Posts with tag Digitalisation

Music Industry and new business models

This sunny day in Stockholm, people from the music industry gathered at Hotel Rival for the Creators Conference arranged by Swedish Music Information Center, The Swedish Society of Popular Music Composers and Society for Swedish Composers.

The focus was added value in the digital world, the attempt was to lift the question from Intellectual Property Rights to look broader; which way might we go in technical choices, what new business models might we see in the future, and what is the role of the middleman within the music industry? Mark Fischlock, the moderator for the day, early on stated that we seem to have underestimated the digitalization and we have for a long time tried to impose old models in a new system. He got a lot of agreeing nodding from the eight-headed panel, and American Intellectual Property Law Attorney, Bennett Lincoff, was quick in hooking on to this, saying that we need a completely new business model for the music industry that can deal with the challenges imposed by the Internet.

Other things said was things like “We have to find solutions where money goes directly to the Artist”, “People are willing to pay if the money goes to the right thing”, “How do you get a fair deal between the producer and distributor?”, “There is no interest in pipes, you are interested in the content they are providing”, “The real problem is the lawyers who seem to be stuck in old structures”, “Let’s face it: We are all cutting and pasting, we have to be less focused on IP”, “It’s a difference between free or feels free on the Internet”. Many points were made by legendary manager Peter Jenner (Pink Floyd, The Clash and others), who stressed that the industry needs to change and money go directly to the pockets of the Artists. The distributors, like the record-companies, publishers, just grab too much of the pie and this will, and has to, change. Another important point made was the lack of political interest in digitalization as a whole in Sweden.

A bit of a sad remark is the reminder that the music industry in Sweden has to take a serious look at the equality question. Are we to believe that the talented, brilliant, famous musicians, singers, composers, and directors of organizations in this field are only men? In today’s Stockholm paper Dagens Nyheter an article put the light on the music industry being very male-dominant, while among the theatre institutions things have changed. A few years ago a survey showed theatre institutions to have almost only men as directors, something that now had changed to a 50-50 percent men and women in top positions. For everyone who read today’s paper and then went to the conference, sadly got the situation in the music field confirmed. In each panel of eight people, only one in each was a woman. Maybe the Internet and new models in distribution may have an impact on changing this male domination, letting young talented women find alternative ways?

IT-services for Artists?

New IT-solutions as how to download music and film legally, how to create animated movies with your personal photos, upload videos and cut and add music to it, or streaming a video direct from your mobile to the web, are growing immensely fast. Innovative ideas on what you can do on internet are created and uploaded in a pace that is hard to follow. Is the cultural scene following? Who is taking the lead to explore new ways of communicating, showing, exhibiting, buying, networking with the Artistic scene and cultural entrepreneurs on Internet? What IT-services are needed for the Arts?

Read two articles in the Daily Svenska Dagbladet on Sunday Oct 4, “Den nya IT-vågen” (”The new IT-wave”) and one about the newly produced book “The Youtube Reader” (English) called “Youtube liknar inget vi har varit med om” (free translation: Youtube doesn’t look like anything we’ve seen before).

Just look at these web-services, the twenty-five Swedish IT-companies mentioned in the article: Spotify, Voddler, Booli, JaycutVideoplaza, Bambuser, Animasher, Agency9, Peeralism, Saplo, Textflow, Pixlr, Soundcloud, Xcerion, Burt, Twingly, Polar Rose, Bloggy, Fileride, Jalbum, Stixy, Momail, Laterthis, Squace, Dashnotes.

The Future of Culture – Creative commonage and commercial desert?

The discussion on the consequences of digitalization for example music, film, literature, cultural journals is like an undulating ocean. It goes up and down but never stops its movement. Each of the Art forms has their own discussion.

Publishing houses were horrified of Google, the scanning of literature to make the first gigantic digital library. The Google deals made publishing houses furious and should these be signed or not? Did they have a choice? Are they mainly worried of the payment to the author or of their own position?

Music has fought fiercly against free downloading. In Sweden the new Ipred law aim to hunt those down that download for free. What does new business models look like on the Internet that make music available and the user pay for it? Examples like Spotify has grown up as new initiatives. Film is the same. Free downloading or sites like youtube, where films are uploaded to be viewed by anyone, is a big concern. The quality in screening is not good, but it’s for free. Chris Anderson says in his new book “Free” that with Internet everything goes towards zero in costs. The business model, or how to earn money, will look very different in the future.

And what happens to the Artists? In the end, as most of the time, they are without income. Perhaps this development could actually be positive for the single Artist as money and power of distribution will be in the hands of the producer?

