How long can music companies be in the red?
Streaming sites are inevitably the future (actually the present), but will they be inevitably profitable as companies?
Here’s a rundown of some streaming companies’ profitability:
- Rdio went bankrupt and sold off a portion of its assets for $75 million to Pandora last year. (As a songwriter, I was never was paid any royalties in 2015, by the way, even though I was paid some small royalties in 2013 & 2014.)
- Pandora spent $75 million on assets of Rdio, but “[i]ts revenue growth rate keeps increasing as its income keeps falling.”
- Hypebot reports that Soundcloud reported a $56.5 million loss in 2014. Update: Soundcloud’s end near?)
- Spotify is bringing in a large amount of money each year, but it still doesn’t turn a profit after being in the United States since 2011.
- Google’s just about breaking even with Youtube.
While I understand a need for investment before a company hits its stride, as of 2016, I’m scratching my head wondering if this system is working for anyone other than the grazing consumer.
Oh, and the CEOs in their 14 bathroom mansions.
Bandcamp and Patreon might be the only companies that really put creators first.
But the public hasn’t embraced these companies in larger numbers as it has Spotify, Pandora, iTunes (now Apple Music) and Youtube; and the obvious reason for this is the major labels’ artists aren’t found on these sites built on Indie-creed. Popularity breeds popularity.
But this time, popularity is not breeding sustainability.
As an artist, sending spam is like throwing a Hail Mary football, in the wrong direction.
What’s the opposite of spam? Leading with your art, letting folks opt-in if they want to connect, then repeat.
We don’t need sports metaphor to remind us of the better option.
UPDATE:
Dear, FAI Folks adding everyone in the directory to your newsletters without permission. First off, I don’t use my business email for newsletters. I probably would have signed up at the conference with my specific email I do use f
or newsletter; but second you might want to read the top of the directory:
My wife who’s a journalist once told me, “The more established the person, the easier it is to find their contact info for an interview…”
I’ve been volunteering for a music festival and music venue this year, which has been a great chance to get perspective from the other side of booking and promoting.
(If you do work for a venue, I now “feel” how difficult it is! Thank you for what you do!)
So here’s a little tip: Put your email and phone number on your websites.
Quit using a submission form like you are famous.
If you are worried about spam, think about missing out on legit emails instead.
I honestly get very little spam that isn’t filtered out through my Gmail account, but I’ve had three booking representatives reach out to me this year that said, “We found your contact info on your website.”
If you want to be found, make it easy for others to find you.
Here’s another example: When Lefsetz reposted my blog last year–a surprise to me– I had multiple musicians and readers email saying, “Hey! I found your email on your website, and I wanted to write that I liked your blog.”
I actual found out from a famous country musician’s mandolin player who emailed me first, before Lefsetz’s newsletter got to my email address.
Tigers, Lions and the Bear of Social Media Links, Oh My!
Picture being a volunteer for a venue, and having 100+ shows a year to promote, trying to find every acts’ Facebook pages and Twitter account for tags with PR.
You can save a volunteer’s time by having all of your social media links in one place. I want to help promote bands booked at the venue, but picture trying to find 100+ acts accounts as a volunteer! It’s a time suck!
Last Point – Booking Isn’t Done Via Facebook
It’s amazing how many acts are still sending Facebook & Twitter messages to attempt to book shows.
Seriously, what’s the percentage of successful bookings you’ve done doing this? Single digit success rate?
That’s because booking isn’t done by Facebook.
Venue owners already are time crunched, so they might have an intern run social media. Do you think that college student has anything to do with booking?
If the festival is volunteer-run, they probably have a volunteer helping out with social media. That volunteer doesn’t do the booking, and will simply direct you to the booking directions on the website.
Plus, email is more organized on your and the booking agent’s end! As a musician, I can search my past email box to see my previous messages quickly. I can re-send from the previous message. It’s way easier for the booking agent or representative on their end, too, to see the email exchange.
The first year is the most difficult…
My first year as a public school teacher was the most difficult; but it didn’t feel the most difficult.
The first year is a challenge because you lack experience, you lack lesson plans, you lack confidence. You’re going by your gut, your training, and your mentors’ advice.
Looking back on it, it didn’t feel like the most difficult because every day was an adrenaline rush, new, and full of that first year inspiration!
The first year as a professional artist is the same way. It’s the most difficult, but it won’t feel that way.
The first year, one might not know enough songs to get through a three-hour bar gig or have enough strong original material to play a full 45 minutes set. But you are riding the wave of excitement!
So year five, year ten, year 15, year 20–all these have their own set of challenges. We miss riding the wave of our youth, but we forget that we are armed with experience.
If you are year [1 + x], stay on the field and use your experience to keep making art; if you are feeling uninspired, recapturing a tiny bit of that initial inspiration you had, by reflecting on the first year.
If you are in your first year, ride the wave.
Considering the history, a quote from Jana Holland
Folk Alliance is almost here, and I’m excited to make my first trip to the February international conference.
This month, I’ve been writing blogs about how to stand out, how to approach radio DJs, how to network. Today, I’ve been thinking about all of the hard work that goes into putting an event of this size, and also the history of Folk Alliance organization, how all of us have a story about how we found out about the conference.
I found out about FAI from a house concert host in 2009, Craig Carrick.
“Have you heard about Folk Alliance? I bet you’d love it,” Craig said. Folk what? “It’s cool. Hotel rooms become showcase and jam rooms. It’s a music conference, but not what you think…”
I didn’t attend a regional conference until 2013, and I really enjoyed the experience at SERFA. I wish I had considered Jana Holland’s (from the Hollands!) thoughts on being a first-timer:
First, it’s important to understand FA has a long history and there are kinfolk who have been faithfully going to these events for years and years. Each regional conference has its cultural norms and own long-timers, so, if you go to a conference we’d suggest a posture of humility and respect. – Jana Holland
Once we step into the Westin in Kansas City, we must remember we are being stewards of musical traditions. We should “go ready to listen, encourage and share our gifts freely without expectation,” Jana emphasizes.
