Last week in the UK, the International Live Music Conference took place, at which 1000 attendees from 57 countries debated the health of the live sector. It is, as it turns out, in very rude health.
One speaker delivered an amazing fact, something that we all probably thought was coming. Live music revenues in the UK outstripped revenue from recorded music sales for the first time ever. £1.28bn in live income versus £1.24bn in record and digital sales. You would be safe to assume that the same division of income is now applying the world over, or soon will be.
So, what does this mean for you, the aspiring artist?
Well, it would be very easy to crow about the shift of power away from the record companies and into the hands of promoters, agents, managers and artists, which is undoubtedly happening. But, don’t forget that the majority of the acts who are benefitting from this swing towards increased live income are the very ones who have also benefitted from the long term investment of vast sums from the major record companies over the last ten to thirty years. That investment is what has made these acts globally attractive as a live draw.
No wonder that the record companies are desperate to find a way to share in this revenue in their new so-called ’360 deals’.
But would you sign to a major record company now under those terms (which would be a share for the record label in all your streams of income – live, merchandising, publishing, sponsorship etc)? The answer depends on how events play out for you and where offers and opportunity come from. But it also depends on what you want from this business – do you want the global superstardom or would you prefer the DIY ethic and lesser success?
Both are still available to you, but now, the source of the investment money may come from a variety of sources – your manager (perhaps!), a venture capital firm, a promoter or agency, or even a brand.
When you get your act to the point that you are good enough to appeal to a mass audience, you now get to choose whether you want to do that through a record company, or whether you want to make your own way. The record company still does have appeal – many years of experience and experienced staff, connections, and cash, just for starters.
If you choose to go your own way, you can buy in the expertise and you can far more easily play outside the rules. You would find inside a record deal that some forward thinking strategies and ideas that you might want to employ (such as giving away music for free to get people interested in your band) wouldn’t wash with them. If, on the other hand, you own all your rights, you can do what you like.
Many managers that I speak to regularly are convinced that they have done their last deals with major record companies and that the future is brightest for those that can embrace the web and the opportunities that ‘direct to fan’ marketing through modern technology offers.
My final comment has to be that you should take great heart from this piece of news. The fact that the average music fan is happy to spend significant sums on seeing their favourite band means that the music industry, and therefore your dreams and your shot, are very much alive. Maybe not how you had envisaged, but the opportunities to succeed are there – just make sure you have learnt how to perform!
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I love your last bit of advice here…. make sure you’ve learnt how to perform.
We spent last weekend with one of the key figures of the country rock scene of the 70s and 80s and he said something that really struck me. Back then your musicianship had to be stellar, because there was no technology to cover the flaws. You played great live, every time. So much of that live energy has been lost in the past decade as music has become perfect. Perfect isn’t always great. Live performance energy is great, and you can’t fake that.
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