Welcome to the Music IndustryHow to thrive & survive as a public relations

practitioner

The Digital Age

At the beginning of the digital revolution it was common to ay

that digital was killing music. Now, it could be said that digital is

saving music.

– Edgar Berger

Nielsen Soundscan

2011

Overall: +3%

Digital album: +19%

Digital tracks: +8.5%

Digital album sales accounted for 31% of all album purchases

2012

Overall: -1.8%

Digital album: +14%

Digital tracks: +5%

Digital album sales accounted for 37% of all album purchases

More albums sold in digital music stores than any other strata

Global revenues: +0.3%

Nielsen Soundscan

Piracy & Licensing

1 in 5 American Internet users downloaded music through a P2P service in 2005

1 in 10 American Internet users downloaded music through a P2P service in 2012

40% of people decreased P2P use because of streaming services

95% of music downloaded online is illegal

Pirates purchase about 30% more music

In the race to adopt new technologies, the music industry

historically has finished just ahead

of the Amish.

– Stan Cornyn

Online Stores – The End of An Era

Single downloads streaming

Festival Fashionista

More than in the past, I’ve noticed high-end designers are looking to the streets and

music festivals to find elements to include in their lines.

–Tana Ward

Listen Up

Tape. 8tracks. Spotify. Sirius. Last.fm. Piki. Rdio. Rhapsody. Napster. MOG. CD. Vinyl. MySpace Music. Satellite.

Streaming. Radio. Pandora. Analog. Ex.fm. Songza. Grooveshark.

Streaming Services

Currently about 20 million paying subscribers to music streaming services worldwide

Average American spends $17/year on music $17/month

Profitability

Royalty rates

Streaming Services

Artists didn’t make big money from CDs when they were introduced, either. They were a specialty thing, and had a lower

royalty rate. Then, as it became mainstream, the royalties went up. And

that’s what will happen here.

– Donald Passman

Words from the WiseThere has been a lot of money lost in artist investment…in the future I see ourselves as advertising agencies.

The industry won’t look the same as it used to (nor should it), and it won’t be structured in the same manner, but the industry is retooling in a way that bodes well for music (if not for the salaries of music industry executives).

Words from the Wise

Right now, we’re just in a little chaos. Things are resettling and re-shifting and people are trying stuff, people are getting laid off. Fewer records are being sold every day. The people left in

the business are, I think , the best, the people who were there because they cared and have new ideas. Everyone

else is gone.

– Ben FoldsMusicians do need labels…

You may not call it a label, but whatever your team is, who’s going to do marketing, who’s going to do billing, who’d going to monetize the assets and the brand?

– Tom Silverman

Strive to Thrive

DO…Know the industry

moves fast

Manage expectations

Be honest

Remember it’s a game of “musical chairs”

Have a “side hustle”

Pump the breaks

“Work” the company

Remember that it’s a business of who you know

Network with caution

Look for opportunities for growth

Understand business as a whole

Learn niche publications

Strive to Thrive

DON’T…

Get too comfortable

Pigeon hole yourself

Hype a project

Count on one form or revenue or marketing driver

Rush to claim an idea

Be afraid to voice your opinions

Get involved with artist’s personal affairs

Forget lower personnel

Start pop and then try to go back to other worlds

PR is Here to Stay

“Artist-independent” world

Publicity and public relations functions more necessary than previously

Cost-benefit

Hired internally by company