Oh, How the Music Business Keeps Changing

 

Let me start out with some sobering thoughts.

95% of music downloads are illegal downloads and are NOT paid for. (Funny, I thought most of us in the music business wanted to make money from whatever audio or music business profession we chose to get involved with) Well, there is SOME hope on the horizon. Internationally, 2008 saw a 25 % growth in LEGAL downloads for a dollar total of $3.7 billion dollars!

Digital platforms on the Internet that sell LEGAL downloads have increased online and through mobile devices as a new generation of music subscription services, social networking sites and new music licensing channels are emerging. In 2008 digital platforms accounted for 20% of recorded music sales, UP from 15% in 2007!

The music industry continues to change dramatically, but how will you make money from your music, as the industry shifts from a “sales-to-a-customer” model to “monetizing” ACCESS to music across a multitude of channels and platforms?

CD sales, as of 2008, are still the number one way record labels make their money, but the writing is on the wall that the future is NOW for you to implement this new “access” approach to making money from your music.

Some researchers and experts on the subject of selling music predict that by 2012 the shift from CD sales dominating the labels revenue to other approaches already mentioned will take place.

Music is no longer about a pre-prepared set of songs released on a CD by a artist or band but it is a growing business of customers selecting from a wide catalog of individual songs, like on iTunes or eMusic.

So, many artists will be moving away from their ingrained habit of coming up with 10 to 15 songs to record a traditional ‘album’ and moving toward creating compositions released individually, and finding more ‘uses’ for their music in the marketplace, like: song placements in films, television and placed on the Internet, as well as used in commercials and even selling sheet music copies of their compositions. Also look more for bands and recording artists to offer individual song downloads from their growing catalog of material available on their own websites, and the many social networking sites that will act as distributors of music.

Single track legal downloads in 2008, were UP 24% to 1.4 billion units globally, and this will continue drive the online music market. Don’t get me wrong, full albums are not going away anytime soon, digital albums are growing healthily these days (up 36% from 2007).

Basically the question is this: What other things can you do now to expose your music in ways that never existed a decade ago? What kind of ripple effect will all these changes bring to other parts of the recording industry?

For example, what will happen to the traditional recording studios that for decades made a good living booking their rooms for days or weeks at a time as a band/artist created their record? Already studios that rely on music being recorded at their facilities are losing revenue. Think about it. If only one or two songs is all you plan to record and…..read entire article here >>>>     

 

Article by Chris Knabb – email at: Chris@Knab.com

What is Artist and Product Development?

Unlike today, there was a time when record labels committed themselves to developing the careers of their newly signed recording artists. Today, it is much harder to find a record label committed to this goal. When a major label signs a new artist or band, they presume the act has sufficient musical, songwriting, and performance talent, and are ready for the big time.

Up until the late 1980s most record labels had a department within the company called Artist Development, and the job of that department was to support their act’s creative side, while steadily developing a following for them. When sales of records increased with each release, the label stood by their acts, believing that the more the public heard their music, the bigger their popularity might grow, and the greater their popularity, the more records they would sell. Most of the ’70s and 80’s Rock bands that dominate today’s Classic Rock radio format are examples of the old school version of Artist Development. Even during the 90’s you could still find examples of true Artist Development.

 By the dawn of this new millennium most labels had changed the name of their Artist Development departments to Product Development. In other words, the emphasis changed from nurturing the growth of an artist and their music, to high-pressure sales development tactics and strategies. Product Development today, for most major labels, means putting the label’s energy into creating sales for a new release, and doing so quickly.

If you had three strikes in the past, you have one strike now, and if you don’t get a solid hit, you’ll probably be forgotten in favor of some other act waiting for their one at-bat.

As I said, you can still see cases of a major label committed to Artist Development when you look at the careers of bands like Radiohead, The Barenaked Ladies, Kanye West,or the Dave Matthews band. Artist Development is also behind the success of today’s teen acts that dominate the pop music charts. If a thirteen or sixteen year old boy or girl has the looks, personality, and musical talent at such a young age, and the labels can sign long term contracts with them, it leaves many years for their investment to pay off. The labels may collect revenues from dozens of new releases over the (potentially) long careers of these kids as some of them make the transition into adult superstars.

For the most part, in today’s competitive music business, the responsibility for Artist and Product Development has changed hands. Independent labels and entrepreneurial artists have inherited the responsibility of nurturing new talent by fine-tuning their artistic and business development, and slowly growing their careers over several album releases. Developing a music career for the long haul is all about controlling one’s own destiny.

Artist and Product Development go hand-in-hand. They should work in combination and coordination with each other. When a balanced approach to developing your music and your business affairs are respected equally, you create a more realistic opportunity for achieving some success with your music.

Art is no less important than commerce for today’s developing musician.

Artist Development: Preparing Your Career In the music business, everything starts with a song.

Without great songs, there is no music business. Songwriting is not just an artistic expression; it is the axis upon which the music business rotates. So, the first order of business in Artist Development is the music itself. Good songs are not good enough when you are preparing to market your music. People only respond to what they feel are great songs Your songs must have some commercial appeal, if only to a certain music niche. (Rap, Hip Hop, Alternative Rock, New Age, Jazz, Blues, etc.) Finding that niche, and learning how to manage its growth is essential to becoming a successful act. So, your songs must be of a very high caliber.

Artist Development is also about protecting the great songs by registering them with the copyright office. Songwriters and music publishing companies need to affiliate with the Performance Rights Associations (ASCAP, BMI, and SESAC) as well, so that if and when those songs are played by the broadcasting industry, or in certain public places, they will receive proper payment for the uses of those songs. Also as the digital music business grows it is important for artists and their labels to register with SoundExchange.com so that any income from digital uses of songs can be monitored.

