What is the future of the music business? Nobody really knows for sure, but these two recent articles from the New York Times spot some emerging trends which you may find to be of interest.
Deep Shifts in the Music Business
Polyphonic and similar new ventures are symptomatic of deep shifts in the music business. The major labels - Sony, Warner Music, EMI and Universal Music - no longer have such a firm grip on creating and selling professional music and minting hits with prime placement on the radio.
Much of that has to do with the rise of the Internet as a means of promoting and distributing music. Physical album sales fell 20 percent, to 362.6 million last year, according to Neilsen, while sales of individual digital tracks rose 27 percent, to 1.07 billion, failing to compensate for the drop. Mindful of these changes, in the alst few years marquee musicians like Trent Reznor, the Beastie Boys and Barenaked Ladies have created their own artist-run labels and reaped significant rewards by keeping a larger share of their revenue.
You can click here to read the full article about how artists are now finding new ways to successfully market their music without ever signing a traditional record contract.
Streaming, Not Stealing?
Two recent studies of online behavior contribute to this optimistic view. In June, two British research agencies, MusicAlly and The Leading Question, generated a wave of headlines in the tech press after reporting that the percentage of 14 to 18 year olds using file-sharing at least once a month dropped to 26 percent in January 2009 from 42 percent in December 2007.
Similarly, a survey by the NPD Group in the United States this spring found that teenagers aged 13 to 17 illegally downloaded 6 percent fewer tracks in 2008 than in 2007, while more than half said they were now listening to legal online radio services like Pandora, up from 34 percent the year before.
Click here to read the full article on the ways people are leaning toward legal ways of listening to digital music.
How Can You Benefit From These Trends?
One of the most effective strategies is something that is as old as the music business - developing a bond with your audience. That relationship between an artist, the music and their fans is something that is made easier than ever because of advancing technology. Here are three ways we see clients succeeding:
1. Go where your fans are - Whether it's YouTube, MySpace, Twitter, Facebook, Pandora, or your website, you want to make sure you are where your fans can find you easily.
It's like the old joke: "Why do robbers target banks? Because that is where the money is!" Go where your fans are and make it easy for them to connect with you. We recommend a quick audit of your online properties to make sure they are current.
2.Offer value - With all this free streaming music and the changing landscape, fans are all looking for value. Give it to them by offering free downloads of your songs, streams on your website, exclusive video and content. Your fans will appreciate it, becoming more loyal and helping you to spread the word. For example, in the Caruso eCard in this newsletter, we're offering fans a free video of a new song.
3. Build relationships online by building a community - In the Selah Stories promotion highlited in this newsletter, we are helping Curb Records build the Selah fan community by building a message board where fans can share their stories. It's just one way you can build a lasting relationship with your fans online.
What does the future hold? It's hard to say exactly, but it sure is interesting trying to figure it all out!
If you've got an answer and want to share, post it in our online community (Facebook, MySpace, Twitter).
Best,
Michael