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New media have changed the relationship between the recording industry and fans. The fact is that networked technologies allow fans to share copyrighted music in peer-to-peer (p2p) networks and Web 2.0 platforms. Major labels and their representatives have reacted mainly with ‘prohibitionist’ strategies. They identified file-sharing as the cause of the recording industry’s crisis and labelled file-sharers as ‘digital pirates’. However the Internet could be a challenge to create new business models. First, e-commerce allows the creation of new markets, and the reduction of the cost of storage and distribution. Second, synergies between producers and consumers could emerge. In fact, fans are not just ‘pirates’, but also promoters and co-creators.
Cultural scholars argue that the industry should adopt a ‘collaborationist’ approach to
create an ‘affective economy’ (Condry, 2004; Jenkins, 2006a; Varnelis, 2008). In an affective
economy audiences are not passive consumers, but are active, emotionally engaged and
socially networked users who cooperate with producers and musicians in the promotion of
media contents. Empirical research has demonstrated that both indie labels and pop artists
can benefit from ‘fan labor’ (Beer, 2008; Baym & Burnett, 2009; Yang, 2009).
“We do bi-annual comps through our Bandcamp page, in return for customer email addresses. These are a great way to introduce new artists to our fans and we couldn’t achieve the reach we do with these without digital.”
- Aly Gillani, First Word Records
Bandcamp is a great tool for this exact purpose, and it also enables the label to see real-time statistics with relation to what tracks were streamed or downloaded the most, where the visits to the compilation page came from, what fans have supported it over time and so on.
The Music Business
Many media and music futurists are speculating upon the change within the industry. The introduction and success of social networking along with digital music has transformed and reshaped the way music is marketed to the consumer; shifting from a push to pull strategy. “In media and advertising everything is switching to pull. Push Marketing is on its way out.” There is an imminent difference for the consumer receiving information from a push strategy to a pull strategy. Push example; passive, the marketing campaign is in control of the message being sent out and how it is received by potential customers. Pull example; active, the recipient of the marketing campaign is in control of the message and their decision whether to act or not. “Generally the shift from push to pull has been viewed as a shift in power to the consumer away from advertisers and so is bad news for marketers.”
With the increase of social networking platforms and users, with emphasis to Facebook, social networking has become a major and focal part of music marketing adopting the pull marketing strategy. Pull marketing shifts emphasis and attention onto the customer, the essential attribute is to market in the correct places and know where and who your target audience are. “Get people’s attention by providing value and earn their love by engaging with them. This will naturally lead to increased website traffic and increased sales.”
Consumers are increasingly customizing music platforms to better suit their individual needs. Rather than relying on music companies or a DJ to pre-determine the mix of songs on a CD, an increasing number of music listeners are downloading individual tracks and assembling their own sequence of songs. This process is also being replicated with the creation of playlists through platforms such as iTunes, Spotify and Last FM. Fan-built playlists and mixes are taking over the way people get their music. Playlists are inevitably becoming a pull marketing resource that marketing alliances must embrace, due to their ability to share / be shared via Peer-to-Peer networks. “People are choosing what they want to hear rather than having it pushed on them,” said Dave Kusek
I conclude; as consumers gain access to a greater number of options/platforms and more information about such services, those consumer will become more demanding on resource providers. Requiring services to be made available on consumer terms, when and where they want them, rather than when and where it is convenient for the resource providers to deliver them. In addition, as mentioned above consumers are demanding the ability to configure their own products from resource providers, leading to rapid growth in options and music services. Inevitably, shifting music marketing from push to pull. “As digital music services try out different models and features to try and find the optimum mix and consumer satisfaction.”
PUSH PULL STATEDGY / WIKIPEDIA
The business terms push and pull originated in logistics and supply chain management,but are also widely used in marketing,and is also a term widely used in the hotel distribution business. Wal-Mart is an example of a company that uses the push vs. pull strategy. A push–pull system in business describes the movement of a product or information between two subjects. On markets the consumers usually "pull" the goods or information they demand for their needs, while the offerers or suppliers "push" them toward the consumers. In logistics chains or supply chains the stages are operating normally both in push- and pull-manner. Push production is based on forecast demand and pull production is based on actual or consumed demand. The interface between these stages is called the push–pull boundary or decoupling point.
New media have changed the way cultural industries produce, distribute and promote
cultural goods. Since the mid-nineteenth century cultural production has taken on an
industrial model due to the high capital investment required to produce and distribute
music, movies, radio and TV programs. Cultural industries are characterized by a high cost of
production and a low cost of reproduction. Because of that, Hollywood, the broadcasting
system and the recording industry have all invested large sums in the production of a small
number of high value cultural goods with the aim of maximizing their audience. However,
since audiences use media contents in highly unpredictable ways, producers tend to
minimize the damages of the unsuccessful productions by formatting their contents in three
main ways: through the ‘star system’ (i.e., associating the name of star writers and
performers to the texts), through ‘genres’ (i.e., associating labels to the products such as
‘horror film’ or ‘hip hop album’ to suggest the kind of pleasure that audience can gain from
the consumption), and through ‘serials’ (e.g., TV series, hit list albums) (Hesmondhalgh,
2007).
