The Music Format Bill of Rights

Today I have published the latest Music Industry Blog report:  ‘The Music Format Bill Of Rights: A Manifesto for the Next Generation of Music Products’.  The report is currently available free of charge to Music Industry Blog subscribers.  To subscribe to this blog and to receive a copy of the report simply add your email address to the ‘EMAIL SUBSCRIPTION’ box to left.

Here are a few highlights of the report:

Synopsis

The music industry is in dire need of a genuine successor to the CD, and the download is not it. The current debates over access versus ownership and of streaming services hurting download sales ring true because a stream is a decent like-for-like replacement for a download.  The premium product needs to be much more than a mere download.  It needs dramatically reinventing for the digital age, built around four fundamental and inalienable principles of being Dynamic, Interactive, Social and Curated (D.I.S.C.).  This is nothing less than an entire new music format that will enable the next generation of music products.  Products that will be radically different from their predecessors and that will crucially be artist-specific, not store or service specific.  Rights owners will have to overcome some major licensing and commercial issues, but the stakes are high enough to warrant the effort.  At risk is the entire future of premium music products.

D.I.S.C.: The Music Format Bill Of Rights

The opportunity for the next generation of music format is of the highest order but to fulfil that potential , lessons from the current digital music market must be learned and acted upon to ensure mistakes are not repeated.  The next generation of music format needs to be dictated by the objective of meeting consumer needs, not rights owner business affairs teams’ T&Cs.  It must be defined by consumer experiences not by business models.  This next generation of music format will in fact both increase rights owner revenue (at an unprecedented rate in the digital arena) and will fuel profitable businesses.  But to do so effectively, ‘the cart’ of commercial terms, rights complexities and stakeholder concerns must follow the ‘horse’ of user experience, not lead it. This coming wave of music format must also be grounded in a number of fundamental and inalienable principles.  And so, with no further ado, welcome to the Music Format Bill of Rights (see figure):

  • Dynamic. In the physical era music formats had to be static, it was an inherent characteristic of the model.  But in the digital age in which consumers are perpetually online across a plethora of connected devices there is no such excuse for music format stasis.  The next generation of music format must leverage connectivity to the full, to ensure that relevant new content is dynamically pushed to the consumer, to make the product a living, breathing entity rather than the music experience dead-end that the download currently represents.
  • Interactive. Similarly the uni-directional nature of physical music formats and radio was an unavoidable by-product of the broadcast and physical retail paradigms.  Consumers consumed. In the digital age they participate too.  Not only that, they make content experiences richer because of that participation, whether that be by helping drive recommendations and discovery or by creating cool mash-ups. Music products must place interactivity at their core, empowering the user to fully customize their experience.  We are in the age of Media Mass Customization, the lean-back paradigm of the analogue era has been superseded by the lean-forward mode of the digital age.  If music formats don’t embrace this basic principle they will find that no one embraces them.
  • Social. Music has always been social, from the Neolithic campfire to the mixtape.  In the digital context music becomes massively social.  Spotify and Facebook’s partnering builds on the important foundations laid by the likes of Last.FM and MySpace.  Music services are learning to integrate social functionality, music products must have it in their core DNA.
  • Curated. One of the costs of the digital age is clutter and confusion: there is so much choice that there is effectively no choice at all.  Consumers need guiding through the bewildering array of content, services and features.  High quality, convenient, curated and context aware experiences will be the secret sauce of the next generation of music formats. These quasi-ethereal elements provide the unique value that will differentiate paid from free, premium from ad supported, legal from illegal.  Digital piracy means that all content is available somewhere for free.  That fight is lost, we are inarguably in the post-content scarcity age.  But a music product that creates a uniquely programmed sequence of content, in a uniquely constructed framework of events and contexts will create a uniquely valuable experience that cannot be replicated simply by putting together the free pieces from illegal sources.  The sum will be much greater than its parts.

