Sound Around: iPhone apps for bands.

Gee, Scott, what do you want to do tonight? The same thing we do every night, Steve—try to help music take over the world by building better mobile apps for bands and their fans!

In 2009, in a little place called Raleigh, North Carolina, brothers Scott and Steve Klein had been brainstorming tech startup ideas. Both were students at NC State, but with opposite majors—nearly yin and yang. Add entrepreneurial DNA, and they’re Pinky and The Brain. Scott (Brain) was preparing to graduate as a computer engineer, and his younger brother, Steve (Pinky), was studying business management/marketing. Their startup would be born, but the question was, what kind? Taking advantage of their student resources, they had access to mentoring and networking through the NCSU Engineering Entrepreneurs Program.

They started 2bros1blog.com to blog about what they learned on the startup road. Many early ideas were solutions aimed towards the university community. Scott had learned Objective-C, the programming language for iPhone apps, and they decided they really wanted to get involved with mobile apps. Everyone has a phone, and they always have it with them, right? But they needed to find the right niche. They thought about campus sports or news apps, but when they proposed building a news app for the college paper, they were met with perplexed stares. Scott and Steve realized that for their app service to fly, they needed to find people that were really interested in expanding and engaging their audience. Being music fans themselves, they took what seemed to be a logical turn that summer—towards musicians. Next stop, Sound Around.

Scott graduated in December, gave a speech, and started a job at an TransLoc—a startup that provides realtime location information to mass-transit users. He built their iPhone app. At the same time he and Steve (who was still in school and working part-time in Macaroni Grill) were developing what would soon be called Sound Around. At the turn of 2010, they took on 15 bands as closed-beta testers. In February Steve learned the ins and outs of web design and built getsoundaround.com.

With people skills and resourcefulness, they’d bootstrapped their expenses so far, but in early 2010 they got involved with TechStars in an effort to raise seed capital. In March they flew to Boulder and found themselves surrounded by like minds in the tech scene. Of 600 startups, TechStars funds only 10. Sound Around made it to the top 27 but not the final 10, and it was back to bootstrapping.

In a typical college scenario, the two brothers were living in a 4-bedroom apartment with two other students—David and A.J.—but when David moved out to live with his fiancé, Scott and Steve commandeered the empty room and converted it into a workspace—their current headquarters.

Having success with the beta apps, they started recording videos to demo the Sound Around platform, and, in the meantime started the application process for funding through another (more local) startup incubator, called LaunchBox Digital…which pretty much brings us to the present. Last night was a milestone for Sound Around. Their first apps were approved by Apple and are now live in the App Store. The party was on, but it’s only the beginning for Sound Around.

In the upcoming weeks, Sound Around will be running discount promos via Twitter. Stay in the loop: @VirtualMusictv and @getsoundaround.

Scott is on a 3-month sabbatical from his job at TransLoc to focus full-time on Sound Around. Steve would love to be able to dropout next semester and get Sound Around rolling without distractions. Funding would help them “scale faster” but with or without it they’re expecting to launch in public beta this summer. They considering finding a 3rd team member experienced in web and/or Android dev.

The ‘band apps as a service’ market is a wide-open frontier. There’s some fundamental characteristics about Sound Around that really make them stand out.

1. It’s the DIY mindset. Sound Around’s young, two-brother team is the core of all their development. They’re building it all from the ground up. By not hiring out their programming or design, they’ll be able to constantly address feedback and improve their platform. When demands of the app market change, they’ll be able to adapt the fastest.

2. Sound Around purely focused on developing apps for bands/musicians. They’re not leaving the music niche—immense as it is—and they plan on rocking it. MobBase is their only direct competition right now, and there’s plenty of room to coexist in this space.

3. In what I’ve learned about Scott and Steve, I can tell that they understand the importance of people in the mix. They plan on creating an interface for interaction—not one-way communication—and they have a lot of innovative ideas on deck.

4. Their pricing is user-focused. It’s not based on installs. Bands pay based on the number of fans that actually use the app each month. The starter $14/month plan covers 1000 unique app users per month. Above 1000 is $0.01/user until the next tier—$29/month for 5000 unique users.

