Future Of Music

Get Busy Committee

My friend Ian Rogers, CEO of Topspin has started to co-manage the band “Get Busy Committee“.  He has begun to blog about ALL the activities that an artist manager needs to drive their band to success.  It is a fascinating read and a real world education on how to take a band to market in the new music business.  This is going to be really fun to watch as Ian lays out step by step what he is doing to break this band and “get busy” in the marketplace.

To bring a band to market in today’s indie music market is a hell of a lot of work.  You need to be an entrepreneur and you need to build a team of people to help you market, package, promote, distribute, brainstorm, license, and develop a successful artist.  Ian is taking the indie artist management route described at Music Power Network.

Here are some excerpts from his blog.  Required reading for the indie artist and manager today:

The first thing we did was define success: as I mentioned earlier, the goal is to get this music to as many people as possible, connect directly with the ones who like it, build products those people want to own, and turn a profit. Sure it would be great to make enough money that Get Busy Committee could be their primary income, but we definitely aren’t starting with the “if we don’t get a song on a radio this is a failure” mentality. We are starting at zero. The goal is to grow every single week and not lose money.

We started by putting together a release plan. I opened a Google Doc and started dropping ideas and info into it, and encouraged others to do the same. We needed a team, so we started assembling the roster of people, services, and tools which would help us get this record out the door:

Building a Team

Press Relations and Marketing
Creative Direction
Web site design and development
Digital distribution
Physical Distribution
Non-traditional physical manufacturing
Performing rights organizations
Legal

While getting the album to iTunes is the main thrust for a lot of artists, it’s only part of the story (and a very small part so far) for us. We’ve been preparing for this release for months, started selling the album in six different package two weeks ago, are selling the album for $1 on MySpace all weekend, and much more.

Web Site

The object was to make the site:

Home base. The top SEO result for “Get Busy Committee” and anything else related to the band.

Vibrant. It should update with the latest information about Get Busy Committee with very little effort, from a variety of sources. Furthermore, we weren’t going to spend time or money building any of these tools from scratch. We integrated WordPress and Twitter to make sure it was easy to update with long or short-form updates (respectively) easily.

A fan acquisition tool. The site should be sticky like fly-paper. If you visit the site you should have an incentive to leave behind your email address, follow GBC on Twitter, become a fan on Facebook, a friend on MySpace, friend on Flickr, subscriber on YouTube, or subscribe via RSS. We may only get one chance to make a connection with you. We don’t want you to bounce in and bounce out without granting us permission to reach out to you later with an update.

A tool for fans to create other fans. Every page of the site is instrumented with simple ways to share on Facebook and Twitter, and feedback for having done so either in the form of a counter or free music for having done so. We want it to not only be easy to spread the word but for you to be recognized for having done so.

A place to convert at whatever level of fan you happen to be. Never heard of Get Busy Committee? No problem, you can stream the record or download a few songs for free. Super fan? How about the T-Shirt/USB Flash Drive combo for $55? Somewhere in between? No worries. We have something for you.

Useful. If you’re a college radio DJ who needs a clean version to play on your show or a beatmeister who wants an acapella to remix that should be easy to find. If you’re a blogger writing about the band there should be, even if it’s not linked from the front page. Anything you email to people regularly should be on the site and easily linked to.

Read much, much more about marketing, pricing, making connections, creating awareness and all the things a smart artist manager needs to know.  Brilliant!

Thanks Ian.

Ian Rogers and his team at Topspin are on in.  Listen to what he has to say in this brief interview from Wired and think how it can apply to your situation.

The more you know, the better decisions you can make and the further you can go.  Simple as that. Topspin is generating data, as are Nimbit, Reverbnation and others.

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.

As the influence of major labels erodes, licensers are seizing their chance to be talent scouts. They can be good at it, song by song, turning up little gems like Chairlift’s “Bruises,” heard in an iPod ad. For a band, getting such a break, and being played repeatedly for television viewers, is a windfall, and perhaps an alternate route to radio play or the beginning of a new audience. But how soon will it be before musicians, perhaps unconsciously, start conceiving songs as potential television spots, or energy jolts during video games, or ringtones? Which came first, Madonna’s “Hung Up” or the cellphone ad?

