Digital Music Business Tutorial 2.0 - 1.0 part by @AMoraitis


Published on

Long version of the 'Digital Music Business Tutorial 2.0' (first part). Short tutorial giving the keys to understand the digital music media and the online tools and strategies to adapt for labels & DIYartists. Follow my digital Twitter account: @AMoraitis.

Published in: Business

Digital Music Business Tutorial 2.0 - 1.0 part by @AMoraitis

  1. 1. DIGITAL MUSIC BUSINESS Tutorial 2.0by Alexandros MORAITIS 1.0 part
  2. 2. Digital Music Business Tutorial 2.0 _ Long version Table of contents Foreword 2.0 3 1.0: The B@sics 3 a.1: Definition b.1: Top reasons to use digital music strategies c.1: First steps/basis before to do digital music marketing 2.0: The online tools 6 1.2: Establish your musical identity (US tools) 6 a.2: Identity, yourself and your f@ns b.2: Sell your products, and grow fan base online 2.2: Sell music online 7 3.2: Marketing & promoting your act 7 First Part Conclusion 8 Comin Next 8 Reading Sources 8 About the author 9 2
  3. 3. Foreword 2.0 Before beginning this first tutorial, I would like to notify that this es- say is not supposed to be read like an analisis of the DMB, but like a new document, explaining and showing the main keys of this new market & media type. This short essay will resume main ideas and theories, done by several American and French digital marketing strategists. You will find at the end my sources and readings. I strongly hope you will learn something new and interesting. In this new essay, I will call Music all type of labels, big or small, even DIY (‘Do It Yourself’) artists, and all people selling and promoting Music online and offline. I will give you my position and new strategicaly recommendation at the end. 1.0: The B@sics a.1: Definition What’s the Digital Music Business (DMB)? Is it a good or a bad thing? How does that work? Is it only a presence on Facebook and on Twitter? I will try to clarify some ideas and give you the main focus of the DMB. Digital Music Business is a new market dedicated to the music selling and sharing on the online market (or the digital music market). Before,intheclassicalmusicindustrysystem,musicusedtobesellingandpromotingonlythrough offline marketing and communication strategies (plus some advertising as you might know). Digital Music is a new type of media, focused in this Tutorial on the online marketing & communication part, and its monetizing part too. This media is very useful and interesting for promoting, sharing, and of course monetizing artist online, all around the world. As all types of market, Digital Music can be monetized after practicing some digital music strategies (online and offline strategies). In fact, this new media is a real and current possibility for artists and labels, to promote, share, distribute and sell music online. This definition is very simple as you might say, but it’s only for limit from now, the area of the Tutorial’s orientation. Thanks to many digital tools, as social networks for example (but they are so many different types of tool), an artist can be more visible online that he used to be offline. This media can give more popularity and sell more music for a small artist or increase the sales of a big star through these digital tools. You can reach today more people through YouTube than a national TV! But before talking about these strategies, let’s first understand how and where the digital music strategies should be used to… 3
  4. 4. b.1: Top reasons to use digital music strategies If you are an artist or a label, you have the same problematic with internet: How use internet, for sharing, promoting and monetizing online music? Some people just think that you just have to create Facebook, MySpace, Vimeo and Twitter profile pages, and that’s done, but this is nothing, beside all the work and strategies that you should think for digital online objectives. Let’s first talk about your marketing/communication focus and objectives: Who are you exactly? A band? A label? What do you do? What type of music do you do? Who do you think you can reach through your music? Do you already have released albums or performing lives? Where? Did it work? But the main first question will strongly be: DO YOU HAVE FANS? How many? Who are they? What type of fans do they are? Etc… The first think that we have to know, before to establish marketing & communication digital strategies, is to know EVERYTHING about your fans! Everybody has fans, but the difference between Lady Gaga (MonsTer mom) and you, is that you don’t have the same number of (true) fans, ready to buy everything that you produce or FOLLOW you everywhere, no matter what you’ll do (offline or online). Some interesting studies say that today, they are more than 20 million online artists, and more than 550 million people are connected through Facebook (1). This means that you have huge possibilities to share and sell your music online, but you have to be a good band and choose good strategies. This is the main deal to establish if you want to see your music listening online. Don’t that listen to music always means buy music immediatly after. You have to give something special to people, and especially to your fans, to conclude and monetize with them. We will see later these interesting strategies in different cases studies (in the 2.0 part). In fact, Digital Music Business is a great online way, to introduce the new online world, which is growing more and more. It’s also becoming the first place to be present and to sell any product online. The separation between offline and online marketing (in music industry) is already over: You have to be present and visible everywhere, if you want to engage more people, collect fans, and monetize then. 4