5. Their mascot is a giraffe named Shirley. She’ll make you smile. :) Giraffes are a symbol of evolution, you know. She doesn’t always travel with the team of course, who’ll be attending events this summer, including Warped Tour in Charlotte, and would love to meet up.

// update // October 19, 2010 from Scott:

I know it hasn’t been very long since we officially launched back in July, but we’ve been working on something really cool behind the scenes that we’re finally ready to tell everyone about. One of our fellow local music companies, ReverbNation, has acquired Sound Around and will be moving quickly to launch the product to their more than 900,000 artists.

Steve and I are both super excited to be joining the ReverbNation team to work on providing mobile products that will continue to move the needle on acquiring new fans, and engaging existing ones on a deeper level. We’ve been heavily vested in creating useful technologies in the mobile space, and we have no doubt that these efforts will only be amplified as we move into our new roles working alongside an impressive and passionate team of individuals.

For everyone that had a hand in touching, shaping, or otherwise influencing our foray into building a product and launching our first company, we can’t thank you enough for all of the hours of mentoring, being a cheerleader, and (most importantly) bringing us down to size when we needed it.

Judo Paris Grand Slam 2010. (Flickr/ryusha)

Now if I got an email explicitly saying “you’re breaking our rules and we’re going to shut you down” then I would react immediately but apparently these bloggers missed this chance. I’m sure Blogger’s TOS states that they have the right to delete violating blogs, and to protect themselves legally they delete them. But I find it hard to believe Google didn’t warn them. I think the bloggers had to have known they were in a legal gray area. They should have exported a backup of their blog.

The DMCA’s ‘safe harbors’ for online service providers give linkers a strong incentive to remove links upon receiving a DMCA takedown notice, because if they do so, they are protected from paying damages in any copyright infringement case. (EFF attorney Fred von Lohmann via BoingBoing in 2006)

Regardless of whether we may be liable for such infringement under local country law or United States law, our response to these notices may include removing or disabling access to material claimed to be the subject of infringing activity and/or terminating subscribers. If we remove or disable access in response to such a notice, we will make a good-faith attempt to contact the owner or administrator of the affected site or content so that they may make a counter notification. (Google)

We need better laws surrounding internet music journalism that reflect today’s Internet behavior. We need better education regarding copyright so that writers know how to properly license intellectual property. Oftentimes music bloggers have gained permission to include mp3′s directly from the artist or their record label. The same may even go for some YouTube videos that have had their audio removed due to “copyright infringement.” Is anyone asking the artists or contacting the uploader first? Who exactly is making the complaints? Theoretically the DMCA criminalizes anti-DRM tactics and copyright infringement. In practice, is it working—or rather—is it worth it?

The trouble with filing a formal, legal DMCA counter-claim is, that most bloggers don’t know how. What’s more, many of Blogger’s DMCA notices allegedly omit the name of the offending song. Bloggers aren’t even sure what they are denying. (The Guardian)

From what’s being talked about from the blogs that did have their content removed, it sounds like the newer system (unlike the old system) did alert them to what was happening, but they just felt hopeless to respond. Google has put up a response, basically saying that if it doesn’t receive a counternotice, and it keeps getting DMCA takedowns on the same account, eventually it takes the blog down as a “repeat offender.” So we’re back to the point that I predicted in August, where your average everyday blogger has no idea what a DMCA counternotice is and how to use it — so it would be much better if Google made the process of filing such a counternotice a lot more intuitive. (Techdirt)

In order to prevent any legal confusion, I would include a disclaimer making it painfully obvious that that the artist (or label) gave permission to have the mp3 on the blog. Even better, I would use legal embedding tools such as Bandcamp, Soundcloud, or Grooveshark as opposed to a direct link to an .mp3 file. This saves bandwidth and covers your a**. In the case of Bandcamp, you would be helping the artist because Bandcamp downloads usually require an email address and ZIP code giving bands a direct connection to their fans and valuable location data. I think most Bandcamp artists would happily issue free download codes to mp3 bloggers. Another route would be to use Creative Commons-licensed content—there’s plenty of CC-licensed content on Jamendo.

