New UK audio comedy label launches and initially gets 100% of its sales in US

(A version of this piece was published on the Indian news site WSN)

Neale Welch – building something new in Shoreditch last week

Neale Welch is a busy chap.

This year, he took over-all charge of programming at the Comedy Cafe Theatre in London, a full-time job which continues.

But, in July last year, he also started his own independent comedy label Just The Greatest and, this month, it released its first three audio albums – by Anil Desai, Steve N Allen and Erich McElroy (all recorded live at the Comedy Cafe Theatre).

When I talked to him in London’s Shoreditch last week, he told me something very odd:

“All of the sales so far,” he told me, “have been in the United States.”

“Why?” I asked.

“I don’t know,” he replied. “I think there’s an element of If you build it, they will come. The sales are there. Sales started as a trickle and they are starting to increase.”

“The blurbs must be bloody good,” I said.

Anil Desai – the first album released by Just The Greatest

“Well,” Neale told me, “there’s only a very brief description of what’s on the albums – there’s no real space on iTunes for any promo copy or quotes. They’re just really good products. Very funny.”

“Yeah,” I agreed. “They’re very good comedians but the Americans, presumably, don’t know them – To the Yanks, they’re Fred Hippity-Hoppity from Guatemala.”

“What I think you’re witnessing here, John,” suggested Neale, “is the power of the distribution channels – iTunes and Amazon. Who are we to know why Americans are buying the albums? It’s comedy, it’s spoken word, it’s British and it’s out there available to buy.”

“How much do they cost?” I asked.

“The distributors set the prices themselves,” explained Neale. “iTunes set the price by category and genre. The albums are $9.99.”

“So Yanks are forking out $10 for unknown-to-them comedians!” I said in amazement.

“But they’re getting to know them slowly,” said Neale. “And you can also buy cheaper individual tracks.”

“I guess, when it all develops,” I said, “your market is going to be Britain and the English-speaking pink bits on the map – plus the US?”

“And parts of Europe,” added Neale.

“This is like one of those rock star things,” I said, “where someone from Manchester is a major star in Botswana for no discernible reason. Or Right Said Fred  being massive in Germany, which they are. Massive.”

“…and David Hasselhoff,” added Neale.

“And David Hasselhoff,” I had to agree. “Did you expect to get foreign sales?”

“Not this early, no,” said Neale.

“So why did you start the label?” I asked.

Steve N Allen is one of the acts Yanks seem very keen on

“Because,” explained Neale, “a few years ago, I was travelling alone around Asia and Australia and needed something to listen to when I was in planes, on beaches, in hostels. Videos are fine, but videos require your attention whereas, with a sound album, you can do other things when you’re in another environment.

“I came across a great podcast called Stop Podcasting Yourself by Graham Clark. So I brought him over to do a special gig at the Comedy Cafe in London, which was great, sold out, fantastic.

“Graham is signed to a podcast network in the States called MaximumFun.org, run by a guy called Jesse Thorn – a great inspirational guy who started this network with lots of free content, a little bit of paid content, lots of different shows, mostly run on donations.

“And I thought I could do something like that. I thought I want to do something that’s good and I want to work with original artists that are going somewhere and have got something to say.”

“Hold on though,” I interrupted, “You said, with a sound album, you can do other things while you’re listening. But doesn’t comedy require you pay attention? The build-ups and the punchlines?”

“Yes,” agreed Neale. “But not as much as visuals. I think there’s an opportunity for the re-birth of comedy albums in digital form.”

“And physical CDs?” I asked.

“It’s all digital,” said Neale. “At Just The Greatest, we’re not interested in physical products, though some of the artists are going to produce physical products – CDs – to sell themselves after their gigs. It doesn’t make any sense any other way. I don’t have a warehouse to store a load of stuff.”

“And CDs are dead anyway,” I suggested.

“Yeah,” agreed Neale, “CDs, DVDs… but downloads have made up for the decline in over-all sales. If you pay attention to who’s listening to podcasts – graphic designers, knowledge workers if you will – it’s people who are at their desk working a flexible, autonomous working day who can also enjoy audio entertainment. That’s the kind of demographic who are going to buy it.”

