Who has control and is winning? Who doesn't and is losing? Plus 4 key lessons from a music business legend.
Conrad Withey
Experienced music, media & technology entrepreneur // I write articles and thought pieces on where the industry is going @ musicbusiness.pro - follow me via the link below??
Control. THAT is the secret of Taylor’s success. And every artist should prioritise it.
This is a good deep dive into the business of T. Swift.
Not as good as Acquired’s (please update or do part 2 ???? to cover Eras) but a decent read all the same.
The big insight is at the end.
Alice Fulwood says:
“That Swift has retained such a tight hold over her interests since the beginning of her career might explain her longevity. She is surrounded by people whose livelihoods depend on her, not a portfolio of artists, doing well. This breeds loyalty and makes it easier to keep control of the narrative."
Control is IT.
Every decision made in building an artist career should question what the impact will be on retaining control.
Traditional major label deals come with a cheque but a massive loss of control.
New funding and artist services options are out there meaning those compromises no longer need to be made.
They weren’t there when @TaylorSwift13 started out.
Her journey was, as a result, more complex.
But they are now.
There are no excuses any more.
Every artist should own their outcomes, own their catalogue and control their destiny.
Don’t take the short cuts.
Play the long game and back yourself.
KEEP CONTROL!!
How to get rich (Taylor’s version) from The Economist: https://www.economist.com/1843/2024/07/24/how-to-get-rich-taylors-version
Taylor = Total Control ?? UMG = No Control ??
It’s no surprise who’s winning.
In the story above we talked about how control was the key factor in Taylor Swift’s incredible success story.
Here's another example of where control is critical.
But this time it’s a lack of control - and it is resulting in a massive devaluation of the beast that is UMG.
A beast that until recently seemed unstoppable.
Have a read of this excellent analysis from Yuval Rotem on Seeking Alpha.
The problem is Universal doesn’t “control its own monetisation destiny”.
Yes it has enormous (but gradually diluting) leverage because Spotify and the other DSPs can’t exist without its catalogue.
But that catalogue is a loss leader for Spotify.
It isn’t therefore vested in its success.
Like a supermarket that can’t not have Heinz baked beans or other household staples but doesn’t make any money on them.
It stocks them but puts all its effort into directing customers to products where it CAN make a better margin.
In Spotify’s case think podcasts, audiobooks or labels and artists that have opted into Discovery Mode - and so on.
Rotem says:
“What can UMG do…..? Aside from trying to squeeze out more economics from the platforms, nothing really, and the content leverage can only go so far.”
I think this highlights a really important point for independent music businesses.
You need to figure out where you can control your own monetisation destiny.
Majors have dabbled in D2C but never taken it seriously.
They have never invested properly in owning customer data and talking to them directly.
Why?
Perhaps because, as Rotem points out, management incentives weren’t well aligned and/or plain old complacency.
But new businesses need not make that mistake.If you nail differentiation - if you actually stand for something and solve a problem for consumer - you will find fans of your label or publisher or live events etc
And if you find fans you can monetise directly.
Just like artists are realising super fans are the future - why shouldn’t that also be the case for new artist services businesses?
UMG is fast becoming a catalogue acquisition and management business.
Despite going on about being more artist centric, that’s just another name for trying to leverage better terms with DSPs.
It doesn’t have the rights to pursue more direct, premium relationships with the super fans of its top talent.
And why would artists ever decide to grant those rights in future?
Don’t fail to learn from these painful lessons and think hard about control of your own monetisation destiny.
A change has gotta come….who will innovate fastest?
Check out this thorough Bloomberg piece from Lionel Laurent in response to the Universal Music Group and Warner Music Group share slides.
The quote that stood out for me was:
“But this depends on labels’ ability to change their ways, too. Having good ears was the skill of executives responsible for artists and repertoire; maybe there now needs to be a focus on utilizing the best tech to discover and nurture artists below the radar that majors find too cost ineffective.”
We’ve known this was the case for years.
Instrumental and companies like Sodatone, Chartmetric and indify have been ploughing that furrow for nearly 10 years.
But the data is just the start.
In terms of frontline success going forward it is also about a total overhaul of the business model and the nature of partnerships with talent.
That is the tougher bit to get right if you’ve done it differently for the last 100 years.
The biggest competition now for majors (and any label) isn’t another label…
It is artists staying DIY.
While Bloomberg says this isn’t a “Napster moment” yet…..it soon could be.
领英推荐
(NB: The article is behind a paywall but you can register for free to read it)
Want to be successful in music?
Then you should learn from Simon Cowell.
I know what you're thinking...
Cowell is yesterday's man.
He dominated the noughties but he's irrelevant now.
Think again.
Time for a confession...I LOVE SIMON COWELL.
I always thought he was the GOAT.
Here for the business, not just the music.
His The Diary Of A CEO story reminded me why he kept winning.
Here are my four big takeaways from Simon Cowell’s career that we can all learn from:
1: Stay grounded in your customer's mind:
He didn't care about understanding record production.
Left that to professionals.
He just wanted to listen as a regular buyer would.
He only cared about how it would sound on radio or TV.
It’s surprisingly rare in the music business to find people who truly maintain the consumers perspective.
Cowell never lost that grounding.
He didn’t try and be something he wasn’t.
2. The importance of hustle:
He literally forced his first song into Top 40.
Found hacks to succeed.
Built up back orders for “So Macho” and then let them all go in one 7 day period to sneak into the charts.
Then he got a slot on TOTP.
And the rest is history.
He bent the rules, didn't break them.
Are you hustling enough in your business?
3. He went all in on television NOT radio:
This was against the tide.
Because he wanted to focus on REALLY BIG mainstream audiences - and they watched TV.
So he targeted WWF, Zig and Zag, Robson and Jerome, Power Rangers.
And sold millions despite industry mockery.
"Who would want to listen to this?" said the label heads at Sony.
"You're not a 7-year-old boy...!", Cowell said.
Industry bubble vs. real people's tastes.
TikTok is the new TV.
Audiences will still tell us what they like.
Are you letting that lead your business to new opportunities?
4. Fuck cool:
Cowell’s comments on cool:
"Don't be afraid of what others say."
"Who defines what's cool?"
"Better to be different than safe."
Chasing the cool crowd often ends badly. They tend to move on just as you get there!
Cowell wasn't bothered about being cool.
He thought cool was selling lots of records and making lots of money.
He worked to a simple convention: If people like something/someone already, they'll probably buy the music.
He was way ahead of the game in being data led - looking for audience validation EVERY time.
It might be existing fan bases.
Or in time fan bases HE created through his own TV shows.
It strikes me it was never about Cowell for Cowell.
It was about the business.
For many others it was about THEIR ego and image.
And sure he became a massive star in his own right - but it never started being about him.
So, in conclusion, to be as successful as Simon Cowell:
Try and think like your customer.
Look for existing fan bases then go all in.
Be a relentless hustler.
And fuck cool.
Check out the pod for the full story and share your other lessons from the GOAT below ??
Thanks for reading again!
Please share with anyone you think will find this interesting.
?? And join the conversation by commenting below ??
Entrepreneur | Senior Software Engineer | Music Executive | US Navy Veteran
7 个月Insightful post, there definitely needs to be a change in the music business current direction.