All that said, the best solution is to set up a blog on your own domain with an opensource blogging platform like WordPress. But even still you should backup your posts. Blogger and WordPress both support exporting (backing-up) into a transferable .xml file. Mini-blogging platforms Tumblr and Posterous are also good free alternatives—Posterous supports transferring from another blog but I don’t think Tumblr does yet. See Mashable’s head-to-head comparison. Squarespace is a paid service that supports importing and is also worth considering as an out-of-the-box solution.

If you’re already using WordPress on a WordPress.com blog, I recommend buying your own domain and hosting. You remain in more control that way. Buy your hosting separately from your domain though—most domain registration services offer cheap hosting that sucks as an upsell. It’s worth paying for good hosting. Of course the DMCA could issue a complaint to you through you or your host, but it’s less likely and the complaint would be more direct to you and not through a 3rd party.

Update 2/12/09: Last night Google put back one of the deleted blogs and updated their response:

Tweets about Apple acquiring Lala have been flooding Twitter for 3+ days now. A number of sources have provided news and analysis on the acquisition. Personally I think Apple aims to move iTunes to the web in an effort to control mobile cloud-based music streaming via iPhones and iPods. Mobility is paramount, and I think that buying Lala was a sound move for Apple. By combining the best features of iTunes and Lala, Apple should be able to make a more seamless streaming experience with a simpler payment process—a simple payment process leads to more people buying. You can bet there will be an iPhone app that enables buying and simplifies the buying process.

Die-hard Lala users hope that Apple will keep Lala’s key features in tact, and many are looking forward to new feature possibilities. Hopefully with the help of its Lala’s developers, Apple will be able to build onto Lala’s platform making music more accessible. Lala enables users to upload mp3′s from their computer so they can access them from anywhere through their Lala account. In Lala’s words, “Play it anywhere on the web. Most of your music will be matched to Lala’s catalog [and] any remaining unmatched MP3s can be uploaded to Lala.”

A massive user-submitted music library is being built in the cloud. What I’d really like to see is for everyone’s uploads to be available to everyone, much like they are in Grooveshark—a free music streaming service that lets users upload tracks to the cloud. Let’s compare their relative popularity with other some streaming/download services—Spotify, MOG, and Amie Street—in the graph below:

What’s worth noting about MOG having the most visitors is that MOG markets itself more as a social network—their tagline is “Discover People Through Music and Music Through People.” Having social features clearly plays a big role in web-based music discovery—it’s social music discovery. Extended stats and analysis are to follow in Part 2 later this week.

• Photo: Lala Apple Logo Mashup by VirtualMusictv/Flickr
• View Lala screenshots.

Science

In his above TED talk, Daniel Pink makes a strong case relating the science of motivation to creativity and business. The verdict is that money is not a primary motivator for people doing creative work. Sure, it does play a factor today as people need enough money to meet their essential needs. Once those needs are met, money is out of the picture. I look forward to reading his upcoming book, Drive.

Spotify

I felt compelled to deliver the point—money is not an artist’s true motivation—in response to the exorbitant editorial negativity surrounding yesterday’s news of Lady Gaga getting paid $167 for 1+ million Spotify streams. Where I live—in the US—Spotify is not yet available so I have not been able to try the platform. Spotify is a new service and its revenue model is understandably in a shakedown period where they are still determining what works, what data they have, and how they can best leverage that data to generate revenue.

Mr. Ek [Spotify CEO and Founder] revealed how the company has been working on making its advertising as personally tailored to an individual’s tastes as possible. “We have a lot of information about people. We know our users’ age, gender, location and even mood – which figure out by through BPMs [beats per minute],” he explained. Depending on whether a person has listened to lots of fast or slow music, Spotify is trying to make its mood analysis as accurate as possible – so it can serve highly targeted adverts for users to properly engage with—which should in turn, increase the amount it can charge brands to advertise on the platform. Mr. Ek said Spotify was “beginning to figure this stuff out”. (Spotify chief, Daniel Ek, rules out 2009 US launch | Telegraph)

It sounds like Spotify is on track to me. I like the ad-based model and there are many variations to explore. I brainstormed launching an ad-based free music service back in 2007, and I think Spotify is the closest service to what I would have done, but they’ll need to continue to evolve, as do musicians.