And as music becomes a means to an end – pushing a separate product, whether it’s a concert ticket or a clothing line, a movie scene or a Web ad – a tectonic shift is under way. Record sales channeled the taste of the broad, volatile public into a performer’s paycheck. As music sales dwindle, licensers become a far more influential target audience. Unlike nonprofessional music fans who might immerse themselves in a song or album they love, music licensers want a track that’s attractive but not too distracting – just a tease, not a revelation.

Good summary of this trend by the NYTimes Herald Tribune.

The Long Tail theory is being challenged by a pair of researchers from the UK. A new study by Will Page and Andrew Bud, of the MCPS-PRS Alliance, the not-for-profit royalty collection society, suggests that the niche market is not an untapped goldmine and that online sales success still relies on big hits.

“I think people believed in a fat, fertile long tail because they wanted it to be true,” said Mr Bud. “The statistical theories used to justify that theory were intelligent and plausible. But they turned out to be wrong. The data tells a quite different story. For the first time, we know what the true demand for digital music looks like.”

They found that, for the online singles market, 80 per cent of all revenue came from around 52,000 tracks. For albums, the figures were even more stark. Of the 1.23 million available, only 173,000 were ever bought, meaning 85 per cent did not sell a single copy all year.

Read more here.

I recently interviewed Ian Rogers of Topspin Media for a new project I am working on the – “Future of Music Toolkit”. More to come on that later…

Ian brought me up to speed on the development of the Topspin platform for music promotion. They are creating very cool marketing software and services to help artists and their partners build businesses and brands. This is clearly part of the future. Here are some comments from Ian and a link to his presentation to The Recording Academy at the GRAMMY Northwest MusicTech Summit 2008.

“The lamenting we read in the press is not the story of the new music business. Continuing to talk about the health of the music industry on these terms is as if we’d all been crying about the dying cassette business in 1995. The difference is that when we moved from cassette to CD the winners were the same (big companies who owned access to cash, distribution, and marketing) and the definition of winning was the same (more units sold for these big companies).

Music consumption isn’t declining: iPod sales up 59% Y/Y (source: Apple), P2P filesharing volume up 35% Y/Y(source: NPD), audio streaming up 25% Y/Y (source: Accustream). And despite the endless discussions about the “pirates,” there isn’t an unwillingness to pay for music, either: 1.6B decisions to buy music in 2007, up from 1.3B in 2006 (source: Neilsen Soundscan), 40% Y/Y increase in worldwide digital music sales (source: IFPI), 8% Y/Y increase in North American concert revenue — an all-time high (source: Forbes.com), 40% paid an average of $5 in Radiohead’s pay-what-you-want model, Nine Inch Nails self-release generates $1.6M in first week sales, includes sell out of $300 box set in first 48 hours (source: NIN.com).

IMHO the only perspectives that matter, that of the artist and the fan. I see news about the health of the music industry as defined by the stock price of WMG or quarterly earnings of UMG, Sony, and EMI every day. What I don’t see, apart from a few articles on Radiohead and Nine Inch Nails, is an update on how the world is changing from the artist point of view. But I tell you, when I talk to managers and artists they feel it, they feel an ability to take their careers into their own hands, to redefine what success means for them, and that is the emergence of the new music business.

I say this with all respect to our friends in the existing music business. We all know smart people who are busting their asses trying to solve the Innovator’s Dilemma those companies are facing.

Again, there are only two players in the music business that matter at the end of the day: the artists and the fans. The rest of us either add value or get in the way. Don’t get me wrong, over the years labels have added a tremendous amount of value through financing, A&R, marketing, promotion, etc. I’m just saying that every player needs to either understand how it truly adds value or it needs to get out of the way, Topspin included. Our business does not operate on lock-in, ownership of copywritten work, or long-term contracts. We either add value today with a compelling service or we die. And I’m perfectly happy with that.”

See Ian Roger’s complete presentation here.

I recently interviewed Ian Rogers of Topspin Media for a new project I am working on the – “Future of Music Toolkit”. More to come on that later…

Ian brought me up to speed on the development of the Topspin platform for music promotion. They are creating very cool marketing software and services to help artists and their partners build businesses and brands. This is clearly part of the future. Here are some comments from Ian and a link to his presentation to The Recording Academy at the GRAMMY Northwest MusicTech Summit 2008.

“The lamenting we read in the press is not the story of the new music business. Continuing to talk about the health of the music industry on these terms is as if we’d all been crying about the dying cassette business in 1995. The difference is that when we moved from cassette to CD the winners were the same (big companies who owned access to cash, distribution, and marketing) and the definition of winning was the same (more units sold for these big companies).