There are many questions and processes overlapping and crossing each other. The different industries; film, music, publishing worry about their future. But stay within their own field. Very few in Sweden have tried to get an overview, looked across the different specific fields to see the larger trend. This is the ambition in the pre-study done by Mikael Löfgren, Swedish Cultural Journalist, in cooperation with colleagues at Nätverkstan this coming fall. The study is funded by The Foundation for the Culture of the Future. Hopefully it will be the beginning of a learning process ending with a large Hearing in Göteborg where these issues will be discussed.

More traces of Chicago

Little Black Pearl, situated in Bronzeville south of Chicago, is a nonprofit organisation with ambition to create opportunities for young adults through Artistic and cultural work. In the Centre they can work in one of the many studios with wood, glass, painting, ceramics, run workshops or put up shows. Gwendolyn Pruitt, Director of Product Design, shows us around and tells us the story of this community based organisation with enthusiasm and passion. It’s both about what they achieve with the students, she shows an example of tables they did with beautiful mosiac cover on top, which they sell to customers. It can be anything. Their mission is to deepen the creative involvement through Arts, and learn how to run things. It’s also about the struggle of getting the budget to sum up in the end and the constant search for funding bodies, she tells us with a sigh. “I found that I don’t have the time to teach them that personal component”, she tells us with referral to the young students. She finds it’s a great need to also teach teachers “It’s a gap between the structure and the student”.

In 1974 a group of classmates at high school got together to set up a theatre play by Paul Zindel. Since they only had one semester left, it was not until they came to Illionis State University that the idea formed and they looked for a place to set it up. Their first production was played in a Church in Chicago, and since they at the time was reading the book “Steppenwolf” by Herman Hesse, they named the theatre the Steppenwolf Theatre Company. Today the theatre is a prestigous one on Halsted Street, with the ambition of advancing the vitality and diversity of American Theatre .

We see the play “Up” by Bridget Carpenter of the man who once reached the sky, the clouds, in a chair with balloons, and could not let go of the idea of doing it again. In another machine he would build. His vision held him alive, this was his passion, while everyday life and the reality of having to pay bills at the end of the month was taken care of by his wife. Until the situation changed and the pressure of supporting the family came closer.  After the play there was an interesting discussion with the audience, reflections  showing how differently we interpreted the play. The discussions at the conference of Artists and entrepreneurship become very real in this beautiful and sad play of having dreams and struggling with reality.

The Art Institute in Chicago is impressive in many ways, but mainly and mostly of two things. The collection of Art they have is impressive, to say the least. In this institute you can see everything from American contemporary Art to the Impressionists, African to Asian Art, photography and industrial design. You can stay days in there. Secondly it’s free for the public after five pm Thursdays and Fridays. The Institute and its collections are open and accessible for the public, something that seems in line with the attitude of giving Art and culture a central role in Chicago.

The study to  Chicago is part of the conference “Creative Entrepreneurship and Education in Cultural Life”, held in Chicago on July 16–18 2009, organized by Columbia College Chicago and Encatc.

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Chicago Conference traces

After the opening speeches of the conference “Creative Entrepreneurship and Education in Cultural Life”, the poet Marc Kelly Smith took the floor. He is best known for founding Poetry Slam in 1987, a new presentation and reading style of poetry now spread around the world. Is he an entrepreneur, he asks himself and the audience, before he changes into one of the characters in “Wilderness”,  a poem written by American (and on-and-off Chicago-based) writer and poet Carl Sandburg. He performed “Chicago”, another poem by Sandburg, and also a piece by the English poet D.H Lawrence.

Three intense conference-days going from theoretical discussions and reflections to practical examples from USA and Europe in workshops and seminar sessions, as well as study visits were included in the conference, arranged by Columbia College Chicago and Encatc in Chicago on July 16–18. The main topic – if and how artistic education should include entrepreneurial skills – were tossed and turned over the days. The participants, professional educators and artists from many different countries, shared their experiences and expertise. Many examples were put forward, where management skills, career planning, project planning was part of the curricula, a trend that goes well into today’s discussion of entrepreneurship. The question of cultural economy was pursued; both the perspective of the impact of culture and art to the economy in society as a whole, something put forward by many studies; and the economy for Artists and how these professionals could build a sustainable economy on their profession.

Conference programme can be downloaded here: program_pdf.

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The funding gap • Project work in Kenya

As we in the project team pursue the question of interaction between business and cultural field during our sessions, several things emerge. And as we get in to the thought of investors investing in cultural businesses to make profitable returns, a few more things get clear.

