The music industry is about to change in a profound way as it turns to streaming as its primary distribution model.For labels, artists, songwriters and musicians alike, their financial lives may hang in the balance.
Entries in music business (74)
With a rise in social TV, multi-channel engagement, and recent reports suggesting that there are more mobile phones than people in 4/6 of the World’s regions, this year will no doubt be an interesting one for social media, but how will these trends impact the music industry?
When you hear, “It’s all who you know,” it sounds so intimidating - like you need to be a former roommate of Mark Zuckerburg, cousins with Richard Branson, and dating Taylor Swift.
But simply contacting a stranger can lead to a worldwide network of connections.
Whether they ever choose to regain some of their former financial stature and growth, record companies, majors and indies alike, along with unsigned and unknown independent artists, too, must cultivate and create, as quickly as possible, a SINGLE new digital marketplace. Here competition will flourish and some semblance of reasonable choice and control over the discovery of new artists with original new music will be exercised by whatever is left of the music listening mainstream audience. In this brave new world, record companies will need to collaborate and combine forces with each other and with independent artists at large. They will need to move quickly to consolidate into one place a dynamic customer base made up of the depleting record companies’ sales bases along with the ever increasing independent artist fan bases. The passionate members of the music listening public will ultimately choose to gather in this one place and make quick decisions about new music and new artists.
Well, of course you do, but aim to have a boatload of material so you don’t have just your resume to show prospective employers. And then, during your first job, find time to do your own thing, by any means necessary, so that you don’t really need that resume after that. I landed the second job of my career with the film production house, Second Story Television without any resume at all. That was because I started that company with a few friends after gleaning enough experience and connections from working at a small film production company/ad agency based on the famed Madison Avenue in NYC. And jobs after SST were mostly pulled in from my network of friends. That’s the key and the underlying thought behind this bloggette: building your career, yourself, again, by any means necessary.
We’ve all heard the complaints about the current Music 3.0 music industry model: physical product doesn’t sell anymore, download sales don’t make up for the shortfall, and streaming music cannibalizes sales and pays a pittance in royalties. Then let’s heap on the accusation that music today is so formula and soul-less and generally a shadow of what it once was. But how does that explain the recent success of Mumford & Sons and Adele? Here are two principles that hold true in any age.
Last week I asked a question on my Facebook page which was:- “QUESTION! For anyone looking to get a job in the music business. I’m looking for 7 questions that you would like answered as to how to get a job in the music industry. What would you like to know?” I got a couple of questions back which I thought I would answer in blog form as the answers would be too long for Facebook comments so here there are – incidentally if anyone else has a question that they need help with please post it on my Facebook page and I will answer it for you.
“This is my last chance, my last kick at the can.”
i heard those words today… and it stung.
don’t say that.
The Last Chance Saloon,
a funeral parlor
for ambitions not achieved.
saying these fateful words means:
…you’ve already created a conscious limitation for yourself.
…you’ve already thrown up a barricade you won’t maneuver past.
…you’ve already signed a death warrant on your future potential.
I created the conceptual model to understand the independent variables that help predict music consumption, along with predicting how much change in those independent variables can impact one’s consumption of music in a way that leads to revenue for an artist, an artists’ label et al.
When I was in college, I held several part time jobs to make ends meet. One of those part time jobs was playing guitar at a few restaurants every month. Nothing glamorous, but I was happy to be playing guitar. I started keeping track of how much money I made on those gigs to see if I could justify quitting one of the other part time jobs.
It turns out keeping a detailed list of my music income has served me well over the last 10 years. I was eventually able to justify quitting all of my day jobs and become a full time musician, and since being a full time musician, I’m able to keep a finger on the pulse of my various streams of musician income. Just as a shop owner keeps track of her inventory and carries whatever products are in demand, I’ve been able to assess and adjust my inventory of music jobs that keep me in business.
Over the last 10 years the way I make a living has changed dramatically. I’ve never made a lot of money, but I’ve been able to make more each year despite the changes in the music industry and economy in general. Here’s my method and what I’ve learned along the way.
Electronic Dance Music (EDM), and to a lesser extent Hip Hop, are much better poised to thrive in the new music industry than traditional bands (live guitarists, drummers, vocalists, etc). Lefsetz has been talking about this phenomenon for a while but it’s only been recently that the truth of his claims have become apparent..
Traditional bands have, and always will, exist. I’m not arguing that. What I am saying is that the environment for the new music industry is far more favorable towards electronic music than it is traditional bands. If we take equal amounts of each type of band, over time we’ll see more electronic groups for all of the reasons listed below.
For more and more musicians, the idea of stardom seems to be further and further away. While some still see stars in their eyes, a great number have come to the realization that the goal is now a lot different, since just making a living in music can now be considered a success.
So the big day is fast approaching. You are leaving the ivory tower of college in a few weeks and are about to enter the work force. Most likely the only thought on your mind is how to get a job.
The ideal is to have a job locked up and waiting for you before you graduate, so you can enjoy your last month at college. This is what all your friends in other majors are doing. The computer scientists are getting flown across the country and eating lobster. The engineers are meeting with on campus recruiters. The management and business students have already found a good position at the bank where they interned.
The music industry does not work this way. Very few companies hire in advance. Music companies are not structured to wait several months for an entry-level candidate to graduate college. They hire when they need a body, not because there is an influx of new talent every spring, like some other industries. While this is frustrating, it actually creates a new opportunity.
Your goal as you enter the music industry should not be to find a job, but rather to develop a career. Getting your first job will be a byproduct of this process, but jobs are temporary and a career lasts a lifetime.
Think of your career development in four levels
Recently music industry analyst Mark Mulligan presented his plea for a serious adoption of a new music format. He claims that most new business model ideas in the music business are retail innovations, but not format innovations. In short, he argues that the new music format should be Dynamic, Interactive, Social and Curated (DISC). For the full vision, check out his speech at midem 2012, or read his full 15-page ‘manifesto for the next generation of music products’.
In my thesis about marketing music through non-linear communication, I wrote a case-study about a record label called Twisted Music and their remarkable adoption of an excellent business mentality for the digital age.
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(Updated January 13, 2016)