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A Re-cap of the Australasian Music Business Conference, August 2007
MusicSA attended the Australasian Music Business Conference in Sydney (August 2007), which featured sessions on management, live performance, digital music, online resources for artists and the role of websites in the future of the music industry. With nearly 50 speakers and 600 delegates, the AMBC proved an informative and well presented event, with an exciting range of topics and an all-star lineup of presenters. As well as getting the ‘inside word' (and very strong opinions) from assorted CEOS, managers, & other industry bigwigs, the event created a wealth of opportunities for networking, both during the informal lunchtime workshops and end-of-day cocktail sessions.
The quality of the speakers was outstanding (see below for a list of panelists and their respective sessions), but most impressive was their ability to ‘pitch' their discussions at a perfect level for the attendees. Topics were covered in sufficient depth, yet also presented in practical terms appropriate to the delegates' development / career levels. From observation, the delegates represented abroad demographic of 20 - 50+ year olds, representing indie labels, websites, promotions/publicist companies, retail, management, and of course, bands. The latter seemed primarily at the ‘emerging' stage of their careers, and most speakers took this into account, especially during their discussions of management.
Overall, the outlook for music presented by the AMBC was extremely positive - which may be somewhat surprising given the constant barrage of ‘doom & gloom' messages artists receive about declining CD sales, lack of live music support, etc etc. Instead, the speakers insisted that the digital age was opening new income streams for artists (particularly in niche markets), and a seemingly endless audience (and industry networks) fostered by the web. There was no denying, however, that music can be somewhat devalued (or at least more difficult to monetize) with younger generations, who are accustomed to receiving it for ‘free' and in digital form - a trend with repercussions throughout the industry (for artists, managers, labels, retailers...).
Interestingly, certain digital media were not considered (by presenters or the other delegates) the ‘be all and end all' elements of the future marketplace. Mobile ringtones in particular were believed to be a ‘dying' income stream, primarily due to the ease by which people can create their own such files. According to Sony/BMG's head of sales, CD sales are not declining as quickly as one might expect, while digital downloads in general are no longer increasing quite as exponentially (figures quoted were 38-40% increase in downloads in the past year, while only 13% decrease in physical sales). This is not to say digital sales aren't still increasing though... See Christie Eliezer's recent bulletin summarising the current ARIA report on music sales (http://www.themusic.com.au/im_m/eliezer.php Issue #572, 11 Sept 2007).
As record labels grapple with the changes created by advancing technology, a recurring theme was the potential benefits for artists. In an age where the traditional role of record labels is in flux, self-management is becoming essential for emerging acts. Online promotion, networking sites, online sales and other digital marketing efforts were presented as the main channels by which artists are empowered to develop their own careers. However, the general consensus was that artists (and labels) should no longer focus primarily on CDs or any music SALES as an income source, and instead they will need to embrace a new paradigm whereby FREE music is used a key promotional tool to entice punters to other income streams (e.g. concert tickets, merchandise).
Below is MusicSA's quick summary of the main points from each of the different conference sessions, and a list of panelists. Also included are links to the keynote speeches, now available online at the IMMEDIA! site for those unable to attend and for those who did. They can be downloaded and replayed on a computer or loaded into an iPod.
For another summary of the conference, see Christie Eliezer's column (archive http://www.themusic.com.au/im_m/display.php?s=christie&id=203 Issue #570 - Tuesday 21st August, 2007).
