretty well. The streaming services continue to grow. And now we've hit this another inflection point where the current model, which has again, worked great for basically a decade, has started to slow, you know, the record labels revenue isn't growing as quickly as it has been. And the streaming services though, they're still growing. they're growing at a lot of places like India, Southeast Asia, where the average person's not paying that much, so the revenue doesn't quite compare. And so, hence why we have now a lot of noise over the last six to nine months around, you know, a new model, quote unquote, for music streaming. Mind you, SoundCloud has been proposing a new model for a long time and most of the majors just like didn't buy into it, and we can get into it. And I think to some extent that's you talking about the different priorities. and the labels are talking about like their own version of SoundCloud's is fan powered royalties.The labels wanna talk about artist centric, but they've provided almost no detail as to what they want this new model to be. but I don't know, maybe you can design it for them.[00:04:36] Dan Runcie: I think you highlighted the inflection point, which is part of this issue. We saw so much growth. Growth is now starting to slow down, and I think growth is also slowing down in this post IPO era of the major record labels you have UMG goes public summer 2021. Warner goes public the summer before that.And those stocks have been down since those IPOs or since, since they went public. I think Warner's is down at least 16%, or Warner's is down around 11%. UMG is down at least 16%. And you have all these other actors like Bill Ackman and others getting involved in, they praised UMG so much when this deal happened.They wanna see a return on that. So I think a lot of the pressure is coming into. All of the things we're hearing, whether it's how much to charge for streaming, how much. How that actual price is being charged, how it should be distributed. And to your point, as you mentioned SoundCloud, we've heard a few things from Title, Deezer, others have been testing out new models. I think part of the challenge there though, is those models in a lot of ways have been pushed as ways to increase revenue opportunities for the independent artists and the artists that are using those platforms. Cuz I think that's one of the big takeaways from these user-centric fan power royalties.They can't add a bit of a boost to the indie artists, especially if you have a user that really likes them, but they haven't necessarily been as favorable to the biggest artists in the world. And those are the artists that the major record labels want any type of change to ultimately benefit.[00:06:10] Lucas Shaw: Yes, cuz we all know that Taylor Swift and Drake and the weekend are really hurting and they need the extra two or $3 million from Spotify. yeah, I mean that's sort of the nut of the disagreement, right? Is that the major labels want their artists, the professionals, the Crème de la crème to get more and more and more than some dude making ambient noise in his basement or like a young Dua Lipa wannabe, or, I don't know, something amateurs[00:06:36] Dan Runcie: Rain music is the thing that I kept hearing. Rain music and whale music.[00:06:41] Lucas Shaw: But, you know, I don't know, it's like distinguishing between different levels of stream, right? And, one of the issues for me, I guess is YouTube and other services have sort of eliminated the distinction between amateur and professional, you know, like any amateur is basically a viral video away from being a professional if they want be. And so I think it gets very tricky to try to charge different prices or deliver different royalties for different people. Not to say that there's not some innovation to be had in the model. I'm just not sure that's it.[00:07:12] Dan Runcie: Yeah, and I think YouTube's a good place to start with this cuz there's a few models that we can break into. There's a few proposed changes that are structured in here. YouTube is actually where Warner Music group's current CEO, Robert Kinsel, he used to be chief business Officer over there. And one of the things that he was really pushing over there was this project called Project Bean.And it was a multiplier approach where the thought is if you start your listening session, or in YouTube's case, if you start your viewing session with a particular artist or creator, then that person should be compensated more for the duration of what they lead to and the fact that you might be searching for them as opposed to an algorithmically-led play stream, listen, whatever it is. And he's ultimately pushing for a similar thing war, with, the streaming services. Now, I believe it was at a Morgan Stanley call or conference where he had said, if you start your music session with Lizzo, then Lizzo should be paid more. For that, and I think that's an element of trying to separate the weed from the shaft.They're trying to focus in on what they consider to be their creme de la creme. To your point, I don't think Lizzo is necessarily heard and she just went on a huge arena tour, but that's ultimately what they want, I think that does highlight how not all streams are weighted the same, but it's still a zero sum game.So if you are going to be providing more through this revenue multiplier opportunity, you're potentially still taking away from others.[00:08:42] Lucas Shaw: See to me that's the issue is that they're sort of talking about ways to divide the pie differently. Instead of talking about ways to grow the pie, now they're talking about both, but I think it's more important and likely more fruitful going forward to try to talk about ways to grow the pie.It's also, I would add an interesting way for music companies to deflect from their own accounting, you know, for years, music companies got mad at streaming services because they said that they didn't pay artists enough and they like got all the artists, or at least a lot of them fairly riled up in saying, you know, oh, like Spotify pays me, you know, a third of ascent for every stream.And that's not fair. But the pie grew by a lot every year. And one of the thing, and so the music companies is partially also cuz they went public, as you noted, like stop attacking the streaming services. But there's one thing that's always been true, which is that the record companies and the music publishers decide, how a lot of that money is allocated, right?It's Lucien Grange head of Universal Music Group who helps decide that the record labels get more than the publishers, the songwriters, because they make generally have better splits. With the record labels. Now they'd push back on that and say that that's not true. I'm just, that's one version of how this plays out.The other thing is that, again, then in those deals, like the record, labels keep a lot of that royalty money. So you could argue there's sort of the artist are one constituency, and the record labels or another, the artist could say, well, we might be happier if the record labels gave us a bigger share. And so the best way, again, to keep all of those constituencies happy is to just grow the pie instead of reallocating and trying to sort of tilt it towards the big player.[00:10:29] Dan Runcie: Which is why we didn't hear as many complaints about this in 2017, 18, 19, when growth was just up and to the right. Everyone was making more. More so there was less pressure on this particular issue itself.[00:10:41] Lucas Shaw: Yeah. And because I think to what you said, like a lot of these companies are starting to think about two of the three major music companies are starting to think about going public. And then you don't wanna, you know, you don't wanna freak people out. Stability is good when you have public markets.[00:10:56] Dan Runcie: Right, and that's the other challenge that we often hear. So one of the broader underlying debates that we've been hearing about is whether you keep the current model pro rata. Which pools all of the streams and then that then gets paid out to the rights holders depending on their share of those streams.And then that is a percentage of the overall revenue that comes in, both for subscription and then for ad support. And then of course, on the user-centric side, it shifts to the per user perspective, and that's where things can get so wild and hairy. Because if I don't log into Spotify for a month and I only listen to one artist versus.Three artists that I love come out the next month. They're still all splitting that same $10 a month, and that happens for everyone. So it makes the revenue less predictable and all of these things, granted those are extreme cases, but if you look at that on a magnitude level, it could lead to much more variability that publicly traded companies don't generally like.[00:11:54] Lucas Shaw: Yeah. what do you make of the fan centric model?[00:11:58] Dan Runcie: I do think that if we were starting from scratch, I think that's the better way to go about it because I think we're now looking at fan centric in this lens of how it disrupts the current model. I do think that if we started looking at things from, okay, how do you monetize that particular user? It centers everyone a bit more on the focus of, okay, how do we end up getting that sole user to stay on the service, to wanna stay committed, to make sure that we're offering things that they want? And I do think that there's gamification that happen on both sides, but I think from a net positive perspective, I do think that that is the one that generally leads to the more fair outcomes.I still think there's plenty of issues with it, but that's if we were starting from scratch, that's what I would say. It's just tough now because we're now a decade and a half in.[00:12:50] Lucas Shaw: And is there a version or are there other, tweaks to the model that you think have a chance of being widely adopted?Yeah, [00:12:57] Dan Runcie: there's a few things. So I think one of the things we haven't talked about a lot is duration, because that's a whole nother aspect of this debate. So right now the streaming services, don't clock a stream until it has at least 30 seconds of a particular song. So whether you have a 3…

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    Do Music Videos Still Matter? (with Tati Cirisano) Jun 15, 2023
    Show notes

