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Archive for the ‘Business’ Category

Asia: 60 percent of global music market

Saturday, June 7th, 2008

Read that headline and ponder, if your serious about music, how can you ignore Asia?

That’s what most labels and artists have done. “Bootlegging”, or “They don’t speak english” might be one of the excuses, but not anymore, and even if they don’t, that doesn’t mean they can’t memorize words to your song and sing along, it happens all the time.

When I went to Asia, I got bitten by some kind of bug. I didn’t get sick, I just got the fever – for Asia.
You could argue this is attributable to many things, and you would be right, but I think my instincts were sensing what this article is eluding to: That you can’t ignore Asia if your serious about music.

Asia Pacific Market Grows – radioandmusic.com

Oh, and if that article isn’t enough to boggle your mind, this WILL.
From my sources in China working in the industry: the Chinese internet base is the largest in the world with 221 million users. At 16% penetration, this still leaves huge room for growth. That’s right, that stat represents 16% of China. You do the math.

Keep your eye here for more about my plans for music in Asia through Pro Soul.

Jarome in Beijing, China 2008

The emotional impact of music

Friday, May 30th, 2008

I’ve been going to a lot of fantastic concerts lately, Nightwish, Ladytron, and yesterday Rush. They were all great shows, unique and exciting to me in their own ways, and I’m not going to get into details because then I’d have to write a novel here, but yesterday I came to a realization at the Rush concert.
Nightwish put on an almost flawless show of intelligent, well written progressive rock, and although I am much newer to the band’s music, I knew many of their songs well. But the Rush show had far more emotional impact and was a far better to me for that reason. Why? Because I am emotionally invested in their music, I grew up with them, they influenced me in a big way both personally and musically as a producer with their technically challenging, jazz influenced, progressive style rock. Rush drummer Neil Peart‘s impersonal approach to lyrics and his propensity for addressing diverse subject matter including science fiction, fantasy, and philosophy, as well as secular, humanitarian and libertarian themes always seem to leave me wanting more with the lyrics to most songs I hear and work with.

The show reminded me that this emotional investment that comes from the fact that music affects you at specific times in your life based on what is happening and what your going through and gives the music and the artist even more impact to you personally.
That personal connection and relationship is what the new music industry is based on; It’s not about a physical product any more, it is ALL about that relationship between the artist and those they affect, their audience.

I’ve added a Rush song below for you ‘Subdivisions’, which according to Neil, is “an exploration of the background from which all of us (and probably most of our audience) have sprung.” I highly doubt the music will have the emotional impact for you that it does for me, but that’s what makes my relationship with the artist special. Now if only Rush had a blog!

[audio:Subdivisions.mp3]

The end of the music industry as we know it

Sunday, March 9th, 2008

Last year I blogged about how the music industry is changing along with a lot of others…
Recently, A very detailed 18 page report has been published by renowned technology and market research company, Forrester. I don’t have access to the entire article, as that would be expensive, but here is the essence of it:

  • Half of all music sold in the US will be digital in 2011 and sales of digitally downloaded music will surpass physical CD sales in 2012, reaching $4.8 billion in revenue by 2012, but in 2012, CD sales will be reduced to just $3.8 billion.
  • Media executives eager to stay afloat in this receding tide must clear the path of discovery and purchase, but only hardware and software providers can ultimately make listening to music as easy as turning on the radio.
  • The average MP3 player is only 57 percent full, suggesting that the devices are underutilized (correct in my case)
  • DRM(digital rights management copy protection)-free music enables every profile page on MySpace.com or Facebook to immediately become a music store where friends sell friends their favorite tracks
  • Cable TV style subscription music services will show modest growth, reaching just $459 million in revenue in 2012, while experiments in ad-supported downloads will be silenced by the powerful combination of DRM-free music and on-demand music streaming on sites like imeem.com
  • It is now very clear: Digital Ownership IS The Music Model For The Future
  • Forester’s recommendation to the ailing music industry: Solve The ‘Discovery Of New Music’ Problem Consumers Have First, Then Get Out Of The Consumer’s Way!

