What used to be considered the ‘Big Four’ will soon be down to the ‘Big Three’. EMI has been sold, and like I speculated in February – it has been sold as parts.
EMI Ceo, Roger Faxon, sent an email to his staff in which he informed them that the company would be split up. Faxon assures his staff that there were interested buyers to EMI as a whole, but the financial markets got in the way. “With credit spreads widening and little access to debt capital it became difficult for financial bidders to formulate compelling proposals at the right price”. And so, EMI will be split in half. However the separation of the two businesses will take some time, so for the time being EMI remains the same as it was before the sale.
EMI’s recorded music division has been sold to Vivendi’s Universal Music Group (UMG) for $1.9 billion. The price tag represents 7 x the company’s earnings before interest tax depreciation and amortization (EBITDA). The cost will be financed from Vivendi’s existing credit lines, and UMG will see about $500 million in non-core UMG assets. However, independent labels are protesting the sale of EMI to UMG claiming that UMG is too powerful as is.
EMI’s music publishing division has been sold to group led by Sony. The investment group is made of Sony Corporation, the Estate of Michael Jackson, Mubadala Development Company, Jynwel Capital Limited, the Blackstone Group’s GSO Capital Partners, and David Geffen. The price tag the heralded publishing division comes in at $2.2 billion. Once the transaction is complete Sony / ATV Music Publishing will oversee the operations of EMI music publishing. Much like the protest with EMI & UMG, independent music publishers have protested the sale of EMI to Sony. They might not have much basis to the protest though, because unlike the sale to UMG, this sale will allow EMI Publishing to operate as a separate business entity.
Both Universal and Sony need to clear necessary regulatory hurdles before they can take ownership of EMI. In other words – nothing is final just yet – and in this industry, things can change overnight.
References
Read CEO Roger Faxon's Letter To EMI Staff On Sale To Universal
Citigroup Press Release on EMI Sale To Universal Music Group
Citigroup Statement Announcing Sale of EMI Publishing to Sony / ATV Group
11.19.2011
11.05.2011
A Financial and Legal Nightmare for Record Labels
It’s every major label’s financial and legal nightmare – and it could soon be a reality.
Back in March, I wondered if Eminem’s victory over Universal Music Group in a case dealing with royalties and legal downloads would have an impact on the industry. (See original post here)
For Universal Music Group (UMG) that case has set off a firestorm one that no major label would want to deal with. UMG could soon be hit with multiple class action lawsuits that claim they have short-changed artists of royalties owed to them for digital downloads and ringtones. The lawsuits all deal with the basic principle – are digital downloads and ringtones sold or licensed?
The difference between a sale and a license? Billions of dollars.
Labels claim that digital downloads and ringtones are sales, however artists claim that they are licenses because there is little cost involved to the labels. Currently labels pay artists a royalty rate – anywhere between 10 and 20 percent – for a digital download or a ringtone. If the artists win their case, the revenue distribution is much closer to a 50/50 split – which would threaten the continued feasibility in the marketplace of the labels.
Earlier this year the 9th circuit court of appeals ruled that Eminem recordings transferred online were licenses. UMG spun that to mean that it as a singular case that dealt with specific language in Eminem’s contract. In the upcoming cases UMG hopes the cases are treated as breach-of-contract disputes. Otherwise it could mean huge losses for the recorded music industry if the artists get their way.
Currently UMG has been the only target of such claims, however if artists become successful in winning these cases in court, more labels could soon be the targets. In an industry that has already seen losses due to the digital age, this could potentially cripple the recorded music industry. (Recorded Music – not music – remember to distinguish the two).
In the coming months it will be interesting to see what perspires in two separate cases going on now – one spearheaded by Rob Zombie and the estate of Rick James, and one by Public Enemy member Chuck D – both of which are classified as class action.
References:
Universal Music Loses Bid to Dismiss Class Action Over Digital Revenue
Court Rules Against Universal Music In Lawsuit that Could Pay Artists Millions. Chuck D Joins Fight.
Judge Declines Universal Music Groups Bid to Dismiss Class Action Over Digital Revenue
Back in March, I wondered if Eminem’s victory over Universal Music Group in a case dealing with royalties and legal downloads would have an impact on the industry. (See original post here)
For Universal Music Group (UMG) that case has set off a firestorm one that no major label would want to deal with. UMG could soon be hit with multiple class action lawsuits that claim they have short-changed artists of royalties owed to them for digital downloads and ringtones. The lawsuits all deal with the basic principle – are digital downloads and ringtones sold or licensed?
