Thursday, January 16, 2014

Is Verizon's Victory A Streaming Music Killer?

Net Neutrality image from Bobby Owsinski's Music 3.0 blog
Until yesterday I was hopeful about the future of the music business. Today not so much. All the indicators and predictions showed the growth of music streaming to not only offset the decrease in download sales, but even some long lost CD sales as well. There was actually hope for a recovery, and a real chance to see some much needed growth. Now the future is uncertain.

That's all because of Verizon’s court victory in the U.S. Court of Appeals against the Federal Communication Commission’s so-called Net Neutrality law, which required Internet Service Providers to treat all Internet traffic equally. That seems innocent enough on its surface, but without that law in place, ISPs can now charge extra for either high-bandwidth or speedier delivery. This affects streaming media companies like Netfilx that specialize in video (especially), but can also affect just about every streaming music provider as well.

Streaming music is an extremely low margin business to begin with. Between paying huge licensing fee advances to the music labels, there’s the cost of paying the copyright holder and publisher, as well as bandwidth, storage, and marketing costs. None of the major players make money right now, as they all jockey for position as they hope the future economy of scale will bring a large enough market to break into the black. Sure there’s advertising and subscription income right now, but that’s still slowly creeping up to the break-even point.


As a result, companies like Pandora and Spotify that are just hanging on hoping that the costs stay static while the user base grows. That’s all well and good, since the majority of music consumers are still virgin territory, having not experienced streaming or not yet made a choice of a preferred service. New services like Beats Music (set to launch next week), YouTube Music (set to launch “soon”), and Slacker (set the enter the US market “soon”) see the space wide open, while Pandora and Spotify have big leads in market share at the moment, but we’re still early in the game. Read more on Forbes.
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You should follow me on Twitter and Facebook 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, January 14, 2014

How Not Having A Website Can Cost Your Band Money

Click To Website image from Bobby Owsinski's Music 3.0 blog
Many artists and bands don't believe that they need a website any longer and choose to rely on social media for their entire online presence. This can prove to be a fatal strategy, as outlined by this excerpt from my Social Media Promotion For Musicians book. In this excerpt you'll see 3 scenarios where not having a website cost a band or artist fans, sales and even a career.

"Unfortunately, a website many times gets overlooked as an integral piece of your digital promotional life because there are so many other places that you can use as your online focal point. Having a Facebook page or Tumblr blog, or relying on another social network as your online central focus has a number of potential flaws, not the least is control of your message. Let’s look at three scenarios where relying on a social media site as your main contact point can prove disastrous.
  • Scenario #1: Our first scenario is a real-life example of a band I’ll hypothetically call “The Unknowns,” since one of the band members asked me not to reveal their true name. During the heyday of MySpace around 2004 the band was hot and eventually developed a following of over 900,000. This led to a number of record labels becoming interested (remember that they sign you for your audience, not your music), with the band eventually signing a big deal with one of the largest major labels at the time. The label immediately told the band to suspend their MySpace account because “we can do all that better in-house than you can.” In typical record company fashion, the label ultimately did very little for the band’s online presence. They did create a new slicker label-managed MySpace account, but they were not able to transfer any of the band’s previous followers, thus leaving them with a presence that was far less than they had before they were signed. Of course, when The Unknown’s album was released they had no way to alert those 900,000 followers since they didn’t have any of their email addresses, and they didn’t even have a website where their fans could go in order to discover the latest news about them. Needless to say, the album bombed and the band was dropped from the label. They never recovered that massive fan base that they had before they were signed.
The moral of the story is that if they had redirected those fans from their MySpace account to their website in order to harvest at least some of the email addresses, things might’ve turned out a lot differently, since they could have alerted their fans when the album was released. And that’s the problem with relying on an external site that you don’t control as your focal point online.

It's too easy for today's artist who only dabbles in social networking to get complacent and comfortable with the abilities of a single social network, but that can spell disaster for maintaining your fan base if you're not careful. As those artists who formerly depended upon MySpace now know, what's hot today can be ice cold tomorrow. But other negative scenarios also exist that can be far worse than the network falling out of favor.