Many of the people we meet talk about the potential of creative industries in Kenya, people from both business and cultural side. There is an opening, a collective thought is, a potential, which should be addressed. But how? How would you do to catalyze this potential and at the cost of what? What are the trade-offs?

Samuel Muvelah, at Zimele Asset Management Company Limited, has long experience of project work in different parts of Kenya, venture capital and is now a money manager for those who put in around 50 dollars and want their savings to grow. ”The reason the creative field is not seen, is that it’s lacking sufficient institutional organization to integrate with formal capital structures”, is his major point. “The field is disorganized, so how do you find talent? How do you begin to cooperate with creative industries?” ”To catalyze the potential you need an entry point!”

Muthoni Udonga, on the other hand is musician and a real entrepreneur. She runs festivals with a variety of the top East African Artists, run workshops, and she does this with the perspective of both doing excellent music events, and do activities that develop the field. All this at the same time as she runs her own music career. “Film, tv, music are really taking off here in Nairobi. On small budgets and very entrepreneurial”, she says. Together with producer Robert Wawawei, they describe a growing and bubbling music life with many upcoming new Artists. It’s a growing field, but one also struggling with skills gaps. ”Artists have to think like entrepreneurs, but that doesn’t happen here”, is Muthoni’s point. Together with few funding bodies, lack of investment money and an unpredictable audience, it’s hard to come forward. Hard – but not impossible.

So how could this funding gap between investors wanting to invest in creative industries but don’t know how, and a creative field wanting to be able to live on their content be resolved? How can bridges be built? In September the first meeting will be held in Nairobi putting these partners together to find concrete suggestions to come forward.

But in such a complex project there are many things to consider, and the team of Godown Art Center, Mangowalla Ventures and Nätverkstan, have been digging deep in to these discussions. A few things has emerged, perhaps not so new, but still very evident.

1. Investors expect an economic profit in their investments. Considering the creative field, which consists of a wide variety of activities from the Arts to design and media, only a few will be in consideration. Only a very small portion of cultural businesses and organizations has the chance to make these sorts of profits. They exist, of course, and there is a point to build bridges so they can meet, but for the cultural field as a whole, this will not be a solution.

2. Majority in the creative field are single Artists, small-scale cultural entrepreneurs and organizations that run not-for-profit entities. These might not be in the viewpoint of the investors, but are important as job creators. Here future jobs will be created.

3. Content production and symbolic value are becoming more and more important in the business world. The business field needs the creative field to be able to sustain the value of their products in a world in fast transition.

4. The Artists and investors have one common denominator: they both live on taking risks. The Artist takes risk to create meaning, the investor to create returns.

5. What are the trade-offs? For the investor one such is perhaps the relation between the higher expected returns, the less quality of the Artistic work, if you in the “quality”-word also put in the aspect of uniqueness. This relation might not be binding, a film production selling very well and generating a large profit might also be of high quality. But for most cultural entrepreneurs striving in the field, there will not be large amounts of money to be made, unless you put less amount of time into increasing quality or your Artistic talent or do something else.

So for the Artist on the other hand, the relation between Artistic value and survival are true. Will you be able to live on your Art? If you want to earn money, is there a trade-off on your Artistic value?

The project is a project funded by the Swedish Institute and Strömme Foundation and run by Pratik Vithlani at Mangowalla Ventures in cooperation with Godown and Nätverkstan.

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Five myths of entrepreneurs

These days, when entrepreneurship is put forward as the solution of the cultural field’s economic difficulties, and when funding bodies on all levels are talking more frequently of Artists and cultural organizations having to be more entrepreneurial, searching for “sponsorship”, “alternative funding” and “market demand”, it might be time to kill some myths.

An issue of the Economist this spring (March 14–20, 2009) with a special focus on entrepreneurship, put forward five myths of entrepreneurs that needs to be put aside if we are to understand and catalyze entrepreneurship.

Myth 1. Entrepreneurs are lonely, socially incompetent geniuses that come up with great ideas. Instead, the article argues, entrepreneurship is a social activity. An entrepreneur might be very independent, but needs a business partner or social networks to succeed.

Myth 2. Most entrepreneurs are extremely young. Some have been very young, like Steve Jobs and Bill Gates, the article lift forward. But a significant amount is also older, like Gary Buller who started the GPS company Garmin at the age of 52.

Myth 3. Entrepreneurship is driven mainly by venture capital. In fact, venture capitalists fund only a very small fraction of start-ups. Majority of money put into start-ups, the article shows, come from personal debts and of the “three f:s”: Friends, fools and families.

