Feature
DigiKNOW… Interview with...
AJ McGowan
CTO + Co-Founder, Unicorn Media
DigiGO!
Good day, Mr. McGowan, thanks for taking the time to “chat” with our readers. Could you briefly describe your experience in both the music and technology industries?
AJ McGowan
I’ve been working in technology, professionally, for decades. I was hacking computers at the age of 9 and started my own computer consulting company when I was in the 8th grade. At 14, I received a job as an IT manager, completing a highly technical token ring/mainframe to Ethernet/NT-Unix network upgrade as well as answering pages from distressed employees using a public pay phone in between my high school classes.
I’ve also always been an avid musician and am classically trained in voice and piano. I fused my love of technology and music together and entered the recording engineering side of the business. I invested the proceeds from my technology work and plowed them back into recording gear and instruments.
While in college, I tried my hand at becoming a professional musician. I harnessed all of the technology available at that time, including sites such as garageband.com and mp3.com when they first launched. What I found was a fascinating new way to publish content and build a fan base; but those sites were way ahead of their time, and there was no way for me to monetize my content that way. I realized that even with those tools, I would still have to sell my soul to a record company to achieve commercial success. So, I left college, and went back to work in technology with an omnipresent thought in the back of my mind to help create a platform that would fuse the power of the Internet with a business model that would make real sense for artists. With Unicorn Media, I’m finally able to turn that dream into a reality.
DigiGO!
What was the impetus for the founding of Unicorn? What is your role at the company now?
AJ McGowan
Bill Rinehart and I founded this company because we realized there is a tremendous amount of inefficiency in the traditional distribution model for content. Distributors spend the lion’s share of proceeds to make, market, and move physical assets—artists receive a very small fraction of the earnings. Leveraging the Internet allows us to create a completely new paradigm that’s established through the creation of an efficient marketplace between artists and their fans for global distribution. I handle the technology end of things for Unicorn Media to make certain we’re providing the fastest, highest quality experience for fans and providing easy to use tools for artists.
DigiGO!
With the explosion of digital music and entertainment over the past few years, how can companies differentiate themselves in this space that is certainly becoming crowded with “solutions”?
AJ McGowan
We believe that a relentless focus on quality is the key to differentiation if we want to compete for the consumer’s attention. There are many sites with a very low quality bar. That’s great for user-generated content that you’re going to just watch for a few minutes. However, we’re providing a completely different experience for users. We’re delivering high-quality content, much of which is not available through traditional outlets, distributed using high-quality delivery, for video good enough to enjoy on your 50-inch plasma and audio quality that even the most discerning ears will enjoy.
DigiGO!
What factors must be considered when discussing the future of entertainment via the Internet? What must happen in order for content distribution over this channel to be successful?
AJ McGowan
While the quality of entertainment content on the Internet is the most significant differentiator, and is very important to the development of Internet-based entertainment today, this will become even more important over time. We built Unicorn Media for the future—a day when consumers all over the world will turn to the Internet for their entertainment content. They will listen to and watch from their home stereos and portable devices, whatever those devices might eventually be—this is already happening to some extent, but for it to really take off, a couple of key elements need to happen.
First, the high broadband speeds have to be available to ensure that the high bit rate streams offer an uninterrupted flow of data, and consumers aren’t asked to wait while a video or movie loads.
Second, the services delivering the content must be able to match or exceed consumers’ expectations of video and movie quality. For instance, when you turn on a TV, the signal is there, almost instantaneously—as you switch channels, the content on each channel pops up right away. Consumers will expect this same kind of experience from the content they stream from the Internet.
Third, the hardware or devices that will allow consumers to connect their TVs and home theaters to the Internet for streaming content have to become commercialized. Consumers must be exposed to the value these devices will bring to their entertainment experience.
Fourth, and I think this is actually the easiest one to overcome; the choice of content has to be present. While the traditional network TV stations only have one 8 o’clock slot they can fill on a Sunday night, the Internet will offer consumers infinite choice for on-demand content of their choosing. This content will need to be readily available and organized in a way that makes it easy for someone to find something they want to enjoy with little effort. Unicorn Media has its hands in each of these four areas, working behind the scenes to truly revolutionize the entertainment space.
DigiGO!
Where does Unicorn Media get its content?
AJ McGowan
We’re signing bands and filmmakers in a number of ways. Our artist relations’ team is scouring the net for talent, as well as putting “boots on the ground” at film and music festivals and live venues around the world. We are also seeing a lot of organic growth, as artists who have joined Unicorn are telling their friends and colleagues about this new way to actually profit from their hard work.
DigiGO!
What will this technology accomplish for the digital entertainment industry?