“Did you do market research in advance?” I asked.

Erich McElroy – a North American but with Brit Identity

“The sales ARE the market research,” Neale explained. “I’m finding out now what kind of market I’m going into and it’s clear that there are opportunities. I knew in advance, obviously, that there were similar projects out there already. It’s not like I was wondering if people would buy a digital file; of course they will.”

“How do you think the market will it develop?” I asked. “Will iTunes’ dominance diminish?”

“In the digital market, I just do not know,” said Neale. “If you look at the barriers to entry and the coverage that they get… it would be a difficult market for anyone to attack. If you think that a company the size of Amazon aren’t even getting close, then…”

“And beyond that,” I asked, “you’ll develop radio shows, TV shows and major movies with lots of special effects?”

“No,” laughed Neale. “As you know, I’ve shot some small videos, but try and find someone in Shoreditch who hasn’t!”

Comedy audiences “haven’t had a good night out unless they’ve thrown-up a few times and punched their girlfriend”

(This was also published by the Indian news site WSN)

Neale Welch at the Comedy Cafe sound desk on Saturday

I was at London’s Comedy Cafe Theatre at the weekend, talking to outspoken owner Noel Faulkner and his business sidekick Neale Welch who, with a marketing background, perhaps promotes the club in less controversial style.

“Why is the Comedy Cafe moving to single-artist shows after August?” I asked Neale.

“Partly,” Neale explained, “because of a decline in the demand for mixed-bill shows – an MC and three acts. Plus increased competition. And it’s costing us more in marketing to get the same amount of people in for those shows. It costs more to get people in than it did previously.

Say goodbye to the old Comedy Cafe  logo

“We’re also re-designing our logo, moving it from the smiley face of the 1990s and refurbishing the room again – we only did it 18 months ago… Lots of little tweaks to make a big over-all change.”

“Are comedy club audiences really declining?” I asked.

“If you look on Google Trends,” Neale told me, “at the graph of Google searches for comedy… live… stand-up between 2004 and 2012 it declines steadily. If you look at live… comedy… London it shows the same decline. So there’s less people searching for live stand-up comedy and, if that’s going down then, probably, the demand is going down too.”

“Did anything happen to the search graph in 2008 with the financial crash?” I asked.

“Not particularly,” said Neale. “It’s not a fiscal cliff. It’s a steady decline.”

“So,” I said, “you’re going to be changing the type of shows you put on.”

“At the end of this month,” Neale explained, “we’ll be booking acts up until August for normal club shows and then, after that, we’ll be booking single-artist shows to run on Thursdays, Fridays, Saturdays after August.”

“It was over a year ago,” Noel Faulkner reminded me, “that we decided to turn the old Comedy Cafe into more of a theatre-type venue – the Comedy Cafe Theatre – and attract a theatre-type audience and now that’s actually happening.”

“What’s the difference between the theatre audience and the comedy audience?” I asked.

Noel Faulkner at the Comedy Cafe Theatre

“The theatre audience,” replied Noel, “can actually all read and write and they have an IQ of some level. The comedy audience are feckin’ brain dead and don’t know why we’re not giving them Michael McIntyre.”

“But this is the audience you’ve been catering to for years,” I prompted.

“Well,” said Noel, “we’ve all been catering to them for years. Poor old Jongleurs and the Comedy Store Late Show too. Of course you have to cater to the masses. We all have to suck the corporate cock, whether we’re gay or not.”

“So what different type of comedy will these theatrical comedians be doing in their one-person shows?” I asked Noel.

“It’s not a difference in comedy,” explained Noel. “Comics do what they do, but it’s better if you have a sophisticated audience. The other problem, though, is that sophisticated audiences don’t spend money. They have a couple of drinks and they’re happy. They don’t have to get shit-faced, because their lives aren’t horrible. Whereas your average comedy audience – their lives are so horrible that they go crazy at weekends and they feel they haven’t had a good night out unless they’ve thrown-up a few times, had a fight and punched their girlfriend.”

