Archive for January, 2012

Why the Music Industry Works the Way it Does

January 17th, 2012

The music industry has one great difference which sets it apart from most other industries. The difference is a lack of certification or licenses. Truck drivers, doctors, lawyers, welders, and even massage therapists can show you a piece of paper which says they are qualified to provide a given service. There is no such thing as a certified singer or musician.

So, how do music people find the qualified people they need? If a major star like Garth Brooks needs a new backup singer, guitarist, keyboard player, or whatever, he could run ads in newspapers. Hundreds of people would show up for the auditions. He would spend many days listening. After enough days, he might find the person he wanted. He could do that, but he values his time too much. He would rather have a few very well qualified people show up for the auditions. He would rather spend a few hours listening. He does this by holding private auditions only a few highly selected people know about.

He asks his friends to invite their friends to the private auditions. He knows his band members, lightmen, soundmen, and so forth will only invite qualified people to the auditions. In other words, he gets referrals from people he trusts. He uses people he knows are qualified to screen the people he spends his time auditioning.

If someone wants to determine whether a person is qualified, they can learn through personal experience or they can get referrals from people they trust. You can pick one at random but you won’t know if they are good at what they do until you pay them to do it. Or, you can get a referral from someone you trust.

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How the Internet Has Changed the Music Industry

January 13th, 2012

The evolution that has taken place in the music industry over the last 15 years is quite staggering. The entrance of the internet onto the world stage has revolutionised the way music is bought, marketed and shared. It is not only the depth of the changes that are occurring, but also the increasing rate at which these changes are taking place. New technologies and processes are becoming outdated almost as soon as they are first officially adopted. Love it or hate it, the world wide web is here to stay, and it has irrevocably changed the business of music.

How music is purchased – Traffic to brick and mortar music stores is decreasing at a steady pace. Stores have had to entirely rethink their sales strategies and embrace a vision that is larger than just the sale of music. The mp3 has made it possible to purchase music from the comfort of your own armchair or bed. The possibility of CDs becoming completely obsolete in the not too distant future is not that far fetched at all. Gone are the days of buying an album containing 3 or 4 songs that you like, with the rest that you have to tolerate or entirely ignore. Now, you buy only the songs that you know you want. This has resulted in a decreased revenue for record companies and artists because the guarantee of the sale of a complete album no longer applies. A greater emphasis is therefore now placed on the release and marketing of “singles” in an attempt to boost profits.

How artists gain exposure – Along with the internet, came the artists ability to market and promote themselves with unprecedented efficiency. Loading an mp3 file onto a social networking site like MySpace is significantly easier than the time, money and effort required to organise a gig to achieve that same goal. Not only that; instead of playing their song to 50 people in an obscure club somewhere, that song is now immediately available to millions of potential fans around the world at the click of a mouse. It is therefore not unheard of anymore to find bands that are bringing in significant income and gaining substantial popularity, without a record deal having ever been signed. There is also a greater degree of interaction between the artists and their fans, which further cements the connections between them which influence sales.

» Read more: How the Internet Has Changed the Music Industry