The difference between a sale and a license? Billions of dollars.
Labels claim that digital downloads and ringtones are sales, however artists claim that they are licenses because there is little cost involved to the labels. Currently labels pay artists a royalty rate – anywhere between 10 and 20 percent – for a digital download or a ringtone. If the artists win their case, the revenue distribution is much closer to a 50/50 split – which would threaten the continued feasibility in the marketplace of the labels.
Earlier this year the 9th circuit court of appeals ruled that Eminem recordings transferred online were licenses. UMG spun that to mean that it as a singular case that dealt with specific language in Eminem’s contract. In the upcoming cases UMG hopes the cases are treated as breach-of-contract disputes. Otherwise it could mean huge losses for the recorded music industry if the artists get their way.
Currently UMG has been the only target of such claims, however if artists become successful in winning these cases in court, more labels could soon be the targets. In an industry that has already seen losses due to the digital age, this could potentially cripple the recorded music industry. (Recorded Music – not music – remember to distinguish the two).
In the coming months it will be interesting to see what perspires in two separate cases going on now – one spearheaded by Rob Zombie and the estate of Rick James, and one by Public Enemy member Chuck D – both of which are classified as class action.
References:
Universal Music Loses Bid to Dismiss Class Action Over Digital Revenue
Court Rules Against Universal Music In Lawsuit that Could Pay Artists Millions. Chuck D Joins Fight.
Judge Declines Universal Music Groups Bid to Dismiss Class Action Over Digital Revenue
10.23.2011
Learning From The Experts
Business Plans are written with the intention of getting presented to venture capitalists in hopes of securing funds for the business venture. Of course there are other reasons in which to write a business plan, but securing capital is the primary one. Venture capitalists can at times look through hundreds of plans – so it’s important to incorporate the specific things they do look for when you’re writing a plan.
I’m currently writing a business plan for an independent music publishing company and after researching information presented by venture capitalists Daymond John and XXXX, there are a few things I’ve incorporated and changed about my business plan along the way.
Daymond John stresses the importance of laying out a complete plan. This means doing your homework about similar businesses in the market and researching every aspect of your business. In designing my business plan I have carefully researched what others in the industry are doing, as well as what they are not doing. A good analysis of the market is an important part of a business plan because it allows venture capitalists to see where your company would fit in.
John also stresses the importance of being able to explain how your business operates to an individual who is not in the industry you are venturing into. This piece of advice has caused me to write a detailed operations section in my business plan. While the company operations might seem trivial to me, or even to others who understand how music licensing works, to a venture capitalist unfamiliar with the music industry these concepts are foreign. Giving them insight into company operations is essential.
Kevin Harrington stresses the importance of having a big marketing budget. He insists that 20 to 30 percent of a businesses’ initial budget should be towards marketing. This has caused me to change my marketing scheme. While originally thought to be a small marketing campaign, I have reworked my marketing and advertising budget so that there are different marketing channels being targeted every month, from different angles.
Harrington also says that a great executive summary is important – you need to show how you are going to benefit the investor and how the investor is going to make money. You need to show how you can benefit the investor. While I have yet to begin writing my executive summary, I know that I am going to have to work extra hard on it because sometimes it is the only thing that an investor will actually look at.
Overall, it’s important to understand that an investor is going to be investing in you and that your business plan is a reflection of you.
Sources:
Daymond John's Top 30 Tips and Advice From 2010
Ten Questions FUBU CEO, Daymond John, Asks Entreprenuers
Advice from the 'Shark Tank': How to Swim with the Big Fish
ABC Shark Tank Kevin Harrington Shares His Wisdom
I’m currently writing a business plan for an independent music publishing company and after researching information presented by venture capitalists Daymond John and XXXX, there are a few things I’ve incorporated and changed about my business plan along the way.
Daymond John stresses the importance of laying out a complete plan. This means doing your homework about similar businesses in the market and researching every aspect of your business. In designing my business plan I have carefully researched what others in the industry are doing, as well as what they are not doing. A good analysis of the market is an important part of a business plan because it allows venture capitalists to see where your company would fit in.