    What’s the role of a music video today? In the 1980s, music videos flipped the industry thanks to MTV. Videos helped artists like Michael Jackson and Madonna become cultural icons. Record labels spent millions on music videos to promote their CD sales. Everyone was winning.Music videos don’t hold the same power today in the streaming era. The budgets are smaller, but they still get made. To break it all down, I was joined by MIDiA Research analyst Tati Cirisano. Here’s what we covered:0:52 What is the role of a music video today?2:15 MTV’s role in music videos7:46 Comparisons to TikTok11:27 Music video budgets peaked in mid-90s14:30 Napster changed everything17:27 Music videos as career launchpads18:50 YouTube revitalizes music videos25:44 Range of video budgets 31:04 Big dollars going to documentaries and short films32:53 Rise of lyric videos41:42Does YouTube have a music video formula?44:09Measuring ROI of music videos in 2023Listen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Tati Cirisano, @tatianacirisanoThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by readingTrapital’s free memo.TRANSCRIPT[00:00:00] Tati Cirisano: There's an argument to be made that MTV like almost invented the music video or almost like made music videos a thing because having that audience there and having that like cultural impact is what led to bigger budgets for music videos so I almost feel like MTV gets credit for like kind of inventing the music video. [00:00:19] Dan Runcie Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:47] Dan Runcie Guest Intro: This episode is all about music videos and what their value prop is in the industry today. Back in the MTV era, the role of a music video was clear. This was your four minute opportunity to sell the hell out of your artist and for your label to promote its artist. Yet fans bought into the lifestyle, the identity, the persona of this person, and get them to go to Sam Goody, go to Tower Records and buy the albums.It was a marketing channel and it was a marketing channel that the record labels were continuing to put money into, and as the effectiveness continued to grow, they put more and more. Into that and that budget exploded. By the time we got to the mid to late 90s, we saw music video budgets hitting millions of dollars, and artists were doing out of this world things in these videos.But we slowly started to see those budgets slash. Went at the introduction of Napster and the CD era started to decline and the money was no longer flowing the way that it once was. But we started to see music videos take a new turn in the YouTube era. And now in the TikTok era, what is the ROI of a music video?What role do they serve in today's industry? And to break it down, we're enjoying by Tati Cirisano, an analyst at MIDia Research. He's been on the podcast a bunch of times, and this topic was right up her alley. So we talked a bit about that and more. Hope you enjoy this episode. Here's our breakdown on the role of music videos in today's industry.[00:02:16] Dan Runcie: All right. Today we are going to take a trip down memory lane to the wonderful World of Music videos, how this art form has evolved over the years. And I'm joined by Tati Cirisano from MIDiA Research, Tati welcome. [00:02:28] Tati Cirisano: Thank you. Good to beback once again. [00:02:31] Dan Runcie: Yeah, definitely. Can I start with a story? You mind if I start with a story with this one? So, a couple weeks ago I was catching up with, CEO from one of the major record labels. This is someone that if you're probably listening to this household, if you're probably listening to this podcast, you probably know, and they run a label that is also a household name, and they were telling me about a conversation they had with an artist who is also a household name and how this artist wanted to have a million dollar plus seven plus figure, multi-million dollar music video budget because they wanted to make this big splash with what they were doing. And the CEO was like, no, I'm not giving you that. Like, what do you think this is? And for context, this is a artist who hasn't had a big hit since George Bush's first term. Let me say that roughly, just to give some context here. So,So it's been some time, but I also was a bit surprised because this is someone who seemed like they were up with the times in tech, and I remember asking the label exec, I was like, what's the deal? I thought this artist was with this. You see the movies they're making here, there, and this, that, and the third.And he was like, Hey. You would be surprised sometimes the egos get the best of these people and this is what they want. And that was a big inspiration for this conversation because I know you and I have talked about things like Spotify versus YouTube. YouTube, of course, having such a big focus in music videos and it's role.But that's what made me think it would be a great time to take a trip down memory lane and just revisit music videos themselves and. Going back to 1981, I feel like we could start music videos well before that. That obviously was there, but I think that was the origin place for a lot of what became known as the Modern Music Video and MTV itself.What's your take on how impactful MTV was? Because there was definitely a big shift of any music videos we saw before and any music videos we saw after.[00:04:36] Tati Cirisano: Yeah, I mean, you're right that like we could start this even further. Back in history, there were artists like the Beatles were making music films in like the 60s. David Bowie did the same but there wasn't really a place to showcase them the way that MTV, like, the one that MTV created. So I feel like it's not just that really iconic, amazing music videos, like those of, like Michael Jackson and, others made MTV a thing.I feel like there's an argument to be made that MTV like almost invented the music video or almost like made music videos a thing because having that audience there and having that like cultural impact is what led to bigger budgets for music videos and labels kind of focusing on this as an art form and a promotional piece.And that also led to more interesting creative videos. So I almost feel like MTV gets credit for like kind of inventing the video, the music video. [00:05:30] Dan Runcie: And inventing the video as a distinct art form that can live on its own in distinction from the music itself, because you mentioned The Beatles, you mentioned some of those other artists from that time. Music videos almost felt more like a utility. They were a commodity. Let's put the camera up while you're recording the tune, and maybe we'll add in some things.Maybe they'll add in some B-roll. And that's what it very much existed as for years. But then MTV takes it and makes it this unique thing. And we saw from the early days, whether it was Duran Duran, David Bowie, Michael Jackson, Madonna, they were some of the early people that really made it their own thing.And you saw more of those movies and that's where MTV being able to capture the eyeballs there, the growth of cable as well, and them becoming one of the more popular channels there. You see this platform having this type of impact, you invest more dollars into it, and this becomes a much stronger marketing channel, which then commanded and justified them putting more and more money over time into these videos.[00:06:35] Tati Cirisano: Yeah, and speaking of Madonna, I think it also made music a lot more visual where music videos kind of opened this pathway for artists to become not just music icons, but kind of like style and fashion and cultural icons. there's so many videos that. Are just kind of like etched into everyone's brains and so many iconic outfits like people still dress up as, Britney Spears and the Baby One More Time Video and like all these other iconic ones. I think it, started making music more of a visual thing. And in turn, that also helped drive fandom around artists. Cuz if there's one thing I've learned in all the studying of, fandom that I've done and how it develops, it's pretty much always about context.It's always maybe listening to a song makes you a fan or doesn't make you a fan. It makes you a listener of the artist. But it's only once you know more about, who they are and like what their style is and what their aesthetic is and all these other things that you become a true fan. I think a lot of fandom was formed by sitting around the TV with friends and like watching a video for the first time on MTV.It was just a more captivating way to get to know an artist and have that context around them. [00:07:47] Dan Runcie: It's a big point, and that's something I definitely related with too. Growing up in that era, you were able to see and interact with those artists. If I had just heard these artists on the radio, it would've been a very different relationship. But I know that for a lot of people, that's how they gravitated to music.That's how they captured this, and that wasn't the way that it, I grew up for me, whether it was watching them on MTV, watching them on BET, That was the experience, and especially as things started to take off in the CD era, we saw more artists having success with it. We also started to see more pushback as well.I think it was around the early 90s, even the late eighties, this was around the time MTV was really kicking into gear. And the sales and numbers, everything was just up and to the right from a growth perspective. But we started to hear more critiques, some of the more traditionalists in the music industry started to say things like, these music videos are turning artists into one trick ponies.It's no longer about the music anymore. It's about making, Music video. And that's clearly resonating with some of the critiques. We now hear about TikTok as well. But it makes me think about the patterns that music often follows and when there is a new art form that does allow some type of growth, there's critiques, but those critiques also do stem from bit of this.If you can't beat 'em, join 'em. And we've seen this time and time again where a lot of those artists that had. Had critiques about MTV, whether it was Mariah Carey in the very early days, or even groups like REM, they would go on to make some of the most iconic music videos from the 90s as well.And I think we've seen the same with whether it's streaming or TikTok music videos was one of the things that I remember as having a bit of that cyclical pattern.[00:09:32] Tati Cirisano: Yeah, and there's so many trends in music videos that I feel like now we're play, we're seeing play out on TikTok or have already seen like there was sort of the dance, video craze of like, single ladies and crank that and PSY with Gangnam style.There were all these music videos that were about getting everyone to do a dance. And that was the way, that was like the promotional thing of if you got people to do that, then they would do it at the club when the song came on, they would do it in public. It would sort of become this bigger moment. And then that was kind of the first phase of TikTok when it started to rise in the 2020 when in early 2020 was like all dance videos.and even. I remember there were some videos that people, I know we haven't gotten to YouTube yet, but when YouTube came into the equation, people were uploading their own versions of videos and now that's like a pretty common thing. But yeah, it's interesting how all this stuff is cyclical and I think like video to the stuff about, the criticisms and like being one trick ponies and that kind of thing.I think that video has kind of, with music, always been about creating a cultural moment, aside from it just being another art form that I think artists delight in taking part in. Cause it's just another way to be creative. But I think it's, it's, about creating a cultural moment and creating a cultural moment in this day and age has morphed into this concept of virality, but it's always been about the same thing.Like viral in the 90s was, people wanting to be Britney Spears in that music video I was just talking about, and it kind of like being, this thing everyone was talking about for months. The same thing is happening now on TikTok. It's just happening faster. so yeah, I think that a lot of this stuff is cyclical and those criticisms, the point is that it's a promotional tool, so of course it's gonna lead to kind of like flash in the pan moments.So, Yeah, I have complicated feelings about those criticisms, I guess.[00:11:28] Dan Runcie: Yeah, I do too. I understand and I think that what we saw in the next decade, especially with some of those artists that came around and ended up leaning in, said a lot about where it is. And not every artist needed to do the MTV thing. Not every artist needed to lean into it all the way. Granted, I do think that most artists had music videos to an extent, but there was clearly a wave of where things were going.And right around the mid to late 90s, We saw the peak, at least from a budget perspective, of how much money was being put into music videos. And when you're talking about creating moments and in the pre-internet era, there wasn't necessarily as much virality, but the thing that got people locked in was how visually stunning or something that you've seen that's never been seen before.It's almost this bigger was better era. And then we get to points where in the mid 90s, Both Madonna and Michael and Janet Jackson are having music videos that aren't just one or 2 million. That screen music video was rumored to be around five to 7 million depending on the source you look at, in 1995 dollars, and that's that black and white video.They're shape shifting and all this stuff. And we continued to see this over the next couple of years. Of course, hype Williams and everything that he did from music videos was always unique, is always futuristic and with all of the elements that he had there. But it took a lot of money to make those music videos the same way with NSYNC and all those no strings attached music videos.Those were multimillion dollar music videos too. And it brings me back to even the things that they would spend money on. I'm thinking about, Busta Rhymes and Janet Jackson, they had that once. It's gonna be a music video where you have the silver liquid that's like coming over. Both of them and Busta Rhymes took guitar lessons.Apparently that's what MTV's making the video thing had said in its, little popup that comes to the music video. But all of those things [00:13:24] Tati Cirisano: I missed those popups. [00:13:26] Dan Runcie: I know it was such a fun era, right? It was. It was such a, I guess a lot of that's been now disrupted by what we see on YouTube, which I know we'll get into in a minute, but that was such a moment.I think it spoke to, why people were willing to put in money at the time with just where things were with the era that was the marketing channel. Mu…

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    How Ice Spice Blew Up (with Denisha Kuhlor) Jun 08, 2023
    Show notes