And the MOST important finding of this whole article in my opinion is:
“The industry has to redefine what its product is, said analyst McQuivey. Music executives have spent years tracking CD sales. But the ARTIST is the product not just the source of it.
New forms of revenue will come from unexpected sources. For example, the industry has failed to capitalize on the growing popularity of video games such as Guitar Hero and Rock Band. In a market where musicians are happy to sell a million copies of a CD, a video game market where titles can sell five million copies is enough to motivate even the most depressed music executive.”
The Forrester report is based in part on a survey of more than 5,000 consumers in the US and Canada.

I found it particularly interesting that way back in 2001, Forester did a study that the industry essentially ignored that proved digital music sales to be the future of music.

More here: www.news.com/8301-10784_3-9874319-7.html
Forester document: www.forrester.com/go?docid=43759

Canada proposes new music tax

Monday, February 25th, 2008

In the ongoing fight for the music industry to try and maintain the control they *used* to have, Canada is proposing a new compulsory music tax in addition to the digital download taxes, levy on digital music players, and the levy on blank CD’s. I kid you not, we are talking about billions of dollars collected here, and do you think I will get compensated when my music is downloaded? Nope. But Celine Dion will!

You can read the propaganda that the music industry has sent the media here.

I say propaganda because much of the information in this article comes from the music industry and is very misleading, such as the statement “More than 80% of Canada’s musicians earn less than $15,000 annually.”
This is not because of illegal downloading, but because of things like the lousy music that is released that people won’t pay for, artists who don’t promote themselves, and the fact that most artists go bankrupt because the retail stores, label, and distributors take over 70% of the profits from CD sales. Remove those people from the food chain and you have the new music industry, where the artist is back on top. and THAT is a proven fact.
(I get into this more in this post about the massive changes in the industry)
I’m really getting tired of media being too lazy to research this stuff before publishing, aren’t you?.

The incredible thing is this new tax, much like the levies mentioned above would be charged to everyone who uses the internet in Canada, not just those who download music, creating in total billions in tax and levy revenue for the music industry. How things like this get passed as law in a supposed democracy is beyond me.
What’s interesting is if it does become law, it will essentially make downloading music legal, along with burning music, which is essentially also legal now because we are paying dearly for it.
And that means that everything will change forever in the consumption of music. I only wish it could be done fairly, you know the good old way, where the industry gives the consumer what they want and get compensated for doing so, rather than by force.

Massive changes in the music industry

Tuesday, November 20th, 2007

I have been consulting a great deal with people and the artists I work with about the massive changes in the music industry lately. It is long overdue that I make an official blog post about it.
But how do you sum up what equates to declaring the death of gravity to a physicist in a short blog entry? It’s a challenge, however, now we know enough to confidently make some bold statements about where the music industry is going and I will very briefly summarize them here:

  • The music industry is moving away from corporations and back to the artist/musician where it should be (this is a very good thing for you, the artist, but more rights and control means more work and responsibility)
  • Giving music away for free and digital downloading doesn’t hurt music sales, it is in fact the only way music is purchased, and essentially has been for a long time. (The myth that downloading is hurting sales is propaganda that corporations have spread in attempt to retain control they are losing over the music industry – see first point)
  • Music as an emotional commodity has become about building and selling relationships, NOT selling a product. Build a strong following and fans will support you in all your efforts. This will soon become a philosophy for all business in the near future in my opinion.
  • The Internet now fully into it’s web 2.0 phase is the way that artists can independently build a strong business without corporations or other companies due to it’s many resources. (This is covered in detail in Andrew Dubbers’ free eBook which I blogged about here, and links to some of these can be found in my blogroll/links page
  • Blogging and social networking is one of the most important ways to accomplish the above and embrace the new music industry and start building your audience.

So these are some pretty drastic changes, I mean, telling artists they need to give their music away in order to sell it when they have been told that is stealing and will cost them sales? Well, I have started to do it myself as mentioned here, and many professionals, industry experts and artists have proven these points to not only be true, but very successful, artists like Jonathan Coultan. He may not be famous enough for you to know him, but he’s an independent artist making a living from his music using these very techniques. There are articles about it all over the internet. Major artists like radiohead have been starting to make changes as well, selling their music by donation, and a lot of people not only think they’re crazy, fellow artists think they are ruining the music industry. But those people haven’t studied the proven facts about where music is going.