Whether it is really relevant to measure the success of Spotify in this way remains to be seen as it is still a service in it’s infancy. Much like Twitter, it is phenomenally successful in terms of usability but is still finding its feet in terms of making money. As it continues to attract users its appeal to advertisers will grow and so too will the financial returns. How this filters down to the individual artist is then probably more of an issue with the labels than with Spotify. (A Ga Ga approach to marketing? | The Naked Pheasant)

Industry

It’s smart business to think years down the road by expanding your fan base even if it doesn’t pay off immediately. I think Lady Gaga and many other artists see that. The long-term benefit of those 1+ million streams is immense, and I think many people are blinded to that fact—such a level of exposure leads to sellout shows and non-music revenue streams. The one thing I dislike about the situation is that the major labels still have major pull and they can afford huge production and marketing investments. But the need for heavy financing is down—thank you, Internet. In today’s connected, music-abundant world why does any one artist get so popular? Is it hard work, affinity, or talent? To me, talent is relative—it’s not what you can build, but rather it’s what you can build with what you have. It’s the Internet Age—indie musicians have the power to take the industry back but they must embrace change and creativity to do it—they must creatively leverage the internet and mobile apps.

The connection from the fan to the band, financially, has been broken. The fan knows that their purchase will hardly help the band, or more precisely that the marginal benefit from their purchase to the band is near zero, so why do it? The cost to the fan is much higher than the marginal benefit to the band, so the fan just torrents the damn song. (Why Music Is Broken – The Artist To Consumer Connection)

P2P rocks—it turned the industry up-side-down letting the label-lords know they had lost control. I see P2P as a massive benefit for musicians. Do they have P2P streaming yet? They will. With all that said, I believe that many music fans are as-motivated-as-ever to pay for music when they know their money is going directly to the artist. Maybe subscription services like Spotify can find a way to work this, or endorsement deals that fans would want to support, into their business model. I think that fans—and people in general—need to feel like they are part of something and they want to feel empowered.

Artwork: jahdakinebrah/flickr.

The fan artwork you see above is a creative visualization of Pink Floyd’s Money. The image squares depict the story of the song lyrics. What motivates you? What do you think motivates music fans?

Did I mention that these services handle the submission process to the Apple iTunes Store for you? Please share how you’re using these for your band etc. Plus, what other platforms am I missing? Update: we were informed about a new 4th platform via the comment section below. Here’s the 411:

Update 2: More app services for musicians have hit the scene—see app services.

Simply put, it rocks.

The past few years have proven that music and videogames were destined for each other. But until now, the music in games was restricted to mainstream artists and tunes specifically licensed for the games. Rock Band Network is the first opportunity that allows anyone to get their music in the game.

Screenshot: Rock Band Network is located at creators.rockband.com.

This summer’s press about Rock Band Network hinted that it would become available by November. Currently the site introduces the steps involved in submitting tracks to the game—it provides detailed mix specifications and links to the free audio software necessary for producing tracks. Creators must sign up for the XNA Creators Club–Gold Membership to Xbox Live [currently $8/month or $50/year].

The influx of new music into Rock Band will help to further popularize the game, and I think Harmonix will see increasing domination in the music-gaming market. The artists whose songs are featured in the game will gain exposure and revenue from sales through the Network—according to Wikipedia artists will receive a 30% revenue share. In the interview below, Matthew Nordhaus, a senior producer at Harmonix, mentions that song pricing will vary from $1–$3. I would love to hear more pricing details if anyone can provide them. What is your take on the pricing and revenue share? Even without the revenue share I think Rock Band Network is a massive opportunity for independent musicians.

Once Rock Band Network is through its current, private beta phase, I’m going to attempt to produce a track for the game, and I’ll keep you informed as I learn more about the process. In the meantime, what do you think about Rock Band Network? How do you think it will affect our music culture? Do you think that gaming platforms will be the major outlet for digital music sales in the near future?