For more information on the AMBC in general, visit http://www.immedia.com.au/ambc/
KEYNOTE SPEECHES:
Michael Smellie (President of Media Development, Asia Pacific for Bertelsmann) http://www.immedia.com.au/ambc/mp3/01%20Thursday%20Keynote,%20Michael%20Smellie.mp3
John Watson (President Eleven Music though EMI - representing Silverchair, Wolfmother, Missy Higgins, Little Birdy, Paul Mac and The Dissaciatives)
http://www.immedia.com.au/ambc/mp3/02%20Friday%20Keynote,%20John%20Watson.mp3
Bob Lefsetz (Author of The Lefsetz Letter)
http://www.immedia.com.au/ambc/mp3/03%20Saturday%20Keynote,%20Bob%20Lefsetz.mp3
SESSION: FUTURE OF MUSIC DISTRIBUTION & MARKETS
PANEL:
David Albert (CEO Albert Group of Companies)
George Ash (CEO Universal Music)
Matthew Donlevy (Regional Director, SE ASIA for Peer Music Publishing)
John O'Donnell (Managing Director, EMI Music Australia)
Jon Satterly (Managing Director, Roadrunner Records)
Michael Smellie (President of Media Development, Asia Pacific for Bertelsmann)
David Williams (Chairman Shock Entertainment Group)
This session primarily entailed a discussion on how the ‘experts' in the biz see things heading in the next 5 - 10 years, including distribution changes, demographic influence, and music formats in general. Most agreed that digital is the way of the future BUT that hard carriers (e.g. CDs) were not yet obsolete. A few quick ‘hands-up' surveys of the assembled delegates revealed some interesting trends, some of which are on track with national statistics, while others were skewed toward the audience at hand (20- 50+; passionate about music, work in the industry somehow):
o Most of audience had purchased an online track or LP
o Almost all purchased from iTunes (none from Telstra, ninemsn)
o None had purchased ringtones
o Most had purchased a CD in last month
o 1/8 had stopped buying hard product all together
o Less than 1/5 had downloaded music to mobiles
o None had caller tones (what the caller hears while waiting for an answer) on their phones
Issues arising included the pervasiveness of iTunes as the main online retailer, the USB port as a new form of compilation (replacing the CDR, and including more than music), and the issues of the distribution of music, which was discussed in more detail at the ‘New Horizons in Retail, eTail and the Long Tail" below.
SESSION: NEW HORIZONS IN RETAIL, ETAIL AND THE LONG TAIL
PANEL:
Evelyn Barry (Manager Strategic Development & Implementation, Music for the Brazin Group)
Mary Grigoratos (Retailer, So Sounds)
Paul Nemeth (Owner Fish Records & Fish Fine Music Stores)
Phil Tripp ( AMBC Convenor)
Keith Welsh (General Manager Rough Cut Music Publishing & The Music Network)
Discussion centred on the advantages of ‘bricks & mortar' retail experiences in store, vs. the convenience and vast back catalogues available through online purchasing. The general feeling was that the ‘human touch' of over-the-counter sales will always attract a certain clientele, and deliver an experience that cannot be replicated by online websites. However, the ease of online purchasing raises tough competition, and challenges more traditional retailers to embrace new ways of attracting longterm and younger customers.
Some key points to emerge for retail shops were:
o Retailers make their living on passionate music lovers
o Shop staff help ‘fit' you with new music better (ie. "if you like this, you may also be interested in this") , and are a source you can build a relationship with and trust their personalised recommendations
o Many retailers employ musicians, which not only provides incomes for artists, but also means customer service is improved through staff knowledge & experience
o Retail racks offer ‘Nostalgia' purchases (e.g. discovery of something you may not necessarily have been looking for, but are pleased to find while flipping through racks)
o In-store appearances offer a competitive advantage, but are diminishing in frequency due to limited floor space, appropriateness for different levels of acts, and the effect they have on other sales during the performance
o Boutique retailers face tough competition with discount outlets (e.g. Kmart), especially for ‘major' acts
o Retailers cater best for vinyl lovers
o Shops are an important music source in regional centres where broadband is still not as good
o Retailers support the wider music community (e.g. taking unsigned acts' CDs on consignment, having street press distro, live music recommendations).