I have been researching this for some time now, particularly for a course I teach at a local college as part of the full time music program. I also offer artists consulting on effectively using these techniques. I don’t have all the answers because no one does yet, things are still changing and progressing. But I can see where things are going, and it is a good thing.

Moving closer to a paperless world

Sunday, November 4th, 2007

For many years now, I have been trying to move toward a completely paperless world.
This is hard in a world that loves paper. Many people love paper because it’s tactile and they can feel it and see it. Not me. I hate little pieces of paper all over the place, and trying to organize and make sense of it all. I got a phone many years ago that allows me to write everything in it. All my notes are digital, I can sync the phone to the computer and vice versa, and all these notes can be modified and organized digitally and archived. I can copy and paste, and edit without having to re type things.

So that is just in terms of notes and general use of paper, it goes far beyond the unnecessary use of trees. I’m not even going to get into purchase receipts, 3 words: tax time nightmare.

But there is another use of paper that annoys me to no end: Checks. The whole idea of writing, sending and depositing paper checks for business transactions seems to me so 20th century. It is the only reason I use a bank machine. I am even thinking of giving clients incentives to use electronic means of payment, and attaching links (to my now electronic invoices) to pay electronically. I know big businesses won’t go for this in the near future.
Would you use electronic methods of payment if you got 1% off your bill? I would love to get your feedback on this. Paypal and similar tools are very easy to use, even if you don’t have an account.

So if you use paypal, please let me know I would love to pay you this way, and I would do it for free!

Do I want the world to progress faster than it is ready to? Maybe, it’s all about simplifying life for me, is that so wrong?

Cool new audio technology

Monday, October 29th, 2007

Lately I’ve been making a lot of dark and intense non music related posts on here. What can I say, we’re living in the middle of the decline of the old world order… So here’s something more music and sound related!

There is lot’s of great new music and audio software out now, and I need to update in order to use the new version of my multi track host software (It uses multiple ‘plug in’ softwares that run within the main application to expand on it’s capabilities)

One of the most exciting is the new audio restoration software from iZotope, ‘RX’.
There has been a lot of amazing audio software that has blown my mind over the last 10 years, but this is something else – it can remove background sounds from audio without destroying the sound you want! Like removing a car beep from an interview, or filling in bits of sound that is missing from a recording! That’s right, it analyzes audio nearby the missing chunk and fills in the missing data. Like science fiction, but it’s real.

Listen for yourself to the RX Restoration video demo or the audio demos on the right if you have less time.

This is amazing stuff, and I am adding it to my arsenal in case you or those you love want some miracles worked with your audio.

12 Ways to Use Facebook Professionally

Sunday, September 23rd, 2007

A lot of people are using facebook lately. It really has social networking down to a science, and I can’t tell you how many people tell me their addicted. And not just my 15 year old nephew, mom and dad are on their too (well, not mine, but you know what I mean…). That means more and more, facebook is being used professionally, and it has become much more important in your business and career to the point where smart employers are even checking out prospective hires on facebook to see if they are company material.

Here is a link to a useful article:
12 Ways to Use Facebook Professionally:

I’ve added my own facebook link on my blogroll, but I have to limit my time on there… that thing is the ultimate time killer.

Apparently my blog has been blocked…??!!

Saturday, August 18th, 2007

Apparently my blog is blocked in China… God only knows why it would be, if you live in China, and your reading this, post and let me know.

This kind of thing seems to be intermittent, depending on where you live there.

My massive page of amazing links

Wednesday, August 15th, 2007

I just posted a new massive page of amazing links that I use in my music business 2.0 class and that I often recommend to clients I am working with. Most of these links I have tested and or use myself, and they are some of the best resources I have found. So take advantage of my hours of research and enjoy!

Jarome’s recommended links for Multimedia,Music Business, and Web 2.0 applications