Gigi Johnson presented this discussion at the Music Industry Research Association Conference at UCLA in August 2017.

1. How Streaming Influences
Concert Choices and Music
Consumption
Gigi Johnson, EdD
Executive Director, UCLA Center for Music Innovation
UCLA Herb Alpert School of Music
@MusicInnovUCLA
Innovation.schoolofmusic.ucla.edu

2. CMI’s Question: How Artists can live/thrive
on .2-.8 cents per stream -- before splitting
up the results?
“We will make it up in Volume.”
“We will make it up in Live
Performance.”
Will we?
Who will?
What are future trends?

3. Making It Up in Live?

4. UCLA is Asking This Question
in Los Angeles
How is Streaming affecting live venues,
performances, and communities?
Song
CommunityExperience
40+ interviews into a study across the region

5. Original Hypothesis
Music streaming is negatively impacting small
venue live performance revenue as a substitute
good in competition for both time and money
•No and Yes
•Not that simple

6. Music Cities: Other Research on Local
Live Music
http://www.austintexas.gov/department/austin-music-census-report

7. Music City? Music Cities in a City?
Questions:
• How does this differ by demographic? Venue size? Our own study --
at about 40 interviews and finding differences by venue type, genres,
fan ages, etc. Kpop and Latin -- very different than EDM.
• Tracking and data for interventions -- what are we tracking as a
starting point? How to measure a venue/venues? Seats? Capacity
utilization? How do we track shifts across a city? LA: Shifts to
downtown, Chinatown, further west -- if/how measured?

8. Who is Coming to Concerts?
How? Why?
Source: Ticketmaster Live Analytics,
2014 Data, via SlideShare

9. “…the top 1% of live artists
(many of whom are aging
heritage acts) account for 68%
of all live revenue.”
MEDiA, Mark
Mulligan
https://musicindustryblog.wordpress.com/2017/06/15/do-
not-assume-we-have-arrived-at-our-destination/

10. How are fans making
decisions on how and
where to enjoy live
music? WHO is doing
both?
How does this impact
venues and local music
communities?
How are venues changing
(or not changing) the
content and experience in
light of streaming?
Music
Consumption
Concert
Choice

11. Key Driver: Our Smartphones

12. Source: Nielsen Total Audience 3Q 2016
Smartphone: Expanding Media
an Hour a Day since 2014

13. Making It Up in Volume?
-
100
200
300
400
500
600
700
800
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
US Recorded Music, Cume Album Equivalents
CD Unit Sales Digital Album Sales DDL/10
Audio Streams/1500 Video Streams/1500
SOURCE: Nielsen/Soundscan

14. New – up to 8 weeks old (2 mos)
Recent: 8-78 weeks old (2 mos to 18 mos)
Catalog: 78-156 weeks old (18 mos to 3 years)
Deep Catalog: more than 156 weeks old (3 years)
Discovery? Or Reminding You of What You Love?

15. Volume for Whom?
Challenge of Recall and Attention:
42% of Streams for 5,000 Tracks

16. Streaming Music: Connected Music, People,
and Environments
Song
CommunityExperience
Connecting = The New Curation
Immersive,
Everywhere Music
Music + Data +
Location =
Immediate, In-
Context Data
Lifestyle, Pervasive,
In-Context
Advertising
Playlist as the New
Radio –
Reaggregating
Audiences
Knowing
YESTERDAY – but
WHO knows? Who
owns that info?
WE are the Product
vs. the Song

17. TSL All Music Listening
Source: MusicWatch Inc.

18. TSL 2016 Share Source: MusicWatch Inc.

19. And Who Says?
Spotify vs. Non-Spotify Curators
Source: Chartmetric.io

20. The Weeknd
KREAM (Deep house, Norway)
Source: Chartmetric.io via
Medium (link)

21. Selling our Behaviors to Brands

22. Selling our Behaviors to Brands

23. Playlists: The New Radio? Album?

24. So What is the New
Customer Journey?
How does the fan do
more than just stream
and share?

25. Eventbrite/MusicWatch Study:
Streaming and Social Impact Discovery

26. Eventbrite/MusicWatch Study:
Discovery Leading to Tickets

27. How do Venues
wrestle with
Discovery and Recall?
Open Question

28. Connect
Fan Armies / SuperFans iBeacons LISNR / apps Ampsy
Predict
Business Intelligence Units
Influence / Discovery/ Recall
BandsinTown Songkick Spotify Concerts
Eventbrite / Spotify /
FB
Ticketmaster CRM
SEO / Customer
Journey
Digest
Tools Pandora AMP Chartmetric.io Cayo5 Pollstar
Data
Silos Splinternets Google/FB

29. 29
Fans as Marketers – After?
New Expectations of “Experience“
“FOMO”: Fear of Missing Out

30. Rethinking music as creative and fan communities
• Floating Clubs between venues and in
alternate spaces
• Curation communities
• New collaboration communities – artist
collaboratives

31. Future Trends: Next Influence
Dances • Business Intelligence departments
at Ticketmaster, AEG
• Predictive analytics
• Conversational computing /
Personal assistants

32. Data + Natural Language Processing =

33. Alexa Questions

34. “Alexa, play Ed Sheeran.”
Results revolve around “popularity and
relevance to the consumer.”
Steve Boom, Amazon Music VP in interview
with Billboard

35. http://www.musicwatchinc.com/blog/thanks-alexa-friends-with-benefits/

37. Echo/Alexa: Expanding the Footprint

38. How We Ask . . . Even Now . . . Marketing Into
Bots and Natural Language Processing

39. Retail is Rethinking:
What is a Great Live Experience?

40. Not Just Live Music:
Meanwhile, Dramatic Shifts in Retail

41. And Mobile Reading Live Experience:
Adding to Where You Are: Computer Vision
and AR in RL

42. SOMEONE
Knows
Exactly What
You Did
Yesterday
Business
Intelligence
Predictive
Analytics
New
Tastemakers
Aggregators as
New Power
Brokers
Playlists as the New
Radio
Continuing Question:
How can/should Venues
engage with the New
Curators and Systems?

43. UCLA Center for Music Innovation
Gigi Johnson, EdD
gigi.johnson@ucla.edu
@MusicInnovUCLA
“Innovating Music” Podcast
http://innovation.schoolofmusic.ucla.edu