This scenario was recently played out again early 2013 in a slightly different manner when MySpace relaunched an updated version of their site. Every single artist lost all of their followers, and every MySpace user lost their previous settings, and any affiliation with the artists they were following. All users had to reregister again, and all artists, regardless of how popular they were (even owner Justin Timberlake), started all over again with zero followers!
  • Scenario #2: Let's say that you've cultivated a huge following on Facebook. What would happen if Facebook was purchased by EXXON (highly unlikely, but let’s pretend), who decides that all it wants is the underlying technology of the network, and shuts the rest down? If you didn't capture the email addresses of all your followers, you'd lose them to the nothingness of cyberspace. Don't laugh - a scenario like this could happen, but most likely on another smaller network.
  • Scenario #3: What would happen if Facebook (I'm picking on them because they're the big dog on the social block) changes its terms of service, and now charges you $.25 for every fan past 100? If you're lucky enough to have 8,000 fans, it's going to cost you $2,000 to continue. Or what if they decided to limit everyone's fan connections to 100? Actually, something similar now happens in that you’re unable to access that large fan base that you've worked so hard to develop unless you pay.
The point of all of the above scenarios is that when you depend on a social network for your online presence, you’re ceding control to an unknown, unseen force that can change it’s will at any time with no regard to your online well-being. That's why it's imperative that you don’t count on a single social network for your total online presence or even your social media presence. If you rely on an external network, sooner or later you're going to get burnt. It's the nature of the Internet to constantly change, and it's too early to get a feel for the life span of even of the largest sites and networks. 

Just to illustrate the volatile nature of social networks, in 2005 MySpace was the most visited social network online with 100 million users. A mere five years later and it had dropped below 25 million, yet has recently doubled that number and is growing again. What this means is that you must pick and choose the social networks that you participate in wisely, and always engage in a number of networks in case one suddenly falls out of favor.

You can read additional excerpts from Social Media Promotion For Musicians and my other books on the excerpt section of bobbyowsinski.com.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 13, 2014

The Best Way To Boost Your Album Sales

The Everly Brothers image from Bobby Owsinski's Music 3.0 blog
It's a sad commentary when the best way to boost you iTunes sales if you're already famous is to pass away. This is what happened to the Everly Brothers catalog after the passing of Phil Everly recently.

Everly Brothers albums were up a whopping 455% last week, according to Nielsen SoundScan, and their individual songs were up 696%.

Now to put that into perspective, that meant that only 5,000 albums total were purchased!

The biggest seller being "The Very Best of the Everly Brothers," which moved 2,000 copies. It actually made #8 on the Country Catalog Albums chart with this number. Their top selling single was "All I Have To Do Is Dream," which was up by 490%, but that just meant 4,000 total downloads.

This is just another point that sales are not what they used to be, and probably won't be in the future.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 12, 2014

The Music Industry Moves Kicking and Screaming Into A Streaming World

Streaming Music image from Bobby Owsinski's Music 3.0 blog
One thing about the music industry is that it likes to be comfortable. Life was so easy for about 50 years as the way business was conducted hardly ever changed. The label found an act, made a record, sold it to retail and promoted it through radio. Publishers and songwriters went to the mailbox and collected their checks. Boy, are those days over.

Just about the time the industry was getting used to digital downloads as the center of its financial universe, the business model is changing once again as streaming becomes the consumption method of choice for music lovers everywhere. The genie’s out of the bottle, the cows are out the barn, and the music files are off the hard drive.

Nielsen SoundScan’s numbers for 2013 now show that streaming was up 32 percent, while digital download sales were down about 6 percent. Folks, from this point on this disparity will continue to grow, and by leaps and bounds I might add, and you can take that to the bank.

Once again, let’s state the obvious - people prefer convenience when it comes to technology, and streaming is so much more convenient than any other type of music consumption method that there’s no contest. You’re going to see streaming explode for real in 2014, and those SoundScan numbers are going to look tiny when we look back this time next year. Read more on Forbes.
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You should follow me on Twitter and Facebook 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, January 9, 2014

Music Career In A Rut? This Can Help!

CLICK HERE
If you're career is in a music rut and you're not doing the things in music that you think you should be, then my 6 Keys To Musical Prosperity teleseminar might be just the thing you need to kickstart your career.

I'm inviting you to a free 60+ minute telephone seminar that I'm offering next Tuesday, January 14th with a group of my music industry friends like maga-mixer Dave Pensado and LA session bassist Paul ILL, who currently work with hit artists that have recorded some of the classic songs that you hear on the radio every day.

If you're not making enough money or working with the best musicians and people in the industry, it's time to find out how to overcome the common hurdles that block musicians, engineers, and producers from doing the things they've always dreamed about.

Together we'll teach you things that 95% of all musicians don’t know.