“In that case, surely,” I suggested, “as a businessman, you should be appealing to the drunken comedy audience who throw money around and not to the more sophisticated audience who don’t spend money.”

“If that’s what I wanted to do for a living,” said Noel, “but, if I just wanted to make a living, I could deal crystal meth or run a lap-dancing club.”

“So,” I asked, “the comedians are going to do the same things but longer in their one-person shows…?”

“Well,” said Noel. “Comedians doing these one-person shows are not compelled to come out with a gag every thirty seconds. It’s going the way I planned it. I want a theatre.”

“You always wanted a theatre?”

“I always wanted a feckin’ audience that would sit down and appreciate the effort that’s gone into it,” said Noel.

The Comedy Cafe is also expanding into producing comedy shows as downloadable MP3s. Soon they are going to release shows recorded at the Comedy Cafe Theatre by Steve N Allen, Anil Desai, Robin Ince, Michael Legge and Eric McElroy.

Expanding Cafe laughter – from live shows to mp3 downloads

“When’s that happening?” I asked Neale Welch.

“It’s just being cut now,” he told me. “I’m sorting out the webpage, the hosting and the PayPal and the functionality, so I’m thinking in the next two weeks; something like that. They’ll be released under the individual artists’ names; there will be a standalone page linked-to from our website; the Comedy Cafe will just be a footnote; we’ve just facilitated it.”

“And the appeal of the audio recordings to you is…?” I asked.

“They give us interesting live shows,” Neale told me. “And a bit of legacy. They will still be there in a few years time. We can build the business into more than one arm. We already have the club, the talent agency, a casting agency. It just gives us another arm.”

“And it means you have content beyond live shows,” I suggested.

“Exactly,” agreed Neale. “And we are looking into other content formats.”

Set List comes to Comedy Cafe Theatre

Neale told me the Comedy Cafe is also having Paul Provenza’s superb Set List comedy improvisation shows coming in for a run every Monday from March 11th for six weeks.

“And then,” Noel Faulkner told me, “we’ve another big production company coming in as well. I can’t name them yet. But they’ll come in weekly or monthly with their acts to prepare them for their TV programmes. A lot of people in the comedy business are suddenly realising there’s a small 120-seat space that is really keen to do good theatre. There’s room for three cameras. A tiny stage, but it works: it’s cosy, it’s intimate and it’s what I always wanted to do.”

“In a recent blog,” I said, “I mentioned how, in the future, streaming live club comedy on the internet might affect club business. And Don Ward’s Comedy Store is doing feature films of its shows.”

The Comedy Store film. “It’s a great idea… It won’t work”

“It won’t work,” said Noel. “It’s a great idea and I asked him why the cinemas are doing it. He told me it’s on the slow movie nights and I thought Well, on the slow movie nights – Monday, Tuesday, Wednesday – people don’t want to go out. Why go see a movie on a Tuesday night when you can see it on a Friday or Saturday night? So it’s a Tuesday night and there are comics on the big screen? Well, first of all, you don’t need to see a comic on a big screen, because there’s not a lot to look at. And what? You’re going to go all the way down town to a movie theatre and pay top dollar when you can just nip over to the Comedy Store for the same price on a Tuesday night?”

“But punters can’t pop down to the Comedy Store if they live in Plymouth or Aberdeen,” I suggested.

“Well,” replied Noel, “all they have to do is flip over to YouTube or the Dave TV channel and they can see the exact same comedy on a screen.”

“I can’t see the feature film idea working,” I said, “but, in the future, if you did live streaming from the Comedy Store or the Comedy Cafe and it cost a punter only 99p to watch it in Norwich or Belfast or the Outer Hebrides instead of coming to London to see the same acts…”

“Yes,” said Noel. “If, for £5, you could catch the Late Show at the Comedy Store on the internet outside London, that would be great. But the Comedy Store isn’t doing that. They’re trying to fill a cinema. Also, if you’re in a cinema, are people really going to laugh? If there’s only 100 people spread out over 600 seats, you don’t get the atmosphere of a live club.”

