music, digital culture and the new economy - anne jacqueline
TRANSCRIPT
1.Old Economy, New Economy
The Old Economy of The Music Industry
• 3 majors recording companies dominated the market: Sony, Universal Music and Warner
• An economy of property
• Products made for mass comsumption
• Recorded music is what supports the artist, live music is an additional source of income
The New Economy:Main Actors, The GAFAs
1976 1994 1998 2004
A Platform
Devices (terminals)
Hosting and services
What They Have
What They Want
• That you spend more and more of your time on their platforms and / or their terminals (tablet, smartphone...)
• That you feel happy about it
• So they can sell you more of their services (and products)
Everybody listens to music. It doesn’t need translation. It is thus an attractive service for these platforms.
The New Actors of The New Economy
1999 The world main e-trade plateform.They sell only space.
The world biggest media.You create the content.2004
2009 The world biggest taxi service.They don’t have any car.
2008 The world largest hotel service.They don’t have any property.
Other Important Actors:Tech Companies
Streaming plateforms:
• Youtube (Google)• Spotify• Deezer• Yuku (China)• Yandex (Russia)• Naver (South Korea)
Social networks:
• Twitter• Instagram• Snapchat• Vine
Technical services:
• Bandcamp• Mailchimp• Songkick• Kickstarter, Indiegogo...• Bandzoogle• Sonicbids• Reverbnation• Shazam
Information plateforms:
• Wikipedia• Musicbrainz• Discogs• Genius
The Artist In The New Economy
Recording music:
• Home studio• Virtual instruments• Tools such as Auto-Tune
(Cher, Believe, 1998)• Mp3
Distributing music:
• D2F (direct-to-fan)• Streaming
Getting fans:
• Social media• One-by-one• Ad campaigns on
Facebook, Youtube...
Making money:
• Live music• Selling albums, EP
(extended play), singles• Synchro
Streaming: The Value Gap
0 $US
0,00 $US
0,01 $US
0,01 $US
0,02 $US
$
0,0010,001
0,006
0,015
DeezerSpotify PremiumSpotify (Ad-supported)Youtube
average figures, in dollars (2015)
What The Platforms Pay Per Track
Youtube: The Bigger Value Gap
4%
96%
Youtube Streaming services
71%
29%
Users(2014, IFPI*)
Revenues Paid To The Labels (2014, IFPI)
IFPI : International Federation of The Phonographic Industry
2. The American Hegemony
Headquarters ofThe Music Tech Companies
English, The Main Language of The Digital Economy
• Search engines (and filters) are built on the structure of the English language
• Most of the (good) tools are in English
• Most of the (interesting) information is in English, including: reportings on the music industry and how-to information for artists / labels
Perspective:Metadatas Are Cultural
"World Music" on iTunes
WE ARE HERE
iTunes defines:
• Music genres• Languages• Conventions on the names of the artists
Geographic Scale
USA: 9 631 420 km2 - Italy: 301 230 km2
The USA are about 32 times bigger than Italy
Privacy, USA vs. Europe
Have you ever read the user agreement you sign when you register with Google ? Facebook ?
In the USA, personal data has a commercial value; in Europe it is to be protected.
Guess who is winning ?
Local Laws vs. US Laws
• The stores on which music is distributed (e.g. iTunes) are based in the USA and obey the American law.
• Therefore, artists and labels have to comply to their local laws and the American laws (+ the rules of the stores).
3. The Illusion Of Free Music
People Listen To Music On:
3%12%
9%
23%
53%
DownloadsSubscription streamsAd-supported streamOtherMobile personalisation
Global Digital Income by Sector, IFPI, 2014
Services People Have Access To:
0 %
15 %
30 %
45 %
60 %
Video sites Streaming sites Download services
26 %38 %
57 %
IPSOS* survey in 15 markets, 2015
*IPSOS : survey and marketing institute
Users
Italian Recorded Music Market
0
25
50
75
100
Subscription Free streaming Download Physical Total
93,9
50,7
15,18,319,8
75,4
41,3
14,79,410
2014 2015
Jan - Sept. € M (Deloitte*)
* Deloitte : audit and consulting firm
What’s Free Music ?
• Piracy, P2P (peer-to-peer)
• Youtube and other video services (Vimeo, Vevo...)