John also stresses the importance of being able to explain how your business operates to an individual who is not in the industry you are venturing into. This piece of advice has caused me to write a detailed operations section in my business plan. While the company operations might seem trivial to me, or even to others who understand how music licensing works, to a venture capitalist unfamiliar with the music industry these concepts are foreign. Giving them insight into company operations is essential.
Kevin Harrington stresses the importance of having a big marketing budget. He insists that 20 to 30 percent of a businesses’ initial budget should be towards marketing. This has caused me to change my marketing scheme. While originally thought to be a small marketing campaign, I have reworked my marketing and advertising budget so that there are different marketing channels being targeted every month, from different angles.
Harrington also says that a great executive summary is important – you need to show how you are going to benefit the investor and how the investor is going to make money. You need to show how you can benefit the investor. While I have yet to begin writing my executive summary, I know that I am going to have to work extra hard on it because sometimes it is the only thing that an investor will actually look at.
Overall, it’s important to understand that an investor is going to be investing in you and that your business plan is a reflection of you.
Sources:
Daymond John's Top 30 Tips and Advice From 2010
Ten Questions FUBU CEO, Daymond John, Asks Entreprenuers
Advice from the 'Shark Tank': How to Swim with the Big Fish
ABC Shark Tank Kevin Harrington Shares His Wisdom
10.02.2011
The Real Life Shark Tank
If you’ve ever thought about being an entrepreneur I’m sure you’ve watched the ABC hit-show ‘Shark Tank’. If you haven’t – you’re missing out. Shark Tank is a reality television show in which entrepreneurs present their business to a panel of investors who then evaluate and negotiate investment proposals. The panel is made up of entrepreneurs who are now investors. Two of these panelists, or ‘sharks’ as they are referred to on the show, are Daymond John and Kevin Harrington.
Daymond John was the force behind urban clothing FUBU in the 90’s. He was the founder, president and CEO of the company – leading it to $350 million in revenues by the late 1990’s. The company propelled to the levels of Donna Karan and Tommy Hilfiger. John also authored the book, Display of Power: How FUBU Changed a World of Fashion, Branding & Lifestyle. The book was named one of the best business books of 2007 by the Library Journal.
Kevin Harrington is one of the driving forces behind infomercials. He produced one of the first infomercials in 1984 and has since been involved in over 500 product launches. Harrington is a serial entrepreneur, having started several companies in the 90’s. His latest venture was a book, Act Now: How I Turn Ideas into Million-Dollar Products.
Both entrepreneurs have posted successful careers and both have critical and key components that they look for when deciding weather to invest in a particular business plan.
Kevin Harrington listed five key components he looks for before investing in a company, which he says he looks for by answering five key questions.
Is it a mass market? The bigger the market, the bigger the appeal of the product. If the market is too niche, then it leaves a smaller window of possible clients.
Is it unique in market? If there’s something similar in the market place already investors are likely to gravitate away from the investment, especially if the competition is already established. Being able to show an investor a new product, or a new feature to an old product is important.
Is it a problem solver? Everyone has a problem in the marketplace, and often times there needs go unanswered. A company that is solving this problem – weather by offering a new service or a new product, or an alternative to solving it versus one that is already available makes investors interested because they can see that there is already a market out there for your product or service.
Is there a transformation with this product? Investors look for exciting investments, products that can offer exciting changes to consumers tends to excite investors as well.
Is it multifunctional? If your company can provide different services, or if a product can provide different functions then investors feel more secure about investing because it can be marketed in many different capabilities, and thus be better than a similar product that can only offer one function. Case in point – today’s smartphone is a better investment than the traditional wireless phone.
Daymond John also tends to ask himself several questions when he looks at the key components of a business plan. While some are similar to Harrington, he also lists some addition ones.
What are the distribution channels? It’s great to have an idea and a great product, but it’s equally important to know how to get the product to the consumer. Sometimes the product can be a great, but if it is distributed poorly, can never find it’s way to consumer’s hands.
How much does the entrepreneur know about his own industry? John states that this is his biggest pet peeve when looking over business plans. An entrepreneur should know an immense amount about the industry they plan to enter into in order to competitively compete. Lack of knowledge about the industry, can bring down the company before it successfully begins.
