Commercial Music Has No (Monetary) Value
After reading Andrew McMillen’s thoughts on the free track baiting game, I figured I’d throw something in to the mix. I do a class that is heavily focused on this sort of thing. The lecturer is a(n apparently) fairly popular recording artist who got in to music after he finished his marketing degree. He teaches at Griffith, SAE as well as various other music institutions and initiatives. His big crush is the internet and how it is changing “the game”. I love this class. It combines some of my favourite things: the internet, demographic profiling and music. Talk about tickling my fancy.
The first class we had he busted out some good news: music is losing its value. This is no big shock to anyone who has downloaded even one album. Not only is it free to download songs, it is more convenient! You never have to GO anywhere to make the purchase, you do not need shelves and racks for storage and you do not deal with issues of portability because it all fits on a hard drive or in an iPod. Advances in technology have changed “the industry”. The theories on where its going give me more than a girl boner, but that is MOSTLY for another post.
Two basic and relevant premises:
The model for purchase is moving from unit sales towards more subscription-based services.
Music is the final product, but it is no longer what is being sold.
Instead of paying $30 for twelve songs, four of which you probably don’t like, two of which you’re on pretty good terms with but wouldn’t necessarily want to cry to and six of which you totally dig but had already heard, people want the sprawling availability of music to be organised and categorised for them. They want to pay $10 a fortnight to have immediate access to thousands of newly released songs that they can stream at the touch of a button. They will pay an extra $2 if songs can be recommended based on peer review AND their own track history. Premium users will pay $30 if, attached to that streaming music, they can have the digital equivalent of liner/production notes. Want to know who produced the song? Okay. With another touch of your iPhone screen you can read their biography whilst simultaneously listening to a random playlist of their most recent and celebrated work.
The product in its most traditional sense is STILL the music, as that is what people are getting at the end of the exchange and it is what they want. But in world 2.0, the value of that product is found in the immediacy of the access, rather than the access or ownership itself.
Of course we’re still straddling the line between tradition and revolution (forever and ever, amen), but the gains in technology will ensure this doesn’t last long. Once shortfalls like laggy streaming and format incompatibility across devices are addressed, this sort of thing will take off.
So the marketing strategy McMillen cites as being useful is a good tactic*, but I expect we’ll see a lot more of it as people begin to understand just how “worthless” their recordings are. And I expect its effectiveness will be diluted proportionately.
As for his question: “How do you capture the attention of a user who rarely voluntarily visits band websites?”
I think you let them forget the website exists. Have a completely different ploy for that section of your victim pool. Conversion is risky.
Engage with people on their terms.
(Obviously the Cold War Kids had indication that people visited their site.)
Visibility facilitates attention. Intimacy captures it. And interaction seduces its host.
(I personally prefer MySpace pages to websites, and I [like Andrew] will turn to a Wikipedia entry for information rather than hit up a .com. Why is this? Who knows – perhaps the minute sense of isolation from the subject makes engaging with the information less threatening. On band websites you are often bombarded with blatant plays for your loyalty, the lay outs are more likely than not going to be over the top or unforgivably bland, and so on. There is some regulation on those things inherent to sites like MySpace and Wikipedia though.)
Of course, the Cold War Kids’ marketing dudes weren’t giving you that music for free. They are mining the statistics of everyone who accesses that track. Your location (for distributions/psychographics), your browser type and connection speed (for website functionality), how much time you spend on the site after the download (website appeal), the URL you were referred from (media consumption/promotions efficiency), and your return rate are IMMEDIATELY devoured by their statistics machine. So maybe this example doesn’t fit in to my predictions perfectly. But I felt like talking about them.
I personally long for a utopian day when music and its promotion becomes totally transparent, and the catch cry of the marketing team and its SUPERIOR PR consultants is: People, not publics.
Shit, I might make that my catch cry. It can be my first book on the subject.
*It sickened me that I almost changed my use of strategy/tactic as per the PR/Marketing definitions.