Table of Contents for the full 20 page report:

Setting The Scene

  • Digital’s Failure To Drive a Format Replacement Cycle

Analysis

  • Setting the Scene
  • (Apparently) The Revolution Will Not Be Digitized
  • The Music Consumption Landscape is Dangerously Out of Balance
  • Tapping the Ownership Opportunity
  • The Music Format Bill Of Rights
  • Applying the Laws of Ecosystems to Music Formats
  • Building the Future of Premium Music Products
  • D.I.S.C. Products Will Be the Top Tier of Mainstream Music Products
  • The Importance of a Multi-Channel Retail Strategy
  • Learning Lessons from the Past and Present
  • We Are In the Per-Person Age, Not the Per-Device Age

Next Steps

Conclusion

The Digital Music Year That Was: 2011 in Review and 2012 Predictions

Following the disappointment of 2010, 2011 was always going to need to pack more punch.  In some ways it did, and other ways it continued to underwhelm. On balance though the stage is set for an exciting 2012.

There were certainly lots of twists and turns in 2011, including: disquiet among the artist community regarding digital pay-outs, the passing of Steve Jobs, Nokia’s return to digital music,  EMI’s API play, and of course Universal Music’s acquisition of EMI.  Here are some of the 2011 developments that have most far reaching implications:

  • The year of the ecosystems. With the launch of Facebook’s content dashboard, Android Music, the Amazon Fire (a name not designed to win over eco-warriors),  Apple’s iTunes Match and Spotify’s developer platform there was a surge in the number of competing ecosystem plays in the digital music arena.  Despite the risk of consumer confusion, some of these are exciting foundations for a new generation of music experiences.
  • Cash for cache.  The ownership versus access debate raged fully in 2011, spurred by the rise of streaming services.  Although we are in an unprecedented period of transition, ownership and access will coexist for many years yet, and tactics such as charging users for cached-streams blur the lines between streams and downloads, and in turn between rental and ownership. (The analogy becomes less like renting a movie and more like renting a flat.)
  • Subscriptions finally hit momentum.  Though the likes of rdio and MOG haven’t yet generated big user numbers Spotify certainly has, and Rhapsody’s acquisition of Napster saw the two grandaddys of the space consolidate.  Spotify hit 2.5 million paying users, Rhapsody 800,000 and Sony Music Unlimited 800,000.
  • New services started coming to market.  After a year or so of relative inactivity in the digital music service space, 2011 saw the arrival of a raft of new players including Blackberry’s BBM Music, Android Music, Muve Music , and Rara.  The momentum looks set to continue in 2012 with further new entrants such as Beyond Oblivion and psonar.
  • Total revenues still shrank.  By the end of 2011 the European and North American music markets will have shrunk by 7.8% to $13.5bn, with digital growing by 8% to reach $5 billion.  The mirror image growth rates illustrate the persistent problem of CD sales tanking too quickly to allow digital to pick up the slack.  Things will get a little better in 2012, with the total market contracting by just 4% and digital growing by 7% to hit $5.4 billion, and 41% of total revenues.

Now let’s take a look at what 2011 was like for three of digital music’s key players (Facebook, Spotify and Pandora) and what 2012 holds for them:

Facebook
2011.  Arguably the biggest winner in digital music in 2011, Facebook played a strategic masterstroke with the launch of its Digital Content Dashboard at the f8 conference.  Subtly brilliant, Facebook’s music strategy is underestimated at the observer’s peril.  Without investing a cent in music licenses, Facebook has put itself at the heart of access-based digital music experiences.   It even persuaded Spotify – the current darling of the music industry – to give it control of the login credentials of Spotify’s entire user base. Facebook’s Socially Integrated Web Strategy places Facebook at the heart of our digital lives.  And it’s not just Facebook that is benefiting: Spotify attributed much of its 500,00 new paying subs gained in October and November to the Facebook partnership.

2012. Facebook is quietly collecting unprecedentedly deep user data from the world’s leading streaming music services.  By mid-2012 Facebook should be in a position to take this to the record labels (along with artist profile page data) in the form of a series of product propositions.  Expect whatever is agreed upon to blend artist level content with music service content to create a 360 user experience.  But crucially one that does not require Facebook to pay a penny to the labels.

VERDICT: The sleeping giant of digital music finally stepped up to the plate in 2011 and will spend 2012 consolidating its new role as one of the (perhaps even *the*) most important conduit(s) in digital music history.

Spotify.
2011.
 It would be puerile not to give Spotify credit for a fantastic year.  Doubts about the economics of the service and long term viability remain, but nonetheless 2011 was a great year for the Swedish streaming service.  It finally got its long-fought-for US launch and also became Facebook’s VIP music service partner. Spotify started the year with 840,000 paying subscribers and hit 2.5 million in November.  It should finish the year with around 200,000 more.  Its total active user base is now at 10 million. But perhaps the most significant development was Spotify’s Developer platform announcement,paving the way for the creation of a music experience ecosystem.  Spotify took an invaluable step towards making Music the API.