Myth 4. To succeed, entrepreneurs must produce a world-changing product. Instead, experience shows that the most successful entrepreneurs focus on processes rather than products.

Myth 5. Entrepreneurship cannot flourish within large companies. Small start-ups are very important, the article points out, but also large companies are being successful in keeping an attitude of entrepreneurship. The company Johnson & Johnson is put forward as an example.

The personal computer, the mobile phone and internet has made entrepreneurship flourish. Many initiatives has grown since these technological changes were introduced, entrepreneurs come from all parts of the world. Due to falling prices in communication, a global market can be reached instantly.

One interesting initiative is the The Indus Entrepreneur (TIE), started in Silicon Valley in 1992 by a group of Indian entrepreneurs living in the valley. Today they have 12.000 members spread in 12 countries. The idea was to promote entrepreneurship through mentoring, networking and education. A network meeting is held in Stockholm, on 27th of May, organized at the Stockholm-based meeting place the Hub.

Independent Bookselling – Will it Survive?

Michael Tucker, president of Independent Booksellers, Books Inc., really believes that there is a future even for the smaller, independent bookstores. That is if they are willing and capable of adjusting to the fast changing conditions of today.

The reason for going to San Francisco, when Svensk Bokhandel decided to arrange a trip for Swedish booksellers, is that this area has met up the challenge from the Internet bookshopping. Books Inc., with 10 stores and more that 200 employees, serves as a shining example that independent bookselling can not only survive, but also prosper – even if they “must dance among the elephants”. However, the elephants set the rules and the best you can do is being as flexible and innovative as possible.

Kitty Clark, manager at Books Inc., Vann Ness Ave., lets us in on her recipe for creating a successful bookstore: Focus on customer service – by engaged and trusted employees – make sure that the interior and selection appeal to your clientele, arrange author events, book clubs, book launch parties, seminars led by writers etc etc.

During our tour to four of Tuckers’s stores we could see exactly what she ment; they were all Books Inc. shops, but completely different. Neither orientation, nor design, looked the same in any of the places. It’s all about fitting into the context. Tucker also stressed the importence of events. Even if you have the most amazing store, you can not be sure that the books alone will stand the competition from the Internet commerce. You need something that makes you special, something the digital world lack. Above all, that’s eye to eye contact and interaction.

Can these advice be applicated to the Swedish independent book stores? Surely, the conditions are in many ways quite different, but here’s defenitely every reason to be inspired by the Book Inc., and the San Francicso way of finding ways to reinvent the traditional book shop.

Written by KarinLundgren and Marie Johansson, Managers at Natverkstan.

Skifte – Reflections around work and everyday life

How do we look at work and employment? What is our relationship to working? How does time linger after people left? How do our perception and dreams change as we grow up? Are we prepared to do anything to reach our goals? What is meaningful work?

Skifte is a collective digital exhibition with filmmakers, animators, photographers, artists and poets, who all reflect on the theme work. Nine pieces showing different aspects and expressions, putting forward questions rather than answers. The exhibition is part of Medieverkstäderna i Väst, a collective of digital workshops in Region Västra Götaland, where members are visual artists, editors, photographers, poets and film makers.

Curator has been Stina Karlsdóttir Vestrin, who is also a student at Kulturverkstan. In the folder coming with the exhibition she writes:

“The fact that our work is one of the things forming us, building our identity and creating a community in a social context, we can all agree on, work is a central part of our lives. I would like, with this exhibition, to do some pounces in everyday working life and lift reflections around its structure. What is a job? What is a good job? Why do we work and what makes an honourable day’s work? The same occupation can in some cases be a job and in others not. In today’s society it’s more and more important to be adaptable and flexible on a more and more demanding labour market at the same time as the boarders between working life and leisure is erased. Working conditions is  constantly shifting and each time as its problems to solve.

The war of ants has disappeared from our TVs. The digital era has its own noise, its own war, other ants. Internet is today an obvious part of labour market. Fifteen years ago you hardly knew what it was, yet it has since changed labour for many people all over the world. It also affects those workers who don’t have access to computers. A shift has taken place. Changes can sneak on you slowly without us understanding a shift is on its way. What happens to our jobs? The new is growing out of the old, breaking out from it, against it, want to be free. It is in this contradiction that we find other ways and tramp our own tracks.”

The exhibition will be touring in Region Västra Götaland and is on Internet 25 of April to 24 of May 2009. Look at www.skifte.se and click for English. Download (in Swedish) the catalogue here: skifte_katalog.

