Saturday, April 9, 2011

The Music 3.0 Blog Week In Review

Here's the Music 3.0 Blog Week In Review For March 3 through 8:

What Data Should Musicians Collect?
It's the quality more important than the quantity that's important. Read more...

Does Social Networking Affect What You Buy?
A new study says not as much as you think. Read more...

Does Being Signed To A Label Rock?
The RIAA thinks so, but they're biased and their numbers don't make sense. Read more...

10 Low-Cost Low-Tech Promotion Ideas.
10 inexpensive yet effective ideas for great promotion. Read more...

Proof That The Music Industry Is Not Dead.
These RIAA charts show that music is more popular than ever. Read more...

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Thursday, April 7, 2011

Proof That The Music Industry Is Not Dead

You keep hearing that the doom and gloom about the music industry, and indeed it's in a terrible funk, but here are a couple of graphs from the RIAA (the record label trade association) itself that prove that music is in fact more popular than ever.

The charts provide an excellent overall picture of exactly what kind of music product has been sold since 1973. These charts take into account all kinds of music distribution formats, from vinyl albums to cassettes to 8 tracks to CDs to digital downloads.

The first chart just looks at albums.

You can see that the the best years were from 1995 until 2001 with the peak of almost 1.1 billion units in 2000. By 2010 sales were down to about a third of the peak sales, but digital album sales were increasing at a fairly rapid pace.

Now lets look at singles.

As you can see, the single was virtually a dead format by 2003, but once iTunes came online, the single took off into the stratosphere sales-wise to 1.1 billion in 2010.

What's the take away? In 2000 the music industry had it's best year ever with about 1.2 billion units (albums and singles) shipped. In 2010, the music industry shipped 1.4 billion units (combined albums and singles). The difference is that most of them were singles, which threw off a tenth as much revenue.

If you look at it from a revenue standpoint, the music industry is suffering, but we already knew that. But if you look at it from sheer popularity proven by overall units shipped, you can make a case that it's more popular than ever. The average fan just won't pay for filler anymore, nor does she have to - and that's the biggest difference of all.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, April 6, 2011

10 Low-Cost Low-Tech Promotion Ideas

I always get great response from excerpts from the Music 3.0 Internet Music guidebook, so here's another one. This time it's from The New Marketing chapter and it's called "10 Low-Cost Low-Tech Promotion Ideas."
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Promotion doesn’t have to cost money to be effective. Here are some ideas that can be powerful tools that don’t even involve a computer.
1. Don’t underestimate the value of something free. Fans love free items, either as part of a package (for example, buy a CD, and get a T-shirt free), part of a contest, or just being one of the first ten fans to email. Sometimes items of seemingly little value have a wide appeal. Backstage passes, seat upgrades, seats on stage, tickets to the sound check, invites to a meet and greet, and downloads of live songs are all prized by a real fan.
2. It’s surprising that this isn’t done more since it works so well: park a van or truck that has a banner on it across from a show by a similar act. Every fan entering or exiting the venue will be aware of you.
3. Free or low-cost entry to show “after parties” extends the show experience and rewards the true fan. These can be promoted along with the show, and even offered as a part of the ticket package. 
4. Instead of sending a “thank you” email to a promoter, writer, interviewer, or just someone who’s done you a good turn, send a hand-written thank-you note by snail mail. You’ll be shocked how well this works. It’s unusual, it’s sincere, and it’s remembered.
5. Consider asking your tribe to help you with promo. Ask them to put up flyers or send out emails. Put a PDF of a poster or flyer online for fans to download.
6. Fans always want a chance to meet the musicians. Consider having a “meet and greet” after every show, but make sure that the fans know about it in advance. 
7. Find your niche and market to it. It makes no sense to market to Amy Winehouse’s tribe if your music isn’t like hers, so don’t waste your energy marketing in that direction.
8. Make everything you do an event. What holiday is coming up? Is it a band member’s birthday? Is an anniversary near? Try a tribute to “Fans that just got laid off” or “Fans that just got hired.”
9. Use the power of your niche to widen your fan base. Flyer someone else’s show in a related genre. Sponsor somebody else’s event. Consider trading sponsorships and gigs with another band.
10. Align yourself with a cause you believe in. Causes often have a large PR mechanism behind them that can expose your music, but it has to be something you really believe in or it may hurt you in the long run.
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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Tuesday, April 5, 2011

Does Being Signed To A Label Rock?