“But what happens,” I asked, “when there is live streaming of good acts from a good club at a cheap price? Janey Godley looked into live-streaming her Edinburgh Fringe show from the Underbelly in, I think, 2005 and they couldn’t do it technically from that building at that time. I’ve never understood why no-one has live-streamed their Edinburgh shows so people can see them in Los Angeles and Adelaide. In a few years time, you could have the Comedy Cafe doing a live show to people in London and live-streaming it on a 99p pay-per view so people can see it in Newcastle or Cardiff.”

“Make it £1,” said Noel. “Don’t do this 99p shit.”

It’s the $1 million day Comedy experienced its Radiohead moment

(This was also published in the Huffington Post)

Yesterday was a special day. Not because it was Christmas Eve, but because I had a cup of tea with jockey-turned-rock manager-turned-comedian Bob Slayer.

Any day when Bob Slayer has a cup of tea instead of 15 pints of beer is a special day.

The American comedian Louis CK had reportedly just made over a million dollars from his concert video. He did not release as a DVD through the normal channels. Instead, he released it by himself as a download. The result?

Over $1 million of income from $5 downloads in 12 days.

He bypassed the big DVD distributors, wholesalers and retailers and sold direct to his audience via the internet.

It cost him $250,000 to record the show, set up the website and pay banking fees to handle the transactions. But he grossed over $1 million in 12 days.

“It’s the day Comedy experienced its Radiohead Moment,” Bob Slayer said to me.

“Are you sure you haven’t had a few pints?” I asked.

“It’s a great headline, though, isn’t it?” he laughed.

Bob knows the independent music scene. From 2003 to 2009, he was full-time manager of Japanese rock band Electric Eel Shock, whom he constantly calls “EES” – I think because it is difficult to pronounce “Electric Eel Shock” after downing 15 pints of beer.

When they had been in previous bands, the members of Electric Eel Shock had released tracks and albums on major labels in Japan and not enjoyed the experience. Hardened by this, they became fiercely independent and – who knows why? – they let Bob Slayer manage them. Strangely, they got on well with the anarchic yet experienced Bob and his sometimes unconventional, often lateral-thinking ideas.

“In a way,” says Bob. “I was lucky. They were – and still are – an amazing live band. So good that, over several years, I toured them in over 30 countries around the world and they are still conquering new countries all the time.”

One of Bob’s bright entrepreneurial ideas was to sell one hundred fans “EES guest list for life” passes at £100 each. This created £10,000 in cash and helped the band get out of a label deal with a man called Eric. They then went for another of Bob’s bright ideas – to finance their recordings by asking fans to buy the albums in advance – before they had recorded them.

“They raised over $50,000 to record their last album,” Bob tells me. “We used to rub shoulders with other bands following similar DIY routes but we all knew that we were on the fringes of the music industry. We were looked down on a little.

“But then, in 2006, DIY went almost mainstream. Lilly Allen and the Arctic Monkeys were marketed as coming from an independent/MySpace scene… although the irony was that major labels spent millions of pounds telling us just how independent these act were.

“That was like a phony start, but it showed the promise…

“Then, in 2007, it all changed for real. Radiohead got out of their contract with EMI and released In Rainbows as a digital download. They asked their fans to pay whatever they liked for it – it is like the Free Fringe and Free Festival shows in Edinburgh, where punters pay what they like on the way out.

“The band were selling direct to their audience and cutting out the middle men. Not only did they get the cash, just as Louis CK has done, but they overnight created a huge database of fan contacts.

“Radiohead proved that ‘Independent’ could be done on a grand scale and, since then, huge parts of the music industry have turned themselves inside-out. Artists are much more central to the whole process and music is all the more healthy for it.

“My pal, who ‘found’ The Darkness and got them picked up by Warners after selling-out the Astoria as an unsigned band, did something similar but vitally different with a band called Enter Shikari a couple of years later… They sold out the Astoria (just before it was pulled down), they milked the press coverage by turning down the major labels’ offers and then they released the album themselves.