    Even by today’s standards, Ice Spice’s meteoric rise is something else. She first hit it big in August 2022 with the viral release of “Munch.” Since then, Ice Spice has the most top 5 hits on the Billboard 100 in 2023 and guest appeared on Taylor Swift’s Eras Tour.How did we get here? Her aura, her music, her cinnamon-colored curls, and more have helped her stand out in an oversaturated industry.To explain how Ice Spice’s star was born and where it could go next, I brought on friend of the pod, Denisha Kuhlor. Here’s what we covered:[2:07] The People’s Princess [4:11] Ice Spice’s success by the numbers [6:23] “Always shipping” has kept Ice Spice’s momentum [7:26] Performing on Taylor Swift’s Eras Tour[09:49] What makes Ice Spice unique? [13:24] Artists’ relatability factor[20:27] Cultivating the Munchkins fanbase[24:00] What is a music global superstar in 2023?[31:39] Sexist dialogue around female rappers[35:56] How female rappers stand out[42:03] Ice Spice’s intentionsListen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Denisha Kuhlor, @denishakuhlorThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Denisha Kuhlor: What is interesting about, Ice Spice is they feel like everyone's learning in real time, and they feel like they get to be a part of it. So in some ways, I do think that her fan base is interesting because it's like they're co-creating a bit, in a way that hasn't that other artists, maybe they've wanted to, but like the true actual product and creation to a product process hasn't been as interactive as, hasn't been as interactive as before.There's no wall the way with other artists. There's Really no wall. It feels like the conversations or the quote tweets that she's having on Twitter really feel like conversations amongst friends from how they crack jokes to the colloquialisms that are there. [00:00:45] Dan Runcie Audio Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:01:13] Dan Runcie Guest Intro: Two years ago. Ice Spice was a college student at SUNY Purchase doing her thing, like most college students do today. She's had one of the most Meteoric rises, especially in the past year. Everything that's happened in ice spices career since she dropped Munch last summer.It has been very fascinating to watch how a star blows up in 2023. In 2023 in this era that we're in now. And today's episode is a breakdown on that. What does it all mean? How did she get here? What did Ice Spice do differently that other artists right now haven't been able to do to reach the levels that she has?And how do we make sense of it all with what to expect with her career moving forward? If you ask the people on her team, whether that's the record labels, the management, the folks that she's working with, they think they have the next global superstar on their hands, but what does that term even mean, and what does that term mean today in an era where it's harder than ever for today's bright young stars to reach the same levels that the past global superstars have reached, especially for an artist from the us.To break it all down, we're joined by friend of the show, Denisha Kuhlor, who's the founder of Stan. She does great work in analyzing artist strategies and looking at Ice Spice and the Munchkins was a great opportunity for us to dive in. So here's our deep dive on Ice Spice. Hope you enjoy it.[00:02:35] Dan Runcie: All right, today we are back and we're gonna talk about the Princess Diana of hip hop, herself Ice Spice. It's only right and we're gonna talk about it and break it all down with someone who has written about her and does studies on fan bases as well. So you were the perfect person to have on Denisha Kuhlor, welcome back. Hi. Thanks for having me back. Ice Spice is so fascinating in a lot of ways because. go back to just two years ago. We weren't necessarily having conversations about her. She had released a few singles back then. Some were in collaboration with her dad, who is also a rapper.But things really blew up last summer. She puts out Munch, it becomes a drill anthem, a New York anthem. And then we just see this meteoric rise and you look at where she is now. Here are a few stats just to level set this conversation. She has 36 million monthly Spotify listeners that puts her above people like Jay-Z, Tyler the creator, Jack Harlow, the Beatles.So she's in pretty high company there and she's continued to stay in that area. And just for some context here, Spotify says that this is from their most recent loud and clear report. Spotify says that 130 artist catalogs on their platform are generating at least 5 million annually. So the artist catalogs themselves.Obviously the splits can be different, so if you use those numbers, and you said that I is currently 81st. In terms of all artists there, she's clearly in that lane. Obviously, you have to be able to maintain that for a year, but if you also assume that Spotify itself is roughly a quarter of the. Recorded music revenue that comes through, that's over 20 million dollars that we're seeing there.So we are clearly seeing that she has things from a stream perspective and she just came out for three nights of Taylor Swift's show in the Meadowlands at MetLife Stadium. So how do you make sense of this all? Where do you think about Ice spice and the rise and where she is right now in her career?[00:04:39] Denisha Kuhlor: Yeah, I think our space has been so fun to watch. It feels like every few years there's a people's champ, and they always seem to tend to originate from New York. and so seeing her do what she's done with in some ways what feels like, her back against the wall, when Munch came out, it was a lot of critical, critical takes, and the reception wasn't necessarily all positive. So to see how she's kind of, flipped this moment and the light shining on her into a real, you know, bonafide career based off the statue just mentioned is really exciting.[00:05:12] Dan Runcie: I think it highlights. What's possible now, today we've seen artists blow up and become household names in a short amount of time that isn't relatively new. If anything, you can honestly say it's harder to do now, just given the fact that it does take even more work and more time to develop a true superstar.And I do think that's a word that gets thrown around quite a bit. The thing with ice spice though, is that. He's also someone we've seen continue to maintain momentum. Yeah. In an era where someone could be hot for a few months and then you just don't necessarily have that moment again. Yeah. As back early, back as eight years ago, Fetty Wap had that one summer in 2015 where he just had hit after hit.Yeah. And they went consistently with it. That story and the challenges there have been told endless times, but that wasn't a long-lived experience either. And Ice Spice is clearly been able to even expand that from that perspective. I do think that I've heard a few people talk about how fame and talent are things that have had a very symbiotic relationship for years in music, just given how it was very hard to separate the two, especially if you were an artist that rose to the top. Yeah. you had to have a full package at least to be able to be in the conversation. I spice though, as someone who's continued to rise in, I think she has had songs that people liked, songs that people didn't like, people criticizing her flow, people criticizing this, and even some of her performances and things like that.But she's continued to build and grow in public, and it hasn't necessarily knocked her in any type of way. [00:06:51] Denisha Kuhlor: Yeah, I think she wins because she takes like a startup approach in the sense that she's always shipping, while, you know, Munch had its audience and its fan base. Her follow-ups definitely one introduced her to new audiences, but allowed her to keep shipping and testing and iterating on what works. She definitely takes an approach or it feels like just when you think like, okay, like this moment is done, or, you know, the time has lapsed. she's coming out with something new and something that's not expected, and frankly, something that just continues to place her even bigger on the world stage, right?She went from remixes that felt like a true collaboration amongst peers with Pink Panthers and boys a liar to. Getting to work with greats like Nikki or, Taylor Swift, where it feels like now they're saying, Hey, we like this girl. We're embracing her. and we wanna take her to the next step in the industry.So with each time she ships, it feels like it just keeps getting bigger and bigger.[00:07:54] Dan Runcie: Let's talk a bit about Taylor Swift, because you mentioned that there. This performance got a lot of buzz because Taylor Swift really hasn't brought many people out on the tour that she has. This tour may go down as one of the highest grossing tours that we've seen, and she's coming out and saying that I spice is the future, and we're seeing everyone from, whether it's her record labels and folks that she worked with more.Granted, we expect them to, that's their job to promote the folks that they have there, but from a live performance perspective, it wasn't always like this because she did get some critical comments from more recent performances that she did up to this point, and we've seen those types of things derail artists.Yeah. And be challenging to them. Can you talk a bit about that? [00:08:39] Denisha Kuhlor: Yeah, so I think, you know, Taylor Swift, bringing out and embracing, ice Spice was really interesting. ice Spice definitely has this dynamic of, you know, the people's champ and as she continues to, as she continues to grow people, people rooting for her.And so just from like, What that moment meant, I think for people to see someone who hadn't had any music, who barely had a Spotify profile probably two years ago or three years ago. to be an on a stage in a filled out arena nonetheless, was awesome. But I also think it's very much a testament to her ability and kind of the consumer's ability to, be forgetful.And when I say that, she obviously looked a lot more comfortable on stage, but the rolling loud performance, I think brought a lot of critique, right? it was just the novice fan on platforms like Shade Room or Instagram, talking about her performance. to folks in the industry talking more about the need for, you know, artist development and, a and r I feel like a lot of people could have come out of that moment very differently.or in some ways been so effect, offended that. It hurt their career but in even, you know, reading Ice Space's, last interview with Billboard, she talks a lot about her desire to exercise has solely been fueled by her wanting to improve her breath work on stage. and so you see a real commitment.I even noticed it seeing the clips from her wireless performance, just looking more comfortable on stage thinking through her set list. I think you see a real commitment. Two on, on her part. two, want to improve her craft and become a better performer. [00:10:17] Dan Runcie: So you mentioned a few things that definitely contributed to her rise. She definitely has the investment. The team behind her at Capital and others wanna see this happen. The thing is though, record labels are always making investments in everyone. They always try to put money behind new talent, and it made me think what is unique about her.Some people feel like there is a visual aspect to this. Not even in just the aspect of her being attractive, but having the distinct look, right? That like cinnamon afro, you know, it this like very striking from a visual perspective or just like, well who is that? Because that doesn't look like someone that we've seen before. Not necessarily in this overt stunt way. Yeah. But just someone that's being themselves and doing their thing. In a similar dynamic to the way that when Billy Eilish had first came out, she wasn't dressing the same way that Pop Stars did. And she was, had this whole vibe, and it was around this time that people were trying to understand Gen Z as this broad consumer, and then he or she comes very antithetical to what people have.And I think that look at that vibe attributed it to that way. So I think that's one factor that works in her favor. So you have that. You have the fact that New York has always had this pulse on whoever the next person up is and what they tell you about, whether it's what we saw with Cardi B. Now when she blew up, what you know, six, seven years ago, whether you saw it with pop smoke a couple years after.So New York has always had its finger on the pulse from that perspective. So I think that's part of it too. I also think though, that there's this aspect of. Dominating conversation in social media and with that type of discourse, but without just becoming someone who lives in social media, if that makes sense.The analogy I often think about is, Ben Affleck. This is a, bit of unique comparison, but I have to think about how Ben Affleck would talk about back when him and J Lo were going through their breakup when they were together in the two thousands, he was saying, you know, I could sell all of the US weekly magazines in the world.Yeah. But, I can't sell a movie ticket. Yeah. That is the thing that's tough for me to be able to sell. And I think that sometimes artists can struggle with that too, where their names can always be trending and they can always be the trending topic on Twitter, or they could always be the topic of discussion on Shade Room or whatever the aggregator site is, but they don't necessarily drive that into streams. They don't drive that into hard ticket sales. And that's the stuff that true fan base development comes. And a lot of that stuff does take years that it's a natural funnel, right? Your social media and your followers should always be larger and then leading there, but it has to lead somewhere.But Ice Spice, at least from where she is, from a monthly stream perspective and how that stayed consistent. People clearly are listening and tuning into the music and then additionally, the biggest artist in the world is bringing her out on stage to do that. And those are some of the things we saw with Post Malone early in his career and how he would go out on stage with different people, even people that were of different genres and trying to see what that playbook looked like.So yeah, that's the piece of it that I think is different from her relative to even. Other artists we've seen come out, other female artists we've seen come out. Other black female artists in hiphop that we've seen come out, that I think is a bit unique about why I think she's been distinct in this way.[00:13:52] Denisha Kuhlor: I agree. I agree. I think she's. Immerse herself in culture in a way that's so authentic to her. and as a result, she's able to show up as the digitally nat…

