Book Review of “How Music Got Free”

"CD", Image by Dean Hochman

“CD”, Image by Dean Hochman

It is nearly impossible to compete in a consumer market when a previously lucrative product is suddenly available for free. This phenomenon adds a whole new meaning to the notion of “priced to sell”.

No industry illustrates this tectonic disruption brought about by the Net more than the music business during the last 20 years. While there has been an ocean of ink and a quantum of bits expended telling this story, I have come across none more compelling, thorough and entertaining than How Music Got Free: The End of an Industry, the Turn of the Century, and the Patient Zero of Piracy by Stephen Witt (Viking, 2015). This is a great story well told with clarity, precision, style and humor.

While the tales of Napster and the other peer-to-peer sharing networks, the lawsuit by Metallica and other litigation by the Recording Industry Association of America (RIAA) to stop them, and precipitous drop in CD sales since then have all been previously told at length elsewhere, the author takes us down some new and alternative narrative paths. Witt has accomplished this skillfully weaving together the stories of the German engineers who created the MP3 format, a prolific music pirate, and a music industry mogul. The intersection of their activities in the music downloading revolution makes for hours of absorbing and instructive reading.

The book succeeds simultaneously as a business case study and a human interest story. It deftly leverages all three main plot threads in a narrative that heightens the reader’s interest as the events steadily crisscross the real world from rural Kentucky to Germany to New York City, and then likewise online across the web. Any one of these stories would have made for engaging reading on their own. Yet they are carefully fitted together by the author in a manner that relentlessly propels the all of them forward.

He also wisely wastes none of his text on superfluous side trips. Rather, he maintains a consistent focus throughout on how the music biz got turned upside down and inside out by a series of fast-breaking developments it neither fully understood nor had any viable alternatives ready to counter it.

A roster of A-List Hollywood writers and talent agents could not have possibly done better in creating the members of the real life cast. There are many useful lessons to be learned from them about business strategy, marketing, competition, and the strength of the human character in the face of the unprecedented and massive disruption* of what had been such a highly leveraged and lucrative market.

First and foremost among them was Benny “Dell” Glover. The details of his online and offline exploits read as though they were extracted from deep inside the You Can’t Make This Stuff Up file. He worked in a rural CD manufacturing plant and that afforded him access to the latest releases by music industry’s top acts. Often a month in advance of their commercial debut, Glover would smuggle them out of the plant, encode them using the MP3 format, and upload them for free distribution online through Napster and a host of other peer-to-peer networks. He was also part of a larger band of well-organized, tech savvy and daring digital music pirates who referred to their collective activities as the “Scene”.  Glover was likely responsible for the largest volume of free music that ever got digitally disbursed.

Second was Karlheinz Brandenburg, the lead engineer and inventor of the MP3 technology. He ran the group that devised MP3 technology without any intent whatsoever of how it eventually ended up being used. It was a technological accomplishment that at first drew little attention in the audio industry. There were other competing compression formats that were gaining more traction in the marketplace. Nonetheless, through perseverance, superior technical skills and a bit of favorable circumstances, MP3 began to find success. This was first in the broadcast marketplace and later on as the tech of choice among the music pirates and their audience. Brandenburg’s transformation over time from a humble audio engineer to an experienced business executive is deftly told and threaded throughout the book.

Third was Doug Morris who, during the events portrayed in the book, was the CEO of Universal Music Group (UMG). While Glover’s and Brandenburg’s parts in this narrative make for some engrossing reading, it is Morris’s meteoric rise and determination in the music industry that pulls the entire story together so very well. Not only does he reach the pinnacle of his field as a top executive in the largest music companies, he does everything in power to try to keep UMG economically competitive while under siege from freely downloadable MP3s recorded by his deep and wide talent bench.

While he did not have a hacker’s understanding of MP3’s technical ministrations, he fully understood, reacted and resisted its profound impacts. His initial line of attack was litigation but this proved to be ineffective and produced much negative publicity. Later he successfully monetized UMG’s vast trove of music video by forming the hosting and syndication service on Vevo. He is the most resourceful and resilient player in this story.

These three protagonists are vividly brought to center stage and fully engaged in Witt’s portrayal of their roles and fates in this Digital Age drama.  Just as the superior acoustics in a musical venue can enhance the performances of musicians and actors,  analogously so too does the author’s reporting and expository skills animate and enliven the entirety of events across his every page of his book. Indeed, “How Music Got Free” completely fulfills its title’s promise and, clearly, hits all the right notes.


At the time of the events portrayed in How Music Got Free, there was widespread fear that it would become increasingly difficult for artists and entertainment companies to ever profit again as they had done in the past. As a timely follow-up exploration and analysis how this never quite came to pass, I very highly recommend reading The Creative Apocalypse That Wasn’t by Steven Johnson, which was published in the August 23, 2015 edition of The New York Times Magazine.  (Johnson’s most recent book as also reviewed in the January 2, 2015 Subway Fold post entitled Book Review of “How We Got to Now”.)