“OK, so they only sold half a million records compared to the Darkness’ five million, but they made up to £5 per CD as opposed to less than £1 and importantly – although you haven’t heard of them – they still have a huge hardcore audience several albums later.

“The comedy business has always trailed behind the music business a bit. Alternative comedy arrived maybe five years after punk had imploded.

“Here we are in 2011. Bo Burnham in 2010 could be seen as the Arctic Monkeys of comedy. And Louis CK could be seen as the equivalent of Radiohead.”

I have been thinking of releasing a couple of books as downloads – one of them comedian Malcolm Hardee’s autobiography I Stole Freddie Mercury’s Birthday Cake.

It would avoid the publishers, wholesalers and retailers and the royalties would be around 80% instead of 7.5%.

So Bob’s enthusiasm for a new method of selling music and comedy recordings to the public interests me.

“So what happens next?” I asked him.

“Well, with any luck,” he told me, “we have an independent comedy revolution and it gets a lot more interesting again… I think I fancy a beer…”

Cut out the music industry middle-men, think small and make big money

I got a Facebook message from Ben Peel in Bradford, saying:

“I would love you to go check out my home-made video from my debut single here. It will sure make you smile. I have currently just released my debut album – which can be previewed here. ”

I don’t know Ben Peel nor his band The Wool City Folk Club, but his video and songs are interesting.

Quite soon some unknown person is going to achieve worldwide fame and become a millionaire through YouTube clips and subsequent audio or video downloads. Maybe the Arctic Monkeys have already done it, but only on a limited scale.

Perhaps in a couple of years time, Ben Peel will be a multi-millionaire.

Or maybe not.

The world is changing fast but no-one knows what the fuck is going on or what they’re supposed to be doing.

Shortly before Apple announced their new iCloud service, I wrote a blog in which I mentioned the on-going death of the traditional record industry – by which I meant vinyl, tapes, CDs and DVDs sold in shops.

The blog resulted in some interesting feedback.

Hyphenate creative Bob Slayer (he’s a comedian-promoter-rock group manager) reacted:

“It is at worst a myth and at best very misleading to say that the record industry is dying – there is more demand for music then ever. What has happened over the last ten years is that the music industry has completely reinvented itself. The X-Factor has had an effect and a smaller number of pop artists are selling a high number of records. They still operate in a similar way to the traditional industry.

“But everywhere else has radically changed so that the artist (and their management) can play a much more hands-on role in controlling their own careers.”

Mr Methane, the world’s only professional farter, who knows a thing or two about self-promotion and has made his own music CDs produced by former Jethro Tull drummer Barrie Barlow, tells me:

“Large record labels no longer have the money to keep well-known acts on retainers or publishing contracts like they used to and have pressed the ejector seat. New and well-known acts are not as a rule getting huge piles of money thrown at them to go away and make an album. The Stone Roses’ great rock ’n’ roll heist, where they made one decent album then got a shed load of money advanced to make another and did sweet FA, just would not happen in today’s economic climate – or at least it would be highly unlikely.”

We have entered the entrance hall of an iTunes world of downloads with megastars and small self-producing, self-promoting unknowns where good middle-ranking performers and groups will potentially be squeezed out. It is much like comedy at the Edinburgh Fringe, where the big TV names and unknowns on the Free Fringe and Free Festival pull in crowds, but it is increasingly tough for very good, experienced middle-rankers with no TV exposure.

Ben Peel, just starting out in the music business, says:

“The digital realm does not have time for people who are solely musicians. You have to evolve into some type of super musician / marketing guru to be able make an impact amongst people. I have to be 50% musician, 50% marketing and branding. The digital realm is creating a new generation of musician: one-man machines cutting out the middle-men. The downside is that the middle-men had collateral – and contacts.”

Self-promotion ability is vital, though Ben thinks e-mails are outdated in publicity terms.

“I do a gig… and send an email out… I get ten people there…. I do a gig and throw out a 30 second YouTube short… one a week on the run-up to a gig…. I get two hundred people to attend and the exposure of the viral promoting and people re posting is priceless…. You cannot buy ‘word of mouth’ promoting …. you can only inspire it through something quirky/ original/ funny/ catchy etc.”

