White Gold

White Gold

What's Love Art, Bitch?

Tuesday, April 22, 2008

Let's do one for the numbers people.

Profits have been moving from the tangible to the untangible as long as economic activity has taken place. Everyone's hot on intangibles at the moment, but those aren't dick compared to what untangibles will do once they're allowed floating prices.

Exxon/Mobil has a P/E (Price to Earnings) ratio of around 13, Google has a P/E of around 40. Why are people so willing to pay a premium for a company that returns smaller earnings? Because they own the intangible future.

And Exxon Mobil is burdened with the tangible past.

Exxon Mobil makes a hell of a lot more money and many fewer people want to own their stock.

Google has mastered the intangible realm like Exxon mastered the tangible one. But everyone's so far up Google's ass, they can't see that the intangible age is just as doomed by the march of progress as the tangible age and its toxic oil wells.

What's funny is that those who should be in the best position to capitalize on the value of quality untangibles are trading with P/Es around those of tangible companies. Time/Warner, Sony, Dreamworks--these content companies are all duking it out with the manufacturing sector with P/Es around 12.

No one wants to own them.

Why? Because even if they deliver the high quality content that the developed world is increasingly starved for, they won't make anything. Because--say it with me now--content prices are arbitrarily fixed. The market knows this and values the companies accordingly.

But you and I know that a company that really owned the untangible future would trade at a P/E of what--80? 120? A couple thousand? It's upside would be almost unlimited.

And, unlike the speculative oil, gold and biotech stocks with massive downsides (which tend to have high P/Es), mining the soul is a guaranteed return. Once you know how to do it. Not all land has mineral wealth, but every soul is gold.

Another way of looking at this is that the best artists rarely, if ever become irrelevant during their lifetimes. Pollack painted dribbles for years and they go for millions each now. There was never a demand problem. Still isn't.

The same is true for mass content--the best mass content is often consumed over and over. Books taught and canonized. Songs re-bought in greatest hits packages, licensed for movies, etc, etc, etc.

Whoever owns the first publicly accepted premium content company will be sitting on a money printing machine the likes of which we've never even considered.

Look at it this way--because I know you might be too scared to even buy and read The Love Artist--or take the word of the author that it's the book to do it:

Look at it this way--even if The Love Artist fucking sucks. And by sucks, I mean is a piece of absolute shit..

Even then, what would three million in advertising to introduce the world to the idea of premium content do?

It would attract the best works by the best artists. As a label.

A label that made $14 a song instead of $.99 could pay the artists 4, 6, 8 a song and still crush iTunes, Interscope and all the pretenders to the throne.

It could pay writers $60 a book.

Sure, you say, they could release it on their own and make all the money, why do they need White Gold.

I'll tell you this about artists: we don't want to do any fucking paperwork. We don't want to print and sell our shit.

We want to fuck around and make more. Like Henry Miller said--we're like trees, and once we drop a piece of fruit, we're so over it it hurts. We want birds and deer to come and eat it--and carry the seeds miles away--but if it's up to us, we'll just let it rot. That's how uninterested in transportation and distribution we are. We just go on making the tastiest and most nutritive fruit possible. Let someone else package and sell apple sauce.

Look, if you're in business, you're in management. And if you're in management you know that the name of the game is talent.

And if you're into talent, you know that money and freedom is all there is.

But if content makes money, it's mainstream drek. If it has..

Aw, fuck it. If you pussies haven't felt it yet, you just won't get it.

But remember this: I'm appealing to your most base greed. You haven't even read my book--I'm not appealing to any artistic instincts or taste. I don't give a fuck about that. I'm appealing to your greed and desire for more money, an easier life, to leave something for your family.

To make money.

I can make you Paul Allen times 50.

And I've described how in exhausting, rational detail. In your language with math.

If you've given up on your dreams to make money and you don't even want to make the maximum money--then what the fuck are you? If you've embraced life as toil and reward and don't even want the rewards, what do you believe in? Pain?

Y'all some kinky motherfuckers.

Don't you want a front row seat to the most important and most flexible brand of the coming millennium?

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