There seems to be a divided opinion in the music industry to whether or not it is good to give away music for free.
However, when talking to PR and Marketing professional Gavin Handley from the London based company Resonate Media, he expressed that he personally thought it was a good thing to do, if it was done sparingly and with a specific purpose.
“You can use this concept to collect email addresses, which is very handy. You just need to ascertain what your goal is. Many artists and labels decide to do this just because they can, but you don’t want to end up in a situation where your fan base expects everything you do to be free. Rather, I think you should use the concept sparingly; are you trying to break a new act or are you wanting to collect email addresses, for example. Do it, but just do it with a purpose in mind.”
- Gavin Handley, Resonate Media
In the new millennium, the rise of networked digital technologies is enabling a
decentralization of the production and distribution of cultural goods (Benkler, 2006). In fact,
digital technologies such as recording devices (e.g., the digital camera), digital editing tools
(e.g., GarageBand), p2p networks and Web 2.0 applications (e.g., social network sites such
as Facebook and Twitter, and content sharing sites such as YouTube) allow people to record,
store, copy, edit and distribute media files via the Internet at low cost. On the one hand the
Internet is thus a new opportunity for industries to create new markets. But at the same
time consumers have access to distribution platforms that are no longer exclusively
controlled by cultural industries.
Web 2.0 applications - free services that create an ‘architecture of participation’ where users share multimedia content and connect with each other.
Connecting with fans is imperative in today’s music industry. It’s that connection that can give them a reason to buy and support your music. Utilizing social media and having a strong online presence makes connecting with fans much more achievable. Below are some good case studies of bands that found success through an online campaign. I encourage musicians to review these examples and pay attention to the elements that made them successful. Then think about how to implement those strategies into your own marketing plans.
1) Arcade Fire – Interactive Music Video Using Google Street View
Web 2.0 applications - free services that create an ‘architecture of participation’ where users share multimedia content and connect with each other.
Web 2.0 fosters
‘media participatory cultures’ that emerged online (Jenkins, 2006a; Varnelis, 2008).
Affective economics has both positive and negative implications: allowing
advertisers to tap the power of collective intelligence and direct it toward
their own ends, but at the same time allowing consumers to form their
own kind of collective bargaining structure that they can use to challenge
corporate decision (Jenkins, 2006a, p. 63).
With the aim of describing how cultural industries are reacting to the challenge of the new media, this focus' on the recording industry because this sector has been faced with these digitalization and decentralisation processes since the mid-1990s. While digital books need a device that allows an easy reading (such as the e-book) and movies need a broadband connection for distribution, the technologies of the Nineties were already enough to disrupt the way music was distributed and listened before then.
With the aim of describing how cultural industries are reacting to the challenge of the new media, this focus' on the recording industry because this sector has been faced with these digitalization and decentralisation processes since the mid-1990s. While digital books need a device that allows an easy reading (such as the e-book) and movies need a broadband connection for distribution, the technologies of the Nineties were already enough to disrupt the way music was distributed and listened before then.
MUSIC THINK TANK
1) Arcade Fire – Interactive Music Video Using Google Street View
Arcade Fire utilized HTML5 to create an interactive music video for “We Used to Wait.”Users are prompted to enter the address of their childhood home at the start of the video. While watching the video, scenes from your old neighborhood are pulled in using Google street view. The elements of new technology, interactivity, nostalgia, experimentation, and personalization all aided in making this video a huge hit.
2) Josh Freese – Topspin and Miniature Golf
The one size fits all product days are gone. Having something for the casual fan to the super fan is a great way to be able to sell more and put additional money in your pocket. One way to utilize this method is through Topspin, an online funding platform for artists, musicians, inventors, filmmakers, etc. Josh Freese decided to try out Topspin to help fund an upcoming album. The thing I like about what he did was the creative “product” offerings that fit his personality, including:
- Lunch with him at Cheesecake Factory or PF Chang’s
- A round of miniature golf
- Josh washes your car or does your laundry
- He joins your band for a month
- A private drum lesson
- Take three items out of his closet
- Josh writes a song about you
See the full list of packages and items Josh made available, which ranged from $7-$75,000. Check out Topspin to see how you can use it creatively to fund your next project. Just remember to do something that fits your band’s personality. If you make it the right fit and support it correctly, it can work.