Music consumption isn’t declining: iPod sales up 59% Y/Y (source: Apple), P2P filesharing volume up 35% Y/Y(source: NPD), audio streaming up 25% Y/Y (source: Accustream). And despite the endless discussions about the “pirates,” there isn’t an unwillingness to pay for music, either: 1.6B decisions to buy music in 2007, up from 1.3B in 2006 (source: Neilsen Soundscan), 40% Y/Y increase in worldwide digital music sales (source: IFPI), 8% Y/Y increase in North American concert revenue — an all-time high (source: Forbes.com), 40% paid an average of $5 in Radiohead’s pay-what-you-want model, Nine Inch Nails self-release generates $1.6M in first week sales, includes sell out of $300 box set in first 48 hours (source: NIN.com).

IMHO the only perspectives that matter, that of the artist and the fan. I see news about the health of the music industry as defined by the stock price of WMG or quarterly earnings of UMG, Sony, and EMI every day. What I don’t see, apart from a few articles on Radiohead and Nine Inch Nails, is an update on how the world is changing from the artist point of view. But I tell you, when I talk to managers and artists they feel it, they feel an ability to take their careers into their own hands, to redefine what success means for them, and that is the emergence of the new music business.

I say this with all respect to our friends in the existing music business. We all know smart people who are busting their asses trying to solve the Innovator’s Dilemma those companies are facing.

Again, there are only two players in the music business that matter at the end of the day: the artists and the fans. The rest of us either add value or get in the way. Don’t get me wrong, over the years labels have added a tremendous amount of value through financing, A&R, marketing, promotion, etc. I’m just saying that every player needs to either understand how it truly adds value or it needs to get out of the way, Topspin included. Our business does not operate on lock-in, ownership of copywritten work, or long-term contracts. We either add value today with a compelling service or we die. And I’m perfectly happy with that.”

See Ian Roger’s complete presentation here.

Here’s an email from Trent Reznor of Nine Inch Nails to his fans. Here is a band that is inventing their own future and building their fan base directly. Take note, this is how it is done… Awesome. (Thanks to Mike King for this one).

Subject: Nine Inch Nails survey

Message from Trent:

Hello everyone. I’d like to thank everyone for a very successful year so far in the world of Nine Inch Nails. I’m enjoying my couple of weeks off between legs of our Lights In The Sky tour and got to thinking… “wouldn’t it be fun to send out a survey to everyone that’s shown interest in NIN?” Well, that’s not exactly how it went, but regardless – here it is. As we’ve moved from the familiar world of record labels and BS into the unknown world of doing everything yourself, we’ve realized it would benefit us and our ability to interact with you if we knew more about what you want, what you like, what you look like naked, etc. I know it’s a pain in the ass but we’d truly appreciate it if you’d take a minute and help us out. As an incentive, everyone who completes the survey will be able to download a video of live performance from this most recent tour (and I know what’s going through your little minds right now: “I’ll just grab this off a torrent site and not have to fill out the survey!!!” and guess what? You will be able to do just that and BEAT THE SYSTEM!!!! NIN=pwn3d!!!) BUT What if we were to select some of those that DO complete the survey and provide them with something really cool? I’m not saying we’ll ever get around to it, but if we did maybe something like signed stuff, flying someone to a show somewhere in the world, a magic amulet that makes you invisible, a date with Jeordie White (condoms supplied of course), you know – something cool. See, you’d miss that opportunity AND be a cheater. Do the right thing – help us out. You’ll feel better.

Thank you and I’ve had too much caffeine this morning, Trent

You wanna take the survey? Click here.

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.

An article in Portfolio by Kevin Maney describes the current music industry as “This flurry of experiments is painful but probably necessary, like a teenager’s goth phase. The endgame is clear, however. Sometime in the next decade, ‘free music’ will win. Artists will give away recorded music and consider it promotional, just like music videos. All of the revenue in music will be generated in other ways.”

Read the whole thing here.

An article in Portfolio by Kevin Maney describes the current music industry as “This flurry of experiments is painful but probably necessary, like a teenager’s goth phase. The endgame is clear, however. Sometime in the next decade, ‘free music’ will win. Artists will give away recorded music and consider it promotional, just like music videos. All of the revenue in music will be generated in other ways.”

Read the whole thing here.

Great coverage from Rolling Stone.