Advantages of online retail include:
o Better speed and convenience if you know what you're looking for
o More back catalogue available instantly
o Easier/wider distribution
o Allows artist-driven sales pitch (instead of branding through labels)
In terms of practical advice from the panel, they emphasized the importance for artists to have their music available in the correct/specified meta-data file types for each online purpose, and to regularly follow up your retail stocks. One new idea emerging at Sanity is the ‘kiosk', whereby shops have an outlet for customers to create their own compilations in-store. While this may provide broad access to a variety of music, some problems encountered thus far were: the need to know what you want first, that it can be a time consuming process, and that it can be ‘hogged' or booked out by a few customers, which makes access difficult.
SESSION: GETTING YOUR MUSIC SOLD ONLINE
PANEL:
Kevin Arnold (Founder/CEO Independent Online Distribution Alliance [IODA])
Sharon Ashworth (General Manager Marketing & Content Services DestraMusic)
Evelyn Barry (Manager Strategic Development & Implementation, Music for the Brazin Group)
Meagan Henderson (General Manager Mobile & Digital Online Content Universal Music)
Nikki Murrell (General Manager Music, Telstra Big Pond Media)
Stuart Rubin (recent Snr VP Int. Commercial Marketing Group Sony/BMG Music)
Ken Outch (Destra Entertainment)
Gavin Perry (General Manager IT & Digital Services, Sony/BMG)
Although online distribution may be broader and ‘easier' in many ways, the panel confirmed that it should be approached in the same manner that one would look for hard-product distributors. General tips from the panel were:
o Use aggregators instead of trying to go to iTunes directly e.g. IODA, CD Baby, Soundbuzz, Destra
o Be aware that each release at major labels now has 16 standard formats available to take full advantage of online sales diversity (poly/real/ring/dvd etc)
o The future still presents the issue of compatibility & longevity of files in terms of a growing market and rapidly changing technology
In terms of choosing an aggregator, the panel suggested that an artist should research:
o What the setup fees are (if any)
o The exclusivity of the arrangement
o Its territories & licensing details
o The length of term
o Reporting methods (considered by the panel as the biggest issue)
o Forum feedback on various aggregators' performance & services
It is important to keep in mind that some aggregators (e.g. IODA) don't just sign ‘anyone' - they use labels as vetting method. Also, you must ‘work' for the aggregator too, to ensure sales. Just like physical distro, if your product isn't promoted, it will ‘sit on the back shelf' and not sell. Either way you are competing with ‘major' acts, and you must consider who will be searching for your music online, and how they'll know to search for you. The artist is empowered to address these, but has to be willing to put in the effort in order for online distro to translate to sales.
SESSION: KEYNOTE SPEAKER JOHN WATSON
John Watson (President Eleven Music though EMI - representing Silverchair, Wolfmother, Missy Higgins, Little Birdy, Paul Mac and The Dissaciatives)
John's personable style was indicative of his great passion for music, and importantly, for musicians. His theme was "the principles for putting together your whole music package", and he theorised that you need all 8 elements before you can - or should - be regarded as a viable and sought-after act. Today's artists are involved in so many aspects of their act (management, marketing, artwork, distro, merchandising, online presence etc) that they can lose sight of the importance of the music itself. The tip was to spend less time worrying about your number of Myspace ‘friends' and more time on honing your craft - a good song will go a long way in attracting the industry and audience.
8 ingredients for the 'perfect package':
1. Timing
2. Luck (unfortunately, you can't do much about these first two...)
3. The Song ** This was deemed the most important element. A good song should inspire the listener to do something (dance, cry, feel romantic, etc)
4. Vocal performance - the human ear connects with the voice first
5. Instrumental performance - thought of as the most over-rated, unless it's a distinctive part of your sound
6. Visual image - every act needs a strong identity
7. Your ‘Story' - you need a narrative, which gives you a point of difference
8. Attitude / work ethic - people who are the best are always trying to be better
SESSION: ARTISTS & MANAGERS PANEL
PANEL:
Bill Cullen (One Louder Entertainment - representing Paul Kelly, Sarah Blasko, End of Fashion)
Courtney Hard (A&R Manager, Sony/BMG)
Katie Noonan (Artist - George & solo)
Ashley Reeder (Artist, Music Director Bjorn Again)
Correne Wilkie (Manager - The Cat Empire, Jackson Jackson)
John Watson (President Eleven Music though EMI - representing Silverchair, Wolfmother, Missy Higgins, Little Birdy, Paul Mac, The Dissaciatives)
Presented largely as a general discussion of personal experiences, this popular session reiterated many of the points of John Watson's keynote speech. All seemed to agree that the role of managers is evolving and now encompasses much more than their traditional tasks. Many labels (especially overseas) are currently exploring new ways to tap into a management role either directly, or through the affiliation with management ‘companies.' The session also took into consideration that most artists are self-managed, and the panel's suggestions (not already mentioned above) were:
o It's up to you to create a perception of momentum, to make people believe it's all rolling, and then they'll want to jump on board.