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about 1 year ago
Great post – I agree whole heartedly that music is heading towards the arena of being subscription based. I find music by looking at allmusic.com which helps me gain a better understanding of the band’s genre and what other bands influenced them. It’s a great site for understanding the timeline of different genres of who influenced who. I used to frequent Pitchfork but recently I’ve moved away from the site because it only covers select bands or labels and doesn’t cover a wider breadth of genres that I am seeking. A new strategy I use is going to the record label of a new band I like (say dungen) and checking out the sounds of the rest of the bands on that label – it’s allowed me to find some new great stuff… anyway sorry to ramble but great post indeed!
about 1 year ago
Great post, Meg, and thanks for the response.
Have you spent much time investigating proposed business models for this new music economy? I’ve engaged with one over the last few years – largely related to my university assessment – called ‘music like water’ by a dude called Gerd Leonhard. It’s entirely subscription-based and suggests that music users should be able to be charged a flat monthly fee similar to water and electricity services. Check it out, if you haven’t already, and please post your thoughts.
Who’s your semi-famous lecturer?
about 1 year ago
Hey Joel, I appreciate the “ramble” so no apology necessary. Your method for finding new bands is one I also subscribe to. I guess it is not so different from checking bands out based on who they play live shows with. Boutique-type labels, especially “indie” ones, are something I’m very much interested in. Local labels like Mere Noise Records and Spooky Records don’t just promote some sense of community and commonality among like-minded bands, but their specialised skill set seems to just further perpetuate the development of not just the bands in their charge, but those on the periphery as well.
But the combination of bands’ MySpace top friend lists and mining record labels is the reason I don’t find myself listening to the radio anymore. \
Can’t say I miss the banter
.
about 1 year ago
Andrew, I really haven’t spent much time investigating services at all because I have been acquainting myself with the basic theories and developments up to this point. While this is not necessarily a new interest of mine, it is definitely one I’ve only started pursuing and thinking about to any serious degree in the last month or so.
I will certainly take a look and report back.
Feel free to pump me with any other information or thoughts you may have!
If I told you who my lecturer was.. Well, the potential consequences are heinous and unspeakable.
(I had no idea who he was until he gave us his low down
about 1 year ago
Dear All,
I apologise for the rush/poorly-structured nature of these responses. I made the mistake of trying to comment in the ten minutes between lectures, and I am being harassed by these PHILISTINES and their business degrees.
From the front line,
Meg.
about 1 year ago
That’s fucking hilarious, because I read this post and responded within the ten minute between-class gap on Monday! Life, how bout it.
about 1 year ago
Hey Meg,
This is definitely the most interesting, exciting and ultimately frustrating element of the ‘ever-changing’ music industry for mine and it’s definitely something that is going to separate the ‘wheat from the chaff’ (I can’t believe I actually said that) when it comes to creative marketing of your product. I don’t think we’re ever going to see a hard and fast rule as to how music is purchased/stolen/consumed like we have in the past ever again – it will be dependent on who the demographic the music is focussed at is and how they choose to listen to their music.
I’ve been awake for far too long to offer anything of real substance here, but I think we’re using wikis and the like as opposed to, or – as is more often the case for me personally – as well as ‘official’ promotional material is simply because we’re more likely to get a more three-dimensional view of an artist from something which has been submitted by a passionate nerd rather than a bio combed over countless times by a publicist who is essentially hired to offer a particularly blinkered view of any given act. It’s hardly a groundbreaking theory I know, but I can’t visit your blog without posting a comment – it makes me feel like a stalker.
about 1 year ago
i think the other major plus in the wikis/etc is that there is a pretty centralised point of information access. not only do you have to FIND websites (usually it is bandname.com but not always) but you have to navigate to the content you want. wikipedia and myspace pose no such issue. you just use the search feature and you have one page of information.
and yeah, i will be keeping my “finger on the pulse” as it were in regards to our advances in music/internet because i think once promotions and marketing practitioners stop getting lost in the devices available to them and instead start USING said devices to their full potential to deliver messages etc then shit will go bananas.
about 1 year ago
andrew mcmillen, perhaps we are leading parallel lives and if we were ever to meet in the flesh the beginning and end point of the universe would lie directly between us?