-MusicDish Industry Survey Series (#2, March/April 1999)-
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Introduction
Survey Summary
Detailed Analysis
Musician's Perspective
Survey Results
Further Reading
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Detailed Analysis by Sounni de Fontenay
In the second edition of the MusicDish Industry Survey Series, three segments are presented: touring, radio, & legal. During the survey period, 78 of the 128 total (61%) were musicians, DJs or songwriters [G1]. The remaining 58 participants (39%) comprised of music industry members including A&Rs, label executives, producers, promoters, and managers (collectively industry). With a majority percentage of respondents musicians, this survey allows us to gauge the current status of promotion and marketing among this integral part of the music industry. Although the MusicDish Industry Survey is taken from a small pool of music industry professionals, it helps to define current trends in promotion/marketing, and forecasts the new paradigm that has been created via the connection between the music industry and the Internet.
Playing local and regional shows is by far one of the most effective and widely used methods of promotion that musicians have [G2 & G3]. 16% of the respondents found that local/regional gigs were the most effective promotional tool available to them. Playing local and regional shows took second place only to exposure by word of mouth, which 30% of the respondents agreed was most effective. National/international tours, and corporate & college radio came in at 8%, 4% & 6% respectively.
Local shows can be a valuable source of steady income and practice time. However, there are difficulties even with this seaming benefit. A continuing debate within the music community is whether clubs should pay musicians to play. While it may seem obvious that musicians would get paid for their show, there are many venues which get around this by requiring bands to bring in a certain minimum amount of people to get paid. In addition, many musicians have no choice in the matter, if they want the opportunity to play a live show. MusicDish previously covered this debate last year with a series of articles by members of the industry.
While national/international touring is not feasible for many artists, a surprising amount (35%) do spend a portion of their marketing resources on the international level [G4]
. This is slightly higher than those who market their music on a national scale (28%). The apparent paradox can most likely be explained by the Internet and the ability it gives to reach a world market.
These statistics indicate that financial support as well as other resources are not available to artists to organize national/international tours. Unfortunately, these tours can be instrumental in exposing an artist's music to a much larger audience of potential fans. One can cite the impact that touring has had for Hip Hop and Latin music in Europe and Japan. The Hip Hop industry has been very aggressive in marketing their music in France and Japan through promotional tours. This has built a growing fan base in these countries that have caused them to become the largest Hip Hop music markets outside of the United States. On a visit to Germany, one can find the passion for Latin music currently felt in the Americas quickly spreading there as well. Salsa dancing lessons are becoming common and homegrown Latin bands are sprouting up onto the local scene.
What is needed is a new system that can connect musicians and venues separated by long distances. There is often a willing or established fan base that is waiting to accept and incorporate new music. The problem has been overcoming the barriers to meeting this demand for music. The Internet offers the opportunity for the musician to overcome these barriers. To properly take advantage of the Internet for tours, interactive agencies will need to be created to bring venues and musicians together. At the moment this online system is still in its infancy. Another option is the pooling of resources by a group of musicians to organize their own tours. The potential, however, is great and could help eradicate many of the existing barriers that currently faced by independents.
Radio, whether corporate or college, did not favor well among participants. 42% and 27%, respectively, of participants use college and/or corporate radio to market their music. However, the effectiveness of radio in advancing the careers of musicians is judged to be under 11% [G6]. 49% cited radio as one of the greatest difficulties they face in marketing themselves [G6]. The fact is that there are not enough college radio stations with a large enough listening audience to support the thousands of independent bands. Corporate radio has established a reputation for giving critical exposure to artists who have major record label support, or to the lucky few who advance through the ranks because of widespread popular support. What comes out from these results is how a large amount of effort is spent in marketing to radio while the return of this marketing is very low.
Offline radio is an important tool. However, it is nowhere near the most important or the most productive use of one's promotional dollar. For the thousands of dollars spent on printing quality press kits, a musician could easily divert that money to a website and online promotions and marketing. The continuing increase in the number of Internet radio websites quickly comes to mind. The listening audience for Internet radio almost doubled in the second half of 1998 to 13% of the American population (Edison Media Research - Feb 99) from 7% in the first half. That is an incredibly large audience of over 35 million people. Internet radio will replace corporate radio, and to a lesser extent college, as a integral promotional tool in the independent musician's arsenal. In addition, with consumer customization of playlists, a true democratization of radio is developing, where listeners will be able to choose the songs they want to listen to, in the order that they want and when they want.
A curious, yet not totally surprising, result from the survey is the lack of legal protections taken by members of the industry. Only 12% of respondents cited legal issues as a major concern [G6]. This could either mean, that most members of the industry find themselves comfortable on a legal standpoint (doubtful) or that many are vastly unprepared and unprotected. The value of music worth pirating in the marketplace is proportional to the exposure/fame bestowed upon the creator/producer of the music. The majority of musicians do not have to worry about their music being pirated, due to the vast library that is available.
However, there is still a gapping hole when it comes to protection such as when signing to a label, taking the services of a manager/agent, or partnering with other companies/organizations. When touring, what guarantees of payment are given to the artist? How much control does an artist lose when being signed to a label? If two bands use the same name, who has the final rights? These legal questions, as well as many others, may have significant consequences that should not readily be ignored by members of the industry. 52% of respondents do not use the services of a lawyer [G6].
Legal advice is usually not an affordable option for a musician with a very limited budget. What is needed is an information clearinghouse where artists can educate themselves regarding the legal aspects of the business, and make informed decisions as to what decisions are best for their career goals. This could possibly be in the form of an independent organization providing online legal advice.
While the major labels are slow to take full advantage of all the potential which the Internet provides, independent labels and artists are quick to use this opportunity to gain a competitive advantage. For the first time, independents can compete on a level playing field with many of the majors. Independents can now distribute and market themselves directly to their audiences without having to go through music middlemen. Companies are now being forced to take this newly empowered force into account when formulating their business strategies.
With the Internet comes greater control. However, with this greater control comes greater risk. The responsibility for controlling an artist's future lies with the artist himself. And with more musicians appearing everyday releasing their own self-produced CDs and major artists such as Cheap Trick and Chuck D releasing mp3s, the competition will become even more fierce to win over the hearts of fans. The transition is far from complete. There is still an enormous lack of support from the industry and the local community. And it must be stressed how music is a business and must be treated as such.
What is needed is a new paradigm to support the musician. The Internet is doing this with hundreds of sites providing artists with the information and resources that is needed. Sites such as BandUtopia*Com, Muse's Muse, Bandit A&R, Gigmasters, MP3.com, and Mi2N as well many others are helping to create this new community of support for the music professional, whether an artist, manager, promoter or label.
It must be remembered that getting media attention, finding gigs, organizing tours, getting local and label support, sorting out financial difficulties and overcoming legal issues all start with basic knowledge of the industry and the business that operates in it. Maybe it is time for musicians to do like businesses searching for investments, write up a business plan before entering the fray.
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