Many songwriters have to decide if and when to look for a publishing deal or start their own publishing company. In my opinion until there is a demand for your songs, (meaning that there are a lot of people who want to hear your songs, or buy them), don’t worry too much about getting a publishing deal. Don’t get me wrong, the pot of gold at the end of the music rainbow is the income received from the use of songs. The business of music publishing, which is really the business of finding uses for songs, is very important topic to explore, but only when the time is right.

Choosing a name for your act, and filing for a trademark to prevent others from using your chosen name are also part of the business organization of developing an artist’s career properly. It is strongly advised that you invest in registering your band name or stage name by trademarking it.

Artist Development should also include writing up a band agreement that defines the issues related to running your career as a business and how you will work with the people in your band.

 In the beginning, managing your own career will be your responsibility; with a goal of creating such a buzz about your music that you attract professional management. Many developing acts encounter some resistance to the lyrics or cover art they have created. Be prepared to deal with the fallout from any controversies surrounding your music from critics, special interest groups, or even the record labels you may be dealing with. There could also be some situations you get into that may lead to potential, ethical and moral decisions that you must make.

Starting your own business (sole proprietor, partnership, or corporation) will also be a necessity if you want to have control over career. There are many questions to be answered about operating your own business, financially and professionally. You will also have to update any changes in your business operations as they may occur, because the different city, state, and federal laws affecting any business are constantly changing and evolving.

As your career develops, you may wish to improve on some of your creative talents by taking voice lessons, or master classes from more experienced musicians. Investing in the best equipment and musical instruments is another necessity if you are going to be a professional, working musician. No artists can perform their best work using mediocre equipment.

One of the most delicate issues involved with Artist Development is the matter of creating and consistently maintaining a clear and honest image. What people hear in your music must be seen in how your dress on-stage, and can help or hurt you when you create promotional materials, and artwork for your CDs, your website and MySpace pages etc. So, weave a thread of consistency with your chosen image throughout the Four Fronts of music marketing.

As you become more successful in your career you will need the services of an entertainment law attorney. Use lawyers who have had experience within the music industry. You will need them to look over any band agreements, record label contracts, publishing deals, or any other number of legal matters.

Artist Development as you can see, is a combination of creative and business issues that must be dealt with to make your music, and the business surrounding you music, run smoothly.

Product Development: Making and Selling Your Music Product

Development is about preparing your music product for the marketplace, and finding ways to sell it. Product Development issues become much easier to deal with when all the details addressed in Artist Development have been taken care of. Not all musicians take the time to deal with these responsibilities. They prefer to rush the songwriting process and move right into the recording studio, in their eagerness to get their music out. That is a big mistake.

The first thing a professional label does after signing an act is to start thinking about the marketing or sales plan for the act. That’s right, a good record label executive, perhaps the A&R rep that signed you, can already envision how your music will be promoted and sold by the time you enter the recording studio.

Researching the right recording studio, right producer, and engineer become key issues in Product Development. Where will your record be recorded? Who will record it? Both of these questions must be considered quite seriously before you make a final decision.

The choices of what studio to record in and what producer or engineer will be hired to make the record are uppermost in the mind of a label person. Record labels are aware that if a certain sound, for a certain music genre isn’t recorded properly, the chances of radio airplay could be hampered. If so, there may be no significant sales of the record. So, production choices are part of the Product Development equation when deciding how to market a new artist or band.

Never cut corners when recording your music. Once the recording is finished, you will have to live with it forever. You never want to say, ” Gee, I should have done such and such.” Find the best studios and recording team you can afford. Music production sounds are changing constantly and it is your responsibility to make sure your records sounds as contemporary as possible.

Up next is mastering. Mastering is not something to be passed over lightly. The mastering engineer can enhance or hurt the recording you made. Choose a mastering engineer who understands your genre of music. This is a must.

Who will manufacture your record? Who will design the artwork for your release? These are two more essential questions. Your finances will most likely determine this, as they probably determined production decisions. Take the time to make a record that sounds and looks like something you would want to buy yourself. Album cover artwork, packaging material design, and printing issues are important because you are creating a product that will be competing for the attention of music fans who have an abundance of music releases to choose from. Is there something about your album cover that will attract a customer to your record?

 Once a record has been manufactured and is ready to be sold to the public, Product Development turns its attention to Distribution and Sales Arrangements. Many developing acts forget this in their rush to record their music. But, if you’re going to spend thousands of dollars recording your music, don’t you think it would be a good idea to find a way to sell it? Well, that is exactly how professional record labels think. They make sure a system is in place to distribute and sell their recordsto their fans (both in so-called brick-and-mortar music stores, as well as through the many Internet music sellers)

Many musicians make the mistake of trying to get some radio airplay, or other media attention, before they’ve found a way for the public to buy it. Make no such mistake.

Product Development, (after a record has been recorded), focuses on all the business arrangements involved with selling recordings.You will soon learn that the business of distribution, like the business of music retail, is a complex and challenging undertaking. Welcome to the world of major label distribution companies, independent distributors, rackjobbers, mass marketing retailers, mom-and- pop independent record stores, and the evolving world of Internet music sales. (iTunes, eMusic, Rapsody, etc)

 How well you plan and execute your Artist and Product Development plans will make or break your chances of making some money with your music, as you go on to promote, publicize, and perform it.

Find more Christopher Knab articles at www.MyBandMate.com or by email at: Chris@Knab.com