Quotes from “The Future of Music”

As I re-position myself and my music plan, I found a fantastic book called “The Future of Music,” by Dave Kusek and Gerd Leonhard (whose name I have now include here b/c of the comment Gerd left at the end of this post). They calls themselves ‘music futurists’ –a title I hope I someday have the audacity to present as my own– and runs a blog, http://www.futureofmusicbook.com, not to mention the Berkelee School of Music’s online offerings. Here are a few passages I highlighted from his book that seem key to what I need to do.

Perhaps, as in the past, we can once again become part of the experience of music, rather than the e static purchasers of it. We can be involved, we can cheer our favorite artist on, we can participate in events and react to them, and we can actually make a difference–as the audience or the creator, or both. This fits in nicely with a general trend in our society, of moving, step-by-step, from the “Information Society” via the “Knowledge Economy” to the “Experience Society,” as we will explore in this book–that is, from a place where we are mere recipients of a flow of data and information, as in the traditional media models, to a place in which a lot more value is being placed on experiencing things first-hand and unfiltered. p. 13

The key to success in music niche marketing is to focus promotional dollars where they will bring the highest return–that is, maintain a low burn rate while getting maximum results. To support this, technology can be developed to allow for the highest possible conversion rate from ‘interested user’ to ‘buying customer.’ Matchmaking–having the right customer run across the ‘perfect’ music at the right time–is where the art of marketing comes in. Finding the appropriate digital exposure channel, and determining when to start charging, and for what, will be the prime job for music marketeers of the future.
Once seeded and well-tended, niche markets can be extremely profitable, especially with intangible wares such as music. There is great opportunity in this sector, both for savvy new entrepreneurs, as well as for service and technology companies. In twelve to fifteen years, niche markets may bring in close to 40 percent of the global music revenues, and a new middle class of artists may finally thrive. p. 29

…any information about any artist and their work can be obtained, news spreads within minutes, downloads and streams are instantly available anywhere, anytime, and territorial restrictions become meaningless… p. 31

Recorded music has too long been viewed as a ‘static’ product rather than a more fluid or participatory entertainment experience–but the latter is where its real value lies. p.34

“…the people you are trying to reach, by and large, don’t view music a commodity but as a relationship with a band.” Chris Blackwell, founder of Island Records p. 40

In the very near future, distribution–and even more importantly, marketing–will shift towards digital means. Ultimately, marketing will be distribution…Digitally empowered fans are some of the new tastemakers, and they are going to drive the business. p. 58

Of course, the Internet is at its best when used to reach a targeted market niche. Once an artist has found an audience somewhere–through playing gigs, selling records at their shows, and gaining some grass-roots momentum, the ‘Net can be used to target and increase this audience. Knowing the audience and then engaging them, encouraging them to recommend an artist to their friends, finding other artists like them, and expanding the relationships, all can lead to an engine that can propel careers forward, regardless of where the music is actually sold. But it can be a lot more rewarding for the artist if they sell directly. p. 68

It goes without saying that online porn sites would not exist if they had not and would not continue to give away a cornucopia of free content. This is a proven fact that musicians and labels must really pay attention to going forward. It represents a tremendous opportunity to develop direct contact between the musicians and the fans, through the trade of free content in return for an ongoing relationship. This is going to be a very potent way to market music. p. 79

Kids today distrust mass advertising, and seek out information with much more agility and more proactively than their parents did. Thus, the traditional mass-marketing methods employed by broadcast television and radio have much less impact on this ‘Net generation…their lives are seamlessly integrated with what they can do online…any music company seeking to reach them and influence their purchasing decisions needs to make sure that their artists’ entire online and offline presence is engaging, entertaining, rewards, and highly interactive. p. 99-100

In the future, the opportunity to influence, and this market to large groups, will lie squarely with the ability to reach them quickly, inexpensively, and of course virally, via peer groups and via the smart leveraging of social networks. Radio play, advertising, street teams, events, and many other traditional forms of marketing are going to fit right next to new forms of peer-to-peer digital marketing. Creating a buzz has always been essential in the promotion of music. Exposure begets discovery, which begets income. p. 106