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    The Rise and Fall of Roc-A-Fella Records (with Zack O'Malley Greenburg) Jun 02, 2023
    Show notes

    This is the breakdown on Roc-A-Fella Records. Founded in 1995 by the trio of Shawn “Jay Z” Carter (the talent), Damon “Dame” Dash (the promoter), and Kareem “Biggs” Burke (the silent partner), it became one of hip-hop’s most iconic labels.The label took time to develop. Jay’s debut album, Reasonable Doubt, is now seen as a certified classic, but took time to get that recognition. It wasn’t until 1997 when Def Jam acquired a 50 percent stake in the label and The Roc went to that next level.Roc-A-Fella then created Rocawear, Roc Films, and went on an unprecedented arena tour across the country — rare for rappers at the time. Other artists like Cam’Ron, Kanye West, Beanie Sigel, and Freeway joined the squad.. Despite the success, the founders grew apart, which led to its infamous split. To break it all down, I was joined by my friend and Jay Z biographer, Zack O’Malley Greenburg. Here’s what we covered:1:20 Roc-A-Fella origin story7:21 Reasonable Doubt09:43 Friendly rivalry with Bad Boy Records12:43 50-50 deal with Def Jam15:59 How Roc-A-Fella’s deal compared to others18:59 The Hard Knock Life Tour’s impact 28:32 Expanding the brand beyond Jay Z 30:32 Why Dame and Jay’s split was inevitable38:59 Artists taking sides44:21 Best Roc-a-Fella signing?45:22 Best business move?48:27 Dark Horse move?53:02 Missed opportunity? 59:07 Will Dame and Jay ever make up?1:00:45 Who won the most from Roc-a-Fella? Listen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Zack O’Malley Greenburg, @zogblogThis episode is brought to you by Norby, your digital marketing Swiss army knife. Get started for free with a free 2-week trial (no credit card needed) AND get 50% off for 3 months after that. Start your free trial todayThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmEnjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Zack Greenburg: I think it was really good for hip hop, and I don't think it was ever going to turn violent, but I think again, there was just this kind of like national paranoia around hip hop and, there is, you know, in waves.I think it was just a, good reminder that you can have like a spirited dispute and, it's okay and it's entertainment, you know? and it's, nothing that anybody needs to be afraid of. So, you know, of course like credit to Jay and Nas for resolving it amicably, yeah, I mean just, to have that end, you know, like very amicably I think was just so good for everybody involved. And then, you know, I think it's really fun to watch, Jay and Nas as their relationship has evolved And, you know, Nas was sort of always like the one who was sort of behind, when it came to the business of things.[00:00:46] Dan Runcie Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:01:13] Dan Runcie Guest Intro: This episode is a rewind. We're going back in the clock to the late nineties, early two thousands, and we are revisiting one of. The most iconic record labels at the time, the one and only Roc-A-Fella Records. Roc-A-Fella Records, is the record label started by Jay-Z Dame Dash, Big Burke, and went on to be one of the most iconic hip hop record labels and hip hop brands, and that's a key thing from this conversation.I was joined by my friend Zach O'Malley Greenberg. He wrote Empire State of Mind, a biography on Jay-Z, and he also wrote Three Kings that broke down Jay-Z, Dr. Dre, and Diddy's Business Moves. So he was a perfect person to have this conversation with. We talked about the highs of this record label, the lows, some of the best business moves where Jay-Z and Dame didn't see eye to eye, some of the dark horse business moves that they made.What was the best signing from Roc-A-Fella Records? Missed opportunities and more. If you enjoy the episodes we did on Cash Money and Interscope, this one will be right up your alley and we already know what it is when we're talking about Jay, Dave, and Big. So let's dive into it. Hope you enjoy it.[00:02:17] Dan Runcie: All right. We are back to do another breakdown on one of the most iconic record labels, the one and only Roc-A-Fella records, and I'm joined by someone who wrote the book on one of the most influential people behind this record label. Zack O'Malley Greenberg, welcome back, man.[00:02:33] Zack Greenburg: Thanks for having me on, Dan, as always.[00:02:36] Dan Runcie: Yeah, and with this one, I think it's good to start even before Roc-A-Fella records because this label was a long time coming and there were a number of things that Jay Dame and Biggs, the founders of this record label were involved before this. So set the stage. Where were we pre Roc-A-Fella launch.[00:02:55] Zack Greenburg: Yeah, so, you know, I think a lot of people forget, although Jay-Z is a billionaire now, a couple times over, back in the early nineties, he wasn't even sure that he could make it as a rapper full-time. So, you know, he'd appeared on a couple tracks with his mentor jazz. Oh, this great Golden Age rapper. He had popped up kind of here and there, but, you know, really he was finding that it was much more lucrative to be a hustler.And so he was increasingly making more and more trips outta town to New Jersey and Maryland and so forth doing his thing. And, you know, I think he really kind of saw music as a hobby at that point. so he, he did have, you know, a couple supporters, namely DJ Clark Kent, you know, one of these influential producers, at the time.And, you know, Clark Kent really believed in Jay when a lot of people did it. And so he kind of kept trying to convince him to give another shot, like he could do this as an actual profession, and finally convince him to sort of take this meeting with Damon Dash. So he thought that Jay-Z was this just like once in a generation talent, from the musical side, and that Dame was sort of this promotional mastermind.And then if the two forces kind of united, they could create something really special. So in my book, empire State of Mind, Clark Kent tells the story of how he convinced Jay and Dame to sort of meet up. And so Dame, of course is from Harlem, Jay's from Brooklyn. There's sort of like this New York City snobbery thing going on, you know, Manhattan folks kind of maybe look down sometimes on people from Brooklyn and so they get together and, Dame rolls in.He sees Jay's wearing a pair of Air Force 1s and he is like, okay, this guy's cool, you know, he has good taste in sneakers, so I, can do business with him. and that was kind of like, you know, the initial hurdle was, you know, overcome and off it went. And so they struck up this really productive partnership together where, you know, Dame would kind of, help Jay Z sell, you know, they would go around selling CDs outta the trunks of cars and stuff like that.they were trying to get a proper record deal. and they just didn't have, like, nobody was kinda like really into the whole jay thing at the time. And you know, if you think about the music that he was making, unreasonable Doubt, it's like very nuanced. you know, like a lot of words packed into not very many bars, you know, like the space and the rapidity of the, the flow was like kind of not what was happening at the time in the, you know, by this time like, getting toward the mid nineties.So, basically they decided to go and start their own, and they brought in green Bigs Burke, who was kind of a silent partner, you know, another formidable hustler in his own right. And, you know, so there was the, talent, the silent partner and, you know, the promotion guy.And you know, when their powers combined, they were Captain Planet or whatever they were Roc-A-Fella records.