Both entrepreneurs however agree that it is important to be able to answer all questions regarding your business and your business plan quickly. If there’s hesitation involved in answering, it causes an investor to hesitate when deciding if investing in your company is a wise decision. Take it from two guys who have been pitched countless ideas - the last thing you want as an entrepreneur is a hesitant investor.
References:
Daymond John - Shark Bio
Kevin Harrington - Shark Bio
5 Things Kevin 'Shark Tank' Harrington Looks For Before Investing
The Making of FUBU - An Interview with Daymond John
Daymond John was the force behind urban clothing FUBU in the 90’s. He was the founder, president and CEO of the company – leading it to $350 million in revenues by the late 1990’s. The company propelled to the levels of Donna Karan and Tommy Hilfiger. John also authored the book, Display of Power: How FUBU Changed a World of Fashion, Branding & Lifestyle. The book was named one of the best business books of 2007 by the Library Journal.
Kevin Harrington is one of the driving forces behind infomercials. He produced one of the first infomercials in 1984 and has since been involved in over 500 product launches. Harrington is a serial entrepreneur, having started several companies in the 90’s. His latest venture was a book, Act Now: How I Turn Ideas into Million-Dollar Products.
Both entrepreneurs have posted successful careers and both have critical and key components that they look for when deciding weather to invest in a particular business plan.
Kevin Harrington listed five key components he looks for before investing in a company, which he says he looks for by answering five key questions.
Is it a mass market? The bigger the market, the bigger the appeal of the product. If the market is too niche, then it leaves a smaller window of possible clients.
Is it unique in market? If there’s something similar in the market place already investors are likely to gravitate away from the investment, especially if the competition is already established. Being able to show an investor a new product, or a new feature to an old product is important.
Is it a problem solver? Everyone has a problem in the marketplace, and often times there needs go unanswered. A company that is solving this problem – weather by offering a new service or a new product, or an alternative to solving it versus one that is already available makes investors interested because they can see that there is already a market out there for your product or service.
Is there a transformation with this product? Investors look for exciting investments, products that can offer exciting changes to consumers tends to excite investors as well.
Is it multifunctional? If your company can provide different services, or if a product can provide different functions then investors feel more secure about investing because it can be marketed in many different capabilities, and thus be better than a similar product that can only offer one function. Case in point – today’s smartphone is a better investment than the traditional wireless phone.
Daymond John also tends to ask himself several questions when he looks at the key components of a business plan. While some are similar to Harrington, he also lists some addition ones.
What are the distribution channels? It’s great to have an idea and a great product, but it’s equally important to know how to get the product to the consumer. Sometimes the product can be a great, but if it is distributed poorly, can never find it’s way to consumer’s hands.
How much does the entrepreneur know about his own industry? John states that this is his biggest pet peeve when looking over business plans. An entrepreneur should know an immense amount about the industry they plan to enter into in order to competitively compete. Lack of knowledge about the industry, can bring down the company before it successfully begins.
Both entrepreneurs however agree that it is important to be able to answer all questions regarding your business and your business plan quickly. If there’s hesitation involved in answering, it causes an investor to hesitate when deciding if investing in your company is a wise decision. Take it from two guys who have been pitched countless ideas - the last thing you want as an entrepreneur is a hesitant investor.
References:
Daymond John - Shark Bio
Kevin Harrington - Shark Bio
5 Things Kevin 'Shark Tank' Harrington Looks For Before Investing
The Making of FUBU - An Interview with Daymond John
9.16.2011
Spotify - Legal Music at Your Fingertips
Spotify. Where are you? That’s the question I pondered a few months back. Spotify has since arrived and I for one am hooked.
Spotify launched in the United States in the middle of the summer, making millions in legal music available to listeners. Many people noticed, and along with it’s release came the critics. While in the US Spotify is only a few months old in Europe the company is in its third year of operation. At a time when more music start-ups fail than succeed, that’s quite impressive. The critics aren’t all that impressed. In its short time indie labels are protesting Spotify, saying that the model isn’t financially sustainable for indie labels. Will Spotify pay up? Apparently it has – Spotify released a statement last month that in just three short years, where they were mostly operating in Europe, they have already paid over $100 million to labels and publishers. IFPI figures actually showed that Spotify was the second largest source of digital revenue for labels in Europe. Impressive for a little start-up.
