
Everyone Needs To Calm Down - drm237
http://www.techcrunch.com/2008/09/07/everyone-needs-to-calm-down/
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raganwald
I liked the article (That's a first for me and TC), but one small nit: Payola
is only unethical when it is not disclosed. In radio, payola was wrong becaue
the radio stations claimed to be playing the most popular music as measured by
sales or fan requests or whatever, when in reality they were playing what they
were paid to play.

DEMO may be charging $18,500, but they disclose that up front. It may not be
to their competitor's taste, but it isn't Payola.

<http://en.wikipedia.org/wiki/Payola>

"Payola, in the American music industry, is the illegal practice of payment or
other inducement by record companies for the broadcast of recordings on music
radio, in which the song is presented as being part of the normal day's
broadcast. Under US law, 47 U.S.C. § 317, a radio station can play a specific
song in exchange for money, but this must be disclosed on the air as being
sponsored airtime, and that play of the song should not be counted as a
"regular airplay." The term has come to refer to any secret payment made to
cast a product in a positive light (such as obtaining positive reviews)."

~~~
rantfoil
As a startup founder, paying $18.5K to launch may not be unethical, but it
really sucks. That cost just doesn't really take into account the fact that
tech startups are so incredibly low cost to create now.

In YC, we created companies for < $15k, with plenty of money to spare. There
is no way we would ever spend that much money on a launch.

Though I think in the long run, Arrington/TC has not a whole lot to worry
about. It's a pretty obvious value prop -- the smart startups will end up
going to the one that matters that is free for startups, and the ones who get
rejected will end up at DEMO.

DEMO is subject to the same competitive pressures as startups. Innovate or
die.

~~~
raganwald
Agreed.

In our building there's a "modelling agency." Young girls are always going in
their with their mothers, and usually coming out a few thousand dollars poorer
for their "courses" and their "portfolio." From time to time I hear them
talking about "the business" while they chain-smoke outside. I am always
reminded of Sean Young's incredible line from Bladerunner: _I'm not in the
business, Mr. Deckard, I am the business._

If you are paying to demo, if you pay fees to people to find you money, if you
pay fees to your investors... you are not in the business, you are the
business.

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jyothi
Ironically the one who needs to calm down the most is Arrington himself. I was
taken aback at the harshness and drama in his comments.

[http://www.techcrunch.com/2008/09/07/everyone-needs-to-
calm-...](http://www.techcrunch.com/2008/09/07/everyone-needs-to-calm-
down/#comment-2461186)

~~~
ashu
The reply is to an extreme douchebag who deserved that. I think it's a good
idea to be firm and shut the trolls up quickly.

~~~
iuguy
Are you talking about Arrington or someone else?

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khangtoh
TC50 is not really that transparent and all about loving startups. Bottom
line, it's the money. In reality, no one would organize an event that will
cause them money. Profit is ultimate driver ( not that it's wrong ), it's
perfectly fine but just don't act so benevolous in the process of doing it.

[http://www.inquisitr.com/2486/techcrunch50-35-million-x-
disi...](http://www.inquisitr.com/2486/techcrunch50-35-million-x-
disingenuous/)

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froo
I think what Michael & Jason are doing is great for the startups launching at
TC50. They're taking all the heat for their PR ways, while the startups will
reap the benefits of increased visibility.