[00:05:42] Dan Runcie: And I think part of the thing with Jay-Z that made this unique was his age at this point as well, because by the time they start Roc-A-Fella, he's already in his mid twenties, which doesn't sound anything unusual now, but back then, the rappers that were blowing up were always teenagers.There were always early twenties. You think about Dr. Dre, everyone from NWA, you think about Nas when he dropped I Maddock or you look at LL Cool J. Everyone is a young cat. So for Jay to then drop his debut album when he is 26, Is an ancient man, a grandfather trying to get into this game?[00:06:19] Zack Greenburg: Yeah, I mean, it's like a 26 year old rookie in, you know, the NBA or in baseball or something.It's just like, you don't see it. I mean, al almost ever. And when it does happen, it's sort of like a journeyman, you know, like role player type but jay, you know, had just packed a lifetime worth of lyrics into this one album cuz he kind of viewed it as, you know, this was like a one and done, like a novelty thing.And, you know, he really fully anticipated, you know, kind of coming up from the underworld, dropping this gem of an album and then kind of like disappearing off into the ether, like Kaiser Souzai at the individual suspects. And that, I mean, that was actually his plan. you know, according to a lot of people who I talked to around the time.So, yeah, it was definitely not sort of the normal path, for creating an album. I mean, I think they thought that. You know, they could put out this album, it would do well and then, you know, maybe they would bring along other artists and he wouldn't have to be sort of at the forefront.Like he might just keep doing his thing on the hustling side or whatever. but obviously things turned out a little bit differently.[00:07:22] Dan Runcie: This album was also a bit of a slow burn from a success perspective. I know that many people now when they're debating the best Jay-Z albums, the best Roc-A-Fella albums.This one's always mentioned as well as a few others that we'll get into. But if you look at the commercial performance for this album, in the beginning, it was not that high. The same week that it came out, the Nutty Professor soundtrack sold more records than Reasonable Doubt. And around the same time, that summer, I'm pretty sure that Shaquille O'Neill's album, cuz he was putting out albums at the time, also sold more than Reasonable Doubt did.So extremely slow burn. And you mentioned something earlier about the hustle that I wanna tap into because this is one of the big value ads that Dame Dash had with this. He was relentless and we've all heard the stories. Many people that have met him have also seen what it's like upfront. A lot of it speaks to his success.But he was someone who was in many ways, notorious for going to the New York radio stations and giving them gifts, understanding, yes, this essentially is payola, but this is what everyone else is doing. This is what the people with the real money in the industry are doing. So he's leading into that as well.And you mentioned Kaiser Associates also makes me think about, there's one of the music videos that Jay had from in my Lifetime, volume one where, I forget which song it was, but the song essentially, you know, the music video essentially was a spoof, odd usual Suspects where he's impersonating the the Kevin Spacey, Kaiser Souzai character on it.Sorry for anyone that hasn't seen Usual Suspects for the spoilers I just dropped there. But there's so many things that I think tie in with that and just stay consistent with who he is at the time.[00:09:08] Zack Greenburg: Yeah, absolutely. And I mean, I think that whole album, you know, the aesthetic was very like, maybe not Kaiser Soze, but, you know, sort of like gangster movie sort of thing and, you know, all the album artwork, you know, it's him and like a fedora and black and white and all that kind of thing.and so, you know, I think that, he's been obsessed with mafia movies for like, his entire life and you don't hear it quite as much, you know, as more recent albums. But he was kind of like living this underworld life at the time. And so I think it really resonated with him and maybe in a way that, that it, it doesn't quite resonate now.[00:09:44] Dan Runcie: And I think too that was in a lot of ways the theme that we saw he did in the nineties. You definitely saw Big Do It, especially in the whole life after death era, right before he passed. And I think there were a few moments that gave him the initial bump. Even after having Reasonable Doubt drop.Jay himself was featured on the Nutty Professor soundtrack because he had the song with, Foxy Brown that was also on his album. And then he's on Fox's album, album a little bit later. Her debut, he's also on, what's the song that Jay oh, David Brooklyn's finest, on Jay's album.[00:10:18] Zack Greenburg: Going back to Callie was on there. Oh my God, what an album. Yeah. But yeah, that was not, I would say Jay-Z got the better end of the collabs. with, the Brooklyn's Finest. I mean, that is a classic. Clark Kent produce that one also. And, you know, that was kind of like, that was another funny story from the book, like, you know, that there was also a bit of a friendly rival, mean, like they were, there were buds and all like, Jay and, and Big, but there was like a little bit of a friendly rivalry between, Jay and Dame and Puff and Big, because I think, you know, like, so the Whole Bad Boy thing was more established, by the time that Roc-A-Fella Records came about, and so I think Puff was kind of like Dame Dash, like another dude from Harlem, are you trying to be me? Kind of thing, you know, and so in order to make that song happen, I think before Jay and Big were friends, Clark kept kind of tricked them into recording the song together. So he was in the session with Big, and then he accidentally played a tape of a track that he had that was just an amazing track and Big was like, that's great.I wanna get on that. and he was like, no, I'm saving it for somebody else. And things like, well, who the hell else are you saving it for? And he is like, my man, Jay, you know, he's amazing. He's a beast. and big's like, I don't who, what Jay who. and so finally like Clark Kent sort of like goded him into, unbeknownst to big, Clark Kent had arranged for like Jay and Dame to be in a car downstairs.And he was like, oh, I think he's actually just coming in. And so he went down and he brought him up and so like Jay went in and recorded his verses, I think right then and there. And he left spaces for Big to put his verses in. and when Big went in and he listened to it, he was like, oh my God, this guy's so good.I have to like, go home and really think about this, about what I'm gonna put in there in the spaces that he left for me. and I think after that they were really good friends. but you know, it's, that kind of like, good nature trickery, shall we say. that, you know, I think some of these circumstances happen when you got some egos in the building and, you wanna make some magic.And, you know, as I recall, you know, for the chorus, Jay and Big had like become fast friends and, so like, they're leaving the studio and Clark's like, you know, on the final day that Biggie came and recorded or whatever, and Clark's like, what should I do for the chorus? And they're like, just scratch something.And that, that was how it happened.[00:12:44] Da…