While up-and-coming bands may find most of their licensing offers in the $2,500 range, established bands can make much more: from $30,000 at the high end for TV shows to $100,000 for movies and $250,000 for commercials. To introduce last year’s Sky Blue Sky, Wilco licensed six of the album’s songs to Volkswagen for ads. And the veteran duo They Might Be Giants, who have been releasing recordings on their own for the last six years, made a deal with Dunkin’ Donuts for around $1 million to create original music for over two dozen spots, according to industry sources.

Perhaps no band has been more aggressive — or creative — with its licensing than OK Go. When the group treadmilled its way to YouTube stardom in 2006 with the no-budget video for “Here It Goes Again,” it was having the kind of careermaking hit that bands dream about, just as the commercial record industry was tanking. So OK Go manager Jamie Kitman sought licensing opportunities for the group — making deals for its music to be used in everything from TV commercials and video games to corporate seminars and cable TV “bumpers” (the music that’s used to come in or out of a program). Kitman estimates that when all the uses are tallied, OK Go will have granted more than 200 licenses and made old-fashioned hit-record money. “The accepted wisdom now is that no one is selling records,” Kitman says. “So how do you keep the wheels on the bus? There’s a person in my office who spends half her time fielding licensing queries.”

Ian Montone, whose Monotone Management handles the White Stripes, Vampire Weekend, the Shins, M.I.A. and the Raconteurs, says his bands no longer make most of their money on CD sales. “A lot of artists are looking toward touring and merchandising sales at shows, because that market is still vibrant if you grow it methodically,” he says. The Shins have licensed songs for use in commercials for McDonald’s and Zune. Still, Montone says the Shins turn down 90 percent of the licensing deals they’re offered. So why McDonald’s? “Why not?” says Montone. “They have kids and want to own houses.”

By comparison, the White Stripes have focused on touring and coming up with creative merch: The band sells limited-edition CD singles on the road, as well as unique posters created for each show. “We do that because it’s something special for the fans, but it’s also a way to make money,” Montone says. “I think you’re going to see artists doing more direct-to-consumer sales.” The Stripes have already been able to reapportion the record-company pie to their advantage: The band owns its masters and strikes distribution deals with the major record companies on an album-by-album basis.

Those kinds of partnering relationships are also being sought by the major record companies, who are offering artists better money if they sign deals that include more than just recording rights. Generally referred to as “360 deals” because they seek to cover every facet of an artist’s career, including publishing, touring, merchandising and licensing, the new deals are a way for record companies to hedge their bets in a declining record market and to recast themselves as music — rather than just recording — companies.

Advertisement

One of the savviest labels is Fueled by Ramen, which boasts Fall Out Boy, Panic at the Disco, Paramore and Cute Is What We Aim For. “A lot of people hear about 360 deals and think it’s a land grab, but when you own the content, there are so many interesting things you can do,” says John Janick, who started the label in 1996 while going to college in Gainesville, Florida.

Unlike conventional labels, Fueled by Ramen, which has a partnership with Atlantic Records, does everything in-house: from building Websites that sell merchandise and recordings to producing the T-shirts it sells at chains like Hot Topic. In fact, Fueled by Ramen uses T-shirts to introduce fans to new music — both Panic at the Disco and Paramore placed tags on shirts with PIN codes that enabled buyers to download advance singles at home. “We’re creating a culture for each artist,” Janick says. “Obviously everyone is still looking for new ways to monetize recordings, but our company is growing into many other areas, and that’s great.”

Read more here.

Great coverage from Rolling Stone.

While up-and-coming bands may find most of their licensing offers in the $2,500 range, established bands can make much more: from $30,000 at the high end for TV shows to $100,000 for movies and $250,000 for commercials. To introduce last year’s Sky Blue Sky, Wilco licensed six of the album’s songs to Volkswagen for ads. And the veteran duo They Might Be Giants, who have been releasing recordings on their own for the last six years, made a deal with Dunkin’ Donuts for around $1 million to create original music for over two dozen spots, according to industry sources.

Perhaps no band has been more aggressive — or creative — with its licensing than OK Go. When the group treadmilled its way to YouTube stardom in 2006 with the no-budget video for “Here It Goes Again,” it was having the kind of careermaking hit that bands dream about, just as the commercial record industry was tanking. So OK Go manager Jamie Kitman sought licensing opportunities for the group — making deals for its music to be used in everything from TV commercials and video games to corporate seminars and cable TV “bumpers” (the music that’s used to come in or out of a program). Kitman estimates that when all the uses are tallied, OK Go will have granted more than 200 licenses and made old-fashioned hit-record money. “The accepted wisdom now is that no one is selling records,” Kitman says. “So how do you keep the wheels on the bus? There’s a person in my office who spends half her time fielding licensing queries.”

