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And why companies who's business models are built on creative content need to rethink their strategies.
In gross the industry exists of 4 major lables all part of conglomerates which also do business in the area of consumer electronics (you remember the Walkman...) Sony Walkman One major = Sony BMG
Due to these company structures & because they hold a total of 80% of the global music market they have a great deal of power. The music market is a market which is not endlessly scalable the majors are well aware of this. Why? The answers lies in their history.
If we look at the sales numbers of Vinyl LPs you can see that numbers increased and peaked in 81. & then started to decrease. The labels reacted by introducing a new technological innovation....
Sales increased because customers went out, replaced their old LP collection with the new format. This was the point at which the industry had to realize that their target group was only so large. When the sales numbers decreased again in 01 > logical solution would have been a new format.
And this did actually happen, but it was introduced by a completly new industry player - Apple A new player means new lincensing contracts, which – I can imagine - meant a loss of revenue This was a problem and it lead to conflict.
A conflict, which asked for a solution. However the labels' and the artists themselves had different ideas & concepts when it came to the solution & parted ways The labels went on a crusade of criminal complaints The best known artist solution probably is
what Radiohead & NIN came up with. They were in the postion to set up their own sales channel. They offered their albums as a free / pay what you want download and made a satisfying amount of money. & They reacted to the needs & wishes of this new market.
But today I want to talk about – the Do It Yourself approach , which Amanda Palmer chose to promote her first solo album. This wasn't Palmers first album so I will be going back a bit and tell you about her previous music carreer.
Palmer's band, The Dresden Dolls had signed a contract with a lable. Released 2 albums over the period of 3 years selling - as Palmer states - 100.000 copies worldwide. This is not very much & not something an artist, let alone two can live off of because you don't really make much off of an album.
This lead to a public dispute about broken agreements between the band & the label. The Dresden Dolls decided to go on a break & Palmer recorded her solo album, which however she had to release with her old label > who she was trying to get droped by.
The label road of course was the dead end street. So what do you do as an artist, who has produced an album and wants & needs it to get sold because this is part of your income source? You get creative, start taking things into your own hands and Do It Yourself.
You start out with online marketing. - easy approach - fast word to mouth - viral possibilities - nearly free One thing she did was to make videos for each song off of her album & released 1 video at a time, every two weeks on YouTube up until the day of the album's release date.
She then went on a world tour to promote her album. On this tout the visitors did not only get Amanda Palmer for their money, But a surprise of three additional artists - Palmer herself - had booked onto the tour. Palmer also does a good PR job...
Good PR job Her Blog, Facebook, Myspace, YouTube and Twitter accounts keep her in the public eye. Her tweets from the Golden Globes even got her mainstream press coverage. Before her current tour a live video concert podcast, promoted the upcoming shows.
And she also knows how to manage Customer Relationship. - Free Live Video Podcast - Live shows with surprises & add-ons - Free Twitter Ninja gigs = means satisfied customers. She does this so well that she has even introduced a complete new „product“ using the same tools.
The buzz started on January 11 when Palmer posted this twitpic reading: Miss @kambrieldesign doing a quickie stage costume fitting with @evelynevelyn. @jasonwebly (who is a fellow musician) conducts business. On Feb.9 @evelyneverlyn – appearantly conjoined twins - started twittering themselves.
On Feb 10 and article on spinmagazine.com > showed the first frontal shot of the twins. Surprise – it was in fact Palmer & Webley The album release date is the 30 th .of March The tour is in April & already has 3 sold out dates in London
So, what happend here. An artist –the note here - & a label – this big music factory here - decided to do business together. However... at this day & age > if the artist is unsatisfied with the label's work > he now has the tools and possibilities he needs to become...
his own little music factory. He can disctribute his music & gets to keep full control of copyright, which in the long run is the far more lucrative income source. And if a small, low scale artist can pull this off, imagine what someone like Lady Gaga could do if she now decided to break with her label.
Webmontag Frankfurt Ignite, 2010-03-01
Dominio Effect- lessons learnt from the music industry. Creative Content 2.0 Jennifer Moss Miss Moss – multimedia design