AJ McGowan
Longer term, we are looking to change the entire paradigm of digital entertainment. In the near future, Unicorn Media will allow artists to distribute their content online to a truly global audience and for them to be directly rewarded for their success, for the first time.
As the audience size grows, this will mean a marketplace where everyone gets a chance to promote themselves and make a living. We expect our most successful artists to eventually reap revenue through Unicorn Media that far surpasses what they would have received via a traditional distribution deal.
From a consumer perspective, a service such as Unicorn offers fans a unique opportunity to discover new music and film, while at the same time directly supporting the artists behind the creation of those entertainments. We believe most fans are eager to support the artists they like, and Unicorn Media makes it easy for them to do so. Consumers apply their attention, and the artists get paid. It’s a simple solution to a problem that continues to plague the entertainment industry.
DigiGO!
What are your ultimate goals as a content distribution company?
AJ McGowan
To provide the highest quality entertainment experience to a worldwide audience and to provide significant financial opportunities to the world’s underserved artist community.
DigiGO!
What were the driving market factors behind building Unicorn? How was the technology developed since then? Where is it headed from here?
AJ McGowan
We realized that no one was truly providing a high quality viewing and listening experience with a revenue model that would be lucrative for artists. We just launched our artist-focused site on March 10th. We’ve released a fan-focused Beta 1 that implements a number of additional features, such as an improved look and feel, social networking, content flagging, ability to feature content, as well as a number of navigational and performance improvements. Over the next few months, we will be focusing on rolling out additional features to the site and implementing internationalization. Our focus will always remain on making the site incredibly easy for users, and you’ll see our feature rollout reflect that philosophy. Unicorn Media is about breaking down the artificial barriers that were created in a physical distribution world the industry hasn’t quite been able to shake off.
DigiGO!
What are your predictions for the future of digital entertainment (both music and video/film)?
AJ McGowan
I see the market continuing to diversify. I don’t think the model of monolithic media companies will stand the test of time in their current incarnation. Sure, the $100M summer blockbuster will always have a place, but users will get more and more access to high-quality content that doesn’t have to be produced on a big budget. The cost reductions being afforded by technology will continue to empower the individual artist to create great music or film and reach an audience directly. You won’t need to sell a million albums if you’re making $5 or more an album, as opposed to $0.25. We’re seeing bands like Radiohead and Nine Inch Nails start to embrace this philosophy, and they have been extremely successful.
Unicorn Media will provide a way for any artist, whether they’re internationally known or a great local band, to distribute content worldwide and achieve great financial success. This type of empowerment will change everything about the entertainment business today.
| digiKNOW... AJ McGowan, Unicorn Media | June 12, 2008 |
DigiKNOW… Interview with...
AJ McGowan
CTO + Co-Founder, Unicorn Media
DigiGO!
Good day, Mr. McGowan, thanks for taking the time to “chat” with our readers. Could you briefly describe your experience in both the music and technology industries?
AJ McGowan
I’ve also always been an avid musician and am classically trained in voice and piano. I fused my love of technology and music together and entered the recording engineering side of the business. I invested the proceeds from my technology work and plowed them back into recording gear and instruments.
While in college, I tried my hand at becoming a professional musician. I harnessed all of the technology available at that time, including sites such as garageband.com and mp3.com when they first launched. What I found was a fascinating new way to publish content and build a fan base; but those sites were way ahead of their time, and there was no way for me to monetize my content that way. I realized that even with those tools, I would still have to sell my soul to a record company to achieve commercial success. So, I left college, and went back to work in technology with an omnipresent thought in the back of my mind to help create a platform that would fuse the power of the Internet with a business model that would make real sense for artists. With Unicorn Media, I’m finally able to turn that dream into a reality.
DigiGO!
What was the impetus for the founding of Unicorn? What is your role at the company now?
AJ McGowan
Bill Rinehart and I founded this company because we realized there is a tremendous amount of inefficiency in the traditional distribution model for content. Distributors spend the lion’s share of proceeds to make, market, and move physical assets—artists receive a very small fraction of the earnings. Leveraging the Internet allows us to create a completely new paradigm that’s established through the creation of an efficient marketplace between artists and their fans for global distribution. I handle the technology end of things for Unicorn Media to make certain we’re providing the fastest, highest quality experience for fans and providing easy to use tools for artists.
DigiGO!
With the explosion of digital music and entertainment over the past few years, how can companies differentiate themselves in this space that is certainly becoming crowded with “solutions”?
AJ McGowan
We believe that a relentless focus on quality is the key to differentiation if we want to compete for the consumer’s attention. There are many sites with a very low quality bar. That’s great for user-generated content that you’re going to just watch for a few minutes. However, we’re providing a completely different experience for users. We’re delivering high-quality content, much of which is not available through traditional outlets, distributed using high-quality delivery, for video good enough to enjoy on your 50-inch plasma and audio quality that even the most discerning ears will enjoy.