2012: Expect Spotify’s growth trajectory to remain strong in 2012.  It should break the 3 million pay subscribers mark in February and should finish the year with close to 5 million.  And it will need those numbers because the funnel of free users will grow even more dramatically, spurred by the Facebook integration.  But again it will be the developer platform that will be of greatest and most disruptive significance.  By the end of 2012 Spotify will have a catalogue of music apps that will only be rivalled by Apple’s App Store.  But even Apple won’t be able to come close to the number of Apps with unlimited music at their core.  More and more start ups will find themselves opting to develop within Spotify rather than getting bogged down with record label license negotiations.  Some will find the platform a natural extension of their strategy (e.g. Share My Playlists) but others will feel competitive threat (e.g. Turntable FM).  If Spotify can harness its current buzz and momentum to create the irresistible force of critical mass within the developer community, it will create a virtuous circle of momentum with Apps driving user uptake and vice versa.  And with such a great catalogue of Apps, who would bet against Spotify opening an App Store in 2012?

VERDICT: Not yet the coming of age year, but 2011 was nonetheless a pivotal year paving the way for potentially making 2012 the year in which Spotify lays the foundations for long term sustainability.

Pandora
2011.
 Though 2011 wasn’t quite the coming of age year for Spotify it most certainly was for Pandora.  In June Pandora’s IPO saw 1st day trading trends reminiscent of the dot.com boom years.    By July it had added more than 20 million registered users since the start of the year to hit 100 million in total and an active user base of 36 million, representing 3.6% of entire US radio listening hours.  But Pandora also felt the downs of being a publically listed company, with flippant traders demonstrating their fear that Spotify’s US launch would hurt Pandora.

2012: And those investors do have something of a point:  whatever founder Tim Westergren may say, Spotify will hurt Pandora.  A portion of Pandora’s users used Pandora because it was the best available (legal) free music service.  Those users will jump ship to Spotify.  This will mean that Pandora’s total registered user number will not get too much bigger than 100 million in 2012 and the active number will likely decline by mid-year.  After that though, expect things to pick up for Pandora and active user numbers to grow again.  The long term outlook is very strong.  Pandora is the future of radio.  It, and services like it, will get an increasingly large share of radio listening hours with every month that passes in 2012, and with it a bigger share of radio ad revenues.  Pandora will be better off without the Spotify-converts, leaving it with its core user base of true radio fans. Spotify’s new radio play will obviously be a concern for Pandora  but this is Pandora’s core competency, and only a side show for Spotify.  Expect Pandora to up their game.

VERDICT: Since launching in November 2005 Pandora have fought a long, dogged battle to establish themselves as part of the music establishment, and 2011 was finally the year they achieved that.  There will be choppy waters in 2012 but Pandora will come out of it stronger than it went in.

Spotify Takes A Step Towards Making Music The API

So somewhat expectedly Spotify announced their app platform.  Spotify’s announcement didn’t happen in isolation though.  We are moving to the next stage of the evolution of the Internet, the age of the App-enabled web.  That doesn’t mean apps are replacing browsers, rather that Apps are complementing and enhancing web experiences.  Sometimes this means instead of the browser, more often it means in the context of.  Once software was something you bought in a box and loaded onto your PC on a disk.  Now that software has been freed of the straightjacket of physical retail it is supercharging our digital lives, creating previously impossible experiences and functions.

This is the context into which Spotify’s App announcement was made.  To date Apple, Android and Facebook (each in different ways) have been at the forefront of the App revolution.  It is Facebook’s strategy though that has widest reaching implications.  In a previous post I wrote about Facebook’s Socially Optimized Web strategy, which aims to create a device-agnostic content ecosystem which embraces our entire digital lives.  This is what Spotify are plugging into via their Facebook integration and are also trying to do themselves with their app announcement.  Daniel Ek is trying to implement his own version of Mark Zuckerberg’s increasingly successful platform strategy.  Facebook are creating their digital content dashboard, now Spotify are creating their own music-specific one.  But more than just a me-too strategy, this music specific strategy is crucially important for the future of digital music.  It also matters because it is part of a wider process towards the next generation of music experiences.  Let me explain….