Ian Montone, whose Monotone Management handles the White Stripes, Vampire Weekend, the Shins, M.I.A. and the Raconteurs, says his bands no longer make most of their money on CD sales. “A lot of artists are looking toward touring and merchandising sales at shows, because that market is still vibrant if you grow it methodically,” he says. The Shins have licensed songs for use in commercials for McDonald’s and Zune. Still, Montone says the Shins turn down 90 percent of the licensing deals they’re offered. So why McDonald’s? “Why not?” says Montone. “They have kids and want to own houses.”

By comparison, the White Stripes have focused on touring and coming up with creative merch: The band sells limited-edition CD singles on the road, as well as unique posters created for each show. “We do that because it’s something special for the fans, but it’s also a way to make money,” Montone says. “I think you’re going to see artists doing more direct-to-consumer sales.” The Stripes have already been able to reapportion the record-company pie to their advantage: The band owns its masters and strikes distribution deals with the major record companies on an album-by-album basis.

Those kinds of partnering relationships are also being sought by the major record companies, who are offering artists better money if they sign deals that include more than just recording rights. Generally referred to as “360 deals” because they seek to cover every facet of an artist’s career, including publishing, touring, merchandising and licensing, the new deals are a way for record companies to hedge their bets in a declining record market and to recast themselves as music — rather than just recording — companies.

Advertisement

One of the savviest labels is Fueled by Ramen, which boasts Fall Out Boy, Panic at the Disco, Paramore and Cute Is What We Aim For. “A lot of people hear about 360 deals and think it’s a land grab, but when you own the content, there are so many interesting things you can do,” says John Janick, who started the label in 1996 while going to college in Gainesville, Florida.

Unlike conventional labels, Fueled by Ramen, which has a partnership with Atlantic Records, does everything in-house: from building Websites that sell merchandise and recordings to producing the T-shirts it sells at chains like Hot Topic. In fact, Fueled by Ramen uses T-shirts to introduce fans to new music — both Panic at the Disco and Paramore placed tags on shirts with PIN codes that enabled buyers to download advance singles at home. “We’re creating a culture for each artist,” Janick says. “Obviously everyone is still looking for new ways to monetize recordings, but our company is growing into many other areas, and that’s great.”

Read more here.

Attention indie musicians and marketeers. Digital Music News reported on a recent industry panel at UCLA on the importance of using video, controversy and good content to build buzz and promote your band in the digital age.

“Video is key,” said David Dorn, a senior vice president at Rhino Records, speaking to a group of students, executives, and reporters at UCLA on Wednesday. “Right now, online, video is what everybody is interested in. And if you are working with a new band, you have to make sure there are enough video assets.”

Well, what is particularly new about that? After all, MTV built an empire on the backs of major label produced video content for nearly two decades. Remember Michael Jackson, Britney Spears, and thousands more? Now YouTube, MySpace and other sites are doing the same thing on the back of major and indie artists and individuals. Today it is Avril Lavigne, Beyonce, Shakira, MCR.

During the session, Dorn also pointed to the importance of other types of content, including images and MP3s. Fans are simply ravenous for fresh content, including video – and that is a demand that must be satisfied. For artists and labels, that means filming the band on the road, offering live clips and interviews, and uploading studio outtakes. “Document it, because that’s what the fans want,” Dorn assured.

Most motivated artists are already saturated within a number of online and video-specific outlets. But what is the secret to winning the seemingly hopeless attention game on YouTube? “Anyone can get 5-10,000 views,” explained Larry Weintraub, chief executive of Fanscape. “But if you want to get into the hundred-thousands or millions, you’ve got to court some controversy.”

That often includes a combination of “sex, killing, drugs, and violence,” something few would argue with. Of course, the content involved must be aligned with the image of the group, though edginess and controversy are great viral lubricants. That will cause more fans to embed the videos into their profile pages, share links online, and boost rankings on YouTube.

Ok, again – nothing new here. Any good marketer knows that getting into the minds of potential customers is much easier if your product or service is controversial or surrounded in mystery. Remember “Paul is dead” for the Beatles? Madonna’s “like a virgin”, Public Enemy’s comments, and Elvis’s hips. All propelled by controversy.