Of course, the real steady money in the music business is in publishing, where songwriters, due to the compulsory mechanical royalty on all records sold and the revenues that flow from public performance, can often make a decent living over a reasonable period of time–nickels and dimes from a multitude of sources…Publishing and all kinds of licensing will likely be digital cash-cows for artists and writers, in the future even more so than today. p.108+110

A more equitable system might be one in which artists and their musician businesses contract directly with distributors–in most future scenarios, digital distribution services–and would take care of their service agencies. The music service providers, in turn, could fulfill an additional marketing function by leveraging collaborative filtering and recommendation technologies, and a whole lot more. p.125

The future of music will be most significantly influenced by those who can give their customers a completely integrated and cross-marketed mix of recorded music, live shows, merchandising, tickets, artist access, mobile music, video games, television, radio, film, software, and other publishing and information products. Integrating music purchasing and enjoyment into an overall entertainment or lifestyle experience is a model that may work very well. p. 135

…the name of the digital content game will always be to get exposure, be discovered, and then monetize the fan base. p.159

To partake in these opportunities, we must try to deeply understand what people want. We must also understand where, how, and at what time they want it…then the next big step is marketing–and the art of marketing will probably undergo the biggest changes in this entire puzzle…ultimately the question of what you pay attention to will completely replace the question of how you get access to it. It’s all about exposure and discovery. p. 166+170

30 Questions: Define My Niche

  1. What is your primary market?
    Adult album alternative (also triple-A, AAA, or adult alternative) is a radio format album-oriented rock format, its roots may have been established sometime during the 1960s from what was called underground music and later progressive. The radio format has a broader, more diverse playlist than most other formats and tends to appeal more to adults than to teenagers. Less-played tracks are also common. Musical selection tends to be on the fringe of mainstream popular music and rock music music genres such as alternative rock, alternative country, jazz, folk music, world music and blues. The musical selections tend to shy away from hard rock and rap music. Some Triple-A stations bill themselves under the slogan “World Class Rock”, “Quality Rock”, or “Finest Rock”. Music selection also includes tracks from albums that are not singles, which leads to the enhanced and larger playlist. -Wikipedia broadcast mostly on FM. A spin off from the
  2. Who is your competition?
    Damien Rice, David Gray, Jack Johnson, Bruce Springsteen, Dave Mathews, Iron & Wine, John Fogerty, Spoon, Tom Petty, Toots & the Maytals, Jimmy LaFave, Lyle Lovett, Micheal Fracasso, Ryan Adams, Kelly Willis, Patty Griffin, Donovan, Suzanna Choffell, John Dee Graham, Beck. – KGSR and my sense of competition http://en.wikipedia.org/wiki/List_of_adult_alternative_artists
  3. What are the strengths and weaknesses of the leading companies in your particular market?
    Similar to county, in that airplay is the big money earner. Right now, adults are buying more records in ever-increasing numbers, so this is a growing market for the first time in many years. The goal is to write a classic song. If you do, you can get it cut a dozen times. – Eric Beall, Making Music Make Money
  4. How can you imitate those strengths?
    With a real solid alt band and presentation.
  5. How can you exploit the weaknesses?
  6. What strategies have been used successfully in this market previously?
  7. What does your target audience look like?
    Baby boomers http://images.jupiterimages.com/common/detail/11/82/22778211.jpg http://peacecorpsonline.org/messages/imagefolder/cateandwaynehillard.jpg http://www.theage.com.au/ffximage/2005/06/09/biz_beach_1006_wideweb__430x268.jpg
  8. Is you market growing or shrinking?
    Growing.
  9. In what city or cities are most of the companies in your market based?
  10. What are the advantages and disadvantages of your current location?
    Many local artists.
  11. What segment of the market is the most crowded with with competition?
  12. What is the most under-served part of the market?
  13. What reactions are you getting to our songs?
  14. What part of the market is reacting most positively?
  15. Which is reacting with the least enthusiasm?
  16. What are the musical strengths and weaknesses of your catalog?
    Many styles.
  17. What are your strengths and weaknesses as a business?
    Not defined.
  18. How can you best utilize your strengths?
    Write classic songs.
  19. How can you best compensate for your weaknesses?
  20. What information do you need to compete in you market?
    How to break in, get championed, get exposure, find good partnerships.
  21. How can you get that information?
    Learn the industry.
  22. More importantly, what relationships do you need to have in order to compete?
    Jay Trachtenberg, Jodi Denburg, Jeff McCord
  23. How can you meet those key people, or people that know the key people?
  24. What relationships to you already have?
  25. What are you doing now to establish you songs in the marketplace?
    Post songs and things to my blog. Sometimes advertising.
  26. Is it working?
    Some.
  27. If so, why?
    It’s quick, cheap, easy, creates a connection.
  28. If not, why not?
    Not regular, post or marketing.
  29. What equipment or supplies do you need in order to operate effectively?
    Email manager.
  30. How much money do you have to depend on you business?
    1-3k/yr
  31. What’s the biggest obstacle to your success?
    Informational–Lack of knowledge regarding the industry or business in general?