Currently, users of the free Spotify accounts can listen to anything they want from the database, as many times as they want, with advertisements in between. The free trial lasts for 6 months. So what happens after? You can still access Spotify, but with a few restrictions. Listeners will only be able to play each track 5 times, and will only be able to listen for 10 hours a month. The move has worked well in Europe were restrictions are already in place. In March, when there were free restrictions, 17.8% of the active user play was paying users. By June, when the restrictions were in place, 32.9% were paying users. Sure they lost more than a million free users, but they also gained more than half a million paying users. It’s left to see what will happen in the US once the restrictions are enforced. Analysts however feel that once their financial-year-ending reports are released, Spotify will have turned a profit. Isn’t that the goal of all start-ups – to turn a profit within three years?
Are you using Spotify? When the restrictions are in place – will you begin paying for a subscription? I sure will. Having an artist’s entire catalog available to me at the click of a mouse is amazing.
References:
Spotify Payouts Top $100m as it Responds to Indie Label Critics
Exclusive: Spotify Subscriptions Surged to 1.5m After Free Service Restrictions
Spotify launched in the United States in the middle of the summer, making millions in legal music available to listeners. Many people noticed, and along with it’s release came the critics. While in the US Spotify is only a few months old in Europe the company is in its third year of operation. At a time when more music start-ups fail than succeed, that’s quite impressive. The critics aren’t all that impressed. In its short time indie labels are protesting Spotify, saying that the model isn’t financially sustainable for indie labels. Will Spotify pay up? Apparently it has – Spotify released a statement last month that in just three short years, where they were mostly operating in Europe, they have already paid over $100 million to labels and publishers. IFPI figures actually showed that Spotify was the second largest source of digital revenue for labels in Europe. Impressive for a little start-up.
Currently, users of the free Spotify accounts can listen to anything they want from the database, as many times as they want, with advertisements in between. The free trial lasts for 6 months. So what happens after? You can still access Spotify, but with a few restrictions. Listeners will only be able to play each track 5 times, and will only be able to listen for 10 hours a month. The move has worked well in Europe were restrictions are already in place. In March, when there were free restrictions, 17.8% of the active user play was paying users. By June, when the restrictions were in place, 32.9% were paying users. Sure they lost more than a million free users, but they also gained more than half a million paying users. It’s left to see what will happen in the US once the restrictions are enforced. Analysts however feel that once their financial-year-ending reports are released, Spotify will have turned a profit. Isn’t that the goal of all start-ups – to turn a profit within three years?
Are you using Spotify? When the restrictions are in place – will you begin paying for a subscription? I sure will. Having an artist’s entire catalog available to me at the click of a mouse is amazing.
References:
Spotify Payouts Top $100m as it Responds to Indie Label Critics
Exclusive: Spotify Subscriptions Surged to 1.5m After Free Service Restrictions
9.04.2011
Artists & Social Media
Do-It-Yourself (DIY) artists are nothing new. Yet, as the digital landscape of the music industry keeps changing it’s important to use new technological initiatives to ones advantage. Receptive Music released the following infographic a few weeks ago.
At first glance it can be kind of over whelming, but if you break it down it’s much easier to navigate.
The Essentials:
Creating an online presence is the most important thing an artist can do to further their career. It’s not only about the music you play – but also about who you are. It’s important to create an avenue in which current and perspective fans can connect to you. Sites like Facebook and Twitter allow artists to directly engage with their fans. Artists should strive to make two-way conversations with people consistently.
Tyler Cordy, from the band 2AM Club, runs the band’s Twitter account and he makes it a point to communicate to the fans. If you mention the band, he’s more than likely going to respond to you. Fans love being noticed by their favorite bands – it makes them feel appreciated and as most musicians know, it’s now about the quantity of your fans, but the quality. One hundred die-hard fans will be more profitable to a band in the long run than one thousand casual fans.
Share Your Music:
After you’ve created an online presence it’s important to get your music out there and available to your fans. Websites such as SoundCloud allow you to upload your music and then share it through various platforms.
Sell Your Music:
While making your music available for streaming online is important – it’s also important to monetize your music. From direct-to-fan sales available through websites such as Audimated and Nimbit to digital distribution through TuneCore and ReverbNation, it’s important to find ways to monetize your music. The problem isn’t always that people don’t buy music – it’s that people can’t find the music to buy and thus resort to pirating it online. Making sure that your music is available online, as opposed to strictly physical copies sold at shows, is vital.