A recent ReverbNation and Digital Music News poll revealed that 75% of artists no longer want to be signed to a record label. No surprise there. On March 31st Liz Kennedy, the director of communications for the RIAA (the Record Industry Association of America - the US record record label trade group), posted the following interesting ditty on the RIAA blog about why it "rocks" to be signed to a label.
"So why would an act want to be signed by a music label today?  For starters, the investment associated with developing new talent is substantial. IFPI estimates that music companies internationally invested $4.8 billion in discovering, nurturing and marketing artists in 2010.  Record labels today invest an average of $1 million to break a new pop act in a major market.  That investment supports a variety of production and promotional pursuits that most individual artists would never be able to afford on their own, including advances, recording time, music video creation, tour support and marketing. 
In a world where there are 2.5 million hip-hop and 1.8 million rock acts on MySpace alone, more often than not, the addition of a music label is usually the difference between a band that offers songs to a few devoted fans online, and one who embarks on a multi-city tour, whose music is featured on a hit TV show or commercial and who goes on to earn Gold and Platinum plaques. In a noisy digital music market, it takes a label to help acts stand out in the crowd."
You can read the entire post here, but what's interesting is that it references an interesting study done by the IFPI (the International Federation of the Phonograph Industry - the world wide record label trade group) called Investing In Music that supposedly breaks down the investment that a label makes in a act today.
"Investing in Music outlines the very substantial investments involved in developing and marketing successful artists. In the UK and US, it is estimated that it typically costs more than US$1 million to break a pop artist. This is spread across an advance paid to the artist, recording costs, video production, tour support and promotional work. A typical example of the breakdown of the costs of breaking a new pop act in major markets is as below:
Advance US - $200,000
Recording US - $200,000
3 videos US - $200,000
Tour support US - $100,000
Promotion/marketing US - $300,000
TOTAL US - $1,000,000"
Okay, this is what you expect from record label shills - lots of good news, glowing reports, and big numbers. Unfortunately, the whole thing is based on an alternate reality.

1) First of all, artists don't want to sign deals with labels (especially the majors) because they feel ripped off. You mean you want a piece of my touring and merch sales? And I get exactly what for that?

2) Today's artists feel that they can lay so much of the groundwork themselves, thanks to social media and digital distribution. Why bother with a label that will take most of the money (if there is any) and will most likely ignore you anyway?

3) Those IFPI numbers are totally out date. They may represent a typical signing in years past, but that's not the world we live in today. When was the last time you heard of an artist getting a $200k advance? When was the last time you heard of an artist getting a $200k budget? And tour support? That went away for most signed acts in the 90s. If anything, the promotion and marketing number is low. About 5 years ago it cost $1 million to break an act the traditional way with radio and television. It probably takes more today since those methods aren't nearly as effective anymore. So sure, those $1mil  deals still occur, but they're few and far between these days.

You can poke a lot more holes in both of these posts, but remember this: If you want to break big as an artist, you still need a major label, at least for now. Sorry, it's a fact of life. Look at any chart and see how many artists are indie. Not many. But here's the thing -  if they don't guarantee those big dollars to you, who needs them? You're better off going it alone. Besides, it's still better to build your core audience up slowly but surely, one fan at a time. Always was, always will be.
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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Monday, April 4, 2011

Does Social Networking Affect What You Buy?