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New winds

Change has been the leading word for the campaign of Barack Obama, who last night (Swedish time) was elected new president of the USA. It has been interesting to follow his campaign, and in the Rolling Stone Magazine earlier this year an article described the thoughts behind his campaign organisation. Obama had at a very early stage decided to run the campaign in an untraditional way, and set it up more as a business organisation. He also wanted a strong focus on being accessible to the public and with user-friendly contact points. New media had a central role in this. On the Swedish radio this morning, a Swedish man called in and described with pride in his voice, that he had just gotten a thank-you mail from Obama. He had at an early stage become a member on one of the web-possibilities, where he could send in emails, ask questions and show his support.

The email this morning was from Obama to personally thank him for his commitment. Although the man was well aware that millions of people probably got emails like that, and could not be personally written by Barack Obama, he was very touched. It made him feel appreciated and his very small involvement in the campaign recognised by the newly elected president. Digitalisation is sometimes described as a threat to personal meetings and empathy, talking about the risk of people and organisations becoming more and more anonymous. In this case it apparently had the opposite effect.

A short text on Obamas campaign was published here in July this year.

Web, technique and alternative thinking

Two days after the visit in the Apple store in Colorado to get help with a broken computer-battery, we got an e-mail in the inbox asking if we were happy with the service we got. A link to a website was provided, which in a few seconds directed us to a fill-in form on the web, where we easily could write down our opinion and send it back. As a customer you felt they were very interested in your opinion, in our case even though we never bought anything. We got the battery for free.

When Barack Obama, the Democratic Presidential Candidate, set together his campaign organization, it’s said he wanted it to be different than traditional ones. He wanted the organization to be “buttoned up like a business” combined with a voter-friendly grass-root attitude. A look at the website of Barack Obama shows that you can contact him, or the campaign organization, through e-mail, Facebook, Linkedin, Myspace, Flickr, BlackPlanet, Twister and other web networks. One of the factors behind the success of Obama’s campaign so far, is said to be his openness to critique and direct feedback from people on the street, from participants on convents to colleagues at his office. The tool for public use is an interactive and informative website where access to the candidate never appears to be far away. You get the feeling he is actually interested in your opinion.

Three components seem to be essential in an innovative approach, no matter if you run a cultural organisation, a business or build a campaign organization for President. Three entities that combined have the potential of creating new things: The latest in technical solutions and the World Wide Web; An open and low-hierarchical top-bottom organizational structure; and a creative working atmosphere.

At Pixar Animation Studios, the high profile technical solutions and constant pushing of new mathematical solutions for animated moves on the screen, combined with a continuously challenged creativity and open atmosphere, is said to be the key factors for success. At Namac, a small art and media organisation in San Francisco, the new website is built according to the newest ideas of interactivity. This is hoped to better involve members between meetings and to get direct feedback on their activities.

The working atmosphere and low levels between top and bottom is put forward by businesses like IDEO and Pixar Animation Studios. A working atmosphere of being casual, but deadly serious about quality and getting the work done is something many refer to as a typical Silicon Valley attitude. And you find it in many of the most innovative companies in US today. Apple started in Silicon Valley, the idea of Google was formed at Stanford University in the same area and the Design firm IDEO was founded there. It’s not suprising that Barack Obama showed such an interest in Google and in November 2007 decided to unveil his innovation agenda at one of their offices. The Campaign organization that he runs is most certainly inspired by the Silicon Valley attitude. It’s said to be open for initiatives, relatively casual, and deadly serious about quality and getting the work done on deadline.

Read about Barack Obama’s Campaign Organization in Rolling Stone, issue July 10-24, 2008.
Read about our study visits to Pixar Animation Studios, IDEO and Namac on this website.
Apple at Wikipedia and Google at Wikipedia.

Authors

Lotta Lekvall
Director of Nätverkstan, a Cultural Organisation in Sweden. Nätverkstan provides services …

Olav Unsgaard
Teacher, writer and co- editor of the journal Ord & Bild (Word&Image) and member of the editorial …

Cultural and Social Entrepreneurship

On this blog we would like to explore entrepreneurship from a cultural and social point of view. Or rather put forward entrepreneurial initiatives within these two fields.

Links

www.natverkstan.net

www.kulturverkstan.net

www.globalverkstan.net

www.nyabalylon.wordpress.com

www.ted.com

www.isk-gbg.org/99our68

www.encatc.org

www.eurozine.com

www.nurope.eu

www.kulturekonomi.se

www.firstdraft.it

http://levapasinkonst.wordpress.com

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