    Full show notes at the publisher

    The State of Music (with Will Page) May 25, 2023
    Show notes

    Will Page returns to the show for a “state of the industry” episode. In last year’s appearance he correctly called out the slowdown in streaming subscriptions, bubbles in web3, and more.Will believes the value of copyrighted music could hit $45 billion annually when the 2022 numbers are calculated — up $5 billion from 2021, which is already an all-time high for the industry. Another massive shift is glocalisation”: the trend of local music dominating the domestic charts, as opposed to Western artists. This phenomenon isn’t just being felt in music, but across every industry, from film to education.We covered both these trends, plus many more. Here’s all our talking points: 1:33 Why the music industry is actually worth $40+ billion annually7:03 Physical music sales on the up and up10:47 How publisher and labels split up copyright value16:59 The rise of “glocalisation” will impact every industry34:39 DSP carnivores vs. herbivores 40:23 Why video vs. music streaming isn’t a perfect comparison 46:31 Music as a premium offering in the marketplace 51:38 How to improve streaming royalties 1:06:05 AI music benefits that goes overlooked 1:10:07 Will’s latest mix pays homage to Carole KingGlocalisation report: https://www.lse.ac.uk/european-institute/Assets/Documents/LEQS-Discussion-Papers/EIQPaper182.pdfWill Page's 2023 Believe in Humanity:https://www.mixcloud.com/willpagesnc/2023-believe-in-humanity/Listen:Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuest: Will Page, @willpageauthorThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmTrapital is home for the business of hip-hop. Gain the latest insights from hip-hop’s biggest players by reading Trapital’s free weekly memo. TRANSCRIPT[00:00:00] Will Page: I put so much emotional time and effort into making these mixes happen and going out for free.They get your DJ slots, but more importantly, it goes back to what makes me wanna work in music, which was a lyric from Mike G and the Jungle Brothers from that famous album done by the forties of Nature, where he said, it's about getting the music across. It's about getting the message across. It's about getting it across without crossing over.How can I get art across an audience without delegating its integrity? And it's such an honor to have this mixed drop in this Friday I mean, that's, made my year and we're not even into June yet.[00:00:30] Dan Runcie Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:56] Dan Runcie Guest Intro: Today's episode is all about the state of the music industry, and we're joined by the One and Only, Will Page. He is a fellow at the London School of Economics. He's an author of Tarzan Economics and Pivot, and he is the former chief economist at Spotify. Will's second time on the podcast. Now, the first time we talked all about the future of streaming and where things are going in music, and we picked that conversation, backed up.We talked about a bunch of trends including the glocalisation of music, which is from a new report that Will had recently put out. We also talked about why he values the music industry to be close to a 40 billion industry, which is much higher than a lot of the reports about recorded music itself.And we also talk about a bunch of the topics that are happening right now, whether it's ai, how streaming should be priced, the dynamic between record labels and streaming services, and a whole lot more love. This conversation will always brings it with these conversations, so I hope you enjoy it as much as I did. Here's our chat.[00:02:00] Dan Runcie: All right, today we have the one and only Will Page with us who is recording from a beautiful location. I don't know if you're listening to the pod you can't see, but will tell us where you are right now.[00:02:09] Will Page: So great to be back like a boomerang on Trapital. Dan, and I'm coming to you from the Platoon Studios. Part of the Apple Company Platoon is our label services company, which is owned by Apple. They're doing great stuff with the artists like Amapiano music from South Africa. And the best place I can describe to you here, it's like a Tardus.Have you've ever seen Dr. Who? There's a tiny door in this tall yard music complex in North London just behind Kings Cross. When you enter that tiny door, you enter this maze of the well class spatial audio recording studios of Apple. And it's an honor they've given me this location to come to Trapital today.[00:02:41] Dan Runcie: Well we're gonna make the best of it here and it's always great to have you on, cuz Last year, last year's episode felt like a state of the industry episode, and that's where I wanna start things off this year with this episode.A couple months ago, you put out your post in your Tarzan economics where you said that this industry is not a 2020 5 billion industry, the way others say. Mm-hmm. You say, no, this is almost a 40 billion industry. So let's break it down. How did you arrive there and what's the backstory?[00:03:12] Will Page: I get goosebumps when you say that you think like 10 years ago we were talking about a 14 billion business and now it's a 40, you know, skews a slurred Scottish pronunciation, but let's just be clear from one four to four zero, how did that happen?Well the origins of that work, and you've been a great champion of it, Dan, is for me to go into a cave around about October, November and calculate the global value of copyright and copyright is not just what the record labels publish, that famous IFPIGMR report that everyone refers to, but it's what collecting studies like ask F and BMI collect what publishers generates through direct licensing.You have to add A plus B plus C labels, plus collecting societies plus publishers together. Then the complex part, ripping out the double counting and doing all the add-backs, and you get to this figure of 39.6 billion, which as you say, you round it up, it begins with a four. And I think there's a few things that we can kind of get into on this front.I think firstly we should discuss the figure. I'll you a few insights there. Secondly, I think we should discuss the division. And then thirdly, I want to cover the physical aspect as well. So if you think about the figure, we've got 39.6 billion. We know it's growing. I think what's gonna be interesting when I go back into that cave later this year to redo that number, it's gonna be a lot bigger.Dan, I'll see it here on Trapital First. I think a 40 billion business in 2021 is gonna be closer to a 45 billion business in 2022. And one of the reasons why it's not labels and streaming, it's a combination of publishers are reporting record collections, essentially they're playing catch up with labels, booking deals that perhaps labels booked a year earlier.And collecting studies are gonna get back to normal after all the damage of the pandemic. And when you drive those factors in where you have a much bigger business than we had before. So for the people listening to your podcast who are investing in copyright, this party's got a waiter run. You know, don't jump off the train yet cause this thing is growing[00:05:18] Dan Runcie: And the piece I want to talk about there is the publishing side of this. If you look at the breakdown of the numbers you have, the publishing is nearly, publishing plus is nearly 13 billion itself. The major record labels own most of the largest publishers right now. Why isn't this number just automatically included? Wouldn't it be in everyone's advantage to include the fact that yes, Universal Music Group and Universal Music Publishing Group are together, part of the entity that make this, whether it's them, it's Warner Chapel, it's others. Why isn't this just the top line number that's shared in all of the other reports?[00:05:56] Will Page: It would be nice if it was, and indeed, I think the publishing industry around about 2001 used to do this. They haven't done it since. But it's like spaghetti. It's the best way I can describe it. I mean, how do you measure publisher income? You know, is it gross receipts by the publisher? Is it the publisher plus the collecting Saudi? That is money that went straight to the songwriter and didn't touch the publisher. So what the publisher holds onto what we call an industry, a net publisher, shares all these weird ways of measuring this industry that we have to be clear on.And it's, not easy. but I think what we do in the report is we try and make it bite size. We try and make it digestible to work out how much of that publisher's business came through, CMOs, the S gaps and BMIs this X over here PS music and how much do they bring in directly? And that allows you to understand a couple of things.Firstly, how do they compare vi to vis labels in terms of their overall income? And secondly, how do they compare when they go out to market directly, let's say putting a sync and a TV commercial or movie versus generating money through collective licensing that is radio or TV via ASCAP or bmr. So you get an interpretation of how these publishers are making those numbers work as well.[00:07:03] Dan Runcie: That makes sense. And then when we are able to break it down, we see a few numbers that roll up into it. So from a high level, at least what you shared from 2021, we have that 25.8 billion number from the recorded side. So that does fall in line with what we see from what the IPIs and others share. 10 billion Sure.From the publishing. And then you do have, the next 3.5 and then a little sliver there for royalty free and for the publishers' direct revenue that doesn't come from the songwriters. The next piece though, within the elements of how all of the revenue flows into that. We've talked a lot about streaming and we've talked, we'll get into streaming in a little bit, but I wanna talk about the physical side cause that was the second piece that you mentioned.We've all talked about vinyl, but it's not just vinyl. So could you talk a bit about where the trends are right now with physical sales and why this is such a huge factor for this number?[00:07:56] Will Page: Who would've thought on a Trapital podcast in May, 2023. We'll be talking about physical as a second topic on the agenda, but it's worth it. I mean, it's not a rounding era anymore. It's not chump change. in America, physical revenues largely vinyl outpaced the growth of streaming for the second year straight. It's not as big as streaming, but it's growing faster and it has been growing faster for two years now. That's crazy. Here in the uk the value of physical revenues to the UK music industry has overtaken the value of physical to Germany.Quick bit of history. For years, decades, Germans used to buy CDs. that's fallen off a cliff. They've given up on CDs. Whereas over here in Britain, we've all started buying vinyl again. So the value of vinyl in Britain is worth more than the value of CDs to Germans, that type of stuff you didn't expect to see.And if you go out to Asia, you see the CD market still strong. You've still got people who buy more than one copy of the same cd, of the same band. Don't ask me to explain the rationale for that, but it happens and it moves numbers. But after all this, when the dust settles, I mean a couple of observations, all the data to me is suggesting that 55, 60% of vinyl buyers don't actually own a record player.So I think it was Peter Drucker who said, the seller really knows what they're selling, and I don't think you're selling intellectual property or music cop right here. What we're actually selling is merchandise, you know, Taylor Swift, I got an email from Taylor Swift team saying they've got a marble blue vinyl coming out this week.Now we're talking about vinyl in the same way we used to talk about stone wash jeans, marble blue. This is like the fourth version of the same 11 songs priced at 29 99. Let's just figure that out for a second. I'm willing to give you 10 bucks a month to, access a hundred million songs on streaming services, but I'm also, it's the same person.I'm also willing to give you 30 bucks to buy just 10 of them. This is expensive music and I might not even be listening to it cause I don't even have a record player.[00:09:55] Dan Runcie: This is the fascinating piece about how we're calculating this stuff because the vinyl sales and all of that has been reported widely as a great boom to the industry and it has been.We've seen the numbers and in a lot of ways it brings people back to the era of being able to sell the hard copy of the thing itself, but it's much closer to selling a t-shirt or selling a sweatshirt or selling some type of concert merchant. It actually is the actual physical medium itself. So it'll be fascinating to see how that continues to evolve, how that embraces as well. On your side though, as a personal listener, do you buy any vinyls yourself that you don't listen to, that you just keep on display or?[00:10:34] Will Page: It's like your shoe collection, isn't it? Yes, right. Is the answer to that. But no, I mean, I will say that I got 3000 fi funk records in the house and they're all in alphabetical chronological order.So if they haven't been listened to, at least I know where to find them.[00:10:48] Dan Runcie: That's fair. That makes sense. So let's talk about the third piece of this, and that's the division of this. So you have the B2C side and you have the B2B side. Can we dig into that?[00:10:59] Will Page: Sure. this is, I think the backdrop for a lot more of the sort of thorny conversations happening in the music industry is now, you may have heard that in the UK we've had a three year long government inquiry into our business.We had the regulator turn over the coals, and so there's a lot of interest in how you split up this 40 billion dollar piece of pie. who gets what? And the division I'm gonna talk about here is labels an artist on one side. Songwriters and publishers on the other side as it currently stands, I would keep it simple and say two thirds of that 40 billion dollars goes to the record label and the artist, one third goes to the publisher and the songwriter.Now, when I first did this exercise back in 2014, it was pretty much 50 50, and when you see things which are not 50 50 in life, you're entitled to say, is that fair? Is it fair that when a streaming service pays a record label a dollar, it pays the publisher and the songwriter around 29 cents? If you're a publisher, a songwriter, you might say, that's unfair, cuz I'm getting less than them.I have preferences, issues, and I have any issues with this division. Well, let's flip it around. If you look at how B2B world works, licensing at the wholesale level, let's say you're licensing the bbc, for example, if your song's played on the bbc, you're gonna get 150 pounds for a play. 90 pounds goes to the songwriter and the publisher, 60 pounds goes to the artist and a record label.Now, is that fair? Why does the publisher win in the B2B market? By the record, label wins i…