Tour Dates:
In the current music industry touring is one of the most profitable avenues for artists. It’s important that fans know when and where you’re performing, with enough time in advance that they can arrange to show up. It’s also important to list the details of a performance – cover charge, age restrictions, etc. Ex: If you’re performing at upscale clubs with a specific dress code make sure you let your fans know. Listing your tour dates on a website such as BandsInTown allows for not only your fans to find your tour dates, but also users who are in the city as well. At first login a consumer can see the tour dates of their favorite artists, as well as upcoming shows from other bands in their area. Plus they also send periodic emails to users informing them of shows in their areas.
Blog / Website:
While social networking websites allow you to directly engage with fans, it’s also important to maintain an artist presence outside of that – weather through a blog or a website. Tumblr provides the easiest form of blogging – that of micro blogging. Artists such as Pete Wentz have embraced the trend that allows you to share pictures, videos, audio, as well as short and long bursts of text.
Share Your Videos:
Video killed the radio star, at least that was the theory when MTV first premiered and launched with video from the Buggles in 1981. While MTV might not play as many videos as they used to, online platforms such as YouTube have allowed music videos to continue it’s rise. Some artists such as Soulja Boy and Rebecca Black have gained extensive media attention thanks to their YouTube video views. Creating a fancy music video is not a requirement though – sharing live performance videos works well too. Just make sure the audio isn’t distorted to the point that the music can’t be heard. Artists such as Lil Wayne have also taken it up another notch, using LiveStream and UStream to stream live footage in the studio.
Newsletter:
It’s also important not to forget about the marketing tool that preceded social networking – newsletters. Obtaining fan e-mail addresses is still an important aspect that should not be ignored. It also shouldn’t be limited to online. If possible try to obtain e-mails at shows and then proceed to send a show follow-up the next twenty-four hours. First time listeners of your music will be impressed, as will the loyal fans. Newsletters are also great for summarizing crucial band information and then sending it out to your fans. It’s imperative however not to bombard them with e-mails.
Measure:
After everything is said in then it’s important to measure the fruits of your labor. Knowing what platforms is attracting traffic, and which ones fans respond to more is important. It let’s you know what works, and what doesn’t. Measuring your visitors through websites such as Google Analytics also lets you know how the majority of your fans are reaching your pages. Active monitoring might lead you to find a page that’s supporting your music.
As the infographic points out – don’t take on more than you can handle. If your going to use the medium for a month and then abandon it, it’s best to just avoid it all together. No one wants to tune in to a page that hasn’t been updated in months. And if you’re still feeling overwhelmed – websites such as ReverbNation and TopSpin incorporate many of these tools into one platform. However they do charge you yearly fees.
References:
2AM Club Twitter
The Musician's Social Media Food Pyramid
25 Top Social Media Tools for Musicians
Video Killed the Radio Star YouTube Video
Pete Wentz's Tumblr
At first glance it can be kind of over whelming, but if you break it down it’s much easier to navigate.
The Essentials:
Creating an online presence is the most important thing an artist can do to further their career. It’s not only about the music you play – but also about who you are. It’s important to create an avenue in which current and perspective fans can connect to you. Sites like Facebook and Twitter allow artists to directly engage with their fans. Artists should strive to make two-way conversations with people consistently.
Tyler Cordy, from the band 2AM Club, runs the band’s Twitter account and he makes it a point to communicate to the fans. If you mention the band, he’s more than likely going to respond to you. Fans love being noticed by their favorite bands – it makes them feel appreciated and as most musicians know, it’s now about the quantity of your fans, but the quality. One hundred die-hard fans will be more profitable to a band in the long run than one thousand casual fans.
Share Your Music:
After you’ve created an online presence it’s important to get your music out there and available to your fans. Websites such as SoundCloud allow you to upload your music and then share it through various platforms.
Sell Your Music:
While making your music available for streaming online is important – it’s also important to monetize your music. From direct-to-fan sales available through websites such as Audimated and Nimbit to digital distribution through TuneCore and ReverbNation, it’s important to find ways to monetize your music. The problem isn’t always that people don’t buy music – it’s that people can’t find the music to buy and thus resort to pirating it online. Making sure that your music is available online, as opposed to strictly physical copies sold at shows, is vital.