  5. 5. c.1: First steps/basis before to do digital music marketing Be aware that: Music industry is not in crisis today: the physical industry is less important than before but is still profitable: On the third trimester of 2010, they reach 166,3 M€ (vs. 192,6 M€ the last year by the Observatoire and Numerama sources; 2). We can also learn that the French digital music market won 25% since the 2010 year’s beginning (by SNEP source). In fact the musical industry is currently in a continual evolvement movement, label records and artists must live with their time right? Evolve or Die. Make your choice. New approach consumers are coming with the ‘digitalization’ of the music industry: People have the choice today and decide what they want to listen, to download or to buy. Music industry (music offer) changed her position as the Music demand changed too. Music has to contact and make more connections with people now. Internet is not the only responsable, we can also remember you the purchases of some majors by others, or the arrival of the MP3, a new musical support... Today, music has to give something new, something special for making people ‘fans’, and supporter. A free track or album will not destroy a DIY’s artist carrier, despite the entire dough stole in distribution or publishing process. Think strategy in long term and also work hard for being present everywhere. Success can come after several digital months/years passed on social networks and web- sites , or after created and developed a good connecting strategy (online PR). Before to create and connect your own community, be clear about who you are: WHAT do you do, WHO do you want to reach, and what are your specific OBJECTIVES (music style, fans, sales, live, etc). Oldindustry’spromotionisover;Weneednewinteractionsandconnectionsbetweenartistsand fans. There is no secret behind a ‘Hit’ on the charts today. Strategies and labels are almost behind. Keep always in mind your market and your country contexts: You can’t sell music outside France if you’re sing only in French (it’s going to be harder than bilingual bands). Be aware of your market and your music listeners. Today in the Digital Music Business, they exist many possibilities to sell music. and also sell different type of interactions and services, linked to the music (live, merchandising, collector, artistic support, etc.). This is the new music world. They are many other reminders that we have to say. I recommend you this presentation (they are many other stuff to read but let’s be simple for this tutorial), which will give you more information before to enter to the world of DMB: The future of music by David Kusek & Gerd Leonhard (3). 5
  6. 6. 2.0: The online tools (from Peter Malkin’s video: Managing Musical Artists in the new Digital World; 4) This list is not the whole list of digital music tools. They are so many tools creating and developing each day, everywhere. on the web. These tools are strongly advised for DIY artists and labels who believe to DMB. Don’t think that it’s going to be enough for selling your music. Music has to be known, share, appreciate, but after all we’re still looking for money indeed! Stay tuned for the digital strategies for getting people connecting and buying your music online, and also other infomation concerning the specific French online music market. 1.2: Establish your musical identity (US tools) a.2: Identity, yourself and your f@ns 1° find the artist: Sell a band 2° fan investment: Ourstage 3°create social networks pages: Facebook, My___, Viameo, Twitter 4°Be on internet radio site: Pandora, Slakers,, Isound 5°Social community recommandations: Mog, Bebo, Buzznet, Babulous 6°For inspire artists: Boomdizzle, Broadjam, Getsigned, Unsigned, Musicgorilla 7°Share listening recommended music with people: Spotify, Playlist, Getplaylists, 8tracks, Live365, Jango, Rdio For blog’s recommendations’: Songtweak, The hype machine 8°Create social networks pages: Facebook, My___, Friendster, Tagged, Hi5, Myyearbook (young audience), Purevolume, Absolutepunk (rock), BTR, Beatport (dj), Pluggedin, Hip hop avenue, Buzz this, Bope tracks (hip hop or urban style) b.2: Sell your products, and grow fan base online 9° Sell your music online: Reverbnation, Bandcamp, Artistopia, Indabamusic, Topspin (if big artist) 10°Create artist blog site: Wordpress, tumblr, posterous, rockyou, tagworld (for widget) & Nimbit (sell contact through the widgets), Pringo (more like a social network) 11° Update all these profiles: Artistdata, Meebo, FanBridge (manage and engage fan base) 12° Artist Mobile Application: iTunes, Android, Mobile roadie, Appiction, NetBicuits 6