Amanda Palmer is widely known for her social media expertise. Advertising Age said, “Palmer is more sophisticated than almost anyone on the internet — musician, brand or otherwise — when it comes to gathering her audience around her and keeping the conversation going.”
On a boring Friday night, Amanda managed to rake in $11,000 in just two hours. It all started with her tweeting about how she was alone, again, on a Friday night sitting in front of her computer. Others started chiming in and began claiming how “we are all losers.” Dialog continued and grew at a rapid pace. A faux organization was started called, “The Losers of Friday Night on their Computers.” Amanda created the hashtag #LOFNOTC and thousands joined the conversation.
A follower suggested the group create a t-shirt. Amanda quickly decided to run with it. She took a sharpie and made a t-shirt design. A website was thrown up that night with the t-shirts available for $25 a piece. 2 hours later… $11,000.
What can you learn for this example?
- Interact with your followers and don’t just mass broadcast.
- Be personable and share a variety of things with your fans.
- Always be on your toes, ready to act quickly when opportunities arise.
4) Matthew Ebel – Subscription Site for the Super Fan
Boston-based singer Matthew Ebel says 26.3% of his income is from 40 hard core fans. You may recognize his name from articles about his ties to the 1,000 True Fan theory/model. One of the ways Matthew caters to his super fans is through a subscription based website.
The packages range from $5/month to $15/month, as well as annual options. He offers a wide range of perks are including members-only parties, VIP seating at shows, access to new music as soon as he creates it, new live concert recordings every month, broken apart tracks ready for remixing, behind-the-scene sketches, drafts, and ideas, and many more. View the full list of packages and perks here.
The Poison Control Center have an awesome tour blog. The band uses Tumblr, a simple and free blogging platform, to regularly update their fans from the road. After each show they share pictures, videos, and posts about their experiences, even down to thanking the sound guy, door person, bartender, and of course the fans. They do it right by updating frequently, providing a wide variety of content, and always remaining authentic.
6) Gossip Grows on Trees – Building Your Email List with a Fortune Cookie
Email is one of the best ways to directly reach your fans, but sometimes it can be difficult to grow your subscription list. Gossip Grows on Trees from North Carolina executed a creative way to gain more email addresses at live shows.
They created a download web page that gave visitors a free music download in exchange for their email. At shows they walked around and handed out custom fortune cookies with the URL of the download page and a short message from the band. This gave the band an opportunity to spark conversation and develop relationships with fans. Plus, a lot more people visited the download page and provided their email address because they were approached in a memorable way.
All of these online music marketing case studies have a common theme of musicians connecting with fans. It isn’t enough to put your music out there and hope people will gravitate towards it. You have to be willing to push it out there and utilizing online mediums is a key element.
THE CREATIVE INDUSTIRES
One of the biggest social media success stories of the last few years has undoubtedly been the rise to fame of one of the UK music industry’s much-loved exports, One Direction.
The group’s success is also a testament to how, in this digital age, UK record labels have become experts in building fan bases around the world and have embraced social media and placed it at the centre of marketing campaigns to ensure global success.
In 2012 One Direction was the world’s biggest band with an upcoming second album. But generating and satisfying demand from fans around the world is a very real challenge. The boys performed a one-off gig in Madison Square Gardens and turned it into a three-month global adventure called Bring me to 1D that got every One Direction fan and the world’s press buzzing.
Fifty-five 'Go1Den Tickets' promising a “once-in-a-lifetime experience” with the boys in New York were released globally. Each was won in a completely different creative way. The band joined the dots with its constant presence via Facebook, Twitter and the official 1D site, where an interactive Bring Me to 1D map enabled fans to follow what was happening around the world.
Millions of fans took part. Tens of millions engaged.
And the result? One Direction’s site achieved its biggest ever volume of traffic. Facebook likes and Twitter follows doubled and, in the first week of release, Take Me Home, went straight to Number 1 in 32 of the 40 participating countries, flying the flag for British music all over the world.
Genevieve Ampaduh, Head of Digital Marketing at Sony Music, who masterminded One Direction’s social media campaign says: “Social media has changed the face of music marketing forever. The ability for artists to reach out to their potential fans in every corner of the globe in real time is incredibly powerful and cannot be replicated by traditional media.
“Early advocates of an artist have become an extension of the label’s marketing teams and play an invaluable role in breaking artists in their local countries. Empowering super-fans should be a staple of any music marketer’s strategy, as should entertaining fans. Why shouldn’t a marketing campaign be exciting, memorable and fun? It should be. And if it is, fans will stay with you for the journey ahead.”
THE MUSIC INDUSTRY COOKBOOK There seems to be a divided opinion in the music industry to whether or not it is good to give away music for free.