• Ad-supported streaming services
• Free downloads (offered by the artists...)
• Free streaming services, such as Soundcloud
Free ? Really ?
You pay for:
• Your device: computer, tablet, smartphone
• Accessories, such as headsets or speakers
• Electricity
• Internet
Really?
It’s on the internet?
It’s free?
YOU are the product.
Streaming & Algorithm
• the "listening profile": tracks you listen to, hours you listen to, where you listen to, on what terminal, and how you listen to music.
• music news: articles, radios...
• artists and relevant music styles: (https://artistexplorer.spotify.com/)
• the tracks themselves: acoustics, tempo, can you dance on them ?
Understanding how the users listen to music
Behind Algorithms, Recommandation
• 5 to 10% of users are active ones: they know what they want to listen to.
• 90 to 95% are casual: they come to listen to an album, but, what’s next ?
• Personalized radios (by artist, by genre...)
• Theme playlists (jogging, evening...)
• Ongoing playlists: Flow, I’m Lucky, Instant Mix, Spotify Fresh Finds...
Behind Recommendation,Big Data
• Recommandation
• Prediction
• Personalisation of apps and services
• Targeting on common interests (instead of: age, genre, geography...)
• Marketing campaigns in one-to-one mode
From data analysis to data monetization
4. From Money EconomyTo Time Economy
From Ownership Economy to Access Economy
• In the 1980s and 1990s, users needed to buy (own) music: vinyl, or tapes, then CDs
• Fans had to buy the whole album even if they liked only three songs
• Now they just need to have access to a library (free or not), and they can choose to listen to what they want in huge catalogs
• People who still buy CDs and vinyls usually do it:- for the souvenir: e.g. at the end of a concert- for the object itself: e.g. limited editions packages
From Money Economy to Time Economy
• The largest music company is Live Nation, a 360° business, that is originally a concert promoter
• Recorded music used to be the main source of an artist’s income, with live music as a supporting resource. It is now the other way around
• Selling recorded music to the general public can not be an artist / label first goal
• Instead, the artist / record label has to focus on having fans give him / her time and attention
Engage, Engage, Engage
• Lady Gaga & the little monsters on Twitter
• Pomplamoose on Youtube
• Gotye : Somebodies - A Youtube Orchestra
• Pharell Williams, 24h of Happy
• Tiromancino on Facebook
Fans Like To Help
• Patreon
• Crowdfunding services for one time projects, such as Kickstarter, Indiegogo, etc
• Artistic collaborations
• Name your price policy
• Fans like to do things with music: e.g. mixes, etc.
5. Your Trademark,Your Digital Data
Music Is Not Enough
• Good music no longer sufficient to break through
• Artist needs to have a story (storytelling) / a universe to share with fans => that’s his / her trademark
• And the ability to connect with them
Metadatas
• Identify your music in catalogues that have billions of tracks (iTunes, Spotify...)
• Allow (future) fans to find your artist
• Allow Content ID systems to match your music with catalogues, and thus, to pay the artist
Analytics:Getting to Know Your Fans
• Part of the data you give to platforms is given back to you:
- Google Analytics
- Facebook Insights
- Youtube
6. Working In The Music Business Today
Every Minute On The Internet In 2014
• 4 millions of search requests on Google
• 2,5 millions of shares on Facebook
• 300 000 tweets are published
• 220 000 new pics are uploaded on Instagram
• 72 hours of video are posted on Youtube
• 200 millions of e-mails are sent
Your Main Competitor
Internet is (mostly) about cats (and holiday pictures)
Local, Regional, International & Back
• Local / Regional is where the artist usually start (concerts), but once his / her music is on the web it’s also available globally
•Which means paying attention to:
- Languages / translations
- Rights management
- Public domain laws
- Contracts
Mastering Time
• Internet does not work well with last minute requests
• Chain of people working after you
• Time needed to populate websites
Precision
•Writing for internet is specific
• Internet does not work well with errors
• It doesn’t take more time to do things right
• Or be prepared to manage the artist’s anger (hint : it takes more time)
Keeping Up With The Changes
• Google Alerts, Alerti
• Newsletters & Blogs such as : CyberPR, Mailchimp...
• Informational Websites :
- Techcrunch for information on digital companies
- Music Think Tank for how-to articles on online music business
Welcome to The Digital World :-)