Future Of Music

Last month I had the pleasure of traveling to Austin, TX and working with the fine folks there – brainstorming on the future of music and in particular, the future of the live music business.   Here is an updated version of my Global Music Business presentation that I gave at their incredible new City Hall.

“Live Music” is what Austin is all about.  Austin actually has an official Division of the City of Austin dedicated to developing the music industry in town, effectively led by “music officers” Don Pitts and David Murry.  They are devoting significant resources to seeing that the city’s future along with the future of all the musicians who live and work there are aligned with successful practices in the overall music business.

Here is my picture of their official music office “squad car”.  All they need now is a flashing light like Steve McGarrett.  I’m gonna bring them one the next time I visit. “Pull over Ma’am, is that Emo we hear…?”

How cool is that?  Does your city have an official Music Division?

Here is some excerpts from an interview I did with Rick Goetz from musiciancoaching.com

“I think it’s critical that you have your own website and drive traffic to your own website in any way imaginable, and that you set up ways to do business transactions on your websites. That can be collecting names, cell phone numbers, Twitter follows, selling product, building dialogue, communication, selling tickets and merch. That’s essential.

At Music Power Network and Berkleemusic we teach a lot of people DIY basics. Get your act together, get a website together, have a business partner that is going to help you create a strategy and deal with promotion and distribution and touring and publishing and your finances and the business aspects of your career so you can focus as much time as possible on creating art and getting better and practicing and becoming a better artist. I think that’s essential. Lots and lots of people I’ve seen – musicians, artists – have thought, “I’ll get online and Facebook and YouTube and get a bunch of friends and spend all my time blogging and tweeting.” But if they’re not working on your music, most of the time that other stuff doesn’t matter at all. If you’re not really great, nobody is really going to care.

It’s such a fine balance to strike between perfecting your art and being unique and different and having something to say and getting the word out. That’s the conundrum. We often counsel people that you have to have a business partner. At Berkleemusic we teach entrepreneurship, artist management, how to start your own business, how to run a business, how to market direct and use social media to market, what copyright law is all about, what contracts are all about, how to tour, how to make money, the realities of the different levels of touring and how you can get paid and use that to be a driver of your career.

It’s a huge ambition that we have here at Berklee to try and help create a healthy music industry going forward. If there isn’t a healthy music industry, none of us have jobs, none of our students have jobs and the whole thing goes down the toilet. We have to help people be free thinkers, entrepreneurs, to break the rules.

When we started the berkleemusic online school ten years ago there was no iPod, YouTube, Myspace, Facebook or Apple iTunes store. That all happened in the last ten years. So if you think about what’s going to happen in the next ten years, it’s going to be completely different and almost impossible to predict what’s going to happen. People that want to be in the industry have to be willing to accept that it’s going to constantly change for the foreseeable future. There is nothing you can be sure of, and the things that work today probably are not going to work tomorrow.

God willing, some kid is going to create the next big thing in music like Sean Fanning did with Napster or a new format or a new kind of virtual experience that is as good as a concert. Something like that is going to happen, and who knows what it is going to be?  It’s hard to predict.”

Read the whole interview here. Thanks Rick!

As a musician in the 21st century, you need to learn how to define your expectations. Otherwise, how will you know when you have achieved your goal, or even what to aim for? For a project, for a tour, for your career, and for your life – what are you trying to accomplish?

Most people in the music business want to “make it,” but what does that really mean? What is making it for you? What does the finish line look like? How would you recognize making it? Do you want a record deal? What does that record deal look like? Do you want to sell a million CDs? Do you want a publishing deal? What does that publishing deal look like? Do you want your music played on Grey’s Anatomy or your songbook published by Hal Leonard?

Once you know what your expectations are, then you can plan accordingly and know what to shoot for. Is success for you playing huge stadiums? That would mean you have to make a plan and probably dedicate yourself to work full-time for many years to get there.

Or, is success for you to have a steady gig on weekends? This is more achievable and something you can do on a local level and perhaps as a part-time endeavor. Is recording a CD and selling 10,000 copies your definition of success? If so, you can create a plan to achieve that perhaps on a regional level.

Or, is success for you writing songs that other people play? That would require you to network with other musicians and focus on writing, publishing, and placing your songs. Or, is success for you recording an EP and playing it for your family?

What do you want to be? What does success look like for you? Be as specific as possible when setting your expectations. Don’t be vague because it won’t lead you anywhere and just breeds sloppy thinking. First, define exactly what you want to do, and then you can break it down and make a plan to do it.

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.

“The best way to predict the future is to invent it.”  This is a great quote from Alan Kay, one of the creative geniuses behind the laptop computer and the mouse.  Musician can apply this thinking to their own careers by planning for success in a dedicated and systematic way.

I came across this great guest post by Kevin English on Creative Deconstruction that talks about the “Lower Class Musician” and suggestions for how to lift yourself out of that class into a middle or upper class status through controlling your overhead, aligning your expectations, creating a plan, getting a good and current education and diversifying your product offering.  These are all things that I have blogged about in great detail in the past and agree with completely.

Here in an excerpt from Kevin’s post:

“Learn to structure yourself like any other startup and formulate a strategy on paper that will sustain you for three to five years. You’ll soon find out that overspending on manufacturing, marketing, promotion and distribution is very difficult to recoup.

Adjust Your Expectations

For some of us, music is a hobby and that is okay. However, if you plan on feeding your children by touring the Chitlin’ circuit, that’s another thing entirely. When I realized that writing songs for Columbia Records and recording demos with The Fugees wasn’t going to sustain me forever, I had to adjust my expectations. These gigs were few and far in between and often times didn’t pay half as much as you would expect them to.

I studied profitable ideas, people, and businesses to find a common denominator. I learned that nine out of ten successful startups had a business plan. Not just any old plan, but one that was standard across all industries. Financial planning, marketing, and the management of people and products/services cannot be done on the fly. If all you want is for people to hear your music that is fine. But again, you can’t necessarily expect to make a decent living.

Accelerate Your Learning

Hundreds of books have been written on the subject of business plans, yet no one in the music business seems to think they need one — until, of course, they run out of cash. I spent years in my local SBA in Newark, NJ looking at sample plans, meeting with retired CEOs of successful companies, and learning how basic businesses operate.

If you do the same you’ll realize that most startups have more similarities than you’d expect. However, it is important to point out that no two plans are alike. You will still need to write a plan specifically based around your music-related products and services. My first plan was a disaster. I asked my uncle for $75K with a promise to return 20% of the loan over the next five years. He had a good laugh over that one, but at least he knew I was serious about my dreams.”

To read his full post look 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.