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Thursday, August 25, 2011

14 Rules For The New Music Industry

advice image from Bobby Owsinski's Music 3.0 blog
I came across this post on the Tuncore blog recently entitled "New Rules For The Music Industry." It doesn't encapsulate the entirety of Music 3.0, but does get most of the points.

1) STOP ASKING FOR BIG ADVANCES – Understand that the economics of the business have changed for both the artists and the labels.  The goal for artists and labels must be the same: create sustainable working relationships for both parties.  Disproportionate advances only add tension (economic and otherwise) to an already tense dynamic. Create financial working relationships based on realistic expectations of ROI.

2) EDUCATE YOURSELF – It’s no longer acceptable (or charming) to be the un-informed artist who doesn’t know the difference between a mechanical royalty and a mechanic.  You can’t claim that you’ve been taken advantage of by anyone at this point; the information you need is out there, and it’s not that hard to find.  Learn it, once you have this knowledge you can then make informed decisions and decide if the other entity is doing its job.  Not to mention, the labels etc already know this info and so should you.

3) TAKE RESPONSIBILITY – Stating that there is any person or thing standing in the way of you and success is a cop out.  No longer can you say, “If only my records were in stores, people would buy them,” or, “If only people could hear my music they would love it.”  The gatekeepers have vanished; the gates are open…go through them.

4) TAKE ACTION – Waiting for a booking agent before you tour? Waiting for a producer before you make a recording? Waiting for a label before you distribute or promote your music?  Guess what, someone else isn’t waiting for anyone, and he or she is leaving you in the dust.  The worst thing you can do is nothing.

5) SELL – Get over the fact that you’re the artist, and asking people for money in exchange for your art is awkward.  The reality is that if your work is good, people will want to compensate you for it. You must not only give them the opportunity to do so, but make it easy for them.  Be clear and transparent, and tell your customers that your music is valuable, and that if they want to ensure that you are able to keep creating the music that they enjoy, that they must pay for it. Then give them a wide variety of things to buy at different prices.

6) GIVE WITHOUT ASKING FOR ANYTHING IN RETURN – It’s not all selling, of course, and we are all in this together.  Look for ways to help other artists. Share information, share resources.  This is not a zero-sum game; the overall pie can expand, and we will all benefit proportionately when it does.

7) DEMAND ANSWERS – if you don’t understand something, ask.  If the person you ask can’t give you a clear, understandable answer then he or she is either clueless or trying to hide something.   Demand a clear, understandable answer or walk away from the deal.

8)  MARKETING DOES NOT ALWAYS EQUAL SUCCESS – The major labels spent hundreds of millions of dollars marketing and promoting bands.  Only 2% of them succeeded, the other 98% were deemed failures.  If marketing = success, they would have had a 100% hit ratio.  The reason an artist succeeds is because the music caused reaction.

9) LEAD TIME FOR STREET DATES MATTER LESS – It’s not like the old days where you only had a limited time for prime real estate in a retail store and if the CDs did not sell they would be returned.  In the new model you can release music today, and market later, with little detrimental impact.

10) IT’S ABOUT A CONSTANT STREAM OF MUSIC AND MEDIA, NOT A ONCE A YEAR ALBUM RELEASE ­  – The new world moves fast.   The best strategy is to roll out songs, videos, pictures, blog postings, tweets and anything else you can think of on a constant basis.  This keeps your fans engaged and stops you from losing momentum and going stale.

11) IT’S GLOBAL – The new music industry is a global one.  At the click of a button your music is available to buy, share, stream and download around the world.  Keep this in mind when you think about where your money is being held, generated and how to get it.

12) YOU ARE NOT POWERLESS – Music is not food, shelter or clothing, but everyone likes it and needs it.  The music industry currently generates around $30 billion dollars a year.  The entities and people getting this money is shifting from the legacy companies to you.  Within another five years the collective power of you will be bigger than any of them.  You have the power to change things, and you already are.

As just one example, in the past two years, TuneCore Artists have earned over $170 million in gross music sales and have sold over 400 million songs by paid download or stream.  TuneCore Songwriters have earned over another $120 million dollars.
As you sell more, they sell less.

13) DEFINE YOUR GOALS – Know what it is you are tying to accomplish.  Are you looking to be the next Vanilla Ice or just sell some music without touring?  Is your goal corporate sponsorships or having others cover your songs?  Whatever it may be, have a goal in mind and then work towards accomplishing that objective.  With that one conquered, you can move on to the next.

14) DON’T EXPECT SOMETHING FOR NOTHING - It’s going to take work to make things happen.  Either you need to do the work or you must hire someone else to do part, or all of it, for you.  If you understand your rights, how money is made, and how much you should make, you can make educated decisions.
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2 comments:

Tracey said...

Some good advice here. Sometimes it's a case of trial and error to find the best way of promoting your music to a wider audience. I think posting a little and often produces more results. All advice gratefully received, I think we're all still learning.

Jenna said...

This is an informed article! thanks for sharing your insight. If you want to find out about some of best new music, Tweewoo is a great website to check out.

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