Turning music licensing from the town planner into the builders’ merchant

The challenges of services negotiating legal and commercial terms with rights holders are (overly) well documented. What needs to happen now is to remove that stumbling block, to make music the basic ingredient around which a new generation of services can be built.  Think of launching a music service like building a house.  Where we are now is that the small time builders aren’t able to afford the expensive planning process, and the big building companies are only getting the planning permission to build the same house design again and again. What needs to happen is for music licensing to move from being the ‘planning permission’ stage to becoming a ‘builders’ merchant’ where services simply go and stock up on the equipment they need to go and build their houses.

The importance of ubiquitous access

Music needs to become the API. This is where Spotify come in.  Spotify is making a play for being the ubiquitous music service, the base line music access around which everything else can be built.  They’re hoping establishing an ecosystem of App developers and users will help make them an indispensable part of the music industry. Of course they’re a long long way from being ubiquitous (10 million users is impressive but not exactly universal).  The bigger Spotify gets, the more reach their platform will have, but the industry needs more than just Spotify to take this approach.  EMI’s Open EMI announcement was a great step in this direction.  Spotify takes this approach to another level.

When music becomes the API, digital music will really step up to the next level.  Spotify won’t be able to do all of that by themselves, but they’ve set the lead for others to follow.

In Conversation With Sonos’ John MacFarlane

I recently had the opportunity to catch up Sonos’s CEO John MacFarlane, the video of our conversation is below.

In the video John and I discuss various key issues facing the digital music market, including:

  • what the next generation of music services will need to deliver
  • The role of experience in music products
  • getting digital music into the living room
  • Facebook’s content dashboard strategy

John is an insightful guy and hopefully this video will give you a sense of his vision.

Nokia Mix Radio (What Happened After Comes With Music)

In the excitement of Nokia’s announcement of its first Windows phones today, one would be forgiven for missing the announcement of Nokia’s first major move in the music space since Comes With Music: Mix Radio.

Nokia’s post-Comes With Music strategy was always going to be a difficult one to get right.  Regular readers will know I was a big fan of the Comes With Music, subsidized-music-on-handset model but that I thought it might be someone else who makes it a success (Boinc will certainly have a good go at it).  Nokia paid the price of being the first mover – as Apple’s successes attest, it’s the early follower who normally wins out.  Nokia bore the brunt of a lot of criticism for Comes With Music, some of it warranted, some not, and then cleared the decks, with key figures like Liz Shimel moving on.  Music still matters to Nokia, a lot, as it does to most CE companies.  But Nokia got burned by investing heavily in a highly disruptive model that delivered negative ROI.  Meanwhile Apple stuck with a basic download store and continues to clean up.

This is the world into which Nokia’s post-Comes With Music strategy was born.  And the result? Nokia Mix Radio.  No subscription, no download fees, no log in etc.  You simply tap the home screen and music starts playing and you can even select to listen to the music offline. Comes With Music exit stage left, make way for Comes With Radio.

Nokia Mix Radio is certainly no Spotify challenger and it is certainly no Comes With Music.  But that’s the point.  Nokia’s post-Comes With Music, music strategy is all about looking at how to get the best ROI on delivering differentiated on-device music experiences without having to try to change the world.

Of course, expect Nokia’s music strategy to ramp up, and for Mix Radio to be a stepping stone – there may even be a Microsoft play – but don’t expect Comes With Music take two.

Apple’s iCloud and What It Means to the Digital Music Market

Today Apple formally launched iCloud.  Back in June when Apple first announced iCloud I said I considered it a great start but just that.  After today’s announcement I’ll add that there is more meat on the bones but that Apple has still fallen short of its potential here.  Don’t get me wrong, iCloud and iTunes Match are great, elegantly implemented services.  But I still think Apple could have done more, much more.

