Tag Archives: consumer behaviour

A to Z of Making It, Copyright, Music, My Stories, Piracy

Trying Something New and Creative To Engage With Fans

This whole buying shares in a song has been going around for decades, especially in the heyday of record label monopolies. The basic premise at that time was that people would buy shares in a song and then any earnings the song makes goes back to the shareholders.

Fast forward to today and Testament is offering up a chance for the fans to purchase shares in the song “Native Blood”. If they sell every single offering they will have raised $57,000 in capital.

However, while the offering is promoted like a Company IPO Share Offer, it is nothing of the sort. It’s all smoke and mirrors. The fans of the band are buying memorabilia. The band is using the connection that a fan might have with the song as its selling point. Being a shareholder on the “Native Blood” song will not entitle you to any royalty payments (provided that a thrash band with a cult status who make their money from touring would get any) however it will give you a chance to buy limited edition merchandise later on.

An artist music and career is a brand and brands aren’t built in a day. Testament has been at for a while. In the beginning they had some growth initially however that didn’t mean that they made it. Music is a competitive industry and consumers are becoming harder to reach. Every business brand is faced with the same problem. Bands and artist are no different to small businesses.

The difference is if the artist is NOT prepared to find creative ways to reach their fans than complacency will bring about the end. So Testament is trying new creative ways to engage with fans, but it’s still based on the one way model of selling something. But by always going back to the old product selling paradigm is precisely the way to go out of business today.

Markets are always changing and fans of music are always changing. What we value as important is changing and what we want to own is changing. I grew up with the focus to have a house and a car. My kids are growing up with the focus to have the latest tech and live at home.

The fans of music spoke out loud with Napster 15 years ago.

WE WANT ACCESS TO MUSIC.

And what does the recording industry and bands do? They fail to keep pace with the changing demands, values and needs of their fans. They chose to hang onto the past and in 2014 they are left wondering where their fans and profits went.

If we want more proof about the sales model for music slowly fading, look no further than all the MP3 stores that are either being killed off or reporting losses. In Australia, BigPond music was operated by our largest ISP, Telstra and they have now shut it down, focusing on MOG, their streaming service which is trying to compete against Spotify. They get it, consumer behaviour is changing, and Spotify has led the way in providing a service that responds to this shift and has had much success doing so to date.

For bands and artists to prosper they need to do things differently. They need to be genuine and willing to connect with their fans. The fans in the end want transparency, not smoke and mirrors. James Hetfield might cringe at the “Some Kind Of Monster” documentary, however that visual and transparent footage of a massive act breaking apart was touching and moving. Hell, there are people at Metallica shows today that have never purchased a Metallica album.

The value of the recorded music product is not the value that it once was. What is valuable is the service and the partnership. That is why we are living in the era of sharing and access. Sharing provided the service that the fans of music wanted. Which was access all along.

And when will artists learn that partnerships are absolutely key to ensure sustainable growth. If small businesses do it, why can’t artists do it. But everybody lives by selling something. So even though I don’t agree with Testament’s song share plan offer and the lack of transparency around it, they are trying something different which for a metal band that goes back into the era of Eighties is good to see.

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A to Z of Making It, Derivative Works, Influenced, Music, Stupidity

Put Your Efforts Into Twenty Little Derivative Projects Throughout The Year

Music and movies just don’t seem to last anymore. The way movies and music are done these days, they don’t fit the modern paradigm of needing to be in the face of the consumer week after week. TV on the other hand has a longer lifespan because it fits the modern paradigm.

George Lucas once said that the $200 million movie is dead. At the moment there are a lot of blockbusters that cost $100 million to $200 million to make that are flops.

Movies like R.I.P.D (a derivative version of Ghostbusters and Men In Black), Pacific Rim (a derivative version of Godzilla and Transformers), The Lone Ranger (a derivative version of The Lone Ranger TV show, National Treasure and Pirates of The Caribbean), Turbo, After Earth and White House Down.

Remember that progress is derivative. Each movie mentioned above is a derivative version of a previous movie that had come before it. So what went wrong. Remember, that this is Hollywood. Hollywood is well known to play on the stupid idea that they need a $200 million movie. So in order to make a $200 million movie, Hollywood focuses on a lot of formulaic material that the public is pushing back on as we are sick and tired of watching it. Meanwhile, the movies that are doing well are the lower budget films.

The Conjuring cost $20 million to make and so far it has made $140 million. The Heat cost $43 million to make and so far it has made $190 million. Now You See Me cost $75 million to make and so far it has made $233 million.

It’s just bad business sense. If you are in the market to sell a product, a better strategy is to test your luck with ten $20 million movies rather than dumping $200 million into just one movie? The public is speaking up. They want the studios to focus on how to make good movies that doesn’t involve following a formula. They want the studios to find quality content.

So what does the failure of several blockbusters have to do with music.

DO NOT PUT ALL YOUR EFFORTS INTO ONE GIANT PROJECT. Put your efforts into twenty little derivative projects throughout the year.

The years of when artists took a year to make an album and went on a three year victory lap as it sold by the truckloads are over. The ones that still take a year to make an album basically have an album that is dead on arrival. The faithful will buy the album and then the victory lap is over.

There is a massive paradigm shift happening in the way the audience consumes entertainment. The best way to sum up the change in consumerism mindset is to use the good old photo analogy. Once upon a time it used to cost a decent amount of dollars to have a photo done. You needed a camera and batteries. Then you had to buy a 35mm film roll for taking the photos and then once the roll was all used up, you needed to take that roll to a photo lab who then converted the roll into negatives and then printed up the photos for you. You then paid the photo lab money and they gave the prints and the negatives back to you. Then we would buy a photo album to store the photos in so that we can view them in the future over and over again. Some people even purchased slide machines to view their negatives on a wall.

Today we just take a photo on our smartphones. Today, photos cost nothing and are oftentimes shot and then discarded. In most cases, they are saved to a hard drive where they will sit forever or uploaded to a social site like Facebook, Instagram, Pinterest, Flickr or Tumblr.

Music is also uploaded to a social site. YouTube is the unofficial and original streaming service. The record labels execs that are doing everything they can to keep their fat pay checks and thinking about yesterday didn’t see that one coming.

The change in consumer behaviour has led to the traditional photo print shop from disappearing. In music, this has led to the reduction in brick and mortar stores that sell recorded music.

Kodak the biggest player in the photography field has disappeared. They made the mistake of ignoring the changes in technology and assumed that people will remain true to the film roll technology. Hang on a second. Isn’t that the same viewpoint the Record Labels hold.

Once upon a time you could only play your music at home. Once upon a time you could only view your photos at home. Today we can view and take our photos everywhere we go. Today we can expect to have all of our music available to us everywhere we go.

So why are the artists creating content with the old Record Label mindset.

Record more frequently, release frequently. Give the people a reason to listen to your music.

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