
We are living in a digital global environment in which we all participate in a ubiquitous network; as a consequence each individual has an empowered role within society. The new found empowerment has significantly transformed the relationship between the consumer and the content. Content is no longer subjected to defined routes of consumption, instead the way content is shared, consumed and even absorbed in now an integral part of our lifestyles. While traditional broadcast platforms such as television and radio continue to deliver the same underlying pieces of content in sequence, the digital environment has transformed how our relationship with that content. Digital has created a democratisation of technology that has given music artists a global audience for their content and in return given music fans a unique connection to the content. This digital connection creates a knowledge transparency, generating data if analysed can act as a blueprint of digital behaviour.
From ‘liking’ a Band on Facebook or becoming the ‘Mayor’ of Vicar St, digital fingerprints provide an in-depth view of the individual consumer giving brands, bands & labels the opportunity to harness this data to develop something of value to the consumer. The most effective digital platforms have shifted from disruptive to productive, providing a service or utility, in return for a glimpse of behavior. What each label, brand and band can do through simple digital intelligence is identify who loves their music and how convenient is it for them to consume it? The real fans are the ones who love not like, who want to have that unique connection, who will buy exclusive records/DVDs/ringtones/merchandise etc, who will pay to see them in concert, who will share within personnel networks.
To simplify a traditional record label’s role as brand management, whose main responsibilities include: 1) Creating exposure for the artist, 2) Highlighting potential markets, 3) Developing an image, 4) Providing distribution & 5) Generating revenue. In a digital market place, fans are now the A&R guys, discovering and exposing artists through social networks, blogs, etc. The image is no longer developed, instead an image is earned, and the path of distribution is now a motorway. Digital has reduced the music industries control over supply and distribution, increased consumer power, heighted competitive rivalry and has provided a worldwide audience for artists, however the threat of substituting music with film or gaming does not exist, music is and always will be cherished and loved.
Labels of Tomorrow
The labels of tomorrow will be able to offer the fan that custom experience, that intimate memory, something of value that the consumer will pay for. The labels of tomorrow will ignore mass crowds identifying niches for their artists to sell to. This is already occurring, fans of Duke Special are funding the recording of his new album through pledges and in return they will receive limited edition personalised copies. Radiohead empowers their online community to be brand ambassadors by giving them access to insider information, special promotions and discounts, and tickets to the shows which in turn generates interest from new audiences and creates conversation among their existing fans.
The debate over illegal downloading may still be fighting out in court, but the digital world should be seen as the saving grace of the industries sustainability. The initial digital market or lack there of, gave way to media jacking which highlighted consumer’s preference for convenience over quality and outlined how the industries regime was set against consumer behaviour. The current digital market is seeing royalties from digital music growing at a faster rate than the decline in revenues from physical music sales for the first time. However the current digital market has given rise to media arbitrage; where cost fluctuates from iTunes to Spotify, pointing to an unsustainable scenario for the music industry. Digital has created new avenues of revenue for recorded labels through ad revenue from Muzu and YouTube The convenience of digital combined with the selection available can be attributed as the main reasons for the increase in royalties, but the music industries ignorance of consumer’s digital behaviour has resulted in an environment where in 2010, it is expected that just 5% of all music will be paid for.
Labels have long since focused on the logistics of the industry and failed to capture the greater essence of music, both as organised content and as a cultural currency. Music has always had a strong culture currency yet record labels are not finding that it directly relates to a strong monetary value. Social media has an inimitable ability to transfer this cultural currency across an audience network, creating dialogue which can hold real value. It is estimated that 2010 will be the year that social media-fuelled technology and behaviour is responsible for more content consumption choices than ever before. For consumers the real value is no longer just the content, it is now the context.
New Requirements
New marketing has publicly emerged as an empowering “tool” of the post-consumer establishing democracy that can be shared within new digital communities. New digital platforms such as Google Music, Sky Songs, Bandcamp, Spotify, Last.fm etc are highlighting the potential digital has to deliver new experiences for fans, and in return create new avenues of revenue. The abundance of digital touchpoints available to artists provides a global platform to connect with their music fan, whoever and wherever they are.
The combination of the decline in A&R and the failure of the 360 record deal to launch many major artists, has resulted in a DIY culture emerge, allowing artists to leverage digital interaction to establish their own market. It is important to note the key factors that will affect the music industry over the next decade, the channels of communication are going to become more decentralised, cloud computing will eliminate the need for ownership, location based services will provide intelligent information and the mobile will be the main access tool to the internet. Music is no longer force fed, instead digital has given music, not just popular music but all music a new opportunity to be shared and enjoyed all over the world by every individual.
No Comments | In: Bands, Distribution | tags: Digital Enviornment, DIY culture, Facebook, Music Industry. | #