PATHWAYS INTO MUSIC. CMUinsights.com/pathwaysintomusic

Transcription

1 PATHWAYS INTO MUSIC

2 DAY ONE 01 THE BUSINESS OF MUSIC 02 MUSIC RIGHTS 03 LIVE MUSIC 04 THE LOCAL MUSIC INDUSTRY

3 DAY TWO 05 BUILDING AN ARTIST BUSINESS 06 BUSINESS PARTNERS 07 MUSIC CAREERS 08 AN EVOLVING MUSIC INDUSTRY

4 BUILDING AN ARTIST BUSINESS

5 EVERY ARTIST S BUSINESS PLAN BUILD FANBASE gigging, social, media & marketing, content UNDERSTAND FANBASE social, analytics, interact, pre-orders SELL downloads, tickets, merch, subscription services, VIP So everything begins with building a fanbase

6 THE FAN RELATIONSHIP Digital channels have fundamentally changed the artist-fan relationship. This is arguably the single biggest impact digital has had on the music industry.

7 THE TRADITIONAL ARTIST FAN RELATIONSHIP ARTIST Record Label Promoter Media Retailer Ticket Agent FAN

8 THE NEW ARTIST FAN RELATIONSHIP ARTIST Social Media Website List FAN

9 THE NEW ARTIST FAN RELATIONSHIP ARTIST Social Media Website List Streaming Ticketing D2F Store FAN

10 BUILDING FANBASE: AT THE OUTSET BUILD FANBASE gigging, social, media & marketing, content GROUND WORK GIGS & LIVE SOCIAL & ONLINE

11 BUILDING FANBASE: THE BIG LAUNCH CAMPAIGN BUILD FANBASE gigging, social, media & marketing, content THE BIG LAUNCH ALBUM CAMPAIGN GIGS & LIVE SOCIAL & ONLINE MUSIC PRESS RADIO & TV ADS & OTHER

12 BUILDING FANBASE: POST-LAUNCH BUILD FANBASE gigging, social, media & marketing, content GIGS & LIVE SOCIAL & ONLINE THE CONSTANT

13 BUILDING FAN BASE: SOCIAL MEDIA

14 BUILDING FAN BASE: THE MUSIC PRESS PRINT MUSIC MAGAZINES & THEIR WEBSITES NON-SPECIALIST TITLES NEWSPAPERS, LIFESTYLE MAGS ONLINE-ONLY MUSIC MAGAZINES THE MUSIC BLOGS

15 BUILDING FAN BASE: MUSIC RADIO DAYTIME AIRPLAY AM / FM / DAB SPECIALIST SHOWS AM / FM / DAB ONLINE-ONLY RADIO MUSIC PODCASTS

16 BUILDING FAN BASE: STREAMING PLAYLISTS DSP-CONTROLLED PLAYLISTS LABEL-CONTROLLED PLAYLISTS INFLUENCER PLAYLISTS ARTIST PLAYLISTS

17 THE MUSIC MEDIA HIERARCHY! There is a hierarchy of music media as a new artist you need to work your way up that hierarchy.! So you are much more likely to get coverage from blogs, websites with a new music remit, online radio and specialist shows.! Coverage in these media is are a stepping stone, each bit of media coverage can help you get the next bit.! You won t see an immediate impact on streams and ticket sales, the aim is to gradually grow your profile.

18 CAPTURING FANS ONLINE! It is crucial new bands begin capturing fan data as early as possible Engaged online fans can recruit new fans. The direct-to-fan commercial relationship can begin. Business partners will look at size of existing online fan community before committing to deals.! This is partly about social media and their analytics, though also getting an address and permission to .

19 UNDERSTANDING THE FANBASE BUILD FANBASE gigging, social, media & marketing, content UNDERSTAND FANBASE social, analytics, interact, pre-orders

20 ANALYSING FANS! Most important element and biggest opportunity: learn about your fans.! Who are they, where are they?! What do they like?! How much money will they spend?! Are they content, merch or live customers?

21 HOW TO LEARN ABOUT YOUR FANS - MONITORING! Social media analytics: Facebook, Twitter, Instagram etc.! Streaming stats: from YouTube, SoundCloud, Spotify + Distributor! Ticketing data: from ticket agent and/or promoter.! Website analytics: Google Analytics, Clicky.! analytics: MailChimp/Constant Contact clicks.! HTML analytics the most powerful.! IMPORTANT: Go to data with a question; monitor traffic after specific comms, content or calls to action to assess impact.