Apparently social media doesn't affect the buying patterns of consumers as much as every thinks, according to a new study by everyone's favorite bank, Goldman Sachs. The study indicates that search engines  ranking (at 31%) has vastly more influence on buying than social networking (at 5%), with recommendation engines like StumbleUpon coming in second at 27%. What's more of a surprise, 33% say none of these have any influence at all.

I'd like to read the entire study before I'd get uptight about this chart, but it does correlate somewhat with conventional wisdom. Most people don't seem to pay attention to any of the ads on Facebook, but what's not mentioned in this chart is if direct marketing through social media it addressed or is this just for adverts.

Even so, it's an interesting chart that certainly indicates that there's still a place for traditional marketing.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Sunday, April 3, 2011

What Data Should Musicians Collect?

The Internet has given today's musician the ability to collect mounds of data about her fans like never before, but the quality of that data is just as important as the quantity. Once again Jon Ostrow has hit the nail on the head with a great article called "What Data Should Musicians Be Concerned With" on the MicControl blog. Here are 5 data points that the article suggests you collect and why.

Location Data 
This is important so you know where to perform, and so you can better target your promotion.
  * Best way to collect: Make it a required field during mailing list registration.

Age
This allows you to choose the best venues to play. No use playing in a club if most of your audience can't get in.
  * Best way to collect: Once again, make it a field during mailing list registration, or check your blog, website and YouTube stats.

Social Media Use
To maximize your social promotion, you have to know how your fans are using social media.
  * Best way to collect: The article suggests following some related blogs and watching the comments, but another way is to design a survey and ask them.

Time Of Social Media Use
You have to know the best time of day to tweet or post to maximize your promotion.
  * Best way to collect: Hootsuite and Facebook analytics, but the article also suggests a new service (at least to me) called Timely that analyzes your tweets and suggests the best way. You can also try TweetWhen, but be aware that their suggestions differ.

Method Of Music Purchase
This is important because it not only tells you where your fans like to purchase music but how much they're willing to spend. This allows you to tailor your offerings to their spending habits.
  * Best way to collect: Once again, ask your fans with a survey from Polldaddy.com or SurveyMonkey.com.

Read Jon's fine article in its entirety for more great insights.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

The Music 3.0 Week In Review

Here are the posts from the last week of Music 3.0: The Blog Behind The Book.

Record Labels Claim They Lost $75 Trillion To Piracy.
When asked to estimate the damages they incurred in their suit against file-sharing service Limewire, the major record labels claimed they lost $400 billion (with a "B") on the low end, to $75 trillion (with a "T") on the high end. Read More...

10 Great Music Marketing Ideas
Here are 10 music marketing ideas from the Music 3.0 Internet Music guidebook. It’s easier to sell your music if you add extra value to it, so it helps to think outside the box when it comes to distributing your music. Read More...


Amazon Is First To The Digital Locker. So What?
Today Amazon announced a digital music locker service that enables users to upload and stream their music on multiple devices...  Read More...


The Best Time To Tweet
If you're using social media for promotion, then the timing of when you do it is critical. Read More...



How "Friday" Proves That Payola Still Exists
What's confusing is that the 60 million views have turned into just 12 radio plays so far. Read More...

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Thursday, March 31, 2011

How "Friday" Proves Payola Still Exists

By now everyone has either heard or heard about the runaway viral YouTube hit "Friday" by 13 year old Rebecca Black. You can argue all you want about the merits of the song, but one thing's for sure, with more than 60 million views so far, someone out there loves it. So what's confusing is that the 60 million views have turned into just 12 radio plays so far. Yes, you read that right - just 12 radio plays.

But listen to what one radio programmer told Digital Music News:
"It's not going to get played unless a major label promotion department brings all of its resources to get it played, otherwise things just don't get added. Nothing's getting incented or enticed - it's the reason why there aren't that many independent songs on the radio right now. It's also the reason why records like 'Friday' and 'Bedroom Intruder' don't get radio play."

