Future Of Music

Our book is available in various forms.

You can listen to the book on iTunes as a podcast for free. Go to the iTunes store and search “Future of Music” podcasts and subscribe.

You can buy the book on Amazon for $11.53 or less.

You can purchase the audiobook from Audible for $7.49.

Here are a few of the reviews.

Publishers Weekly
Two innovators in music technology take a fascinating look at the impact of the digital revolution on the music business and predict “a future in which music will be like water: ubiquitous and free-flowing.” Kusek and Leonhard foresee the disappearance of CDs and record stores as we know them in the next decade; consumers will have access to more products than ever, though, through a vast range of digital radio channels, person-to-person Internet file sharing and a host of subscription services. The authors are especially good at describing how the way current record companies operate – as both owners and distributors of music, with artists making less than executives – will also drastically change: individual CD sales, for example, will be replaced by “a very potent ‘liquid’ pricing system that incorporates subscriptions, bundles of various media types, multi-access deals, and added-value services.” While the authors often shift from analysts into cheerleaders for the über-wired future they predict – “Let’s replace inefficient content-protection schemes with effective means of sharing-control and superdistribution!” – their clearly written and groundbreaking book is the first major statement of what may be “the new digital reality” of the music business in the future.

5.0 out of 5 stars THE FUTURE OF MUSIC IS NOW
Gian Fiero (Hollywood, California)
This book is so brilliant that it makes the vast majority of music industry books that are being published seem irrelevant. It discusses in detail, the reasons why the future of the music industry is headed into the digital/mobile entertainment era. It also provides statistical information that professionals, marketers, entrepreneurs, and educators can use constructively. Both Dave and Gerd (the books co-author), have their fingers firmly planted on current music industry activities and trends. They also possess and display a clairvoyant eye toward the future that offers beneficial insight and foresight to those who may not be aware of what this whole digital (i.e. independent) revolution is about, and most importantly, what it will entail to prosper in it. The book is easy to read, easy to understand and simply brilliant. If you buy just one industry book this year, this should be THE one. Buy it now!

5.0 out of 5 stars Indispensible
Stephen Hill “Producer, Hearts of Space” (San Rafael, CA USA)
A stunningly candid source of concentrated, up to date insight about the music business and its turbulent transition into the digital era. This book tells it straight and will make the dinosaurs of the music industry very unhappy.

Like Martin Luther’s ‘95 Theses’ nailed to the door of Wittenberg Cathedral, Kusek and Leonard drive nail after nail into the sclerotic heart of the old-fashioned music business. Their rational vision of the future of music rests on the idea of unshackling music from the hardcopy product business in a yet-to-be-realized era of open content licensing, facilitating sharing and communication among users, and growing the business to its full potential.

It provides as clear a vision of the future of the music industry as you will find, from two writers with a rare combination: a solid grounding in the traditional practices of the music business, an up-to-the-minute knowledge of the new technologies that are changing it, and the ability to think through the consequences.

I’ve dreamed about a book like this, but thought it would be impossible in today’s hyperdynamic environment where every week seems to bring a breakthrough technology, device, or service. But by digging out the underlying trends and principles Kusek and Leonard get under the news and illuminate it. Along the way they provide a brilliantly concise history of the evolution of digital media.

I can’t think of any book more important for artists to get the full re-orientation they need to survive and prosper in the digital era. It’s no less critical for members of the music and broadcasting industries who need to consolidate their thinking into a coherent roadmap for the future. In a word: indispensible.

MySpace had everything it needed to establish a truly revolutionary music model. Loads of indie artists and millions of fans all interacting online on the MySpace platform and the opportunity to connect them and enable commerce. Bands could post their tracks and sell them directly to their fans, all that was really missing was a better way to promote the music. This was the hard work that MySpace failed to do.

As the LA Times reported yesterday, MySpace Music relaunches, tries to turn up revenue volume with loads of major label content and a partnership with Amazon.

“Although MySpace was a pioneer in giving unsigned musicians a voice, the social network struggled to leverage that momentum into a revenue-generating business. (Well actually it didn’t really try that hard. A failed experiment with the defunct SnoCap was about it, because they sure didn’t share any banner advertising revenue with anyone).

Details of the new MySpace Music are now as familiar as the lyrics to any hit pop tune. MySpace’s 120 million worldwide users will be able to create and share playlists, as well as listen to songs or albums in its digital catalog for free. If users want to put the tracks on a portable music player, they need to buy them through Amazon.com.

However, this revamped MySpace Music falls short of the comprehensive one-stop online music store DeWolfe described last spring when he announced the service. At that time, he promised that music aficionados could not only listen to and purchase songs but also buy concert tickets or a band’s T-shirt.

