Atom Factory's Troy Carter on Music Technology | Disrupt NY 2013

Transcript

hi everybody I'm Josh casteen one of the writers for TechCrunch and I'm really excited today we have a visionary from the music industry here this is Troy Carter the CEO and chairman of Adam factory he's also the founder of a co-founder of backplane and the manager of Lady gaga one of the world's most popular musicians so I wanted to get it started... Read More

Summary

In this interview, Troy Carter, CEO of Adam Factory and manager of Lady Gaga, discusses the impact of technology on the music industry and the potential areas for startups to make a difference. He also shares insights on the value of celebrity investors and the importance of building a strong connection with fans.

Questions & Answers

Q: Has technology completely screwed the music industry?

No, technology has changed the music industry but it has also opened up new opportunities for reaching audiences, especially in remote areas of the world. Overall, technology has always played a role in driving music sales.

Q: Do musicians feel resentful towards the mp3 and streaming era?

Musicians do not feel resentful towards the mp3 and streaming era. While record company executives and publishing executives may have concerns, most musicians make their money through touring and merchandise, not album sales.

Q: What areas in the music industry could technology startups address?

One area that needs improvement is terrestrial radio, especially in the United States. Radio still plays a significant role in people's everyday lives and connecting them to music. It would be interesting to see advancements that allow for global listening experiences and personalized radio stations.

Q: Can technology play a role in improving the touring business?

Yes, the touring business is currently inefficient in terms of routing tours. Technology could provide data-driven insights into ticket sales and venue popularity, leading to more effective and profitable touring routes.

Q: What macro trends have redefined the music industry in the last five years?

The most important trend in the music industry is the need for artists to continue building relationships with their fans. This has become easier with the rise of platforms like YouTube, Twitter, and Facebook, which provide various ways to engage with audiences.

Q: Which social networks are most valuable for artists?

The choice of social networks depends on the artist and their fan base. For example, YouTube works well for artists like Lindsey Stirling, while Lady Gaga prefers Twitter. Each artist adopts the platform that suits their style and connects them best with their fans.

Q: What criteria do you use to choose your investments?

We look for dynamic founders and assess their vision for the company. The founder's ability to ask the right questions, their curiosity, and their understanding of where the company is going are crucial. We also rely on trusted filters and stay close to people with good ears in the music industry.

Q: What makes or breaks a deal for you in terms of investments?

A clear and well-developed business model is essential. We also look for founders who have a strong understanding of their idea and the market. High valuations and unfleshed-out ideas can deter us from making investments.

Q: Why are you interested in investing in health and education?

Both industries are in need of innovation. The healthcare system is outdated, with information sharing issues and inaccuracies. Improving healthcare through technology has significant potential. Similarly, public education is in need of integrating technology and identifying exceptional teachers that can reach a broader audience.

Q: What success stories have you seen with celebrity investments?

The interviewee doesn't provide any specific examples of successful celebrity investments.

Q: Is Hollywood's investment in startups just a fad?

The interviewee does not have an answer to whether celebrity investment in startups is a fad.

Takeaways

The music industry has been changed by technology, but it has not been completely screwed. Technology has opened up new avenues for artists to reach audiences, and startups can make a difference by addressing issues in radio and touring. Building relationships with fans is crucial, and different social networks can be valuable depending on the artist and their fan base. The success of an investment depends on dynamic founders, clear business models, and a thoughtful approach to celebrity partnerships. In other industries like healthcare and education, technology has the potential to revolutionize outdated systems. However, it is important to navigate celebrity involvement wisely and authentically.