22 HOW TO LEARN ABOUT YOUR FANS - INTERACTION! Use the core fanbase as a market research panel Informal surveys on social media. Formal surveys via or website. Invite fans to join inner hub to share opinions.! Run realistic project ideas past fans What are your favourite formats? Would you prefer red or green t-shirts, which artwork? What cities should we gig in?

23 HOW TO LEARN ABOUT YOUR FANS - INTERACTION! Involving fans in this way helps you to Create products there is a genuine appetite for. Make fans feel they are appreciated. Make fans feel they are committed to buy.! Extend this formula to pre-order campaigns Using fan-funding or pre-order platforms. Reduces risk and cash flow issues. Only use for projects you are confident will come off, and be ready to do big marketing push once pre-orders online.

24 DON T FORGET THE MOST IMPORTANT STAGE OF THE PLAN BUILD FANBASE gigging, social, media & marketing, content UNDERSTAND FANBASE social, analytics, interact, pre-orders SELL downloads, tickets, merch, subscription services, VIP

25 CHANNELS & PLATFORMS! Stage, social and as marketing channels.! Merch stall and D2F store as primary sales platform. eg Music Glue, Bandcamp, Reverbnation, Selz, Shopify.! Fan-funding/pre-order platforms for specific campaigns. eg Pledge Music, Kickstarter.! Tip-jar platforms for core fanbase. eg Patreon.! Bespoke artist apps for super fans. eg SupaPass, GigRev.

26 PRODUCTS & SERVICES! Records, tickets, t-shirts.! But what else?! Limited edition CD and vinyl.! Limited edition artwork and prints.! Limited edition clothing.! VIP experiences and meet and greets.! The fan club?! Anything else your fans will buy!

27 PATHWAYS INTO MUSIC

28 DAY TWO 05 BUILDING AN ARTIST BUSINESS 06 BUSINESS PARTNERS 07 MUSIC CAREERS 08 AN EVOLVING MUSIC INDUSTRY

29 BUSINESS PARTNERS

30 WHAT S THE END GAME?! Artists start off DIY running their businesses themselves.! But eventually they will start to engage business partners. YOUR CAREER MANAGEMENT AGENT LABEL DISTRIBUTOR PUBLISHER

31 KEY BUSINESS PARTNERS THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser LIVE INDUSTRY Booking Agent Promoter Ticket Agent FAN BUSINESS Direct To Fan Brand Agency

32 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Label exploits sound recording rights. Creates and distributes recorded content. Works with studios, producers etc. Traditionally leads on artist marketing.

33 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Publisher exploits song rights. Handles licensing of songs and royalties. May seek sync deals/song commissions. Traditionally published sheet music.

34 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Production of merchandise. Sales and distribution of products. Maybe license artwork to third parties. License trademark for product extensions.

35 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Stages the gigs, tours, festivals. Hires event production staff. Booking Agent Promoter Ticket Agent

36 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Booking Agent Promoter Ticket Agent Sits between artists and promoter. Negotiates deals.

37 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Booking Agent Sells tickets. May also provide cash flow. Promoter Ticket Agent

38 THE FAN BUSINESS THE MUSIC INDUSTRY FAN BUSINESS Newest part of the industry. May provide online platform for capturing, analysing and selling to fans. Also need people to manage all this. Direct To Fan Brand Agency

39 THE FAN BUSINESS THE MUSIC INDUSTRY FAN BUSINESS These agencies negotiate and manage brand partnerships for artists. Labels and promoters also operating in this domain. Direct To Fan Brand Agency

40 ENGAGING PARTNERS! An artist s first business partners are likely to be collecting societies, a distributor and a direct-to-fan platform all with standard terms.! An artist s first deals that involve negotiation will probably be gig bookings with a venue or promoter.! As an artist s career progresses they will start to do work with a greater range of business partners on more sophisticated deals.! As deals become more sophisticated, legal advice becomes important.

