I’m delighted to announce the release of a landmark music industry resource co-authored by one of our very own panelists, Don Grierson. It All Begins With The Music: Developing Successful Artists and Careers for the New Music Business is a practical guide and music business blueprint for artists, managers, agents and executives competing for a share of the ever-evolving music market. Providing an in-depth view of the mechanics of artist development, music production, retail distribution, publishing, PR and marketing, Don Grierson and co-author Dan Kimpel, two industry veterans, have compiled a series of pertinent artist and executive interviews, insider tips, and autobiographical accounts to help budding and established music professionals navigate through the increasingly chaotic music landscape.
When Sellaband launched in August 2006, it introduced music fans and unsigned artists to a revolutionary approach to meeting and collaborating with one another. By providing a financial incentive at the very core of its proposition, the German upstart pioneered an investment platform that provided fans with a stake in their favourite artists’ assets, and artists with a means of raising capital for recording and distribution from the folks who care about them the most: their fans. A seemingly far-fetched idea, the platform took off and, today, boasts an extensive fan funded artist base that has managed to raise over $2,200,000 collectively. Although a handful of fan funded music dotcoms exist, including SliceThePie and TheNextBigSound, Sellaband is leading the trend that has yet to illustrate its full potential as an industry shifting force. The company is now setting its sights on the US market with a high-profile endorsement from Chuck D.
On demand music streaming service, Spotify, has been on my radar since the company announced a distribution deal with CD Baby in the first week of February. CD Baby, the leading force in independent music retail and digital music distribution, represents more than 175,000 artists which account for over one million tracks, all of which are now available through Spotify’s lightweight music streaming application. This licensing deal marks the ‘long-tail’ trend in music availability and consumption, and celebrates the access independent artists have today to mass audiences through pioneering music services, many of which had treated indie talent as nothing more than an afterthought after securing major label catalogues. Under the aphorism of “access not ownership”, the Luxemburg-based company has been growing exponentially since its €15.3m venture capital injection in October 2008 and, in turn, joining an elite group of legal music experience providers such as Pandora, Last.fm, TheSixtyOne, and others, which have found success in catering to music consumers through a balanced and worldly music library whilst reserving significant real-estate for up and coming artists: a pop-culture and grassroots music mix that appears to be paving the way for a new industry. A spot in Spotify’s limelight is not yet available directly for small acts and labels but CD Baby has certainly lowered the barrier of entry. Thank you Derek or, rather, Disc Makers for making this possible…
Following his successful ‘free’ distribution initiative in the UK, Prince, who is both a pioneer and a royal pain in the industry’s ass, is following up on his previous co-venture success with an online ‘bundle’ initiative launching on the 24th March at lotusflow3r.com. For $77, Prince fans will have access to three new albums from the artist presently known as Prince in digital format as well as physical through Target stores across the US. The site will provide an entire experience around the music and will undoubtedly create new buzz for this extraordinary recording artist and performer.
Online streaming radio and music tastemaker, Jango, has launched a somewhat controversial artist promotion programme called Jango Airplay. Essentially a pay-to-play scheme [and reminiscent of terrestrial radio “payola” which has been illegal since the fifties], Jango Airplay provides artists and their agents a direct means of plugging their songs to Jango’s listener base of 6 million for a fee. Much like the StumbleUpon advertising initiative, displaying a sponsored web page for every nine unsponsored web-pages, the promotional value of this scheme is not absolute: “If you get 50 positive ratings, your song starts playing for free in general rotation on Jango. If your song continues to get good ratings, it will be played more and more often and in more and more stations.” For $30, Jango Airplay offers 1000 plays, each track linked to its distributor (i.e. Amazon, iTune).
Pay-to-play may be an unpopular paradigm among musicians but this is actually an unprecedented opportunity for artists and labels to reach a new audience and guarantee some rotation. For not much more than pocket change, bootstrapped musicians can gain some insight on who is most likely to listen to them, rate them up, and perhaps even purchase something. Assuming that Jango Airplay plugs sponsored tracks appropriately, this is a truly awesome marketing platform for the music industry.
