For this week’s readings I gathered a
mixture of peer-reviewed journal articles and blog postings from prominent
industry figures in order to get a clearer picture of the range of digital marketing
options for independent musicians.
These readings helped contextualize first
the history of music marketing and its various stages, revealing that the music
industry model has, in many ways, come full circle. “Interpersonal music
marketing” was the first incarnation of delivering music to an audience, direct
from musician to consumer (Ogden, Ogden & Long, 120). With the development
of recording technology, radio, distribution channels, and the 20th
century music business model many more components and players were introduced
to the process. One effect of these developments was to galvanize resources and
power at level of the major record label, resulting in ballooning profit
margins and less control for the artist (ibid, 123-124).
Beginning in the later 1990s, these
business models slowly collapsed in spectacular fashion, victims of their own
avarice and the stiff resistance to shifts in digital music distribution and
consumption. The wake of this disintegration has left the remnants of these
labels and artists alike struggling to find new ways of generating sustainable
revenue streams (significantly less than the salad days of the pre-naughties).
One such strategy (and completing the aforementioned historical “circle” of
music marketing) is what is known as the “direct to fan” business model-
websites like Bandcamp et al. that allow musicians to sell directly to their
fan base. In the case of Bandcamp, the artist’s page can be set up to allow
consumers to set the price they are comfortable paying for the product or
allowing for a donation type scenario. Berklee School of Music’s music marketing
guru Mike King blogs about the band Metric, what he describes as a “middle
class” act who sell in the vicinity of 50,000 copies of a given release (King,
2). This is less than what a major act would sell, but still, coming from an
underground musician background myself, is certainly a benchmark of sustainable
success. King goes on to show that the direct to fan marketing can work for mega-acts
like Radiohead, Nine Inch Nails, etc. as well as mid-size bands like Metric. This
business model works in that it greatly reduces the costs associated with bloated
record label production and distribution methods, allowing for a much higher
profit margin for the artist. I plan to look into the success of this model for
smaller independent artists as a part of my larger research project. Watch this
space…
Running counter to some of the conventional
thinking on the current state of artist survival, Chris Wochagg believes that there
is still a way for musicians to focus on the production of music as their main source
of revenue. The more common viewpoint sees the music that artists create as “calling
cards,” generating little revenue from sales but increasing the artist’s cache
and profile (which in turn can allow for sustainable revenue streams from performances,
merchandising, etc.). He argues that if online music services were set up in a
more “transparent” manner (e.g. defining what amount of money the artist will receive
from any given purchase) fans would be more willing to part with their money. He
advocates for a “fairtrade” music policy similar to the programme set up for coffee
producers (Wochagg, 1). Unfortunately, as one blog commenter points out, this doesn’t
take into account that music, unlike coffee, can be shared and re-consumed infinitely
through digital means. It also is slow to recognize that music consumers are
increasingly moving toward “access models” of music distribution like Spotify, which
allow consumers to enjoy music without actually owning it (Wikström, 7).
Works
Cited
King, Mike. “Direct to Fan Model Working
for Metric.”mikeking.berkleemusicblogs.com. Accessed
Sept. 14, 2012. http://mikeking.berkleemusicblogs.com/2009/04/16/direct-to-fan-model-working-for-metric/
Lefsetz, Bob. “Today’s Music Business
Paradigm.” Lefstetz.com. Accessed
Sept. 14, 2012.
http://lefsetz.com/wordpress/index.php/archives/2010/12/17/to days-music-business-paradigm/
Ogden, James R., Denise
T. Ogden, and Karl Long. “Music marketing: A history and
landscape.” Journal of Retailing and
Consumer Services, 18 (2011): 120–125.
Wikström, Patrik. “A
Typology of Music Distribution Models.” International
Journal
of Music Business Research 1:1 (April 2012): 7-20.