Bob Slayer manages not only the wonderful Japanese rock group Electric Eel Shock but also internet phenomenon Devvo and tells me:

“At his height, Devvo was achieving over a million hits on every YouTube clip we put online. We had no control over who was viewing them but, as they were mostly passed around between friends, he found his natural audience. Devvo is not really understood outside the UK, so that massive following came largely from the UK and predominantly in the north. It meant that, he could easily sell-out medium sized venues anywhere north of Birmingham and strangely also in Wales but, for example, we struggled to sell tickets in Brighton.”

Financially-shrewd Mr Methane has so far failed to dramatically ‘monetise’ the more than ten million worldwide hits on just one of several YouTube clips of his Britain’s Got Talent TV appearance. but he sold shedloads of CDs and DVDs via his website after appearances on shock jock Howard Stern’s American radio and TV shows because small local radio stations across the US then started playing his tracks. They were small local stations, but there were a lot of them.

Only Bo Burnham, winner of the 2010 Malcolm Hardee ‘Act Most Likely to Make a Million Quid’ Award, who straddles music and comedy like Mr Methane and started as an online phenomenon, seems to have got close to turning YouTube clips into more mainstream success and music downloads.

The fact Mr Methane made a lot of money online, sitting at home in Britain, after very specifically local US radio exposure is interesting, though.

At the bottom of his e-mails, Ben Peel has a signature:

“Dwarves are like tents… a lot easier to get out of the bag than they are to put back in.”

Yes indeed. And that is very true with new technology. But it made me remember something else.

Years ago, I attended a Writers’ Guild of Great Britain meeting where the speaker’s message was “The way to make money is not to think big but to think small.”

He suggested that one way to make money was to create a weekly five or ten minute audio insert which could be run within local US radio shows. If anyone could come up with an idea, made in Britain, which would be of interest to Americans on a weekly basis, you could sell it to local US stations at a very low price.

If you tried to sell the mighty PBS network a weekly half hour show for £2,000 it was unlikely they would buy it.

But any small local US radio station could afford to pay £5 for a weekly five or ten minute insert. If you could sell that same insert to 499 other small local US radio stations (not competing against each other because they are small purely local stations), you would be grossing £2,500 per week for creating a five or ten minute item. And you could distribute it down a telephone line.

If you could persuade the stations to buy it for £10 – around $15 – still throwaway money – then, of course, you would be making £5,000 per week.

The trick was to price low and sell in volume.

That was before iTunes, which became successful by that very same model of micro-pricing. It was worth buying a single music track if it only cost 79c in the US or 79p in the UK. If iTunes had priced a single music track at £1.60 in the UK, they would almost certainly have sold less than half as many units, so would have grossed less money.

Think small. Think cheap. Think volume.

Modern technology allows ordinary bands to record, mix, cut and put their own tracks on iTunes alongside music industry giants. It also allows people in New Zealand to listen to and watch Ben Pool on YouTube just as easily as people in Bradford can see him play a live gig.

Think small. Think cheap. Think volume. Think worldwide.

Just as some comedians are looking into e-publishing, bypassing traditional publishers, Ben Pool in Bradford and local bands in South East London can now expand beyond selling their own CDs after gigs and could reach a worldwide paying audience of millions with no music industry middle-men.

Last year, I wrote a blog titled Britain’s Got Talent in Pubs about an astonishing regular pub gig I saw in South East London featuring Bobby Valentino and Paul Astles.

A week ago, I saw Paul Astles perform again, this time with his seven-man band Shedload of Love in their monthly gig at The Duke pub on Creek Road, Deptford, not far from Malcolm Hardee’s old Up The Creek comedy club. They also play the Wickham Arms in Brockley every month. They are astonishingly good. Formed in 2004, they recently recorded an album at Jools Holland’s studio in Greenwich.

Both the Paul Astles bands are world-class, playing mostly locally but, if promoted on the internet, they could garner a worldwide following with no music industry middle-men.

There are, of course, as with anything involving creativity and cyberspace, those big words IF and COULD.