Over the weekend, I learned that Nimbit, which has been on my radar since Jon Delange of Tinderbox Music introduced me to the company’s CEO, Patrick Faucher, several months ago, has secured venture capital to the tune of $1 million. The company provides eCommerce solutions for artists and music promoters, and bespoke services such as digital distribution, CD/DVD replication and merchandise production, and web design. The company’s turnkey approach incorporates web technology to market and distribute digital music with physical solutions such as download cards and promotional prints. Nimbit appears to be acting in two ways: the first, as a technology company developing digital retail and marketing solutions such as embeddable storefront apps; and, the second, as a broker for commercial print requirements, from CD/DVD replication to custom-branded merchandise which complements its web facet.
Nimbit’s DownloadCards (credit card-sized branded cards with a unique ‘download’ code) can be sold or given away to the fan at the live venue and later redeemed online as digital tracks through a custom Nimbit store. This is an excellent example of digital commerce converging with physical commerce, however, DiscRevolt offers an almost identical solution. Emusu is also competing for a share of this market. In terms of digital music distribution, Nimbit is facing strong competition from TuneCore, ReverbNation, and CD Baby. As for print and duplication, Discmakers dominates the US music market and recently acquired Oasis, another formidable opponent in this space. Although Nimbit’s individual services are not particularly competitive as stand-alone features, the services, as a group offering, and Nimbit’s convenient all-under-one-roof approach, may satisfy artists and promoters with a slight edge.
Slicethepie and Bebo announced a co-venture this week whereby Bebo members will have the opportunity to grab the A&R seat at Slicethepie’s artist career-funding network. Strikingly similar in concept to Sellaband, Slicethepie is tapping into the leading British social network’s community assets while Sellaband remains very much an independent platform. The music “business” role-play idea has been embraced by a number of players in one form or another, including Songness, TheNextBigSound, and Soundout, a Slicethepie imprint, based on the belief that if potential fans are provided with both a true hand in an artist’s fledgling career as well as a financial incentive, consumer loyalty and word-of-mouth shall follow. Perhaps the shape of things to come.
An independent artist by the name of Rustcycle contacted me a couple of days ago about his interesting marketing idea and cross-over musical offering. Rustcycle (a.k.a. Adrian Johnson) developed a gorgeous looking 255-level iPhone and iPod Touch game which mimics the natural flow of particles when the player manipulates the electromagnetic field with his finger. Far out. The $0.99 game, aptly named NANO, is set to Adrian’s self-composed and produced ambient music, creating a “meditative, serene journey that stands in contrast with the tense experience of many other iPhone games.” Adrian has differentiated himself by bridging two talents to create an experience that few artists can compete with or even conceive of. By drawing users (paying users, incidentally) into a world of nodes and particles, Adrian is exposing his musical facets to a highly targeted new audience.
I love the thinking behind this and I praise Adrian for identifying and employing his strengths as a creative programmer in order to bring his musical attributes to the fore.
I’ve been following Bandcamp for a little while now (see earlier post) and I noticed today that the company made some revisions to its home page. Most notably, Bandcamp created a “features” page which lists the entire suite of tools and services. I was also delighted to learn that Bandcamp now provides Creative Commons licensing designations:
Under the Creative Commons licensing designations, artists who make their music public, in this case via Bandcamp, are providing limited rights to other artists and music fans who wish to remix, share, or use the music in a variety of ways without having to formally ask permission.
Kyte, the San Francisco based company providing turn-key solutions for online and mobile digital content production, distribution and monetization, has announced the launch of custom iPhone and iPod Touch apps as a new means for music fans to access their favourite artists’ music, videos, news, and exclusive content. In a separate affair, 90’s rock group, Presidents of the United States of America, who made a name for themselves with “Lump” and “Peaches”, have just released their own iPhone app along the same lines. For $2.99, fans can stream the band’s entire catalogue over a Wi-Fi or cellular connection, as well as gain access to exclusive content and previously unreleased music. This is exciting music industry news! iPhone apps are hugely popular and provide an unparalleled platform for artists to access their audience and visa versa. It won’t be long before we see more and more artists, from megstars to indies, harnessing this technology to promote themselves, monetize their catalogue, and upsell associated initiatives and assets such as concert tickets and merchandise.
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