There are few industries as fragmented and as difficult to define as the music industry.
From indie musicians and recording studios to big name 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 perceptible way.
But if you’re passionate about music and determined to build your own music business or be part of the industry at some level, here are seven things to know about the state of the music business.
one. Most musicians are early adopters of new technology.. Whether it’s the latest social media or crowdfunding platform, musicians are often the first to try new tools, and some find success this way. For example, independent musician Daria Musk found traction on Google Hangouts.
two. Sometimes there is no rhythm 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 pretty good. Ongoing developments in technology continue to reduce the need for traditional big-budget recording studios, and the production process is becoming increasingly automated. Home recording equipment is also affordable and of high quality.
Four. Blockchain may be the future of the industry. The technology underlying 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 bigger slice of the pie. But the current structure of the industry prevents this from moving forward.
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.” Unfortunately, the corruption continues and the mainstream airwaves are dominated by Top 40 music, which represents the extremely popular minority. If you thought Arctic Monkeys was “independent,” you’re 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 be dozens of streaming sites now, but that number is likely to grow into the hundreds, and maybe even thousands.
7. The human being may not have creativity cornered. It turns out that machines are capable of producing beautiful and emotional music, something long thought to be impossible. Will this change the way music is made? Will it make musicians obsolete? It’s hard to say.