  7. 7. 2.2: Sell music online 13° When you have a bigger fan base, you can create online fan club: Artist arena, Sparkart, All access today, Music today 14° Music ready to sell (good luck), put music on online shops: iTunes, Amazon, Cd universe, unsubscribed sites like Rhapsody, Napster, emusic, 7digital 15° Licence sites: The Orchad, Tunecore, InGrooves, Cdbaby, Cdpulse, Ioda, Song Cast, they distribute all songs online; artistsfirst, blastmymusic (sell other products), + Melodeon, Thumbplay music, Mozes (mobile space) 3.2: Marketing & promoting your act 16° Need outside expert help (buzz contact): Linked in, YouTube (video), Vevo, Photobucket, Kyte (connect as a platform). 17° Encoding video for mobile phone and brosers, Sending news via mail and newsletters: Eyejot, Pado or By (p2p community) like Imesh, Kazaa, Limewire, Bearshare, Bittorrent 18° Episodes and brand for artist: Current tv, Veoh, Revision3, Mother board tv, or Funny or die, Jokeroo, Break 19° Further than brand the artist, Create avatar: Second life 20° Create also some other stuff: Ding 21° Social Games: Zynga, CrowdStar, Playfish, SociaGaming Network, Portalarium, Pop Cap, Mingle Play 22° Tour: Gigmaven, Sonicbids (for find geeks), Bandmix (find musician), Crowdfire, Songkick, Ilike (fans can track the artist while they tour) On Tour: artist should tweet on Twitter, Foursquare Live Stream On The Road:,, Stickam 23° Broadcast Live: Blogtv, Freedocast 24° Put songs: Wemix (fans can recreate songs), MPX4, Nowplayit (learn how to play a song) 25° Pr Buzz Online: Coolfer, Gawker, Pitchfork, RcrdLbl, BrooklynVegan, Stereogum, OR Magazine Site: Fader, Paste, Vice 26° Big Buzz: Artistdirect, MTV, Yahoo Music, Aol Music, Spinner 27° Track what your artist is doing online: BigChampagne, NextBigSound, etc… 7
  8. 8. First Part Conclusion 1.1 Digital Reminder If you want to enlarge your online community, and be more influencer and getting people following and buying your music after, you should start to use the main tools that YOU NEED for your online music icon. Don’t forget something very important, after all, your music has to be great, if you really want to pretend to success in this complex industry. If you don’t have something good to propose to people, these digital tools will change nothing for you. I strongly advice you to take some digital people in your DIY team (‘Do It Yourselves’), because, you will be very busy (if all these stuff work), as an artist, to create, promote, perform, while doing all the DMB stuff. By the way, if you are impatient to learn more about DMB and DIY, check the website, of a French specialist, which learn me the Digital Music Business basis, Virginie Berger, founder of Don’t Believe The Hype; 5. Engage competent people, who believe in you, and want to support your music online. These tools are necessary for building an online music icon, but you need also to adapt yourself to marketing and communication strategies... As an artist stay an artist, always keep in mind to build fan by the old fashion way, interact with people, human beings, the direct human interaction… Before to think about monetizing. 2.2 Digital Reminder Never ever forget, to establish a strong and detailed data fan base. Make connections between you and your fans. Give something special to your fans, and ask back something from them: ask for supports, collect their information, ask for collaborations, share your music, etc. This online and current relation between an artist and a fan has to be refresh every daily or weekly. That’s why we need TODAY digital music marketing/communication people! Before to adapt the online tools, please use first the The FAB5; 6: Create identic online music profiles on the different Social Networks Profile Pages: (Facebook, My___, Twitter, YouTube). If you have some news or somethink linked to your music, create and uptate oftenly a Blog. 8
  9. 9. Coming Next (in the 2.0 part) 3.0: The digital examples to follow (marketing strategies) 4.0: The debates (streaming, hadopi, online rights…) Reading Sources 1. Musique : bien gérer sa présence sur le web, slide 13/68, af83media/comment-optimiser-sa-prsence-sur-le-web-prez de l’agence digitale française/ américain af83media 2. 3eme-trimestre-2010.html?utm_source=twitterfeed&utm_medium=twitter 3. 4. Check a French reference DIY & DMB specialist: Virginie BERGER, 5. 6. cript; Music : your social media optimisation from af83media, slide 5/61 About the author W H O Alexandros MORAITIS is a recent graduated Communicator in REP Master Degree (Public Relations, Press Relations and Event) in ISCOM Paris. He is currently looking for a first job/internship in digital promotion/marketing in the parisian musical industry (major or musical social networks website). W H A T If you want to learn more about DMB in details, please check my other works on SlideShare (thesis and oral thesis works). I am also present on Twitter (@AMoraitis), where you can follow my DMB Strategic Observation (news, difgital strategy, etc). W H Y Because Digital Music Business strategy is my prerogative. Practice it in the French musical industry is my final goal. 9 @AMoraitis YOU can follow me, if YOU want...
  10. 10. AM Attribution-NonCommercial-NoDerivs 3.0 Unporte: CREATIVE COMMONS CORPORATION IS NOT A LAW FIRM AND DOES NOT PROVIDE LEGAL SERVICES. DISTRI- BUTION OF THIS LICENSE DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. CREATIVE COMMONS PROVIDES THIS INFORMATION ON AN «AS-IS» BASIS. CREATIVE COMMONS MAKES NO WARRANTIES REGAR- DING THE INFORMATION PROVIDED, AND DISCLAIMS LIABILITY FOR DAMAGES RESULTING FROM ITS USE. All this work is licenced under the AlexandrosMORAITIS ©Copyright All right reserved– November 2010 This tutorial can be share, quote or use, exept for commercial purpose. Thanks for asking the author before giving him credits, and give a link back. Alexandros MORAITIS | @AMoraitis | To Be Contined...