A few months ago I wrote that Apple, Amazon and Android comprised Digital Music’s Triple A and that they all shared SPACE, that is Scale, Product, Ambition, Cash and Ecosystem.  This framework provides a useful lens with which to view Apple’s music related announcements today:

  • Scale.  Apple is a truly global company with global reach.  Any service it launches needs to share as much of that reach as possible to deliver the benefit to device sales it exists for.  So it was a disappointment that Apple didn’t announce an international rollout for iCloud at launch (international markets will come later).  Launching in the UK will be crucial for Apple and will be where they can steal a march over the rest of the Tripple A. It is the most advanced digital market in Europe and Apple’s biggest market too.  Android and Amazon won’t find it so easy brining their locker services to the UK as Apple will though.  The UK does not yet have fair use legislation so the other 2 A’s (unlicensed) locker services that depend upon DMCA provisioned fair-use would not be legal in the UK.
  • Product. Most of the attention is around the iPhone 4S and new iPods.  They are of course what Apple is all about. The seamless integration of iCloud significantly enhances the value proposition of these products.  We are in an age where consumer devices are defined by their surrounding ecosystem as much as by the hardware itself (see my Socially Integrated Web post for more on this). iCloud takes the Apple ecosystem to the next level. I’d still like to have seen better productizing of it though, such as pre-installed device bundles with a year of iCloud included as a standard pricing option alongside harddrive capacity.
  • Ambition.  Here is where Apple fell a little short from a music perspective.  I’ve sensed a steady weakening of Apple’s music strategy ambition over the last few years and today’s announcements fit the trend.  It makes absolute sense of course.  When Apple first launched the iPod, music was the killer app for the small memory monochrome screen device.  In the days of the iPad, music just doesn’t show off the capabilities of the device like video, books and games do (regardless of whether that is the main activity people conduct on iPads or not).  iTunes has been hugely successful (16 billion downloads to date and 70%+ market share).  But Apple’s music strategy and consumer offering hasn’t changed dramatically since launching in 2003.  There have been some great evolutions (more catalogue – 20 million tracks, DRM-free, better editorial and programming etc) and some half hearted innovations (Ping, Genius) but it remains fundamentally the same product it was 8 years ago. Compare that to the evolution of the iPod.
  • Cash.  Apples’ great advantage in digital music is that it can afford to loss lead if it so wishes as music is all about selling i-devices not direct revenue for them.  Yet Apple is ideologically a margin company and this is why they don’t ‘do a Kindle Fire’ and build a killer music subscription offering because they calculate they can get better ROI from more modest music innovation.
  • Ecosystem.  Apple have just put clear blue water between their music ecosystem and those of the other 2 A’s of Digital Music.  The elephant in the room though is the new ecosystem in town: Facebook.  Apple was glaringly absent from the F8 announcements and there is no space for Facebook here.  Apple’s ecosystem is defined by devices, Facebook’s by user data and user convenuience.  Apple and Facebook will start banging into each other (see figure) and sooner or later the pair will start needing to build co-existence strategies.  In the meantime expect Android Music to start building strong links with Facebook.

So in conclusion,  I walked away from the Apple event with the familiar feeling that I wish there had been more.  But like I say, it is a familiar feeling.  I suspect that the music industry has missed its window of opportunity with Apple to drive truly transformational music industry innovation.  Maybe now they’ll start to regret having played hard ball with Apple in days gone by and start looking for someone else to pick up the baton.  They may be looking for some time.

Waiting For Facebook

As the market collectively holds its breath in anticipation of Facebook’s much (over?) hyped music service launch this coming Thursday, it is instructive to take stock of where we are at the moment to better understand the eager expectation.

Digital music is stuck in a rut

At the start of the year I made a speech at Midem, positing that digital music was at an impasse.  Now, with the best part of a year gone, it still is. Granted we’ve had some important and encouraging developments (Spotify’s US launch and 1 million+ paying subs and Pandora’s IPO among them) but the fundamentals remain unchanged (see figure):

 

