There are few industries as fragmented and difficult to define as the music industry.
From indie musicians and recording studios to big-name record labels and music venues, there are dozens, if not hundreds, of elements that make up the industry as a whole, and they’re not always connected or integrated in any discernible way.
But if you are passionate about music and are determined to build your own music business or be part of the industry at some level, here are seven things you need to know about the state of the music business.
1. Most musicians are early adopters of new technologies.. Whether it’s the latest social media or crowdfunding platform, musicians are often the first to use new tools to take a test drive, and some find success this way. For example, freelance musician Daria Musk found traction on Google Hangouts.
2. Sometimes there is no rhyme or reason for success.. This is particularly true with something as personal and subjective as music.
3. Technology is changing the way studios work. LANDR is an online tool that automatically masters recorded music, and the end results are reportedly quite good. Continual developments in technology continue to reduce the need for big budget traditional recording studios, and the production process is increasingly automated. Home recording equipment is also affordable and of high quality.
Four. Blockchain may be the future of the industry. The technology behind popular cryptocurrencies such as bitcoin is known as blockchain, and it may offer a way for more music companies and musicians to monetize their work without third parties taking a larger slice of the pie. But the current structure of the industry is holding this back.
5. It is the only industry with Payola. It is illegal for radio stations to play music on the air for money unless they disclose it as “sponsored airtime.” Sadly, corruption continues and mainstream radio waves are dominated by the music of the top 40, representing the extremely popular minority. If you thought the Arctic Monkeys was “independent”, you are not even scratching the surface of the independent majority.
6. Music streaming is a growing market. And we will continue to see innovation and new developments in this area. There may now be dozens of streaming sites, but that number will likely grow to hundreds, and maybe even thousands.
7. Human beings may not have creativity cornered. It turns out that machines are capable of producing beautiful and emotional music, something that was long thought to be impossible. Will this change the way music is made? Will it make musicians obsolete? It is difficult to say.