However, when talking to PR and Marketing professional Gavin Handley from the London based company Resonate Media, he expressed that he personally thought it was a good thing to do, if it was done sparingly and with a specific purpose.
“You can use this concept to collect email addresses, which is very handy. You just need to ascertain what your goal is. Many artists and labels decide to do this just because they can, but you don’t want to end up in a situation where your fan base expects everything you do to be free. Rather, I think you should use the concept sparingly; are you trying to break a new act or are you wanting to collect email addresses, for example. Do it, but just do it with a purpose in mind.”
- Gavin Handley, Resonate Media
They put together a free, bi-annual, compilation that they offer on their Bandcamp page in return for email addresses. The compilation only includes artists from their own roster, and seems to have great promotional value beyond acquiring email addresses.
- It gives music enthusiasts and writers a special reason beyond the music to feature it on their websites as it’s free
- It helps to introduce newly signed artists to a new audience and potentially turning them into fans without the consumer having to take a risk when acquiring the music (since it’s free)
- It can also help promoting back catalogue and help those artists reach a wider audience that might not have heard of the older releases
- Aly Gillani, First Word Records
Bandcamp is a great tool for this exact purpose, and it also enables the label to see real-time statistics with relation to what tracks were streamed or downloaded the most, where the visits to the compilation page came from, what fans have supported it over time and so on.
The Music Business
Many media and music futurists are speculating upon the change within the industry. The introduction and success of social networking along with digital music has transformed and reshaped the way music is marketed to the consumer; shifting from a push to pull strategy. “In media and advertising everything is switching to pull. Push Marketing is on its way out.” There is an imminent difference for the consumer receiving information from a push strategy to a pull strategy. Push example; passive, the marketing campaign is in control of the message being sent out and how it is received by potential customers. Pull example; active, the recipient of the marketing campaign is in control of the message and their decision whether to act or not. “Generally the shift from push to pull has been viewed as a shift in power to the consumer away from advertisers and so is bad news for marketers.”
With the increase of social networking platforms and users, with emphasis to Facebook, social networking has become a major and focal part of music marketing adopting the pull marketing strategy. Pull marketing shifts emphasis and attention onto the customer, the essential attribute is to market in the correct places and know where and who your target audience are. “Get people’s attention by providing value and earn their love by engaging with them. This will naturally lead to increased website traffic and increased sales.”
Consumers are increasingly customizing music platforms to better suit their individual needs. Rather than relying on music companies or a DJ to pre-determine the mix of songs on a CD, an increasing number of music listeners are downloading individual tracks and assembling their own sequence of songs. This process is also being replicated with the creation of playlists through platforms such as iTunes, Spotify and Last FM. Fan-built playlists and mixes are taking over the way people get their music. Playlists are inevitably becoming a pull marketing resource that marketing alliances must embrace, due to their ability to share / be shared via Peer-to-Peer networks. “People are choosing what they want to hear rather than having it pushed on them,” said Dave Kusek
I conclude; as consumers gain access to a greater number of options/platforms and more information about such services, those consumer will become more demanding on resource providers. Requiring services to be made available on consumer terms, when and where they want them, rather than when and where it is convenient for the resource providers to deliver them. In addition, as mentioned above consumers are demanding the ability to configure their own products from resource providers, leading to rapid growth in options and music services. Inevitably, shifting music marketing from push to pull. “As digital music services try out different models and features to try and find the optimum mix and consumer satisfaction.”
PUSH PULL STATEDGY / WIKIPEDIA
The business terms push and pull originated in logistics and supply chain management,but are also widely used in marketing,and is also a term widely used in the hotel distribution business. Wal-Mart is an example of a company that uses the push vs. pull strategy. A push–pull system in business describes the movement of a product or information between two subjects. On markets the consumers usually "pull" the goods or information they demand for their needs, while the offerers or suppliers "push" them toward the consumers. In logistics chains or supply chains the stages are operating normally both in push- and pull-manner. Push production is based on forecast demand and pull production is based on actual or consumed demand. The interface between these stages is called the push–pull boundary or decoupling point.
Complete Definition
- PUSH – Node performs order planning for succeeding node. Like stated by Bonney et al. (1999) control information flow is in the same direction of goods flow.
- SEMI PUSH or PUSH-PULL – Succeeding node makes order request for preceding node. Preceding node reacts by replenishing from stock that is rebuilt every fixed period.
- PULL – Succeeding node makes order request for preceding node. Preceding node reacts by producing the order, which involves all internal operations, and replenishes when finished.
- SEMI-PULL or PULL-PUSH – Succeeding node makes order request for preceding node. Preceding node reacts by replenishing from stock that is rebuilt immediately. Note that there are several levels of semi-pull systems as the node can have stock at several layers in the organisation.
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