Future Of Music

Last week host of Networking Musician Radio, David Vignola interviewed me about Music Power Network and the Future of Music.  Here is the audio interview along with a link to David’s site.  Great resource for indie artists.

Music Power Network provides a wide variety of music business education, tools, interviews and lots of resources for the D.I.Y. musician. The site also offers an equal wealth of information / education for producers, managers or publishers.

Decades before indie labels and DIY were the norm, and years before women had any real access in the industry, Cris Williamson was busy changing the face of popular music. Cris’s stellar vocals and compelling persona are regarded as legendary for good reason. Despite being like a well-kept secret, and dwelling almost completely in the independent music world, she nonetheless had an impact worldwide. Her now-legendary classic album, The Changer and the Changed, is one of the best-selling independent records of all time. For nearly 30 years, Cris has toured incessantly, selling out Carnegie Hall numerous times and headlining folk festivals around the country.

Here is an excerpt of her interview on MPN where she talks about the importance of gaining a foothold and going direct.

MPN is an online service for music business people and music and artist managers creating the future of the industry. MPN provides online musi…c business lessons, exclusive video interviews and advice, career and business planning tools and thousands of specially selected resources designed to help you achieve success in this ever changing industry. MPN gives you the tools, expertise and guidance to help you get organized and take your music career to the next level. Learn from industry experts, set your goals and realize your vision.

To see the full interview, click here.

The music industry is being reinvented before our very eyes. Learn how it is developing from today’s entrepreneurs including Ian Rogers from TopSpin, Steve Schnur from EA, and Derek Sivers and how you can capitalize on the changing opportunities.

MPN is my latest project and an online service for music business people and music and artist managers creating the future of the industry. MPN provides online music business lessons, exclusive video interviews and advice, career and business planning tools and thousands of specially selected resources designed to help you achieve success in this ever changing industry. MPN gives you the tools, expertise and guidance to help you get organized and take your music career to the next level. Learn from industry experts, set your goals and realize your vision.

Learn more at Music Power Network.

Learn from Grammy award winning producers like David Kershenbaum and Phil Ramone and leading publishers, A&R reps and music supervisors on the secrets of being a successful musician, producer or songwriter.

MPN is my latest project and an online service for songwriters, music producers and independent music publishers. MPN provides online music business lessons, exclusive video interviews and advice, career and business planning tools and thousands of specially selected resources designed to help you develop yourself as a successful industry professional. MPN gives you the tools, expertise and guidance to help you get organized and take your music career to the next level. Learn from industry experts, set your goals and realize your vision.

Learn more at Music Power Network.

Here are some ideas that you can use as a musician, band or artist from Music Power Network from artists Kelly Cha, Jill Sobule and J the S. There are a lot more videos like this on the site.

MPN is my latest project and an online service for independent musicians and bands. MPN provides online music business lessons, exclusive video interviews and advice, career and business planning tools and thousands of specially selected resources designed to help you achieve success as a self-sustaining artist in an ever changing industry. MPN gives you the tools, expertise and guidance to help you get organized and take your music career to the next level. Learn from industry experts, set your goals and realize your vision.

Learn more at Music Power Network.

We posted last December about Corey Smith, a clever artist who is blazing a new trail through the music business using entirely new ways of thinking. Corey’s whole business model is based on giving away lots of music for free and building relationships with his fans.  He does it primarily through touring and developing seriously close relationship with his fans. And it was this giving away of the music that was Corey Smith’s tour support. They didn’t have any label support, but grew their fan base. Because once people heard Corey’s music, they had to see him live. Which they did. In 2007, Corey Smith grossed $1.7 million. Last year Corey’s gross $4 million. Free music built the base.

Corey Smith made headlines when his independent music career slowly grew into a multi-million dollar business, selling out large venues normally reserved for those with chart topping hits. Corey toured diligently and worked hard to make honest connections with his audience. As his fan base grew, he stayed focused on building that connection and being intentional with his business decisions.

Get more at Music Power Network.

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.

The state of the music business is obviously in transition, but new models are beginning to work at various levels that shine a very positive light on the future of the music industry. For example, some of the predictions made in the Future of Music Book and in other places are beginning to come to pass, such as the abandonment of DRM, music subscription and licensing services, ad supported music and the ascent of the Indie artist and Indie label. Take a look at these examples:

You can now purchase MP3 files for download without DRM from all four major labels on Amazon.com, emusic and a growing list of music destinations. The predictions that an unprotected format would kill sales have simply not been true. These businesses are exploding.

Early proponents of the subscription models Napster and Rhapsody have survived and are growing.

There is active discussion of a flat-fee structure for music at major labels where once we were laughed out of the offices.

Indie Labels now account for upwards of 30% of total music sales, up from the low 20’s just a few years ago. This is a profound shift in the powerbase that favors the independent artist and innovator.

Social music sites such as LastFM, Pandora, iLike and many more are making the fans into tastemakers with the ability to promote and share great new music at the touch of a button.

This is all very good news for musicians, writers and artists who want control of their destiny and their careers.