The discussion happened within a class conducted by longtime industry executives Lenny Beer (Hits), Jeff Jampol (The Doors), and Jeff Sturges (Universal Music Publishing Group). The class, “The Music Business Now,” held its final class on Wednesday before adjourning for the semester. More information at myspace.com/233962706.

Read more here at Digital Music News.

The lesson to be learned is that good music marketing works. The times have changed, the methods are more varied, the channels have exploded – but many of the tactics are the same – superimposed on the new digital landscape.

For more info, check out these new Berkleemusic marketing courses here and here and programs here.

It used to cost a lot of money to record and promote new music. Artists struggled like hell to find a patron to support them (i.e. a label). Everything was controlled and only a few artists became stars. That was the major label system. Most artists learned quickly when the recording advance money ran out that they needed other sources of income like performing, songwriting and the sales of merchandise to survive. The new artist model says anybody can make and distribute a recording. It is much less expensive to make a record today and recorded music is only going to become less valuable to everyone over time. The real hard part is promotion. The true nemesis of the artist is obscurity. There is a glut of music out there and the situation is only going to get worse. This is the reality of the future of music, abundance and saturation.

Record companies alone cannot afford to invest in the future of artists. They are like the Detroit auto makers of the mid 1980’s. The business model that drove the music industry for the last 70 years is almost dead. Unfortunately, the economics of today’s popular digital music splits (iTunes) do not make any sense for artists. Why make $0.06 off an iTunes download, when you can make $0.80 doing it yourself? If you don’t own your masters then you have nothing.

Personal connection with a fan base is the hallmark of the masterful entertainer. Truly great artists engage their audience while playing shows by working the room. Today artists can establish meaningful virtual relationships directly with their audience by building an online fan base and answering online posts and comments and taking the time to interact with their fans. The reach of a live show can be magnified with the orbit and power of a networked online community.  To be sure, it is a lot of work to monitor the boards and keep up with the postings, but it is a lot easier than touring 250 nights a year, and the payoff can be massive.

This is just like employing street teams to build buzz and selling CDs out of the back of the tour van, both of which are proven tactics to build audience and create direct relationships between artists and fans. Only now the street teams are virtual and the van is open for business in every city across the globe all the time. The name of the game for bands is to know who your audience is and what they like and where they are coming from. You cater to that and you might just have a chance at a career in the new music economy.

Artists, songwriters and producers of the future need to find ways to break through the noise and stand out without significant recording revenue. That model is no longer going to work. Artists of the future are going to need musician businesses built around them that attract audience without relying on recordings to finance the machine. We have already seen how this is possible today, and it is going to become more commonplace over time.

The recording has lost much of its perceived value and musicians are going to have to struggle with that new reality. Sales of records and CDs will never again be the cash cow the major labels got fat and happy on. But recorded music can play a major part in the promotional strategy of new musician businesses and even make some money.

The future of music distribution is going to be mobile and oriented toward mobile devices. Think Nokia. The culture of payment that exists in the mobile space will support transactional and subscription models for music that will capture people’s attention. It is going to become more about having access to music than actually owning it.

Sales of CDs are falling off a cliff as people find it easier and easier to get music digitally. The value of recorded music is plummeting and not even Apple can make money off of it. About iTunes, Steve Jobs says “Most of the money goes to the music companies, we would like to break even/make a little bit of money but it’s not a money maker.” It has just kept Apple out of court with the labels.

The packaging and sales of recorded music is being ripped apart with full albums and CDs being cannibalized by the new digital single track downloads. New bands are going to have to try new formats for recorded music to extract any real recording related profits in the future.

The broadband Internet, 3G mobile phones and MP3 players have fundamentally shifted the balance of power in the music industry forever, especially for the young. Owning CDs is so last century.

The big money for artists has always come from live performance, sales of merchandise, DVDs, personal appearances, publishing and alternative revenue streams – all promoted and supported by the free and nearly free distribution of recorded music. Live performances and t-shirts cannot be digitized at least at the moment, and the experience of being at a live event is going to have to get more appealing, for many bands to survive in the coming years.

New Artist Model

In reality, this is the way is has been for most artists for the past 50 years. Only now the tide has turned, and the shifting sands of the music business will form around an entirely new promotional model that puts we, the music fans, at the very center of the circle. It’s going to be entertaining to be sure.