Music Business Rant: U2

Let me start prefacing this posting by stating that I’m a huge fan of U2.  The band has tons of charisma, energy, and an amazing “show” that is similar to the aesthetics of the Dave Matthews Band.  U2 is one of the top selling acts of all time including tour attendance and record sales.  They generate income.  A lot of it.  Bono’s sunglasses aren’t cheap.

I was reading my daily newspaper (Techmeme) this morning and an article caught my attention, entitled, “U2 Manager slams Internet providers.”  Naturally, I’m fascinated by this because I love the music industry and digital media is my passion.

I read the article and it’s essentially stating that their manager, Paul McGuinness, while talking at a music conference in Hong Kong, accused the ISPs of strangling the music industry.  “ISPs” were compared to shoplifters.  You get where it’s going from here and can read the rest of the article, but now, I’d like to voice my opinion.

Let me preface my opinion by stating the following:

1. I ran a music marketing and technology company in 2001-2003
2. I downloaded music from P2P networks in the mid to late 90s
3. I stopped downloading illegal (important word) music in 2000
4. Without confirming, I’ve probably purchased 500 songs off iTunes since it’s launch

Now that I’ve given you a bit of background, my opinion is as follows:  adapt.

The world is becoming increasingly digital and new ways of distribution are going to disrupt MANY industries.  It just so happens, that the music industry is being hit hard, but as bandwidth proliferates more homes and people have faster access, Hollywood is next.  In some respects, Hollywood is being heavily disrupted as well as people download movies instead of going to the theaters.

I know in theory, adaptation seems easy.  Practicality – it’s not.  However, if we don’t start adapting and finding new business models… we’re doomed.  The folks holding the purse strings for the music world and the ancillary businesses touching it need to step outside their comfort zone and try new models.  Business will change.  I can guarantee that.

U2 makes a lot of money and they are trying to protect their livelihood.  For a band that is SO progressive, why are they being so conservative?  This is an opportunity for U2 to create revenue streams outside of the traditional record store.

McGuinness, you’re a manager.  You’re responsible for the future of the band and their business.  Instead of complaining and trying to shutdown ISPs, why not embrace the fact that people WANT U2 music and find ways to get compensated for them.  Just walk around the SXSW Music Festival hangouts and you’re bound to run into really innovative people trying to change the business.  U2 is a business/band that can make a difference.  Put yourself out there.

Darren Herman is a digital media enthusiast and serial entrepreneur. Herman writes about technology, entrepreneurship and digital media at his blog, http://www.darrenherman.com.