DigiGO!
What factors must be considered when discussing the future of entertainment via the Internet? What must happen in order for content distribution over this channel to be successful?
AJ McGowan
While the quality of entertainment content on the Internet is the most significant differentiator, and is very important to the development of Internet-based entertainment today, this will become even more important over time. We built Unicorn Media for the future—a day when consumers all over the world will turn to the Internet for their entertainment content. They will listen to and watch from their home stereos and portable devices, whatever those devices might eventually be—this is already happening to some extent, but for it to really take off, a couple of key elements need to happen.
First, the high broadband speeds have to be available to ensure that the high bit rate streams offer an uninterrupted flow of data, and consumers aren’t asked to wait while a video or movie loads.
Second, the services delivering the content must be able to match or exceed consumers’ expectations of video and movie quality. For instance, when you turn on a TV, the signal is there, almost instantaneously—as you switch channels, the content on each channel pops up right away. Consumers will expect this same kind of experience from the content they stream from the Internet.
Third, the hardware or devices that will allow consumers to connect their TVs and home theaters to the Internet for streaming content have to become commercialized. Consumers must be exposed to the value these devices will bring to their entertainment experience.
Fourth, and I think this is actually the easiest one to overcome; the choice of content has to be present. While the traditional network TV stations only have one 8 o’clock slot they can fill on a Sunday night, the Internet will offer consumers infinite choice for on-demand content of their choosing. This content will need to be readily available and organized in a way that makes it easy for someone to find something they want to enjoy with little effort. Unicorn Media has its hands in each of these four areas, working behind the scenes to truly revolutionize the entertainment space.
DigiGO!
Where does Unicorn Media get its content?
AJ McGowan
We’re signing bands and filmmakers in a number of ways. Our artist relations’ team is scouring the net for talent, as well as putting “boots on the ground” at film and music festivals and live venues around the world. We are also seeing a lot of organic growth, as artists who have joined Unicorn are telling their friends and colleagues about this new way to actually profit from their hard work.
DigiGO!
What will this technology accomplish for the digital entertainment industry?
AJ McGowan
Longer term, we are looking to change the entire paradigm of digital entertainment. In the near future, Unicorn Media will allow artists to distribute their content online to a truly global audience and for them to be directly rewarded for their success, for the first time.
As the audience size grows, this will mean a marketplace where everyone gets a chance to promote themselves and make a living. We expect our most successful artists to eventually reap revenue through Unicorn Media that far surpasses what they would have received via a traditional distribution deal.
From a consumer perspective, a service such as Unicorn offers fans a unique opportunity to discover new music and film, while at the same time directly supporting the artists behind the creation of those entertainments. We believe most fans are eager to support the artists they like, and Unicorn Media makes it easy for them to do so. Consumers apply their attention, and the artists get paid. It’s a simple solution to a problem that continues to plague the entertainment industry.
DigiGO!
What are your ultimate goals as a content distribution company?
AJ McGowan
To provide the highest quality entertainment experience to a worldwide audience and to provide significant financial opportunities to the world’s underserved artist community.
DigiGO!
What were the driving market factors behind building Unicorn? How was the technology developed since then? Where is it headed from here?
AJ McGowan
We realized that no one was truly providing a high quality viewing and listening experience with a revenue model that would be lucrative for artists. We just launched our artist-focused site on March 10th. We’ve released a fan-focused Beta 1 that implements a number of additional features, such as an improved look and feel, social networking, content flagging, ability to feature content, as well as a number of navigational and performance improvements. Over the next few months, we will be focusing on rolling out additional features to the site and implementing internationalization. Our focus will always remain on making the site incredibly easy for users, and you’ll see our feature rollout reflect that philosophy. Unicorn Media is about breaking down the artificial barriers that were created in a physical distribution world the industry hasn’t quite been able to shake off.
DigiGO!
What are your predictions for the future of digital entertainment (both music and video/film)?
AJ McGowan
I see the market continuing to diversify. I don’t think the model of monolithic media companies will stand the test of time in their current incarnation. Sure, the $100M summer blockbuster will always have a place, but users will get more and more access to high-quality content that doesn’t have to be produced on a big budget. The cost reductions being afforded by technology will continue to empower the individual artist to create great music or film and reach an audience directly. You won’t need to sell a million albums if you’re making $5 or more an album, as opposed to $0.25. We’re seeing bands like Radiohead and Nine Inch Nails start to embrace this philosophy, and they have been extremely successful.
Unicorn Media will provide a way for any artist, whether they’re internationally known or a great local band, to distribute content worldwide and achieve great financial success. This type of empowerment will change everything about the entertainment business today.
