It seems that we can’t go a day without someone else telling us the brand new future of the music industry and yet the messages don’t get more conflicting than the ones coming through in yesterday’s news. First, we hear from John Kennedy, head of global music body the IFPI that the concept that artists no longer need record labels is ‘simply wrong.’ (http://musically.com/blog/2010/03/09/ifpi-says-labels-do-invest-in-music/) Yet meanwhile, Kate Wellham, blogger for the NME explains that now is the time the fans and artists are taking the power back. (http://www.nme.com/blog/index.php?blog=10&p=8106&more=1)The fact that both points of view are fiercely defending their corners demonstrates to us the extent of the change that the music industry has experienced during recent years. But the question is, can we really believe that the concept of shunning a record label in favour of alternatives is nothing but a ‘myth’ and where should bands be putting their energy and resources if they hope to achieve success?
It seems that industry insiders believe a shift has already happened with plenty of talk of an ‘investment gulf’ from the major labels who have been choosing to pile these vast sums of money they speak of into a small number of acts in order to guarantee a high success rate. It was brought up at the UK festivals conference last year that bookers and promoters have been starting to back new artists, on the promise of a performance at their event, simply to ensure the steady flow of talent through the industry, where major record labels have been failing. While Alison Wenham, chairman of the indie label network WIN, makes a perfectly valid point in stating that ‘artists generally prefer to leave the complex administration…to someone else,’ who that someone is depends entirely on how adventurous you want to be.
Some of the most obvious shows of alternative funding and management models can be seen through schemes such as Slice of the Pie and Pledge Music , where fans choose to pay towards an artist’s release. While the collapse of Sellaband (albeit apparently temporary) has certainly dented buyer confidence in these models, what is impossible to ignore is the fact that the power is shifting away from the record labels and into the hands of those who will be buying the music. The latest Facebook trend, the group ‘Storm the Charts,’ coupled with the recent Christmas number 1 uprising suggests that music fans aren’t willing to do what the established protocols tell them they will anymore. This isn’t a new thing; pop has been very separate from other types of music for a good while now. But what is different is the phenomenal rise in internet use for well, everything, has meant that they finally have the right platforms to make their voices heard, and on a seriously large scale. As user engagement online becomes increasingly impossible to escape, so too does the concept that anyone involved in the music industry can ignore the views of the consumer and carry on regardless. Consumers expect more, they expect to have a say and they expect to be involved but what’s more, in many cases, they are more than happy to pay towards the privilege. They might not be willing to pay for a traditional album in a jewel case but once they are engaged, tell them their favourite artist needs their support and you’d be surprised at quite how quickly that £7.99 can be found.
I think it may be way too early to say the major labels are counting down to their doomsday although those following the EMI situation may beg to differ. However, the model itself is shifting…no longer can a label spot a band playing in a bar and thrust them off into stardom. Labels expect more; they want an already engaged fanbase, they want to know what they are getting themselves into- they simply can’t afford to take the huge risks needed to throw that $1 billion behind someone who might end up in the bargin bin two years down the line. With any of the models, record label or not, fan engagement is going to be the key to success. Like it or loathe it, social networking; twittering, buzzing and commenting, cannot be underestimated. If you want to be fan funded, you need the fans. Record label funded? You need to prove that the fans want you and will line the increasingly empty pockets of the major labels.
Huge commercial success is still going to be measured in the same terms for a long time yet. But for those who aren’t Lady Gaga or the Kings of Leon, the way forward seems to me to be engage your fans, spread your word. Whether you choose to embrace the modern and go fan-funded or hope to seek out that ever mystical record deal, the support and numbers will open up these doors to you. You can offer every Pledge reward in the world but if nobody knows who you are, nobody will care and nobody will buy.