41 DEALS! Every deal is different, but there are conventions. eg the agent is commonly on 10% of fees they negotiate. eg the manager is commonly on 20% of artist income.! Key business partners usually work for free on the promise of a share of future income, whereas others may charge fees as they go.! Assuming the artist has no money, that means artists may look to their commission-based partners to pay their fee-based partners.! This is why for new acts, the label deals was traditionally key.

42 RECORD DEALS: THE OPTIONS

43 THE DEALS GUIDE A guide to the ten label/distributor deals now available to artists. Explains what services label partners might offer and what they ll want in return. Accompanied by Digital Deals Comparison Calculator to allow managers to visualise pros and cons of each deal type. cmuinsights.com/digitaldollar

44 WHAT DOES THE LABEL PROVIDE? CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

45 WHAT DOES THE LABEL WANT? EXCLUSIVITY REVENUE SHARE COPYRIGHT OWNERSHIP ANCILLARY REVENUES

46 NEGOTIATING POINTS COMMITMENTS COPYRIGHT OWNERSHIP ROYALTIES & RECOUPMENT REPORTING

47 DEAL TYPES The Deals Guide identifies ten key deal types. Every deal is different of course, but there are common elements for each deal type. There is increasing choice for artists and often more flexibility in the way a deal works. The challenge is balancing the services received with the way rights and royalties are shared.

48 DEAL TYPES DEAL 01: DIY DISTRIBUTOR (FEE) DEAL 02: DIY DISTRIBUTOR (COMMISSION) DEAL 03: DIY DISTRIBUTOR WITH ADVANCE DEAL 04: DISTRIBUTOR DEAL 05: DISTRIBUTOR WITH MARKETING DEAL 06: DISTRIBUTOR WITH LABEL SERVICES DEAL 07: DISTRIBUTION DEAL WITH LABEL DEAL 08: ASSIGNMENT DEAL (PROFIT SHARE) DEAL 09: ASSIGNMENT DEAL (INDIE) DEAL 10: ASSIGNMENT DEAL (MAJOR)

49 DIY DISTRIBUTOR (DEALS 1 OR 2) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

50 DIY DISTRIBUTOR WITH ADVANCE (DEAL 3) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

51 DISTRIBUTOR (DEAL 4) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

52 DISTRIBUTOR WITH MARKETING (DEAL 5) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

53 LABEL SERVICES OR DISTRIBUTION DEAL WITH LABEL (DEALS 6 OR 7) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

54 LABEL DEALS (DEALS 8, 9 OR 10) CASH ADVANCE RECORDING COSTS ARTIST DEVELOPMENT PRODUCT DEVELOPMENT DIGITAL DISTRIBUTION PHYSICAL MANUFACTURE PHYSICAL DISTRIBUTION CONSUMER MARKETING B2B MARKETING PRESS PROMOTIONS SOCIAL MEDIA + DIGITAL SYNC OTHER OPPORTUNITIES

55 SERVICES V REVENUE SHARE DEAL 01: DIY DISTRIBUTOR (FEE) DEAL 02: DIY DISTRIBUTOR (COMMISSION) DEAL 03: DIY DISTRIBUTOR WITH ADVANCE DEAL 04: DISTRIBUTOR DEAL 05: DISTRIBUTOR WITH MARKETING Number of services provided above Artist s share of income below

56 SERVICES V REVENUE SHARE DEAL 06: DISTRIBUTOR WITH LABEL SERVICES DEAL 07: DISTRIBUTION DEAL WITH LABEL DEAL 08: ASSIGNMENT DEAL (PROFIT SHARE) DEAL 09: ASSIGNMENT DEAL (INDIE) DEAL 10: ASSIGNMENT DEAL (MAJOR) Number of services provided above Artist s share of income below

57 PATHWAYS INTO MUSIC

58 DAY TWO 05 BUILDING AN ARTIST BUSINESS 06 BUSINESS PARTNERS 07 MUSIC CAREERS 08 AN EVOLVING MUSIC INDUSTRY

59 MUSIC CAREERS

60 AMBITIONS + OPTIONS! What do you want to do in music?! What kind of artist business might enable that?! What kind of company might do that kind of work?! What kind of jobs are available in that area?! What are you short term and long term objectives?! REALITY CHECK! Be both focused and flexible!! What about a portfolio career?