Tour Dates:
In the current music industry touring is one of the most profitable avenues for artists. It’s important that fans know when and where you’re performing, with enough time in advance that they can arrange to show up. It’s also important to list the details of a performance – cover charge, age restrictions, etc. Ex: If you’re performing at upscale clubs with a specific dress code make sure you let your fans know. Listing your tour dates on a website such as BandsInTown allows for not only your fans to find your tour dates, but also users who are in the city as well. At first login a consumer can see the tour dates of their favorite artists, as well as upcoming shows from other bands in their area. Plus they also send periodic emails to users informing them of shows in their areas.
Blog / Website:
While social networking websites allow you to directly engage with fans, it’s also important to maintain an artist presence outside of that – weather through a blog or a website. Tumblr provides the easiest form of blogging – that of micro blogging. Artists such as Pete Wentz have embraced the trend that allows you to share pictures, videos, audio, as well as short and long bursts of text.
Share Your Videos:
Video killed the radio star, at least that was the theory when MTV first premiered and launched with video from the Buggles in 1981. While MTV might not play as many videos as they used to, online platforms such as YouTube have allowed music videos to continue it’s rise. Some artists such as Soulja Boy and Rebecca Black have gained extensive media attention thanks to their YouTube video views. Creating a fancy music video is not a requirement though – sharing live performance videos works well too. Just make sure the audio isn’t distorted to the point that the music can’t be heard. Artists such as Lil Wayne have also taken it up another notch, using LiveStream and UStream to stream live footage in the studio.
Newsletter:
It’s also important not to forget about the marketing tool that preceded social networking – newsletters. Obtaining fan e-mail addresses is still an important aspect that should not be ignored. It also shouldn’t be limited to online. If possible try to obtain e-mails at shows and then proceed to send a show follow-up the next twenty-four hours. First time listeners of your music will be impressed, as will the loyal fans. Newsletters are also great for summarizing crucial band information and then sending it out to your fans. It’s imperative however not to bombard them with e-mails.
Measure:
After everything is said in then it’s important to measure the fruits of your labor. Knowing what platforms is attracting traffic, and which ones fans respond to more is important. It let’s you know what works, and what doesn’t. Measuring your visitors through websites such as Google Analytics also lets you know how the majority of your fans are reaching your pages. Active monitoring might lead you to find a page that’s supporting your music.
As the infographic points out – don’t take on more than you can handle. If your going to use the medium for a month and then abandon it, it’s best to just avoid it all together. No one wants to tune in to a page that hasn’t been updated in months. And if you’re still feeling overwhelmed – websites such as ReverbNation and TopSpin incorporate many of these tools into one platform. However they do charge you yearly fees.
References:
2AM Club Twitter
The Musician's Social Media Food Pyramid
25 Top Social Media Tools for Musicians
Video Killed the Radio Star YouTube Video
Pete Wentz's Tumblr
8.19.2011
What's The Trend?
Trends are everywhere, and the music industry is no exception. However, the Hip-Hop community tends to create and embrace their own trends in comparison to the rest of the industry. This year alone they have managed to create quite a few of them.
Self-Production: Fifteen years after the trend originally appeared it has come back again. The days are over where you are left to wonder who produced an album. The trend today is for emcees to produce their own album. It seems fitting that the artist who perhaps inspired this trend the most was Kanye West. In a time where labels envisioned Trackmasters, Timbaland, or Scott Storch to be the ‘it’ producers required to make a single take off, Kanye West was making award winning albums on his own. The labels took note – especially when they released they could potentially save thousands, if not millions, on paying third party producers. Today the one-man is in full effect with producers / artists such as K.R.I.T., Blu and J.Cole all set to release albums this year.
Female Vocal Appearances: Hip-Hop has always favored female hooks, particularly those by white females, but lately there has been more of them then ever before. One of the recent breakthroughs – Skylar Grey. Not only did she right the hook for Eminem’s award winning track “Love the Way You Lie” but in the past 8 month’s she’s also appeared on Diddy-Dirty Money’s “Coming Home”, Lupe Fiasco’s “Words I Never Said” and Dr. Dre’s “I Need a Doctor”, just to name a few. Katy Perry is on the opposite side of the spectrum. She began guest appearing on Timbaland’s “If We Ever Meet Again” and then recruited rappers Kanye West and Snoop Dogg for two different singles on her last album “Teenage Dream”. One of most addictive hooks of the past year – Hayley Williams on B.o.B’s “Airplanes”. Seriously – if you weren’t singing it along in your head, reading it on Facebook statuses or on twitter feeds – something is wrong.
