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SXSW Music 2015: Surviving the Shift: Rethinking Music and Data

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Gigi Johnson, Inaugural Director of the UCLA Center for Music Innovation, shared this presentation at SXSW Music 2015. She discussed how artists and those who support them might think differently about planning how to work with data, and how the "Digital Ma" and Small Data might make sense for artists in a world shifting from transactional music purchases to relational content. She talked about Super Fans and tools that are in use now for engaging with your fans, plus concerns as this shift continues for artists.

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SXSW Music 2015: Surviving the Shift: Rethinking Music and Data

  1. 1. Time Place Data SURVIVING THE SHIFT: 1 Rethinking MUSIC and DATA Gigi Johnson, EdD UCLA Center for Music Innovation @MusicInnovUCLA #SurviveMD cc Flickr/Effervescing Elephant
  2. 2. MA“MA” – the space in between the beats Flickr/IQRemix cc 2.0
  3. 3. WE ARE CREATING FOR A (INTER)CONNECTED WORLD Source: Facebook
  4. 4. ” “ Basically, I equate ‘free’ with the decline of the music business," Morris declared. "Why should anyone pay for anything if they can get it for free? In certain instances, it’s worth a discussion. But in general, free is death. Doug Morris, Sony Music HITS Daily Double, March 11, 2015
  5. 5. THE SHIFT: TRANSACTIONAL TO RELATIONAL - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 2012 2013 2014 US Recorded Music Units, 2012-2014 – Nielsen SoundScan Streams/1500 CDs Digital Albums Digital Tracks/10
  6. 6. HALF = VIDEO STREAMING 49,000,000,000 78,600,000,000 57,100,000,000 85,300,000,000 2013 2014 US Music Streams, 2013-2014 <Audio> <Video> Source: Nielsen
  7. 7. WE HAVE ARRIVED…AT??? Flickr/jgoge123 cc 2.0
  8. 8. SURVIVE? THRIVE
  9. 9. WHY THE SHIFT? WHY NOW? Mobile Rental models Cloud economy Shared economy Capacities for big data
  10. 10. PAST PIVOT TO A DIGITAL SINGLES WORLD: 1/10 RATIO •1 0 Source: RIAA figures; Digital Music News CDs US MM Units Shipped, 1973-2010 Digital Singles LPs Cassettes
  11. 11. PER PERSON TRANSACTIONAL PEAKED 1999 •1 1
  12. 12. REVENUE: A 3-PART PIE Source: RIAA http://riaa.com/media/D1F4E3E8-D3E0-FCEE-BB55-FD8B35BC8785.pdf
  13. 13. US REVENUE: FLAT-ISH, DESPITE SHIFT Source: RIAA http://riaa.com/media/D1F4E3E8-D3E0-FCEE-BB55-FD8B35BC8785.pdf
  14. 14. DIGITAL PIE UP BUT SHIFTING
  15. 15. 2011: FUTURE OF MUSIC STUDY ON 5,300 ARTISTS Source: http://money.futureofmusic.org/
  16. 16. N: over 5,300 US-based musicians and composers
  17. 17. VARYING PIES http://money.futureofmusic.org/jazz-musicians/
  18. 18. 2012: MERCH 1-6% REVENUE
  19. 19. 2012: 1-10% “BRAND” INCOME
  20. 20. INDIE ROCK FOM 2012
  21. 21. TOURING ARTIST FOM 2012
  22. 22. PERFORMING ARTIST FOM 2012
  23. 23. LIVE = GROWTH Source: Pollstar
  24. 24. DATA IS NOW DRIVES TIME, PLACE, AND CONNECTION Flickr/notbrucelee
  25. 25. DIGITAL DRIVERS RECONNECT TIME AND PLACE WITH DATA Technologies of Connection Metadata to the artist, album, genre, and more Recording relationship with AND BETWEEN users Recording relationship with distribution Influencing relationships with filters and with other media objects
  26. 26. THE CORE OF THE BIG SHIFT • CDs • Merchandise • Tickets Buy Stuff • Ad-based • Community- based • Subscription- based Share Stuff
  27. 27. NOT JUST MUSIC
  28. 28. OLD FLOWS OF FAN-DOM Potential Fans Existing Music Experience Discovery & Awareness Engagement Radio MTV Friends Concert & CD Marketing Purchase
  29. 29. NEW FLOWS OF FAN-DOM Potential Fans “KNOWN”: Existing Music Experience Discovery & Awareness Engagement Radio Social Media Friends Concert & CD Marketing Purchase Internet Radio YouTube/VEVO Facebook Friends Soundcloud Spotify Listen to a Stream Share Cover
  30. 30. BREADTH: FOR KEEPING UP- TO-DATE
  31. 31. MOST, 12-24, KEEPING UP-TO- DATE SOURCES