  • Paid downloads are an Apple micro-economy not a marketplace. Despite valiant efforts from the likes of 7 Digital and Amazon, the 99 cent download just isn’t translating well outside of the iTunes ecosystem.  Why?  Because the tail is wagging the dog.  iTunes downloads are an extension of i-devices not vice versa.   The iTunes 99 cent download is effectively monetized CRM.  Deep, elegant device integration is crucial for any digital music experience, especially so paid downloads. 7 Digital’s Music Hub build for Samsung’s Galaxy Tab is the sort of implementation needed, but both 7 Digital and the market as a whole need a much wider addressable base than Galaxies alone (retail embargoes notwithstanding).
  • Premium rentals are an evolutionary dead-end. Despite Spotify doing a most admirable job of breaking the 1 million premium subscribers mark – which all other services had spent years failing to do the fact remains that 9.99 rented music is a high-end aficionado market.  Spotify have done a great job of building on the fantastic pioneering work of Rhapsody but in doing so they have developed the ‘faster horse’ that Henry Ford said his customers would have requested instead of the Model T if he’d asked them what they wanted.  Rdio and Mog both have great user experiences but have struggled to make headway because the basic value proposition of 9.99 a month for rented music just doesn’t appeal to most consumers.  Heck, 9.99 a month for owned music doesn’t even appeal anymore to most consumers anymore.  Mass market consumers may be willing to pay much more than 9.99 a month on TV, broadband, mobile etc. but they won’t for music. It may not be pretty but this is the harsh reality that must be accepted. As far as music is concerned the contagion of free is legion and the best way to fight free is with free itself (or at least something that feels like free – see my previous post on subsidized subscriptions for more).
  • Digital music is cluttered and complex. There is so much choice of catalogue and services that paradoxically there is no choice at all for consumers, unless you’re a savvy aficionado willing to wade your way through the clutter. Mass market consumers need the digital dots joining.  Back in my days at Forrester I wrote about the need for 360 Degree Music Experiences, where the disparate parts of the digital music journey get pulled together by an interconnected ecosystem.  The case for this is even stronger now.

Music: Facebook’s user lock-in

And this is where Facebook comes in.   As I wrote earlier this year, it doesn’t make any sense for Facebook to try to ‘do a MySpace’ or for that matter to ‘do a Spotify’ or ‘do an iTunes’.  Facebook is becoming a launch pad for our online lives just as Google is.   But whereas Google largely gets us to places we don’t yet know, Facebook is what (and who) we do know.  And in that lies a massive asset for digital music and an even larger platform for Facebook’s future growth.

I expect Facebook to join music’s digital dots and become a social dashboard for digital music activity.  By plugging our music activity into our social graph Facebook can both enrich those services and tap into the tastes of our friends.  The net result will be a richer digital music experience across multiple services and – most crucially for Mark Zuckerberg – one more reason why we’ll want to stick with Facebook when the Facebook-Killer finally raises its long overdue head.

BBM Music: First Take

Today Blackberry announced their anticipated BBM Music service, which it transpires is powered by white label cloud music stalwart Omnifone (who also power the likes of Sony and Vodafone).

In short the service offers:

  • 50 tracks per month for a £/$ 5.99 fee
  • Is available to Blackberry Messenger (BBM) users
  • Users’ tracks are available for their BBM friends to listen to (so the more friends with the service the more music you have access to)
  • It is launching in Beta in the UK, US and Canada today and will eventually roll out to 18 countries

Blackberry have done something with BBM Music that many other services haven’t: they have targeted a specific defined consumer segment. Which in turn is something that the majors, Universal in particular, are increasingly looking for in music services they license to.

Blackberry has weathered a lot of tough marketplace scrutiny over recent years with many questioning how RIM will deal with the iPhone threat.  Those concerns are valid ones but primarily relate to the email-focused business users and misses the massive importance of the youth segment to Blackberry adoption.  Blackberry’s youth appeal largely stems from BBM presenting a cost-free alternative to texting for text hungry youths.  Blackberry’s ability to successfully simultaneously target these two almost diametrically opposed segments with the same device portfolio has been little short of masterful.   This was well illustrated to me when a friend recently told me about when his teenage daughter saw him checking email on his Blackberry she asked him “what do you need a Blackberry for Dad?  Aren’t you too old for one?”!

So by targeting their youth centric installed base of 45 million BBM users with a cheap, inherently viral and social music service plays to one of Blackberry’s key strengths.  Of course direct comparisons with Rhapsody, MOG, rdio, iTunes, Spotify etc are unlikely to be unfavourable, but that’s simply not what BBM Music is about.  We’ve reached the stage of maturity in digital music where we shouldn’t be talking anymore about ‘an iTunes killer’ or a ‘Spotify killer’.  Instead the music industry needs targeted segmented offerings that grow the market by engaging with un-penetrated consumer segments.  In that context, BBM Music should be a valuable addition to a digital music marketplace that is in real need of new differentiated services.

Finally….the timing of the announcement, off the back of BBM’s new found infamy as the communication method of choice for London’s rioters is unfortunate but does open up some interesting potential marketing slogans, such as ‘download while you loot’ and ‘so cheap it’s a steal’….
And if you missed it, don’t forget to submit an email subscription to this blog to get a freecopy of my latest report: ‘Agile Music: Music Formats and Artist Creativity in the Age of Music Mass Customization’.  See here for more details.