To register for this call, which is free except for your normal long distance charges, go here now:

Once registered (remember, it’s free), you'll receive all the details to join the call via return email. I look forward to "seeing" you on the call next Tuesday!

Wednesday, January 8, 2014

The Numbers Are In: Should The Music Industry Be Worried?

Record Player image from Bobby Owsinski's Music 3.0 blog
Billboard Magazine recently posted the Nielsen Soundscan year-end 2013 music sales numbers, and while they may not correspond exactly with the upcoming figures from the RIAA (Recording Industry Association of America) or IFPI (International Federation of the Phonograph Industry), I don’t think they’re far off the mark. I’m sure music execs everywhere are looking at the stats and wringing their hands, and in some ways, they should be, because it’s the first year since iTunes was introduced that digital music has suffered a decline.

In what should be a huge red flag for the industry, 2013 digital track sales fell 5.7% from 1.34 billion units to 1.26 billion. Soundscan hasn’t yet released their streaming numbers for the year, but it should be clear to everyone that streaming is the reason for the downturn. In fact, it’s been widely noted that the digital download sales decline has been offset by the rise in streaming income, which we should see quantified when the numbers are made available.

Perhaps a larger problem is that the album, the cash cow of the industry (although less so than ever), has seen its sales decline for yet another year. Album sales for 2014 dipped to 289.4 million units, an 8.4% reduction from the prior year, although digital album sales fell a nominal 0.1% to 117.6 units from the previous year’s 117.7 million.

We’re in the era of the single song sale, as albums mean less and less to today’s consumers. It’s a different time where the attention span is much shorter, multitasking abounds, and there are more media choices than ever, which is less than ideal conditions for a medium that requires a long time commitment. Albums won’t die, but hopefully they’ll be altered for the times, with fewer songs and less running time. That’s not going to bring the format back to prominence, but it might slow its decline. This is one time where quality trumps quantity for sure. Read more on Forbes.
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You should follow me on Twitter and Facebook 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, January 7, 2014

7 Website Killers To Avoid

website killer image from Bobby Owsinski's Music 3.0 blog
It's great that you have a website, but you want it to be as effective as possible so that you can gain more followers, get better gigs, and sell more product. Here's an excerpt from Social Media Promotion For Musicians that outlines the 7 website killers to avoid to make sure that visitors find your site and want to come back.

"Here are a number of practices that are guaranteed to turn off your visitors. You know what they are yourself because you probably encounter them on other sites every day, but that doesn't mean you should emulate a bad practice. Not only do many of the following aggravate site visitors, but they're can mean site death when it comes to search engine optimization. If you want fans to find you, make sure these are avoided. 

1. A "splash" page. A splash page is an opening page with a movie or flash animation and no information. The whole "Enter Here" thing is so Web 1.0. There's no info for a search engine to grab and your visitors hate them. Avoid at all costs.

2. Flash animation. It looks cool, but sometimes people just want some info and not cartoons. Search engines can't read any of the info in a Flash movie so they're a waste of time and money. iPhones and iPads can’t display Flash, and most people hate it these days anyway.

3. Frames. Again, so Web 1.0. Sites with frames went out a long time ago. Get with the times and dump these babies.

4. Pop-ups. It doesn't matter where they come from or if they're selling something or not, everyone hates them.

5. Pull-down boxes for navigation. Designers love them, visitors hate them, search engines can't read them. If your site isn’t that complex, stay away if you can.

6. Dead links. This is just poor website quality control. It happens to everyone at some point, but remember that both search engines and visitors hate them.

7. All graphics and not much text. Search engines love text. Visitors love text. Pictures are nice, but use them in moderation."

These rules aren't that difficult to implement, especially if you're updating your site. Chances are that if your site is still using the first 3 items, you really need an update anyway.

You can read more excerpts from Social Media Promotion For Musicians and my other books at the book excerpt section of bobbyowsinski.com.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 6, 2014

Vinyl Sales Grow, But Albums Stagnate

We're starting to get the final music sales figures from 2013, and the biggest jump so far is with the vinyl album. As you can see from the chart below from Statista, the LP has been on a steady incline since 2007, but last year grew by 32% over 2012.

Albums in general haven't done so well though, as overall sales (including CD and digital) fell another 8.4% last year, slumping to 289 million units from 316 million in 2012.

That being said, remember that the big jump in vinyl still means there was only 6 million units sold! That's a drop in the bucket compared to the other music media.