Excuse me, but doesn't that sound like the programmer is admitting to payola? They won't play a song unless it's incented or enticed? There are strong laws against payola (where a label pays a station or programming for them to play a song) and the music and radio business has seen at least two major payola scandals that nearly brought them to their knees.

Forget about the payola for a second. Just how out of touch is radio if they have this huge consumer demand yet they ignore it? If there was ever an example that radio and the major labels are about nothing but money, this is it.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, March 30, 2011

The Best Time To Tweet

If you're using social media for promotion, then the timing of when you do it is critical. Do it when most people are busy and not paying attention and you'll never get your message in front of them.

In a post a while back, I showed where the ideal times for Facebook posts were at 11AM, 3PM and 8PM Eastern time. Now a new study shows that later in the day is the best time to tweet as well.

According to Dan Zarrella, a researcher at Hubspot, who looked at millions of tweets and showed their results in a webinar entitled "The Science of Timing," the later you tweet in the day, the better. The reason is that from 2PM to 5PM your followers are more likely to see your tweet because there are fewer things demanding their attention. In fact, 4PM was deemed to be the best time of the day.

Zarrella also found that the weekends are great for tweet attention as people are more relaxed and aren't conflicted by work. The other thing that was interesting was that he also found that tweeting the same link multiple times a day is an effective strategy, and unlike excessive emails, people don't seem to mind. I know this for a fact because I've been tweeting my blog post links twice a day for a while now and can see the positive results.

Finally, Zarrella has also put together a nice page called TweetWhen that will analyze your last 100 tweets and tell you when the best times for you to tweet are. Mine's at 7PM on a Friday night so you can expect it then.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Tuesday, March 29, 2011

Amazon Is First To The Digital Music Locker - So What?

Today Amazon announced a digital music locker service that enables users to upload and stream their music on multiple devices (PCs, Macs, and Android phones and tablets, and anything on the Android operating system, which eliminates iPhones nor iPads for now). The service is called the "Amazon Cloud Player" and all US Amazon customers start with 5GB free, which they then can then upgrade for $20 a year to 20GB. The twist is that just by buying an MP3 album at Amazon, you will automatically get the extra 20GB for free (which sounds like a great deal).

And the rest of the world breathes a hearty sigh and says, "So What?" This might've been a bigger deal had the announcement come from Apple or even Google, but Amazon, while a leader in books, is a distant second to iTunes in the digital music space with only 15% of the market compared to 70% by iTunes.

The price may be right but you'd be hard-pressed to find a music consumer who couldn't wait for this product. In fact, I'd venture to say that most don't or can't see the advantages to a cloud service for their music. Plus, Amazon pushed full speed ahead with the launch without getting the consent from the labels first, which may be problematic as time goes on.

The idea here is that instead of storing all you music on one desktop, laptop, phone or tablet, you probably want the music on all of those devices. The big pain is having to copy and transfer everything over, and in many cases you just won't have the storage space to do so anyway. A cloud music locker like Amazon's means that you store all of your music on their online servers ("The Cloud") which you can then access from any of your devices, saving you the time of transfer and the storage space.

The downside is that the major labels want to get paid a second time for this privilege, saying that the music that you already bought once doesn't give you the right to stream to any device that you want. Now you can debate that a number of ways, but both Apple and Google (who are rumored to have their own digital music lockers set to debut sometime later in the year) are in discussions with the labels to come to some sort of agreement on this issue. Only time will tell how that will play out.

I guess there's some advantage to being a "first mover" rather than following the crowd when the other companies launch their services, but the fact they haven't done their homework with the labels can end up costing them their advantage. Let's see what the next week, and the label's response, brings.

In the meantime, I'd love to hear your comments on your Amazon Cloud Player experiences.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Monday, March 28, 2011

10 Great Music Marketing Ideas

Here are 10 music marketing ideas from the Music 3.0 Internet Music guidebook. It’s easier to sell your music if you add extra value to it, so it helps to think outside the box when it comes to distributing your music. Thanks to Bruce Houghton of the great music blog Hypebot for numbers 7 through 10.

