Comments on: The Silicon Bubble: Music Sites, Money, and Venture Capitalists http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/ Fri, 05 Dec 2008 09:53:03 +0000 http://wordpress.org/?v=2.6.5 By: Jon Cole http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-133009 Jon Cole Thu, 01 May 2008 07:09:27 +0000 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-133009 I think this is a case where everyone knows that the future of music is on the internet somewhere. There's 9 years of growth in both legal & illegal acquisition of songs that backs this up. This is a $15b industry, probably much more assuming file trading can be monetized... Ten years from now Wal-Mart & Best Buy will be completely out of the game, replaced, in all likelihood, by some online company, whether it's iTunes or iMeem or MySpace or something that comes totally out of left field. Perhaps the new record label really is the blog. Who knows? This is a lot different than the dot com bubble in that it's not an industry being created out of thin air, it's an industry that's been around, just shifting to the interweb. I think some of these investors have made poor choices, but it's hard to say... so much relies on chance. You can have the best platform in the world, but if the only music you're offering is high school solo acoustic acts & amateur grunge bands, you aren't going to get any traction. Or you could have a mediocre or even crappy platform, but if you're easy to find & the right bands sign up, you could take off. You can't really foresee this viral growth, & so I think, in terms of venture capitol, things are playing out as I would expect them to. This is the nature of investment... there will be losers, but there will also be winners. No need to run around yelling that the sky is falling. I think this is a case where everyone knows that the future of music is on the internet somewhere. There’s 9 years of growth in both legal & illegal acquisition of songs that backs this up. This is a $15b industry, probably much more assuming file trading can be monetized… Ten years from now Wal-Mart & Best Buy will be completely out of the game, replaced, in all likelihood, by some online company, whether it’s iTunes or iMeem or MySpace or something that comes totally out of left field. Perhaps the new record label really is the blog. Who knows? This is a lot different than the dot com bubble in that it’s not an industry being created out of thin air, it’s an industry that’s been around, just shifting to the interweb.

I think some of these investors have made poor choices, but it’s hard to say… so much relies on chance. You can have the best platform in the world, but if the only music you’re offering is high school solo acoustic acts & amateur grunge bands, you aren’t going to get any traction. Or you could have a mediocre or even crappy platform, but if you’re easy to find & the right bands sign up, you could take off. You can’t really foresee this viral growth, & so I think, in terms of venture capitol, things are playing out as I would expect them to. This is the nature of investment… there will be losers, but there will also be winners. No need to run around yelling that the sky is falling.

]]> By: Daniel Holter http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132863 Daniel Holter Wed, 30 Apr 2008 20:07:41 +0000 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132863 Long day! Link here : <a href="http://blog.burstlabs.com/2008/what-does-viacom-see-in-hype-machine/" rel="nofollow">Burst Labs on Viacom and Hype Machine</a>. My bad. :( Long day!

Link here : Burst Labs on Viacom and Hype Machine.

My bad. :(

]]> By: Daniel Holter http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132862 Daniel Holter Wed, 30 Apr 2008 20:05:43 +0000 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132862 Yeah, at Burst we're (a href="http://blog.burstlabs.com/2008/what-does-viacom-see-in-hype-machine/">stumped by the Viacom move</a>. Makes no sense. At all. Yeah, at Burst we’re (a href=”http://blog.burstlabs.com/2008/what-does-viacom-see-in-hype-machine/”>stumped by the Viacom move. Makes no sense. At all.

]]> By: Universal Indie Records http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132841 Universal Indie Records Wed, 30 Apr 2008 18:36:15 +0000 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132841 "the labels aren’t investing for site revenues; they know these blogs are important for music-discovery; but once they own them, it seems the blogs credibility may be tainted, as they’ll be seen as ads for these labels’ releases" Exactly!!! It's an investment where they can promote their product but any sales they hope to get will probably be lost when these sites start giving their product glowing reviews. “the labels aren’t investing for site revenues; they know these blogs are important for music-discovery; but once they own them, it seems the blogs credibility may be tainted, as they’ll be seen as ads for these labels’ releases”

Exactly!!! It’s an investment where they can promote their product but any sales they hope to get will probably be lost when these sites start giving their product glowing reviews.

]]> By: bestman333 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132832 bestman333 Wed, 30 Apr 2008 18:11:10 +0000 http://www.kingsofar.com/2008/04/30/the-the-silicon-bubble-music-sites-money-and-venture-capitalists/#comment-132832 the labels aren't investing for site revenues; they know these blogs are important for music-discovery; but once they own them, it seems the blogs credibility may be tainted, as they'll be seen as ads for these labels' releases. the labels aren’t investing for site revenues; they know these blogs are important for music-discovery; but once they own them, it seems the blogs credibility may be tainted, as they’ll be seen as ads for these labels’ releases.

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