Predictions for the music industry: Part 1
Posted by HLPAPG
Bobby Borg, author of Business Basics for Musicians, shares some insight on what the music business will be like in the future in this two-part interview at DiscMasters. No one really knows what the future holds and the music business and the technology surrounding it are constantly changing. Here are Bobby’s thoughts. Check them out below! (We’ll past Part 2 next week!)
What can we expect in the year 2020? Let’s see what a group of attorneys, music publishers, managers, and music industry entrepreneurs had to say about this. Enjoy.
1. Artists are more like tech start-ups and less like wandering minstrels (Greg Victoroff, Esq.)
In the brave new world of pop music in 2020, writers, musicians, vocalists and producers will be more similar to engineers and inventors, creating new apps and software. For those who innovate and monetize, there is vast potential. For musicians who aspire to just be record label “employees,” income from artist’s royalties alone will be insufficient to support a full-time career. To succeed in the world of digital music now and in 2020, musical artists need to think of themselves more like tech start-ups, and less like wandering minstrels.
2. Success that’s earned on your own: DIY style (Don Gorder, Chair and Founder, Music Business/Management Department, Berklee College of Music)
In 2020, as it is today, the marketplace will be overcrowded with music. There will still be the select superstar whose songs reach the masses through the efforts of a support team, but the vast majority of musicians will need to continue taking on a DIY approach to their careers to get seen and heard.
The good news is that technology will continue to advance and make doing it yourself even more possible than it is today. Successful do-it-yourselfers will continue to leverage the latest social media platforms and analytic tools to connect with their fans and fund their projects, partner with product and service companies for branding and advertising campaigns, license their music for film, television, games, ads, etc., leverage relationships with electronic media as part of their marketing strategy, and book and promote their tours and concerts – all with an ultimate goal of getting their music to the ears of the curators of the outlets for consumption, which will exist in business models that are still emerging.
Cutting through the clutter will continue to be a challenge, but great music combined with an entrepreneurial spirit and a lot of hard work will be the winning formula.
3. Affordable DIY services that capture new revenue streams (Tony van Veen, CEO, Disc Makers & CD Baby)
Many music industry trends over the last years have not been favorable toward artists and songwriters: we’ve gone from selling CDs for $10 to downloads for 99¢ to streams for under half a penny. While royalties in general will improve, it has been more difficult than ever for musicians to monetize their music.
As a consequence, independent artists and songwriters will continue to become more and more conscious of how to leverage their intellectual property into alternate revenue streams. In addition to the companies that already exist, you will see many new businesses offering affordable services to DIY artists to capture performance royalties, Internet royalties, mechanical royalties, YouTube royalties, sync licensing for film, TV, games, and commercials. Each of these incremental revenue streams may be small, but in the aggregate they will become a needle-moving part of the artist’s revenue mix.
Read the whole thing over at DiscMakers!