Album Delays: The classic album delays. No genre of music knows this better than that of Hip-Hop. Die-hard enthusiasts are still waiting for the day when Dr. Dre’s long anticipated album “Detox” is finally released. For years Dr. Dre has promised that ‘Detox was coming’. Release date after release date have come and gone, presumed singles have been released, and yet “Detox” appears to be a far away fantasy. For others, such as Kanye West and Jay-Z, after some release dates have past, the album suddenly drops with a week’s notice. Since January listeners had been waiting for the artists’ collaboration “Watch the Throne”. After the March release date passed with no release the album suddenly had a release date announcement, one week prior to the release. Since there wasn’t release date anticipation, leakers were unable to get their hands on the music and thus the album was actually released without being leaked, perhaps part of their strategy the entire time.
All of these trends have lead to hip-hop flooding the charts again like it once did – a quick look at Billboard’s Hot 100 for the week of August 27,2011 and one can see that 10 of the top 25 chart positions are held either by hip-hop artist or feature a hip-hop artist. Quite a feat for a genre that at one point in time was considered to be a passing fade.
References:
One-Man Armies – The Return of The Emcee/Producer Extraordinaire
Viva La White Girl – 5 Voiced Every Rapper Wants on Their Hit
The Big Pushback – Rappers & Labels Strategically Delaying Albums
Billboard Hot 100
Self-Production: Fifteen years after the trend originally appeared it has come back again. The days are over where you are left to wonder who produced an album. The trend today is for emcees to produce their own album. It seems fitting that the artist who perhaps inspired this trend the most was Kanye West. In a time where labels envisioned Trackmasters, Timbaland, or Scott Storch to be the ‘it’ producers required to make a single take off, Kanye West was making award winning albums on his own. The labels took note – especially when they released they could potentially save thousands, if not millions, on paying third party producers. Today the one-man is in full effect with producers / artists such as K.R.I.T., Blu and J.Cole all set to release albums this year.
Female Vocal Appearances: Hip-Hop has always favored female hooks, particularly those by white females, but lately there has been more of them then ever before. One of the recent breakthroughs – Skylar Grey. Not only did she right the hook for Eminem’s award winning track “Love the Way You Lie” but in the past 8 month’s she’s also appeared on Diddy-Dirty Money’s “Coming Home”, Lupe Fiasco’s “Words I Never Said” and Dr. Dre’s “I Need a Doctor”, just to name a few. Katy Perry is on the opposite side of the spectrum. She began guest appearing on Timbaland’s “If We Ever Meet Again” and then recruited rappers Kanye West and Snoop Dogg for two different singles on her last album “Teenage Dream”. One of most addictive hooks of the past year – Hayley Williams on B.o.B’s “Airplanes”. Seriously – if you weren’t singing it along in your head, reading it on Facebook statuses or on twitter feeds – something is wrong.
Album Delays: The classic album delays. No genre of music knows this better than that of Hip-Hop. Die-hard enthusiasts are still waiting for the day when Dr. Dre’s long anticipated album “Detox” is finally released. For years Dr. Dre has promised that ‘Detox was coming’. Release date after release date have come and gone, presumed singles have been released, and yet “Detox” appears to be a far away fantasy. For others, such as Kanye West and Jay-Z, after some release dates have past, the album suddenly drops with a week’s notice. Since January listeners had been waiting for the artists’ collaboration “Watch the Throne”. After the March release date passed with no release the album suddenly had a release date announcement, one week prior to the release. Since there wasn’t release date anticipation, leakers were unable to get their hands on the music and thus the album was actually released without being leaked, perhaps part of their strategy the entire time.
All of these trends have lead to hip-hop flooding the charts again like it once did – a quick look at Billboard’s Hot 100 for the week of August 27,2011 and one can see that 10 of the top 25 chart positions are held either by hip-hop artist or feature a hip-hop artist. Quite a feat for a genre that at one point in time was considered to be a passing fade.
References:
One-Man Armies – The Return of The Emcee/Producer Extraordinaire
Viva La White Girl – 5 Voiced Every Rapper Wants on Their Hit
The Big Pushback – Rappers & Labels Strategically Delaying Albums
Billboard Hot 100
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