Agile Music: Music Formats and Artist Creativity In The Age of Media Mass Customization

I have just published a new report entitled ‘Agile Music: Music Formats and Artist Creativity In The Age of Media Mass Customization’.  The report is available free of charge to all subscribers to this blog.  If you want to receive a copy simply click on the email subscription link on the left and you will shortly after get a copy sent directly to your email address.  If you are already an email subscriber to this blog but haven’t yet received your copy please email me at musicindustryblog AT gmail DOT COM.

Here are some highlights from the report:

Digital and social tools have already transformed the artist-fan relationship, but even greater change is coming.  In the anaologue-era music was mass produced, releases cycles were static and music product formats were a creative dead-end.  Mash-ups, engaged online fans and user generated content brought these barriers tumbling down.  The scene is set for the Mass Customization of music, heralding in the era of Agile Music.

The driving force of Agile Music is Fan-Fuelled Creativity, with many fans taking an increasingly active role in the creative process.  But it isn’t only crowd-sourced editorial, Fan-Fuelled Creativity has implications right across the digital music value chain, from the creative process, through distribution to music product formats themselves.

Most fans of established artists don’t even go to their gigs.  Similarly most don’t regularly visit their various social channels, and even of those who do, most don’t actively participate, preferring to observe from afar.  Put simply, the majority of mass market music consumers are relatively passive, so to have widest possible potential Fan-Fuelled Creativity must also have something to offer for the passive majority.  Welcome to the Three Cs of Fan Fuelled Creativity:

  • Customize. The most mass market and product-centric implementation of Fan-Fuelled Creativity, giving music consumers the ability to customize their music consumption experience.
  • Create. For the more creative fans, this encompasses creating mash-ups, bootlegs, ringtones and remixing tracks.  There are of course already many good examples of artist and label-led remix competitions and other such initiatives.  However for the real potential of Create to be unlocked, such functionality needs to be embedded into recorded music products and formats.  In the digital age artists should feel empowered to design at least some of their music with explicit intention of enabling their fans to create their own content from it.
  • Contribute. The most artistically involved of the Three C’s, Contribute enables fans to help shape the original music content itself, echoing the wider trend of social co-creation.  At a base level this can be simply be a digital extension of the live-gig echo chamber dynamic, testing new songs with online fan communities.  At a more involved level it can mean putting fans at the heart of the create process as Imogen Heap is doing with her latest album

The Era Of Mass Music Customization

Of course the majority of audiences will not want to become a part of the creative process, they want to remain the audience not the creator.  But the point at which audience and creator meet is no longer a hard break.  Affordable digital production technology, user generated content, the remix generation and mash-up culture have all contributed to creating a middle ground that is neither purely audience nor creator.  This layer of creator-fans – including also many semi-pro musicians – are increasingly whiting out the full stop after a traditional release, creating their own new iterations.  The late 20th century revolved around mass production and distribution of fixed, physical music formats.  But as physical media formats die away to be replaced by modifiable digital alternatives, the early 21st will become increasingly characterized by mass customization of music.  The creator-fan effectively turns music into open sourced software, where the original song is simply release version 1.0. An artist and her label can either embrace or fight this dynamic, but either way it will happen regardless.

There are many diverse and complex reasons why digital music is stuck in a rut and currently unable to drag the music industry out of its malaise.  Multi-variant problems usually require multi-variant solutions.  Just fixing one element alone will not solve the problem, a comprehensive and far reaching approach. Agile Music may be ambitious in scope and remit but that is exactly what is required.  Digital tools are creating fantastic opportunities for artists, fans and labels alike more quickly than the industry is able to respond.  Agile Music sets the framework within which the diverse strands of innovation outlined at the start of this report must be pursued, and with haste.

 

A Call For Input Into a Report!

I am currently writing a report that looks at how music fans can be pulled into the creative process and how this dynamic can then be used to transform music release cycles, formats and products.

The report will look at how artists can use emerging digital and social tools to deepen engagement with their fans and how best practices can be turned into standard practices.  This will encompass mash-ups, remixes, fan co-creation, fun-funding and fan-customization.

If you are an artist, or a provider of any such services and have experiences or case studies which you think would be valuable to include in the report then please email me at musicindustryblog AT gmail DOT COM.

The report will be available for free to readers of musicindustryblog.