    Full show notes at the publisher

    Artist Independence (with Steve Stoute) May 18, 2023
    Show notes

    UnitedMasters and Translation CEO Steve Stoute returns to the show, fresh off a new deal with R&B star Brent Faiyaz for a reported $50 million. Brent had his pick at multiple major labels, but chose to stay independent with UnitedMasters.We talk about how independent companies can compete with majors on upfront money, competitive advantages in the music industry, and more.Steve and I also chat about the industry at-large: AI, entrepreneurship, subscription prices and more. Here’s what we hit on:2:19 The ups and downs of entrepreneurship 06:11 Building two companies at once10:56 Positioning UnitedMasters in the music distribution space 13:16 Does anyone in music have a moat?15:56 Why Brent Faiyaz chose to sign with UnitedMasters27:33 Should the DSPs raise prices?30:07 Artists and creators becoming mini-media channels 36:58 How NIL (name, image, likeness) is like the independent music business37:19 Is Steve going to strike more NIL deals?45:52 Why every artists needs a Chief Technology Officer54:30 Separating real from hype: blockchain, to web3, to AIListen:Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuest: Steve Stoute, @SteveStouteThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmTrapital is home for the business of hip-hop. Gain the latest insights from hip-hop’s biggest players by reading Trapital’s free weekly memo. TRANSCRIPT[00:00:00] Steve Stoute: They used to have a moat, but no longer do they have a moat. And I don't think anybody independent music has a moat. I think Distro kid has a lane and TuneCore has a lane, and United masses have a lane. And, you know, others have, certain strengths about them. but, I think the only moat you have is the moat that is a true result of the success that you have. If people choose you and you build a strong business, and you're growing, that's the quote unquote moat. [00:00:27] Dan Runcie Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:55] Dan Runcie Guest Intro: Today's episode covered a wide range of topics, but the key thing that's central to it is artist independence, and we're able to sit down with none other than Steve Stoute, who is the founder and CEO of United Masters founder and c e o of translation, and has been working in music and entertainment.For decades now. This is actually his third time on the podcast, and we covered it all. We started the conversation talking about motivations and how you were able to stay consistent as an entrepreneur, given the ups and downs of that lifestyle. Then we talked about translation, United Masters, Artist Independence, a bunch of trends happening right now and how.A company stays through all of the waves of technology waves, whether it's blockchain from a couple years ago to web three to where things are with AI now. Really fun conversation. Steve always brings it in these talks too, so it's a really great listen, hope you enjoy it. Here's our conversation.[00:01:53] Dan Runcie: All right. We're back with the Trapital podcast. Yeah. We got the one and only Steve Stoute here. I think this is your third time on the pod. [00:02:00] Steve Stoute: Really? I thought. I guess I thought it was twice. Thought This was my second time. [00:02:04] Dan Runcie: We did one time. We was at Empire Studio there. Yeah. We did it virtual during the pandemic, and then we got this one.[00:02:11] Steve Stoute: Oh, well, I'm fan of it. very early. You were? Yeah, I was on it very, very early. I think you're a good job. [00:02:18] Dan Runcie: Appreciate that. [00:02:18] Steve Stoute: Thanks for having me back. [00:02:19] Dan Runcie: Thank you. Yeah. These conversations are always good. And I wanna start this one and a place we haven't started others. I feel like we normally dive into the business, but take it a step back.You've been building businesses as an entrepreneur for decades now. How do you stay even keeled? How do you stay consistent with it, just knowing the ups and downs that naturally happen with building businesses? [00:02:42] Steve Stoute: Well, the fact that I appear to be even keeled is a compliment because, I certainly am emotionally attached to the businesses I build.I know there's, you know, the saying, don't be emotional about business, but when I'm building something from an original idea that I have, it's, you birthed the idea. I'm emotionally attached to the success of it, and the organization around it and the perception of it. So, you've been through those tumultuous cycles, so you tend to not chase the highs or chase the lows.and that sounds good. but it is definitely harder to do that when you're emotionally attached than, you know, understanding the theory that you should do that. And I think experience helps a bit, takes the edge off. But yeah, I would say to you, you just, like, for me, I've been able to sustain the energy andsustain through the ups and downs, through, sort of expecting them and not, chasing the highs like that's where the big mistake is when something great happens or a series of great things happen, you know, respecting it, but not chasing it because I believe that that's still not, gonna prevent the tumultuous time from coming. Because [00:03:56] Dan Runcie: I think the tough part with that, and this is something I know I struggle with too, it's tying your own satisfaction, your own esteem at particular points with those highs when things are going well. Yeah. And it's great to say those things, but I know even myself, it's tough to be able to stay even keeled when things are going well. The phone starts ringing more, you start getting more opportunities, more looks for things. Yeah, yeah, [00:04:20] Steve Stoute: Yeah. And it becomes more hectic. And then you have to hire more people. And then that creates another set of problems and responsibilities. And look, building a business isn't easy. I said it, the shop, know that the biggest mistake that I see is the glorification of entrepreneurs like, almond entrepreneurs. So therefore, like, you know, the sacrifice that it requires, to be able to know that failure is imminent or success is imminent that you may have an idea and you can go years without realizing the opportunity and it may go to somebody else. people ask me, how do I do it? And, you know, I'm here in San Francisco, I was, You know, in LA the day before that I was in Miami, the day before that, the day before that I was in LA again, it's like, it just keeps going. And like, you know, not seeing your family an d sacrificing some of the comforts of home or the comforts that you have of a routine, it's also part of the sacrifice. So it's not easy, and you have to really be committed to it. It almost has to be your A plan, your B plan. Your C plan is that plan, like you won't find joy or fulfillment. in doing anything else. At least that's how I feel. [00:05:39] Dan Runcie: Yeah. I think a lot of it's accepting those trade-offs and knowing that you can't do it all. I think I've heard you talk about this on the shop as well, whether it's so-and-so as the birthday party, so-and-so as the this, and yeah, it's great if you can line up and do those things, but you've chosen this life to be able to be in LA, be in Miami, be in New York, and back to back days and Yeah, doing that requires this type of commitment to it and you can't do everything. [00:06:04] Steve Stoute: Yeah. and hiring great people, is part of it. but putting your own personal comfort is certainly not a priority. [00:06:12] Dan Runcie: Yeah, definitely. Interesting you brought up the hiring piece because I think you've definitely built up a reputation as someone that's always operating on 10. So you naturally wanna surround yourself with people that are at that level. What are some of the things that you look for to see, okay, does this person have the edge? Cuz you know you're gonna be running all the time. Can they run with you? [00:06:36] Steve Stoute: it's very hard to, you know, resumes or LinkedIn pages, whatever you use can tell you a lot, but they don't measure resourcefulness or effort, right? So those things do not appear in any aspect of looking at, a person's profile. So I've learned through failure, you know, I may have not, I may have, I have high, I have hired and fired. you know, 3000 plus people, you know, so you learn what are the qualities or what are the questions to ask, to try to help, mitigate that the kind of person you need for your company. It doesn't mean that person's bad. You could have made a bad hire, not because the person's not good, they just don't fit your team. I mean, you see it in the NBA all the time. Players on somebody that was on the Lakers or somewhere else goes to another team and then all of a sudden they do well cuz it's the system, it's the culture, it's the coach. And that's the same thing with employment. Like, you just may be good just not for this company. So understanding what you specifically need versus, oh, this person worked at, so tech high, or they worked at Google, they worked at Airbnb, we want that right? Pulling them into a startup or pulling them into that culture or pulling them into that product not made completely, is completely different, specifically in our case, than what they were doing over there. And not every single job transfers one to one, whether it's the music business, the tech industry, the marketing business. We hire people at translation all the time. They came from Ogilvy. It's like, well, that has nothing to do with us, right? Or they come from Goodbee and you're like, well, that ain't gonna work here, right? Why? Just because the way we are, set up, what they may be used to, the programming that they run versus what we run, they, you know, may not be a great culture fit. And so, knowing that helps mitigate that risk. So knowing who you are, knowing what kind of people respond well to your culture is an important aspect. Not only just the mission statement stuff. Yeah, great, But like really innately knowing it and feeling what works.What are the common attributes of the people that are successful at your company that are more nuanced based and knowing how to identify that in others and what other companies share those values so that people that come from those companies tend to do well at your company.[00:09:05] Dan Runcie: You mentioned how this is a tension point in music in this industry. I think we've seen it from time and time, whether it's the record label side and folks on the creative versus streaming and tech coming in and some of the pushback there. I think you've been able to have a good vantage point with both of these because you have a ad agency and you also have a music distribution service.The talents, the skills needed for one, may not make sense for the other, but they also have a bit of a unique identity there. How is it with that perspective?[00:09:38] Steve Stoute: Difficult, hard. at the onset of starting United Masses, I put translation in united masses under. United Masters, Inc. And understanding that in order to do that, to build a marketplace that has creative or brands on one side and creative and culture and cultural impact and creators on the other side, and building that marketplace takes hiring unique people because we sit at the convergence of culture, technology, and, storytelling. Mm-hmm. So you need people who are prolific at least two of those three things, every single person. And that's the only way you have a shot of getting that convergence to work as one and hiring for that and building organization structures around that probably is the most important thing. That I do every day is understanding where could we be more efficient in that model? What kind of people do we need in order to accelerate that model? How do we scale that model as a result of the talent we have and the talent we need? That is very difficult, and it is probably, it's definitely a top five priority, from the CEO. [00:10:56] Dan Runcie: And I assume as well, part of this is required with the nature of how you've positioned United Masters, right?If you don't have these differentiating factors, if you don't have this tie in to culture or trying to present sync opportunities or things like that, then it could easily be seen as another music distribution service. And that's not what Well,[00:11:17] Steve Stoute: Dan, you've been following the company very closely before you could be, just another distribution company before that became popular, I had this idea with that differentiating factor seven years ago, right?So I knew from the onset that distribution was table stakes. and the building of United Masters with translation and power powering the brand sync opportunities, the influence and type of opportunities, was something that I had the early vision on. So yeah, it's important, but it's not important in response to, oh, all of these, you know, distributors in the market now, so you need to X, Y, Z. I was doing the X, Y, Z before they even had the idea to be in music distribution, to be honest with you. And a lot of these music distribution companies that you see are coming out, are looking at United masses and honestly copying it. Some of it they can't copy. That's fine. some of it they can't copy. It's 20 years of experience in, you know, running record companies and building an advertising business to be able to do this. So you think you can replicate the outcome without replicating the process, which I've never seen actually happen, the theory is right? But to replicate it, to hire the people, to have the credibility in the marketplace to speak to brands and hire the type of people needed to pull us off. Good luck, I do believe, and I am supportive just to add to all of that, great distribution companies that support independent music, that have something to contribute to the independent music movement are welcome and everybody, you know, rises as a result of it. So I'm not necessarily, I don't look at. at these other, distributors as competitors, I look at us as contributing to an industry that's, changing the music business dramatically and if you have something to bring to the table, it's beneficial to all. [00:13:17] Dan Runcie: That makes sense. And I think for United Masters as well, you've been able to have your moat essentially as you've described it. You have the years of experience, you have the ability to connect dots in ways that others don't, and that's led you to land some of the artists you have.You have a recent deal that's been announced with Brent Faz and a long-term partnership there. Can you talk a bit about that deal and how things came together? [00:13:43] Steve Stoute: Well, a moat is a bit of a stretch. I don't know if we have a moat. We have a great business model that certain artists, labels can find use of.[00:13:56] Dan Runcie: Do you think anyone has a moat in this space?[00:13:59] Steve Stoute: No. No. The record companies, the traditional record companies had a moat, when physical distribution was a barrier of entry, right? It's very hard to press up 500,000 CDs or vinyls or whatever it is. and distribute it to 7,000 points of d…