Marketing Questionaire

Message/Audience
1. What is the primary message you wish to convey to your audience with this site? You’ve found a mature songwriter who knows how to dress poetry up in pop. Big, active catalog from Austin’s best young alternative songwriter.
2. What are your secondary objectives and overall goals you hope to achieve? To symbiotically build a large catalog > web presence > digital distribution > sales & licensing income.
3. What goals does your organization intend to reach with a new Web site?
4. Who is your target audience? Is it different from your current customer profile? Describe in detail. I don’t know. I guess my current customer profile starts with my friends and fans. They are 25-55. They are professionals and artists. When I think in terms of the AAA niche, my audience is tomorrow’s adult alternative consumers. It is discerning listeners, who want to hear the lyrics. It is aging hippies, KUT and KGSR listeners, but also KOOP and KVRX too. I wonder if my current customer is younger and more Web-centric than where I should be fishing.
5. How does your music differentiate itself from competitors? Sophistication, meaning: interesting lines over alt-rock jazz. Ultimately it is because my songs have meaning that I stand out. My stories enjoy clever progressions. My audience enjoys my competition but winces when they throw in a vague, cheesy, or a cliche pose for a lyric.
6. What are the key reasons why customers choose your music? Engaging, fresh songwriting, wordplay, sweet melodies, sophisticated hooks.

Perception
1. Use three adjectives to describe how the site should be perceived by the user. (examples: conservative, progressive, friendly, formal, casual, serious, experts, humorous, service-oriented, professional, etc.) Smart, fresh, original.
2. Is this different than current image perception? Maybe, slightly, but I reach so few people now compared with who I am shooting for. I am largely unknown. Whatever may proceed me should not be a problem, but I need to define more specifically/helpfully my market positioning.
3. What do you feel is the biggest challenge in getting your image across to customers? Getting feedback from users that would help me narrow my AAA niche down. Is it sensitive stoners, web progressives, jazz swingers, innocent creatives, smart sophisticates, all the above? Is this AAA? If it’s not, do I look outside that niche, or do I burrow within it?
4. Describe any visual elements or styles that should be utilized from your current Web site or existing marketing materials or collateral (logo: j-hook?, color palette: lightblue and brown, navigation, typography). Please provide existing samples. I need to come up with some design preferences to hire a designer.
5. How is your music currently perceived? I don’t know. I need to test. Do you wish to carry through the same kind of message through your Web site?
6. How does your music site fit into various Web groups/networks? my site, mp3 bloggers, recommender sites, reviews,
7. Is your relationship to the fans/biz clearly defined? If not, would you be interested in strengthening that relationship? If not, please explain.
8. List any URLs of sites you find compelling. What do you find the most interesting about these sites?
9. List URLs of competitor sites and briefly state what you like and dislike about their overall site.

Action
1. What is the primary action you wish your target user to take from the main page of your site? (examples: download, browse, move along specified path, email, order, explore, click button, call, etc.) listen to a song, comment, browse songs, download a song, sign up for updates about new material, buy direct, buy iTunes/whatever.
2. What is the primary action you wish your target user to take before leaving your site? Listen to my music. Is it the same action? It is. If not, describe why.
3. What elements are key items you wish to have available to the user on every page? Subscribe to my mailing list. Buy my albums.