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Kusek music business 2012

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Kusek music business 2012

  1. 1. The Evolution of the Music Business Dave Kusek Managing Partner digitalcowboys.com dkusek@digitalcowboys.com© 2012 David Kusek
  2. 2. The Traditional Music Business + Recording + Writing + Performing + Licensing© 2012 David Kusek
  3. 3. What kind of Music Business are we going to have in the Future? + The label model is no longer dominant. + CD sales have collapsed. + Where are the new formats? + Digital recording revenue is not enough. + Touring profitably is a challenge.© 2012 David Kusek
  4. 4. The Good News: People love music + We just can’t get enough. + Music consumption is at an all time high. + More music is being produced each day. + Illegal music channels are drying up. + Legal digital channels are expanding.© 2012 David Kusek
  5. 5. The Bad News: Recorded music is no longer the driving force + New ways of thinking about music and commerce are required. + Economic engine of the past 70 years has run out of fuel. + This is a big change for the entire music ecosystem.© 2012 David Kusek
  6. 6. A band this big will never happen again.© 2012 David Kusek
  7. 7. How Artists make Money + Live performances. + Distribution of recordings. + Publishing of songs. + Selling merchandise. + Licensing intellectual property.© 2012 David Kusek
  8. 8. Who Controls the Revenue? + Recordings - Master recordings and distribution. + Songs - Composition and publishing. + Performances - Live and recorded. + Merchandise - Branded articles.© 2012 David Kusek
  9. 9. Copyright Law Grants Rights to: + Reproduce the work. + Make derivative works based on the original. + Distribute copies of the work. + Publicly perform the work. + Publicly display the work. + Publicly perform audio recordings by digital transmission.© 2012 David Kusek
  10. 10. Performance© 2012 David Kusek
  11. 11. Performance + Clubs and concerts + Sponsorships + House parties + Streaming + DVDs and digital events© 2012 David Kusek
  12. 12. Challenge: How to make performing less expensive?© 2012 David Kusek
  13. 13. Challenge: How to transfer the energy of a live performance to digital?© 2012 David Kusek
  14. 14. What kind of new digital products and experiences will we create?© 2012 David Kusek
  15. 15. Recording Interest in music Production is at an all time high and is reinventing what we call “music.”© 2012 David Kusek
  16. 16. Recording and Production + Create recorded masters. + License, work for hire or DIY. + Sampling, remixing and mashups. + Royalties and advances. + Production and distribution.© 2012 David Kusek
  17. 17. Distribution + Physical CDs, DVDs, USB Keys. + Digital Downloads on iTunes and Amazon. Streams on Spotify and Rdio and Mog. + Embedded into products. + Mobile delivery.© 2012 David Kusek
  18. 18. Mobile Music Apps and Games© 2012 David Kusek
  19. 19. Publishing Ownership and Rights© 2012 David Kusek
  20. 20. Publishing + Mechanical royalties on recordings. + Public performance: live, radio, TV, digital transmissions. + Synchronization – TV, film, games, ads, ringtones. + Print - sheet music, lyrics. + Royalties and advances vs DIY. + Copyright and administration.© 2012 David Kusek
  21. 21. Merchandising + Clothing + USB/digital products + Posters/art + Food + Collectibles + Stuff© 2012 David Kusek
  22. 22. Licensing + Name and likeness + Endorsements + Commercials + Sponsorships + Entrepreneurial ventures© 2012 David Kusek
  23. 23. YouTube - Pomplamoose
  24. 24. Karmin
  25. 25. New Artist Model + Create a business around yourself. + Own your masters and publishing. + Secure sponsors to generate cash. + Purchase the services you need. + Connect directly with your fans. + Use interactive and integrated marketing. + Create multiple revenue streams. + Control your career.© 2012 David Kusek
  26. 26. New Artist Model© 2012 David Kusek
  27. 27. Direct to Fan Approach to Marketing• Encourage engagement and monetization between artist and fans.• Internet can amplify your music & message directly to a larger, more targeted group of potential fans.© 2012 David Kusek
  28. 28. Top 10 Truths that will Guide the Future of Music© 2012 David Kusek
  29. 29. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  30. 30. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  31. 31. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  32. 32. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  33. 33. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  34. 34. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  35. 35. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  36. 36. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  37. 37. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  38. 38. Top 10 Truths that will Guide the Future of Music The record business is not the music Music matters more than ever. business. Artists are the brands and Artists and their managers will entertainment is the attraction. shape the future. Publishing income is crucial for the People discover new music online future. and from each other. Digital niche marketing Customers demand and get outperforms mass marketing. increasing convenience and value. The pricing model goes out the New models will embrace a more window. dynamic view of music.© 2012 David Kusek
  39. 39. New Areas of Opportunity Direct to Fan Branding Interactive Marketing Artist Management Curation/Discovery Licensing Analysis/Data Live Events Distribution Merchandise Artist Networks Artist Services Streaming Education Digital Products Soundtracks Games Sponsorships Mobile Apps Fan Clubs© 2012 David Kusek
  40. 40. Funding Sources + Advances and royalties Label or Publisher + Patronage - fan funding Kickstarter Artistshare Pledgemusic Slicethepie Microfundo© 2012 David Kusek
  41. 41. Businesses to watch Apple Rdio Aweditorium Red Light Bandcamp Reverbnation Berklee Rightsflow Big Champagne Root Music CD Baby Songkick Echonest Sonicbids Facebook Spotify Frontline Tastemate Google Thumbplay Mobile Roadie Ticketfly MOG Topspin Next Big Sound Tunecore Pandora Viinyl Pitchfork We7© 2012 David Kusek
  42. 42. New Digital Products+ Mobile apps+ Interactive video+ digital/hybrid collections+ digital events+ digital episodes © 2012 David Kusek
  43. 43. What kind of Future will you build?© 2012 David Kusek
  44. 44. Thank You! Dave Kusek dkusek@berklee.edu @davekusek futureofmusicbook.com© 2012 David Kusek
  45. 45. Thank You! Dave Kusek dkusek@berklee.edu @davekusek futureofmusicbook.com© 2012 David Kusek

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