We finally made it down to Austin with Automatic Fire yesterday, and it's safe to say that the kids are most definitely alright.  SXSW is a truly undeniable and amazing experience.  When folks descend on Austin, the entire town fills to the brim with music, people and energy and it's so refreshing to see just how hungry the mass populace is for new, live music.

There's no question that there's a huge contingent of the hipster elite here in town, and there's certainly no shortage of beautiful people, but the place is really Mecca for any awkward kid that took band in high school, or at least hung out with the band kids behind the gym, smoking cigarettes.

While SXSW is home to a major music conference, with speakers and events designed to attract industry-types and convention-hall presenters, the real jewels of the atmosphere are the live shows that take place at literally every bar and venue on every street, across a several-block radius.  Imagine if every dive bar you've ever hung out in were located next to each other, and each reeked of lime juice, tequila and the hunger to make your band hit the big time.

What adds to the dynamic is that with those industry folks inside the conferences all day, the kids really do seem free to run wild.

The days are filled with free shows and cheap beer and thousands of people moving back and forth through the heart of the city, going from venue to venue, VIP party to VIP party, and pizza place to ribs place, to bar.  At night, the temperature cools, the vibe changes, and all of the attendees who've been locked inside discussing 360-deals all day start mixing with the cool kids and listening to showcases and special performances, looking for the next great act.

Despite this being my first trip to the show, I suspect that things have changed from recent years.  One gets the impression that SXSW has become the Sundance or Cannes of the music world, where certain bands with a leg up on the competition come to present their acts to A&R, label, and management-types in hopes of walking away with money (sponsors) or distribution (a deal).

I'm not positive that this is a recent development, or the way it's always been, but the biggest indicator that a shift has occurred is that the industry people seem to be watching the people who are watching the bands, looking for what they find the most interesting and impressive.

This shift is not just related to SXSW, but the music industry at large.  We at Youguys Music often talk about heading towards where the puck is going, instead of where the puck currently is, and while it may seem cocky to say this, the activities of an industry that essentially turns regular audience members into de facto A&R people seems like heading to where the puck is.  It's obviously safe, and makes the investment (and risk) connected to picking up a new act, a much safer operation.

I can't (and don't) fault them for being cautious about who they sign for new deals - we are talking about a huge gamble that hasnt been paying great dividends lately - but I do hope they can see the larger point.

If you're going to basically focus-group an audience and see what they like before making the buy, then you should also embrace new ways of developing that audience in the first place.

That's the little part of the world we're trying to build.  If you create the best strategies for finding those audiences, then you can focus-group them to your heart's content.

Otherwise, the kids may be alright out in the desert, but the city may as well be burning to the ground.

- Ari Halbkram