1) Develop a package - This could mean anything from a CD and a vinyl album, to a digital download and album with all alternative mixes, to a boxed set of CD’s or anything in-between (Trent Reznor’Ghosts I-IV is a great example). The idea is to go beyond just the typical CD and digital offerings.

2) Sequential numbering - Numbering a physical product (for example; "#5 of 1000") gives it the feeling of exclusivity. The product becomes a special edition and a must-have for the true fan.

3) Tie it to merchandise - Offer a physical product that contains the code for a free download of your album. Mos Def was so successful with the T-shirt release of The Ecstatic that Billboard magazine even began counting it as a music release on their charts. Other artists have sold their music via codes on such items as golf balls, bandanas and even canned food!

4) Release a “double-sided” digital single - Rhino Record's digital releases celebrating 60 years of the 45 RPM single set a fine example for this format. For between $1.49 and $1.99, Rhino provided the original hit song, its B side (the flip side of the vinyl record) and the original artwork. You can do the same by providing two songs for price of one - an A and a B side.

5) Release on an old alternative format - We’ve seen some artists (The Decemberists Hazards of Love come to mind) release a vinyl-only physical product to great success. Cheap Trick did it on the old 8-track format from the 60’s, and some bands have even recently released on cassette tape. Releasing on a older format can be good as a publicity tool (as long as everyone else isn’t doing it) and who knows, maybe you can start a trend?

6) Release on a new alternative format - A new alternative format that’s getting some traction is flash memory, or the common USB memory stick. Once again, Trent Reznor met with great viral success by planting unmarked memory sticks in bathrooms at Nine Inch Nail’s concerts, and Sony even released the 25th anniversary of Michael Jackson’Thriller on the format. Everybody uses these things so you’re bound to get at least a look, which you can’t always say about other formats.

7) Three Sides - Offer a song in an early studio version, the final mix, and then captured live.

8) Radical Mixes - Offer two or three very different mixes of the same song, perhaps even done by the fans.

9) Two Sides of (Your City) - Two different bands each contribute a track to a series chronicling your local scene.

10) “Artist X” Introduces _____ - Add a track by your favorite new artist/band along with one of yours. This is similar to a gig trade-out with another band that many bands use as a way to play in new venues. The idea is that the band you feature will also feature you on their release as well.

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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Sunday, March 27, 2011

Record Labels Claim They Lost $75 Trillion To Piracy

Yes, you read the headline correctly. When asked to estimate the damages they incurred in their suit against file-sharing service Limewire, the major record labels claimed they lost $400 billion (with a "B") on the low end, to $75 trillion (with a "T") on the high end. This is what they estimate they've lost to piracy in the 10 years of its existence.

OK, let's look at how incredibly grossly inflated those figures are. First of all, $75 trillion is more than the GDP of the entire world, which was only $59.62 trillion when last calculated in 2008 (you can bet it hasn't gone up since then).

Now let's look at the low end of $400 billion. In 2010 the world-wide revenue from recorded music was $35.1 billion, and the US portion of that was $12.6 billion, according to eMarketer:Global Music. And how does that add up to $400 billion? Even over 10 years at a generous 20% loss, it still only adds up to $25 billion. And recent figures by the NPD group found that only 16% of Limewire users downloaded music at it's peak, and the figure in later years was closer to 9%. Regardless which figure you go with, the numbers thrown out by the labels are completely absurd.

Luckily, the judge saw through the farce and called it like it is - ridiculous.

This is the problem with the music business today. It's all about the money. If record labels and the conglomerates that own them would concentrate more on the music than the accumulation of green, we'd have a much healthier business with more quality music and lots more fans that want to buy it. Fat chance of that happening.
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You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

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