61 MUSIC RIGHTS: THE CREATIVE TEAM SONG WRITER COMPOSER FEATURED ARTIST SESSION MUSICIAN RECORD PRODUCER SOUND ENGINEER

62 LIVE MUSIC: THE CREATIVE TEAM SESSIONS MUSICIANS STAGE CREW FEATURED ARTIST LIGHTS & SOUND CHOREOGRAPHY VISUALS & EFFECTS

63 KEY MUSIC COMPANIES THE MUSIC INDUSTRY MANAGEMENT (+ lawyer and accountant) MUSIC RIGHTS Record Label Music Publisher Merchandiser LIVE INDUSTRY Booking Agent Promoter Ticket Agent FAN BUSINESS Direct To Fan Brand Agency

64 LABEL JOBS A&R CREATIVE MARKETING PRESS & PROMOTIONS SALES & DISTRIBUTION LICENSING & COMMERCIAL LEGAL & BUSINESS AFFAIRS BRANDS? MERCH? WHAT ELSE?

65 GETTING STARTED! As an aspiring artist Remember you are also a business. Who can help you grow the business side of your music? What else can you do in music to bring in income.! As a future music industry executive! Which part of the industry most interests you?! What people and companies operate in that space?! What can you do right now that will give you experience?

66 EVERYONE S A BUSINESS! A lot of people in music are self-employed.! They work for themselves doing lots of different projects.! There are pros and cons to this kind of working.! Allows you to balance fun projects and profitable projects.! Allows you to work with a greater variety people.! But there is extra admin: invoicing, cash flow, tax.! And you need to know how to network and pitch.

67 NETWORKING! Networking is a key skill whatever your music career looks like.! Don t worry most people hate networking.! Networking tips! Go to industry events (volunteering might get you in).! Have a concise answer to what do you do?! Stay up to date with industry issues and read up on key attendees.! So you can have informed conversations.! Follow up with polite thank you mail.! Connect with people on social networks and champion their work.! Have a good Linked-In profile and possibly a personal website.

68 PATHWAYS INTO MUSIC

69 DAY TWO 05 BUILDING AN ARTIST BUSINESS 06 BUSINESS PARTNERS 07 MUSIC CAREERS 08 AN EVOLVING MUSIC INDUSTRY

70 AN EVOLVING INDUSTRY

71 THE SHIFT TO STREAMS CD DOWNLOAD (a la carte) STREAMS (subscription & ad-funded)

72 THE RECORDED MUSIC MARKET (2017 GLOBAL IFPI FIGURES) The shift from CD to download to stream is still ongoing PHYSICAL DIGITAL CD STREAM But streaming increasingly the dominant revenue stream.

73 REVENUES COME IN SLOWER WITH STREAMING! Streaming is a sustained listening and micro-payments business. SALE DIGITAL DOLLAR ACHIEVED ON DAY ONE STREAM DIGITAL DOLLAR ACHIEVED ON DAY?????! With sales the aim was for a big revenue spike around release.! With streams repeat listening will bring in revenue over time.

74 CHALLENGES FOR MUSIC RIGHTS! All the growth is coming from the loss-making streaming services are these business going to become profitable in the long-term?! Streaming is a fundamentally different way of doing business who are the winners and the losers how can you be a winner?! Other issues include: how the digital dollar is shared out, where free services fit in, music rights data, lack of transparency.! What about other revenues? Vinyl revival, sync, public performance income what else?

75 CHALLENGES FOR LIVE MUSIC! Live music boomed while recorded music slumped in the 2000s.! Though growth has slowed and issues remain.! Live is very top heavy and grass roots venues are struggling.! Many artists tour a lot more but is that healthy?! Ticketing and secondary ticketing issues remain.! Is the classic gig future proof?! New competition from other entertainment forms, dead artists?

76 PATHWAYS INTO MUSIC

77 CMU CMU CMU NEWS & INFORMATION CMU Daily CMU Digest CMU Trends Podcast TRAINING & CONSULTANCY Seminars Masterclasses Research CMU Insights Presents EDUCATION PROGRAMMES Workshops Lectures Guides CMU:DIY Presents

78 CMU CMU CMU CMUSIGNUP.COM Sign up for our bulletins and podcast CMUINSIGHTS.COM Check out upcoming CMU Insights seminars and masterclasses CMUDIY.COM Check out upcoming CMU:DIY events