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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 5, 2014

Help Your Fans Help You Market

Gig Crowd image from Bobby Owsinski's Music 3.0 blog
Social media can be such an instant communicator that it allows people to immediately share the good time their having with not only their friends, but the world. The problem is that artists and bands don't often take advantage of this during a show. Consider the following ideas for your next gig.
  • Display a live feed. How about displaying a live Twitter or Instagram feed on a monitor near the stage. Even better, if you use a projector in your show, put up the feeds at specific times during your set. An even better time is before the show actually begins, since there's already built up tension as the fans wait for the main event.
  • Have clear written instructions on what you want people to do. Your fans will engage since they're already on their phones, but you have to have a clear call-to-action so they understand exactly what they're being asked. Then they need the instructions easily laid out for them. They're at a event trying to have a good time and don't want to think.
  • Collect the data. Be sure to collect and analyze the engagement data so you can spot any trends, such as boredom, excitement or an intense reaction for a song.
  • Turn it into user generated content later. Pictures and videos can later be used as social media or YouTube content, just ask permission first. Most fans will be only to happy that you've chosen their material.
A live gig is an underutilized tool that with a little additional effort can turn into a social marketing event with the help of your audience.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 2, 2014

Getting On The iTunes Home Page

iTunes home page image from Bobby Owsinski's Music 3.0 blog
iTunes Home Page
Almost every artist wants to have their song or album placed on the iTunes home page as that can make a big difference in getting a lot of buzz, exposure and sales. It's the equivalent of a CD display near the entrance of record store. The problem has always been finding a way to get there.

A recent article in Billboard interviewed various industry execs on the factors that get an act that sort of home page placement. Believe it or not, iTunes doesn't provide placement based on the artist's name, reputation or past sales. Instead, they look more at what the promotional plan is going to be, as well as the career arc of the artist.

This is actually pretty smart on iTunes part, in that they try to make sure that the artist will have an on-going relationship with the iTunes audience, and that the release will have significant additional promotion beyond the iTunes home page, which will also help the iTunes sales.

The problem is that most DIY artists don't have the wherewithal to develop the type of marketing plan that iTunes deems acceptable. That's one of the reasons that signing with a large indie or a major label can sometimes be an advantage, although an experienced management team could also make that happen. Just having music that people like is not enough.

One final item on the subject - it doesn't matter where you're placed on the home page, just that you get there. Apple has all the stats to prove that placement anywhere on the page is equally powerful.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, January 1, 2014

Who Says You Need Only One YouTube Channel?

YouTube logo image from Bobby Owsinski's Music 3.0 blog
Many artists and bands don't spend nearly enough time tending to their YouTube channel as they should, but even the ones that do may find that having only one channels isn't enough.

For example, a new study by Pixability shows that the top 100 global brands have a total of 1,378 individual channels with over 258,000 videos posted, and they attracted 9.5 billion views. 56 of those brands have 10 or more channels. The only one of the top 100 brands that didn't have a YouTube channel was financial giant Morgan Stanley (I guess their customers don't have time to spend online).

Which brands have the most channels? It might surprise you.
3M          43
Disney    41
Nike        41
IBM        41
Google    40
Samsung 34
Sony        34
Philips     34
Oracle     34
IKEA      33

Who produces the most videos? That might surprise you too.
MTV - 23,000+
Thomson/Reuters - 23,000+
Disney - 15,000+
Google - 12,000+
Samsung - 12,000+
Sony - 10,000+
Intel - 8,000+
Seimans -7,000+
Nokia - 6,000+
Cisco - 6,000+

Who are the top social video marketers? Try Adidas, Apple. Samsung and Sony, all tied at number 1.

What are the conclusions of the study?
  • Having more targeted channels gets more views, but only if you regularly post on them. A targeted channel for a band might mean one that's dedicated to unplugged performances, or one that only has live performances, or one that's dedicated to the personalities of the band.
  • The more videos you make, the better. And they can be different lengths and have different quality levels.
  • The more you use social media to announce your videos, the more views you'll get.
You can see the slide show for yourself (there's a lot more data there) at Slideshare.
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Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter and Facebook 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, December 31, 2013

Have A Happy And Prosperous 2014!

To all the readers of The Big Picture Production Blog, Music 3.0 blog, my Forbes blog, or my books and programs, I want to thank you for a great 2013 and wish you a fruitful, successful, and most importantly, a musical 2014!

Let's remember the phrase "When I lift my brother, I lift myself" so together we all have the best year ever.

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