Another long day yesterday.... I'm going to try something new. Around 4:30 in the afternoon, I'm going to step away from the keyboard and start having dinner with my wife and kids. Starting a company is stressful even under the best conditions and with 2 small children it's even tougher. My wife has been great about supporting my endeavor but she can't run the house by herself. I'm thinking that taking 3 hours a day, when I'm not distracted by work, to cook dinner and hang with the family will help everybody.
On page A3 of yesterday's Wall Street Journal, an article on the woeful state of EMI; they're laying off as much as one-third of their 6,000 employees, focused on the recorded-music operations. I was peripherally involved in the music industry in the late 90's and that's what brought me to Atlanta. When I lived in Seattle, I was the main developer for Amplified.com (an Atlanta-based company) and created a site to sell custom music CDs and secure digital downloads. They later hired me and I lived in a hotel for 2 weeks while my stuff was in transit.
All music companies at the time were faced with one problem: getting music that people would actually buy. We had a lot of indie labels and such but not much that sold. At the time, the major record labels were making big money but saw the disruption caused by Napster and quite honestly, were shitting bricks because they didn't know what to do. In true fashion, there was much gnashing of teeth and tearing of
garments but nobody did anything because.... well, they didn't want to
create another MTV and were determined to own the digital download
market. As you can see, their strategy worked so well that suing their
customers has become a legitimate business strategy.
For what it's worth, here's the business model for recorded music: take a chunk of plastic
that costs about $0.50 to make and sell it for $15-18 to hipster
teenagers. The artists themselves made very little, if any, money when
you bought their CD; mechanical and publishing royalties and concerts are where the real
money is at for artists.
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