Mitch Blum

Let’s revisit the fascinating and frightening issue of the death of newspapers, record companies, broadcast television networks, etc.

The truth is that there’s probably more creative content available currently than at any time in the past. The problem isn’t with the content – the issue is that the old distribution and compensation models are broken. (I addressed this distinction here.) As a result, the distributors (record labels, etc.) no longer have a feasible business model and many creators are unsure as how to monetize their work.

And yet out of this uncertainly comes innovation. And some of that innovation is coming from the most unlikely of sources – a bunch of hippie musicians from Georgia known as The Black Crowes.

With the release of their latest album, “Before the Frost…Until the Freeze”, The Black Crowes have developed an intriguing blueprint for running their business outside of the traditional system. So, what are the key takeaways that we might be able apply to other businesses and creators?

1. Maintain creative control and ownership

The Crowes decided against signing with an established company in favor of creating their own label, Silver Arrow Records. While they have a sales and distribution deal with Megaforce/Sony Red BMG, they take the financial risks and reap the rewards for their creativity. As a result, they can produce the music that they want to, without having to worry about label approval. In the case of “Before the Frost…Until the Freeze” this translates into the Crowes pursuing a pure 1970s country-rock sound – something that has little to no mainstream commercial appeal in 2009.

2. “Crowdsource” production costs

Rather than rent a house or a traditional music studio, the Crowes recorded their new album live in front of their fans (about 200 per night) over the course of 5 weekend nights in February & March at Levon Helm’s studio barn. Fans in attendance were treated to a unique and intimate experience and their ticket fees covered the cost of recording. Even with a bootleg emerging from the first night, this unique recording approach created a lot of buzz and anticipation for the final product.

3. Provide free content and unexpected rewards

A month or so prior to releasing the album the Crowes posted a free download of the first single, “I Ain’t Hiding” on their website. No e-mail registration was required to get a free copy of the song.

Upon release, when consumers bought the CD they also received a code to download 9 more tunes from the sessions – an entire second album for free.

This is coming from a band that has previously given away a free live album just for signing up for their online live archive site (liveblackcrowes.com) and unexpectedly gave a pair of free tickets to the show of your choice in 2006 just for entering an online contest.

4. Give the consumer choice

“Before the Frost…Until the Freeze” was ultimately released in 3 formats that the consumer could choose from: a CD of the primary 11 track album called “Before the Frost” that also included the download code for the free second album, a double vinyl release that contained all 20 tracks in a different order (intentionally sequenced as a loose concept album) or an electronic download of all 20 tunes for $9.99 at iTunes. It was up to the consumer to choose which format suited their needs.

5. Build the Brand

The perpetually-touring Crowes featured up and coming band the Truth & Salvage Co. as the opening act for their Fall tour. Coincidentally, the Truth & Salvage Co. are the first band that has been signed to Silver Arrow and Crowes lead singer Chris Robinson is producing their debut album.

So how did it work?

The album debuted at #12 on the Billboard 200 and made it to #6 on iTunes. Plus, it’s an amazing record.  Not bad for a bunch of hippies.

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For more essays on marketing, click here.  For more essay on The Black Crowes and music, click here.

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