I have been fortunate enough to be an active participant in the new music economy through various projects and business dealings I have carried out under my business 360 Street (@360Street on Twitter). I will therefore use this platform to share my thoughts and experiences as part of sharing my journey with you in the hopes of empowering you to take charge of your music and utilize the ever-increasing opportunities and ultimately help you monetize your brand.
As a music executive I find myself in daily discussions with artists, artists managers, other music executives, advertising guys and so forth about the future of the music business. I find a lot of the people I chat to on this subject are mostly confused or insecure about the future of the music business, some even go as far as giving their premature autopsies telling me how the music business is on its death bed. So it’s with little wonder that they get startled at my excitement and optimism about the abundance of opportunities in the music business. To see these opportunities I speak of you need to THINK DIFFERENT. You have to look beyond the seemingly tantamount problems and focus on adapting to the new order – THE NEW MUSIC ECONOMY.
We have all heard the phrase ‘ADAPT OR DIE’, It may seem exaggerated, threatening … but for the music industry, these are the only two alternatives. And they have never seemed so real. In today’s world our live are to a large degree dependant on technology, from how we socialize and communicate to how we consume and enjoy music amongst others.
Technology has impacted the music industry and has completely disrupted the traditional value chain. On the one hand, technology has played a major role in the continuous downward spiral of CD sales, the rise of digital piracy (think all the download links people exchange on a daily basis) and the demise of the traditional retailer (Walk into any record store and it immediately becomes clear that things done changed). On the other hand, technology has empowered music creators and emerging labels with a platform to better connect with fans, promote product and open up new revenue opportunities/streams.
Fortunately for you and I, Mike Masnick of Techdirt simplified the new music economy to this formula; Connect with Fans (CwF) + Reason to Buy (RtB) = Money/Success/Fame.
Let’s Go!
- Learn to apply this formula in your career and I guarantee you, you will have success with your music.
- The biggest issue in the music industry is not the price but rather the millions of ‘free’ content (the market does not look at this as music piracy but rather free content).
- It is becoming increasingly hard to develop and expose new talent. Less than 10% of the music released into the market represents 70% of the radio airplay
- Direct market to your fans. Create a set of marketing initiatives focused primarily on the monetization of the relationship between artist and fan. This business model no longer depends solely on radio air-play or TV broadcast. It depends mainly on YOU as the artist and how you maintain the relationship between YOU and your fans.
- Find your fans, attract their attention, connect with them, create loyalty, give them reason to buy and you will earn money.
Technology makes it easy to connect with your fans, cultivate and maintain the relationship:
- YOU need a website, a website is your online home. If you are an artist and you do not have a website, the YOU have FAILED your CAREER.
- Facebook is key. It allows you to know your fans. Knowing your fans is VITAL!
- Bandcamp, Soundcloud and ReverbNation are great platforms to get your music out. They are the new MySpace.
- YouTube allows you to broadcast yourself to the world.
- Email and newsletters are still weapons of mass seduction.
- Twitter reaches everybody.
Follow Mike’s formula and the rules I have given above and you will soon be an active participant in THE NEW MUSIC ECONOMY.
Remember sharing is caring, spread this article to as many of your friends as possible.
Till the next one.
Thabiso Khati