  32. 32. NEW GATEKEEPERS: DATA LIVES IN OWNED FUNNELS iTunes Sharing Comments Viewing Spotify Sharing Comments Viewing Pandora Sharing Comments Viewing Facebook Sharing Comments Viewing Amazon Sharing Comments Viewing YouTube Sharing Comments Viewing
  33. 33. SECONDARY VALUE: BEYOND TRANSACTIONS Engagement Data Event Design Brand Relationships Community Building
  34. 34. DATA DRIVING BACKWARDS Other Engagement Performance Recorded Music • Synch • Merch • Brand Integration • Appearances • Location-based and shared experiences • 26-35% • Shifting Nature • 1-6-12% DATA
  35. 35. WHALES, MINNOWS, DOLPHINS Source: Billboardbiz.com; Hanny Nada, GGV Capital
  36. 36. DATA FOR THE REST OF US Big Trends Big Data • My Fans • My Experiences • My Relationships Small Data
  37. 37. Time Place Data THRIVING 2020: CONNECTING THE DOTS: TIME + PLACE + DATA DIGITAL “MA”
  38. 38. ” “… as I’ve said many times the future is already here — it’s just not very evenly distributed. William Gibson, 1999
  39. 39. LIVE EXPERIENCE = ENHANCING CRM, P&L, ETC. Casino – P&L per person since 1990s Theme Parks – RFID and wristbands Retail – iBeacons (low power Bluetooth)
  40. 40. 3 RESULTING SHIFTS Engagement and Predictive metrics, not just reporting SuperFans, 80/20, and what we can do about it New Super- influencers and folks in between
  41. 41. SMARTPHONE: EVERYWHERE DATA Flickr/m01229 cc2.0
  42. 42. NEW “FOMO” DIRECTIONS: LIVE • Rarer Live • Constant Social vs. Constant Together • Gen Y and Z: • Increase social media • Drop in cars • Increase in festivals -- FOMO
  43. 43. NEW MAGIC TO REGIONAL
  44. 44. DATA: SURPRISE, DELIGHT, AND BUILD STORIES OUT OF LIVE ENGAGEMENT • Data engaged live experiences — iBeacons, LISNR, geofencing, RFID • Knowing WHERE you listening and understanding the Where Adjacency to purchase for Merch or Brands (later) Aloompa
  45. 45. DATA ANALYTICS VALUE EVIDENCED 2013-14
  46. 46. “GLOBAL MUSIC DATA ALLIANCE”
  47. 47. ENGAGEMENT AND PREDICTIVE METRICS, NOT JUST REPORTING
  48. 48. NBS
  49. 49. https://www.nextbigsound.com/industryreport/2014 NBS: INSTAGRAM VS TWITTER
  50. 50. https://www.nextbigsound.com/industryreport/2014 NBS: SOUNDCLOUD
  51. 51. PANDORA AMP Artist Audio Messaging (in beta)
  52. 52. YOUTUBE CARDS -- “ARTIST PROGRAMS” STAY IN-HOUSE http://youtubecreator.blogspot.com/2015/03/make-your-videos-even-more-interactive.html
  53. 53. SUPERFAN: 80/20, SMALL DATA, CLOSER TO ME
  54. 54. PATREON: AMANDA PALMER
  55. 55. PATREON: AMANDA PALMER WHALES
  56. 56. BANDCAMP SUBSCRIPTIONS
  57. 57. BANDSINTOWN
  58. 58. TUNEZY – SFX ACQUISITION
  59. 59. DRIP.FM
  60. 60. STAGE.IT
  61. 61. BOILER ROOM: LIVE CONCERTS
  62. 62. COLLABORATIVE SOCIAL ACTION AND INFLUENCE
  63. 63. PLAYLISTERS – “NEW” UNPAID INFLUENCERS
  64. 64. DIGITAL MUSIC ECOSYSTEM 64
  65. 65. CHALLENGES • Who owns my data and my customer? • Throttling of connections — FB progressive percentage drop; challenge with models that depend on it • Measuring from the inside vs outside — “Fans” vs engagement metrics for others; “conversion funnel” as “conversation funnel” • How do I do this as a working musician? Who are the layers of ecosystems and tools to “onboard” all of this — a real opportunity to make sense of it all…
  66. 66. THE 3 A’S + F – DOMINANT ECONOMIC CONTROLS Apple Android/ Google Amazon Facebook
  67. 67. ECHONEST EVERY NOISE AT ONCE EchoNest Every Noise at Once http://www.furia.com/misc/genremaps/engenremap.html
  68. 68. DIY: WEBHOOK-ING PIECES TOGETHER
  69. 69. MEERKAT
  70. 70. NEXT STEPS? • Know you own mapping of your data and ecosystem • Map who else is diong this well • Think about the Pros & Cons: Work on the bleeding edge vs. Learn from those who are “doing”
  71. 71. DATA + EMOTION + TIME + PLACE = STORY DIGITAL MA + DATA = COMMUNITY AND VALUE
  72. 72. Gigi Johnson, EdD UCLA Center for Music Innovation Slides: http://ucla.musicinnovation.org @MusicInnovUCLA #SurviveMD

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