Ok, so what entertainment company has been able to hit this rather elusive new media nail on the head? More importantly, how have they done it?
I can't think of an industry that has shot it's self in the foot bigger or louder than the music biz with the rise of new media (news media may have been a distant second). With that said, what have you done to make use of new media Steve? Have you ran into anyone that won't let go of what worked when we were kids? How much of the previous generation of music business has been able to adapt and overcome?
Sounds like I'm grilling you, but I'm curious about your opinions and/or personal experiences with the above.
I can't think of an industry that has shot it's self in the foot bigger or louder than the music biz with the rise of new media (news media may have been a distant second). With that said, what have you done to make use of new media Steve? Have you ran into anyone that won't let go of what worked when we were kids? How much of the previous generation of music business has been able to adapt and overcome?
Sounds like I'm grilling you, but I'm curious about your opinions and/or personal experiences with the above.
Steve's reply...
Hi Unknown,
Thanks for reading, and responding to the blog…
I appreciate and welcome your questions, input, and opinions
on any and all subjects relating to the Music and Entertainment Industries.
I couldn’t agree more with the public opinion, regarding the
Music Business shooting itself in the preverbal foot, simply because, in many
ways, it’s the truth.
I could literally spend days addressing the many issues that
plague the business of music, and similar to others that live, breathe, and
work in the industry, can equally justify, the reasoning behind irrelevant
contractual obligations (ie: the “Breakage” clause, designed around vinyl in
the dark ages of pressing, duplication, and distribution) and negotiable
positions on each side of the Artistic and Business equation; however, I’ll
spare the readers of that, for now.
The industry, as a whole, is still profitable, and actually
up by marginal percentages throughout the world over the last five years. The hard
truth is that no one company has lucked into a magic formula guaranteeing success
for all of the artists or signed acts.
Companies that are evolving and succeeding in today’s
ever-changing market, aren’t the traditional brands we’ve come to know and
love; however, many of which are still a major part of the entire evolution,
relating to marketing, distribution, and consolidation/collaboration aspects
with a multitude of smaller companies.
Hard work, Dedication, and then Strategically planning and
allocating budgets for artists and releasable projects are again becoming the
core fundamentals, and are more focused at the forefront of independent talent.
Is there a need for what labels, managers, publishers, booking agents, and
record companies do, and have done, for a group or artists potential?
Absolutely! But, the game and business has changed and will continue to do so
forever.
To more directly respond to your questions, it is my
experience that some veterans in the music business cling to a more traditional
way of approaching daily operations of their companies, and more so than ever,
that mentality is falling by the wayside.
Early on, a person could walk up to a record company’s door,
and say “Hey, I’m Johnny Cash, and I think I’ve got something you need to
hear”. These days, people do the same type of thing, only in a much different
way. If a person were to take that direct of an approach today, without their
ducks in a row, they’ll more than likely get the response “We don’t accept
unsolicited materials”.
My philosophy on that particular question is clearly, “Evolve
Or Die… “ Meaning: 1) Learn the new technologies and understand how they can be
beneficial to a company’s business model and brand image; 2) Accept and Embrace
the changes inevitable in and around the industry; 3) Implement new strategies
that include the newly acquired skill-sets; and 4) Follow through and take
action. Not looking to the future will ultimately outdate a company that has not
solidified and proven their niche.
I’ve personally made many changes to what I do daily, and in
the different approaches taken with projects, with which I consider partnering.
The key elements and stages of release for a group haven’t really changed, with
exception of how a group is typically discovered. Identifying Potential,
Developing Talent, Preparing Product, and Rolling Out are all basically the
same; it’s the follow-through and strategic planning that has changed when it
comes to maximizing the release to the targeted market(s).
I’m a big fan of digital press, I don’t like, want, or need
top spend a great deal of time or money stocking hardcopies of everything a
group has to offer a potential buyer. Companies like TuneCore for digital
distribution, J-Distribution for physical distribution, and Discmakers for
short-runs and color press are great to include in anyone’s daily arsenal;
already saving an unbelievable amount of time, financial resources, and energy
for a manager and/or group.
Telecommuting, Video Chatting, File sharing Servers, and
Direct Messaging Systems all play a key role in the speed and consistency of my
day-to-day operations, and most importantly, can be completed through a mobile
device, allowing me to be on the road with a project and still be in the loop,
at any given time. (I could go on about the features and benefits of this type
of change for days as well, which is already scheduled for another blog post).
Statistics in the music industry change on a frequent basis,
but some of the sites I’ve gotten great insight from, regarding percentages of
the business that have changed and continue to include information about trending are: Report Linker, VSS Industry Forecast, and Music Market
Research. Perhaps two of the most important ones are Grab Stats and RIAA.
Two examples of independent companies that have become
greatly successful among Modern Rock artists are WindUp Records and McGathy/ Indegoot. Their stories are quite impressive and are great for
showing how a business can truly grow and become successful with great planning
and strategic marketing.
In short, there is no simple answer to many of the questions
posted in your reply, but I hope this explanation, based around my personal
experiences and education, helps to offer an additional perspective to anyone
looking to gain a more in-depth insight to what was posted in the initial blog.
Here are a few other links, in no particular order, to some articles I recently read via RSS, which I found interesting:
Thanks for the answers Steve, not trying to be completely unknown but for some reason blogger is not porting my google account in the posts. Maybe when I'm a bit more awake I'll make a proper blogger account and then it will show up.
ReplyDeleteThanks for the answers, and the links to check out. I'll give them a look tomorrow when I'm a bit more awake. Really interested in reading about Windup and Indegoot to see how they have grown.
I appreciate the more personal responses as well, makes this seem like less of a project for a teacher and more like a place to get a bit a look at the business from your point of view (granted, that view is much lower to the ground that what I'm used to).
Hi Moose,
ReplyDeleteThanks for the follow-up. I didn't assume I was being grilled, by any means.
I've been in and around the music business all my life, and on the road, in one way or another since 1997. I've seen so many things implemented and then fail, trend and then change, leaving once important people behind. Many of which, I've toured with or opened for over the years.
We all know there's no proven strategy for the success of every project, other than throwing so much money at it, something has to stick. These days, most companies want a product that's already in the can, meaning completed. (for the readers that aren't familiar with the term)
I like to keep my head out of the clouds and feet planted on the ground, in a way that embraces a very powerful grass-roots approach. It's time for people in the industry to focus on profit dollars, and not as much on profit margin. There are many ways to earn a living in the music business, and the general public doesn't typically know that it all doesn't have to revolve around multi-million dollar record deals and huge advances, that groups can't typically repay.
I tend to spend the majority of my time focusing on the talent development end of the equation. A great manager can build and release several touring projects per year, and not only generate major label marketing and distribution, but have projects that are A) Flippable, or B) Self Sustainable, in a way that makes them marketable for companies long-term.
The talent roster for both WindUp and McGathy/Idegoot is quite impressive, and practically owns the club/upper mid-sized venue market for national touring acts. You'll enjoy seeing how they've changed over the years.
Thanks again, for your response, compliments, and input. They're always welcome and greatly appreciated.
Steve