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comment by thenewgreen
thenewgreen  ·  4441 days ago  ·  link  ·    ·  parent  ·  post: For Eager Fans, Small Labels Roll Out All-Access Plans : The Record : NPR
Yeah, in all the conversations I've had with people, they never "steal" music because they refuse to pay, they do it because they refuse to be ripped off. fuck you buddy sums it up well.

Why don't more businesses get this? All you have to do is make me want to do business with you. The more repugnant you make the process, the less likely I am to play by your rules. -I have no idea why they don't get it? It's amazing to me, it really is. When do business owners forget what it's like to be a consumer? Surely they buy things themselves, right? How can they possibly be so short sited?

I think the answer stems from the construct of the modern corporation and the rewards system. It's a result of the "fiscal year" measuring stick. Most businesses are expected to show double digit growth year over year. When this doesn't happen, they get desperate and the next thing you know, you're 90 tracks goes to 50 so they can make their goals. This filters down to even the lowest level employees that make decisions to satisfy immediate goals rather than long term strategic "sustainable" growth.

I've seen it many times in companies I've worked for. Times get tough and their quality/service go down and the next thing they know they're fucked.

The smart businesses see tough times as opportunity. I know that all my competitors are going to tighten their belts, downgrade their product and cut staff and give horrible service, therefore I'm upping the product and investing in more people and better customer service. -They will grab HUGE marketshare and when the industry rebounds, they will sit alone.

This could happen if one of the big players in the entertainment industry let go of the harness of the past and embraced the inevitable. -But no one will till it's too late.





kleinbl00  ·  4441 days ago  ·  link  ·  
Perhaps one of my most radical notions is the deeply-held conviction that stock markets should be illegal.

Let me explain. I think most people get into business because they enjoy doing something or making something and they want to connect with people who will pay them to do that something or make that something. I think people join those companies - in an idealized frame of mind, mind you, not a "I need a paycheck" frame of mind - because they believe in that "something" and want to be a part of it.

That's not what stock markets are about, though. Stock markets are about "here's an outfit that will make more money next year than this year and I want to get some of that money."

There's a tea shop in Bellingham, WA that I would totally buy stock in. Not because I think they're going to make me rich but because they make awesome tea, they're really nice folks and I want to be a part of what they're doing. If they needed money and I had money I would give them money because I have a sense that they'd make it back and then some eventually and I really want them to succeed. I'm fairly dependent on their rooibos blends which means that's $200 a year worth of commerce I'd have to find elsewhere. That's my idea of "investment."

At the same time, I have a friend who is an avid (and successful) day trader. We mix a certain large television show together and once, he lingered at craft service long enough that by the time he'd gotten back to his terminal to trade he'd lost six thousand dollars. He "invests" by watching the market price for some company or another and picking how best to profit off the difference between low prices and high prices - for weeks, days, hours or minutes. I've seen him make five thousand dollars in the amount of time it's taking me to write this post. And he often doesn't have the first clue as to the fundamentals of those companies, what they do, how they do it, their history, their future, none of it. They have his attention for a matter of minutes, hours or days because he just wants to ride their delta. That's his idea of "investment."

Under my idea, companies like Ghostly are a good investment. Under his idea, companies like Apple are a good investment. And it's my firmly-held conviction that the two ideas are mutually incompatible.

if you want to find the inflection point for when a good company became bad, an innovator became a stagnator, a leader became a follower, look to their IPO. This is where they went from chasing ideals to chasing profits. Not because they suddenly became greedy, but because they went from serving what they want to what "the shareholders" want. Shareholders are rational beings with zero involvement in your day-to-day process. Their only input is money, their only output is money. They aren't "fans" of your company - nobody owns Altria shares because they really love Marlboros. They're just there to ride that delta.

And the way to increase that delta, for better or worse, is to extract as much cash as you humanly can from your customers.

mk  ·  4441 days ago  ·  link  ·  
It might be radical, but I am with you about the stock market. It's gambling, but unlike casinos, the big players can pay the house to skew the odds. A guy that worked at my lab would day trade. Between experiments he would buy and sell $100k of stock at a time. Sometimes he wouldn't even wait for the order to be complete before he reversed it and started selling. It didn't matter what company he bought stock in, so far as the trading was exhibiting the right kind of activity. Of course, the guy didn't have $100k to make good on these trades. It was all an margin. Once I watched him buy a stock; as the shares rolled in in clumps, the stock went up a few pennies. He then started to sell it, explaining that he made a hundred bucks or so, and that was good enough. That is not investing. That shit has no place in a market where people are investing. The same guy explained to me that the banks manipulate stocks all day long. He said daily activity was pretty much gamed, but no one could control far beyond that.

At the very least, I'd like to see the market changed to where shares had to be held for four months. That starts to get closer to investing.

But, even then, the stock market is ridiculous in the basic fact that inside knowledge is illegal. That almost makes it gambling by default. If you wanted to invest in the tea shop, you could chat with the owner. You could look at his books, and you could get the scoop on what he was planning to do next. Investing requires inside knowledge.

thenewgreen  ·  4441 days ago  ·  link  ·  
I like your way of investment better too. Perhaps this is the model for the new stock market: http://www.kickstarter.com/

I can't add much to what you're saying because I tend to agree. I harbor no resentment towards your friend, I think he's smart for taking advantage of the system. I wish I did more. I have some friends that make a lot of money with "covered calls", I really don't know much about it but they're supposed to be "training" me on it. They claim it's free money. -That in itself should tell you how effed up the market is as a means of valuation.

kleinbl00  ·  4441 days ago  ·  link  ·  
The publicly-traded stock market is bread and circuses for the proles so that the real money can go back to earning monstrous profits through market manipulation and high frequency trading.

Kickstarter, which theoretically should be awesome, is actually nothing more than a formalized instrument for panhandling from your friends. Don't get me started on kickstarter.

thenewgreen  ·  4441 days ago  ·  link  ·  
kickstarter, like so many things is only as awesome as the people that use it. If your friends suck, then yeah.. it's gonna suck. I've supported several projects and really only 1 of them felt like the "investment" you envision with the tea shop. Watch this guys video, seriously.. it's well done. Also, he literally spent months recording the cover songs that people chose after donating 100$ or more. I'm not talking about him and a guitar... I'm talking arrangements. He actually cared about the fact that people were entrusting their money to him. He feels obligated/indebted. I know that he struggled with the whole "hand out" thing and therefore, it never seemed like one.

Just saying, it can be cool if it's done right. But I agree, it's more often than not horrible.

http://www.kickstarter.com/projects/timothymonger/timothy-mo...

thenewgreen  ·  4441 days ago  ·  link  ·  
I also think some of it has to do with them being so hopelessly out of touch with what the market will bare. Think Mitt Romney casually making a $10,000 bet as if it's commonplace.