    Full show notes at the publisher

    How Brands Become Ideologies (with Marcus Collins) May 11, 2023
    Show notes

    It’s never been easier for brands to push their message out. But building true connections is in today’s fragmented landscape.Dr. Marcus Collins has advice for cutting through the noise. His new book, “For The Culture”, is full of insights. Marcus has worked with Beyonce, Apple, Nike and more. He’s the Head of Strategy at Wieden+Kennedy, and a marketing professor at the Michigan Ross School of Business (Go Blue!).Marcus believes people use brands to express who they are. To win now and in the future, the most successful brands will have to double down on identity, not on value proposition. Here’s everything we covered:[3:20] How media fragmentation is affecting community-building [5:35] Brands have to activate people, not algorithms [8:45] Ideology creates cultural consumption[10:44] Brand ideology transcends industries[19:18] How non-visible companies can use tangibility to brand build[20:04] Effective market research goes beyond just data[23:57] Great marketing taps into the moment[30:04] Why Marcus wrote this book[31:30] How to reach MarcusListen: Apple Podcasts | Spotify | SoundCloud | Stitcher | Overcast | Amazon | Google Podcasts | Pocket Casts | RSSHost: Dan Runcie, @RuncieDan, trapital.coGuests: Marcus Collins, @marctothecThis episode is sponsored by DICE. Learn more about why artists, venues, and promoters love to partner with DICE for their ticketing needs. Visit dice.fmThis episode is also brought to you in collaboration with Primary Wave. James Brown would have turned 90 this month. Let’s revisit his cultural legacy and check out his greatest hits. Enjoy this podcast? Rate and review the podcast here! ratethispodcast.com/trapitalTrapital is home for the business of music, media and culture. Learn more by reading Trapital’s free memo.TRANSCRIPT[00:00:00] Marcus Collins: The hope for me personally, is to scale my impact like I believe that reasonable, my ideology, my belief, my conviction is that we're put in this world to serve God, and serve each other. That's what I believe, and the way I serve is by helping people realize the best version themselves operate the highest fidelity. So the book is a way to scale my impact.[00:00:21] Dan Runcie Intro: Hey, welcome to the Trapital Podcast. I'm your host and the founder of Trapital, Dan Runcie. This podcast is your place to gain insights from executives in music, media, entertainment, and more who are taking hip hop culture to the next level.[00:00:45] Dan Runcie Guest Intro: Today's episode is all about culture, culture's ability to drive the decisions we make in business, in society and more. And our guest is the one and only Dr. Marcus Collins. He is an award-winning marketer. He's a professor at the Ross School of Businesses, university of Michigan, go blue. And he has done a number of impressive things in his career, working on campaigns like Apple Music, Budweiser, made in America's Festival, Bud Light Platinum, Beyonce and her digital work, especially in the Sasha Fierce era. He's also worked with Matthew Knowles, Steve Stout, and many others in the industry today, and he is the author of a new book that just came out called For the Culture. So in this episode we talked a lot about brands reaching that ideology level, which Marcus describes as that top tier that a brand could reach in terms of how it connects and identifies with people and in communities.So we talk about what that looks like. We also talk about Marcus' goals for this book, how that shapes his viewpoints and some of the challenges that brands can face. With regards to branding and reaching that ideology level, whether certain industries are more or less disposed to being able to get there and more.I give Marcus a ton of credit, him and I had met over a decade ago, back when I was in business school at Michigan as well, and seeing his career path and a lot of the decisions that he was able to make a transition into doing something he truly loves and is one of the best people in the world at what he does, gave me inspiration to not only see that there were plenty of other non-traditional career paths after going to business school, but I think a lot of that also informed the type of work that I now do at Trapital today and how I try to continue myself on the path that makes most sense for me.So really great conversation, always great to have him on a second time on the podcast. So here's my conversation with Marcus. Hope you enjoy it.[00:02:41] Dan Runcie: All right. We are joined today by the one and only Dr. Marcus Collins, author of For the Culture, an award-winning marketer and a Ross alum. Go Blue. Welcome back, man.[00:02:51] Marcus Collins: That's right. Thanks man. Thanks for having me, doc. Always a pleasure to be with[00:02:55] Dan Runcie: Likewise and your book. Great job on it. Great job on the release too. You got a bunch of heavy hitters giving support for this. And one of the things that I wanna start with, you've talked about this before, the ideology hierarchy that brands go through and that journey. So for the listeners, can you first explain what that is and then an example of a brand that you think has gotten there and done A good example of that.[00:03:20] Marcus Collins: Yeah, so we think about ideology, it's about the way the brand sees the world, like the point of view that the brand has it's conviction. Some call it as purpose. It's really the driving belief that dictates where the brand goes, what it says, what it does, and with whom. it shows up in the world.And we all think about strong brands as brands that people know. Oh, I know that brand. we're strong. Where a lot of brands that we know that we don't consume from, right? Like Sears, we know that brand Blockbuster, we know that brand, but clearly people weren't showing up. So awareness isn't enough. One step up, we go, well there's, I know that brand and it has good quality, right?Oh, that's awesome. I know the brand has has good quality. It's a stronger brand. But to go one step higher is to know the brand. Strong, good quality, but it's also considered a leader in the space, right? So you've got like a Hulu and a Netflix and a Tubly. Which one is more trusted? Well, definitely ain't Tubly, right?Because they're not considered anywhere close to being a leader in the space. A step up from that is trust and confidence. I trust the brand. Not only do I know it, it has, good products. it's a leader in the category, but I also trust it. I have confidence in it. We think about, the headphones that we know to be the most trusted headphones in the market.We'll say, oh, that's Bose, right? Bose is demonstratively, a leader in the category and the most trusted headphones. Think about audio quality, sonic quality. However, Bose is bested in the market by Beats by Dre. Why is that? Because Beats by Dre operates at a higher level still. It's association and relevance that the brand, it's relevant for someone like me and the association, the imagery I have that's associated to the brand makes it seem cooler, right?Which is why Beats by Dre owned like 48% of the market when they were before AirPods came out, right when it came to the headphone market. But then it's one step higher than that. And the most strongest brands operate at this zenith, this pinnacle of brand strength. And that's ideology. They transcend the value propositions of the product.My razor sharper, my battery last longer, my car goes faster, and they operate at a place of conviction. And this is so strong for brands because people consume those brands, not just cuz of what they are and what they do, but because who these people are. And the brand becomes an extension of my identity.of Who I am, a Patagonia fleece is just as warm as a Columbia fleece, however, where in Patagonia says something about who I am, my identity, that I believe in mitigating our impact on the environment, and that's massively powerful.[00:06:01] Dan Runcie: This is relevant for musicians and artists as well, because I think they have some of those ideological brands too. I've been looking at the trends, especially with vinyl sales. More than half of the people that are buying vinyl don't have players. They're buying them to put them on display to showcase them.It is an extension of them. I want you to think that I am the type of person that listens to Drake, that listens to Tyler the creator. That's that zenith that we're talking about. it[00:06:29] Marcus Collins: It was so cool, and I fully agree with you. A few years ago, Fruit of the Loom, they do partnerships with musical acts like, Metallica, Kiss, Aerosmith, Seal's t-shirts. People got metallic on their, shirts. That's a licensing deal between fruit, the loos, and those musical acts.And a few years back, fruit looms. Were looking at their book of business to see which. brand, likeness which artists l likeness was doing better than the others. So they can re-up those licenses and they found that the Ramones was outperforming Kiss, Metallica, Aerosmith. They're like, what's going on The Ramones little small little band.Then they had like two albums out in the seventies, like, what's happening here? So they asked those fans, they said, you know, you must be a really big fan of the Ramones that you bought this t-shirt. They were like, Nah, I don't even know they're music. But the Ramones mean punk rock, and they want to be seen as punk rock, the meaning associated with the brand, that vessel of meaning that is brand.People use it as an identity mark, not because of what it is, but because of who they are. I mean, the biggest brands that we know, the biggest artists that we know, they all transcend what they do and operate at a level of why they do it. In the words of Simon Sinek,[00:07:43] Dan Runcie: This reminds me of those Iron Maiden t-shirts. You remember that era? Maybe it was like five, seven years ago when everybody was wearing Iron Maiden t-shirts. I don't know if they were really listened to the music, but I think it's that thing as well where they just wanna be seen like the type of person that would identify with that[00:07:58] Marcus Collins: Of course not. Of course not. I mean, people are wearing, Red Bull t-shirts. That was a thing, is a way of signaling something about yourself. NASA t-shirts. Exactly. Like just signaling something about yourself. And really, that's all we're trying to do to try to peacock our way through the world signal who we are in hopes that we can find people who are like ourselves and we find connection because that's what we are, we're social animals by nature.[00:08:21] Dan Runcie: And a lot of this, at least what we talked about so far, are consumer brands. This applies at the enterprise level as well. I think a company like McKinsey aligns perfectly. There is a status that you're able to send both internally within the organization and externally by hiring that firm, spending the seven figures for them to come and work on your project because of what you want to be able to say.[00:08:45] Marcus Collins: To say, McKenzie is our agency, that's who does our strategy work, McKenzie, and we know this from being in business school, that people want McKenzie on their resume. Because of what McKenzie means, what it signifies, you know, there's a sociologist named Pierre Perdue, who talks about this idea of cultural capital that our consumption, the more conspicuous it is, the more we align, value from it.There is embodied cultural capital. That is our skills, our knowledge, what we know, like, you know, if you go to the opera and, you know, the literature, you know, the Odyssey, you know the Homer, you know all that stuff. Then you have a amount of, value, of capital, of cultural capital.And the idea is that if you were an equestrian growing up, that signals that you've come from wealth and your friends who were equestrians growing up signals that they come from wealth and who fr what friends, do you have friends like those and those friends open up doors for you for jobs? VC funding and the alike, right?So that cultural capital that embodied cultural capital turns into financial capital. The same thing goes with objectified cultural capital, the things that we buy, the clothes that we wear, the cars that we drive. This a way of signaling who we are in the world in an effort to meet other people like ourselves, that open up door for financial capital.The same thing goes for institutional cultural capital where I go to school, where I work, what fraternity I joined, whether I was in Jack and Jill, like these things signal who we are in the world that open up more financial economic opportunities for ourselves. So you're right. So it's not just, B2C as we typically think about it.These are all the many ways that we signal who we are in the world, the companies we work for, the schools we went to, the institutions that we frequent. These are all consumption behavior to signal our identity. So that we might find people like ourselves that create more social and financial opportunities for ourselves.[00:10:44] Dan Runcie: Are there certain industries or sectors that hitting that ideological level is extremely difficult or it's almost impossible? I think back to my own career experience. I've had internships at cable companies and airlines, and I think that there's challenges, especially just given the nature of their businesses, how consumers interact with them.But even I think about companies in waste management and areas like that. Companies that could have strong brands and business businesses, but is there a ceiling of how high certain companies and certain industries can go because of the industry dynamics?[00:11:19] Marcus Collins: I think that if a company defines itself by what it does, then yes, there is a ceiling. But if a company defines itself by what it believes, I think the possibilities are endless. Cuz even as you name off those companies, we look at them through the lens of their industry, their category. And they are defined by their category.Oh, you have waste management services. So you are in waste management. You have an airline. So you are in the airline industry. you make microprocessors, so you're the micro processing industry. When you only define yourself by the product services or product goods you bring to the world, then that's the only opportunity you have.But when you elevate beyond that, you say, we believe this. We just so happened to provide waste management services. Imagine if we said this is arbitrarily speaking. Imagine we said that we believe that a clean environment makes for. a better life. Let's just say that. I'm just make that up, right.A clean environment makes for a better life, and that's why we have sanitation services, waste management services. Then we go, well, what else could be better if it were clean? Well, what if we cleaned up the oceans? We're no longer in the waste management business. We are in the cleaning oceans business.Or, well, what if we cleaned up the internet? Mm. What if we went through the internet and found all the smut, all the whatever, the things that aren't as savory. Maybe for kids and we're going to clean the internet up. We're gonna create products to do that. We just so happen to do waste management.We still happen to clean up oceans. We still happen to create software that cleans up the internet. But what we do that because we believe that a clean environment creates for better solutions. Again, I just riff that but the idea is that if you operate at that level, you are not defined by your category and what you do.You're defined by your…

    Full show notes at the publisher

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