*  The classic text on the causes and effect of market disruptions, disruptors and those left behind, read The Innovator’s Dilemma by Clayton Christensen (HarperBusiness, 2011). The first edition of the book was published in 1992.

New Startups, Hacks and Conferences Focused Upon Health Data and Analytics

The intersection of digital technology, the Web and modern medicine seems to produce new innovative approaches to health care on a very steady basis. Three reports have appeared within the past ten days that I believe typify the imagination and dedication of the companies and individuals in this space. While the following articles barely scratch the surface, they nonetheless provide an informative sampling of some very interesting trends that likely would not have been possible until quite recently.

1. User Survey Data Mined to Provide Consumer Information on Prescription Drugs: A new company called Iodine has created a database based built upon 100,000+ surveys provided taken from people who have been prescribed medicines. Visitors to the site can use it to look up the consensus findings about the effectiveness, potential side effects, warnings, pricing and other practical information about a vast number of drugs. (Of course, consulting first with your doctor about them is always of primary importance.)

The full details of the Iodine’s origin, current operations*, investor support, use of Google Consumer Surveys and other data sources, and its potential benefits to patients and the pharmaceutical industry was the subject of a very engaging article published in the September 23, 2014 edition of The New York Times entitled To Gather Drug Data, a Health Start-Up Turns to Consumers by Steve Lohr. (See also another brief article entitled Iodine: A Platform to Help You Choose the Best Medicines for You by Ben Woods, posted on TheNextWeb.com on September 24, 2014.) I also highly recommend a click-through to Iodine’s site to view and test out their new approach to producing and presenting this specialized consumer information.

2. Hackers Modifying Medical Devices: A group of engineers have joined forces online to provide a useful hack to the continuous glucose monitor produced by a company called Dexcom. As reported in an article entitled Hackers Tinker With Medical Devices in the September 27, 2014 edition of The Wall Street Journal, by Kate Linebaugh (a subscription to WSJ.com is required for access), this hack is called NightScout. To briefly sum up this story, NightScout enables data from this device to be uploaded online to permit parents and other concerned individuals to remotely check the blood glucose levels of family members and friends who have Type 1 diabetes, from their smartphones. The Dexcom monitor currently on the market does not do this, although such a connection is planned for a subsequent release possibly next year.

The monitor itself consists of two parts: A small plastic pod which is worn by person with diabetes that transmits the blood glucose readings on a continuous basis to a handheld device within a 20-foot radius (which is nearly the same dimensions of a typical smartphone). This system is used to look for and alert the user to certain helpful patterns in the changes to their blood glucose levels and to record this data. In turn, the data is also quite helpful to the person’s medical providers.

This is indeed a very data-driven approach to treating Type 1 diabetes, which has always required close monitoring by the patient in an effort to maintain normal blood glucose levels. Doing so helps to avoid long-term complication and maintain good health.

Neither the manufacturer nor the FDA has approved NightScout, but they have not tried to stop it. Rather, they are closely watching its ongoing improvements by the NightScout online community and how this is affecting the quality of care for the users.

3. Industry Conference Presentation on Data-Driven Medical Technologies: An article entitled Can a Computer Replace Your Doctor? by Elizabeth Rosenthal in the September 20, 2014 edition of The New York Times, reported on other advances and growing interest by doctors driven by big data collection and analytics. These developments were the subject of a presentation called Health By Numbers at the recent 2014 Health Innovation Summit in San Francisco. This article opens with an account of a doctor asking his audience whether they would prefer an AI to an actual doctor.**

To briefly summarize this story, some of these systems and methodologies discussed, among others:

  • An iPhone app to diagnose ear infections
  • Home kits to check cholesterol levels
  • The above mentioned blood glucose monitoring devices
  • Wearable fitness trackers

Moreover, the attendees discussed many key issues about pursuing these lines of medical treatment and administration including high expectations and mixed outcomes, challenges in quantifying exactly what “health” means, that sometimes good data does not always equal a healthy patient, and how to most meaningfully process and analyze all of the available data. I highly recommend a click-through and full read of this very informative and thought-provoking piece.

My follow up questions concerning all three of these stories include:

  • Will the privacy patient and user data be adequately protected by current laws or do the rapid emergence and adaptation of these systems require new legislation and regulation to ensure patient privacy?
  • Whether and how the roles of doctors and other medical service personnel will be changed? If so, how will their academic training need to be revised?
  • What, if any, will be the impact on the costs, quality, policies and politics of medical care in the US and elsewhere?

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*   No stitches were involved as these concern business, not surgery.

** Compare and contrast to this September 1, 2014 post here entitled Possible Futures for Artificial Intelligence in Law Practice.