kidmercury

As many readers will likely know, Vevo (vevo.com) is the stupid idea of some of the major labels (Interscope, Sony...probably some others) to distribute music online. The basic idea is to show music videos with pre-roll ads -- as in you have to watch a 15 second ad before you can watch the video. Pre-roll ads are an inherently bad idea, but 15 seconds is an outrageously bad idea. 15 seconds in Internet time is an eternity.

But it gets worse. The entertainers on the major labels partnering with Vevo have to share their identity with Vevo. In other words, prior to Vevo, a YouTube URL for an entertainer would be something like youtube.com/ENTERTAINER'SNAME. Now, though, it's youtube.com/ENTERTAINER'SNAMEVEVO. As an example, Eminem's YouTube channel is youtube.com/eminemVEVO.

And this, in my opinion, is the real issue. Vevo is foolishly trying to share the brand with the entertainer. This is dumb in every way; the fans want to connect with the entertainer, not the company that puts a pre-roll ad in front of the entertainer's video. By hindering the development of the entertainer's brand, they hinder the ability to develop revenue sources that are derived from a valuable brand -- namely merchandising. Many folks in the music industry are aware of the importance of developing merchandising as a source of revenue, and understand how disruptive theory suggests that will be the new way to finance music as mp3s increasingly become distributed for free. But it is a classic case of innovator's dilemma, which argues that established businesses often have trouble innovating even when they know they need to, simply because they are not designed to succeed along the new dimensions required. In the case of music, the music industry is designed to sell music -- NOT merchandise. Herein lies the mega opportunity for some entrepreneur out there to create a music label/management firm operating from the new paradigm of free music used to market merchandise.

And when that new label comes, they are not going to try to own the entertainer's YouTube channel; in fact, they will be totally behind the scenes, operating from the realization that the entertainer is the brand, and the source of economic opportunity for all. When this new label comes, and when it starts to bring popular and talented entertainers to the world, it will be uncool to have Vevo associated with you. Imagine if it was youtube.com/ENTERTAINER'sNAMEKMART. Kmart is not exactly the sexiest, hippest brand. As it becomes increasingly obvious that musicians can succeed without Vevo, and that Vevo itself is not going to succeed, Vevo will be seen as a lot more like Kmart. Meaning they'll be seen as lame.

At an accelerating rate, the major institutions that have powered the 21st century are coming to an end. 21st Century Breakdown, you ask? Indeed. And while the breakdown will be tumultous, as the economic crisis of 2008 and the escalating political tyranny suggests, fear not: for what awaits us afterwards is nothing short of a renaissance. Led by music, of course.