Instead, MySpace went for the basics. Users will be able to search for music by artist, song title or album, then place it on a playlist that can hold as many as 100 tracks. The songs can also be added to a shortened playlist on a MySpace profile page, where others can hear it. Other features will be added over time.

The playlist is hardly an innovation. Other online services, such as the start-up Imeem and Last.fm, which is owned by CBS, offer free streaming and ways for friends to share their virtual mix tapes. These smaller rivals say they’re not worried about the competitive threat from MySpace, noting that they had a head start.

“Retrofitting an older legacy online service is like trying to turn the cargo ship toward the more nimble speedboat,” said Steve Jang, chief marketing officer at Imeem.

“There are 120 million unique users every month on MySpace,” DeWolfe said. “It’s the largest music community in the world.” (Well it is debatable whether slapping major label content on MySpace makes it the ‘largest music community in the world’ – but we will see.)

Most of the revenue for MySpace Music, at least early on, will come from advertising. Music industry executives hope that a global audience will lure advertisers eager to reach a youthful, music-loving demographic. (Oh great – McDonalds here we come).

The music industry could use fresh sources of revenue to supplement traditional CD sales, which have fallen precipitously since 2000. CD shipments in the U.S. are down 46% (that’s right) over the last seven years, and digital sales haven’t come close to making up that shortfall, according to the Recording Industry Assn. of America’s statistics.

All four major music labels — Sony BMG, Universal Music, Warner Music and EMI — together own a 40% stake in MySpace Music, so they stand to gain financially if the venture attracts enough advertising. Moreover, the labels hope that by creating a social environment where people can discover music, they’ll be more likely to buy it.

But by aligning itself with the corporate music establishment, MySpace risks losing its “indie” feel, said Dave Kusek, vice president of Berkleemusic.com, the online extension school for the Berklee College of Music in Boston. “It’s a complete 180 on their part, in terms of where they came from and what made them so cool, and really what attracted their initial audience,” Kusek said.”

Read the LA Times article here.

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Here is an excerpt from an email sent by the indie conglomerate “The Orchard” to their members yesterday, explaining why – once again – the indie artist is excluded from this big media play. Some things never change. Seems to me like the Orchard “got sprayed”.

“The major labels received equity in MySpace Music. Despite our best and ongoing efforts, MySpace Music executives have indicated that independents as a sector will not receive equity. If equity is ever given to independents, The Orchard has assurances that our clients will be included. We will continue to press the issue with MySpace management on behalf of all independents, not just our clients, as we disagree with the decision of MySpace and do not feel it is an enlightened perspective towards the independent sector. And, to the extent we find future success, we reiterate a point we made before, which is: if we ever secure equity for you, it will all go to you;

While we don’t agree with MySpace’s position, we do believe there is bigger opportunity at play and that “equity” can be a red herring when compared to getting fair rates as far as percent of ad sales (which is where we see the real value of this service in the long run). We have secured aggressive commercial terms on your behalf, and we think this is most important;

The revenue potential from MySpace Music, and from this new type of ad-supported business, will take place over the long term. Money won’t start flowing overnight. And, the potential of this service rests in the hands of you: the artists and labels. Like the so-called “Long Tail”, it won’t magically occur, but instead, is simply a possibility. The more you and/or your artists engage with MySpace Music, and get your fans to engage, the more money you’ll make;

We do not believe the service will be cannibalistic to the a la carte download market but see it as an entirely new and complementary form of value creation. In the long term (meaning, more like 5 years, and not 5 months!), we believe it will evolve into a larger industry segment than exists currently in the format-based world.”

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Ok, so here’s the bottom line. MySpace takes a vibrant community of musicians (5 million) and fans (120 million) and sells the whole thing out to the major labels for a 40% cut. No equity available for indie labels or artists. Any be sure of this – the equity owned by the major labels will not find its way to any of their artists. Big media wins again.

Rather than trying to encourage the direct-to-fan model that they once touted as they encouraged indie artists to post their music and develop their friends – MySpace hands it all over to the combine. THIS IS NOT THE FUTURE OF MUSIC.

Here is another presentation by my co-author Gerd Leonhard on “The Future”. It is a little long (63 mins) but very interesting and inspiring. Anyone seeking to understand how to make money in the face of free music should watch this very carefully, and learn.

These days there are hundreds of options for acquiring music from free legal download and streaming services. Many of these sites offer streaming and/or downloading options. Some are up there for the love of music, some are driven by advertising and some are building business models behind the scenes. They are alternatives to paid services like iTunes, Rhapsody and Napster.

There are an ever expanding number of these services that offer great music from both established and emerging artists. Free Geekery has compiled an interesting list of 100 of these sources for your music enjoyment. Happy listening.