o Reach out to the public more than the industry - build your fan base and the ‘buzz' will attract the ear of industry
o In presenting your image, heighten what's already there, don't fabricate
o The best management is invisible
SESSIONS: MAKING MOBILE MUSIC MONEY, and MONETISING FREE MUSIC (2 sessions)
PANEL:
Mark Callaghan (General Manager AustralAsian Music Publishers Association)
Ted Cohen (Managing Partner TAS Strategic)
Meagan Henderson (General Manager Mobile & Digital Online Content Universal Music)
Ben Liebmann (VP Licensing FremantleMedia)
Nick Love (Business Development Manager Myspace)
Nikki Murrell (General Manager Music, Telstra Big Pond Media)
Gavin Perry (General Manager IT & Digital Services, Sony/BMG)
Sharon Ashworth (General Manager Marketing & Content Services DestraMusic)
Scott Hochgesang (Director Digital Media XYZ networks [ Channel V, Country Music Channel, V2, Max])
Grace Roberts (roocast, Spidereye Production Partner)
Adam Zammit (CEO Peer Group Media, Publisher The Brag)
The themes of both of these sessions were very similar, and thus are discussed here in one section. Perhaps most intriguing was the idea of music being made available as a ‘subscription' service, rather than a pay-per-track model. The ethos of a of ‘feels like free' music experience was pitched as one way to tap into the younger market, and a means to building a community through word of mouth. Drawbacks exist in terms of artist payment (most likely a smaller cut), and the feeling of ‘ownership' of the music (ie. What happens to the tracks once the subscription ceases).
New opportunities for music include gaming, which was seen as great for exposure, but at the same time risked over-exposure. If people listen to the music all the time while playing the game, there may be less incentive to buy or explore the artist further. So it becomes hard to monetize this opportunity if people already ‘own' the track via the game.
Another idea was to live stream gigs to mobile phones, and also make the performance available for sale immediately afterwards. Though being trialed by some of the majors, this may present technological (and financial) obstacles to most emerging acts.
One innovative model for a new income stream is practiced by a USA artist, who encourages businesses to ‘take' his music for free, for use in movies, commercials etc. Apparently he is able to make a living solely off of the performance fees of this music.
Working with sponsors is now seen as a credible income stream for artists, and is losing the stigma formerly attached to branding. There is more of an attitude of ‘We're buying in" rather than "We're selling out." This has already been seen in recent competitions: Toohey's Uncharted, Jack Awards, Band competitions with the Big Day Out support slot as a prize
SESSION: NETWORKING MUSIC COMMUNITIES & TASTEMAKERS
PANEL:
Kevin Arnold (Founder/CEO Independent Online Distribution Alliance [IODA])
Paul Cashmere (Executive Producer Undercover Media)
Bob Lefsetz (Author of The Lefsetz Letter)
Grace Roberts (roocast, Spidereye Production Partner)
Jon Satterly (Managing Director, Roadrunner Records)
Philip Stevens (Manager The John Butler Trio, The Waifs, The Flairz)
Keith Welsh (General Manager Rough Cut Music Publishing & The Music Network)
This session reiterated many points raised throughout the conference, namely the idea of making music freely available online to grow your audience, and focusing on your fanbase instead of the industry.
Myspace was a prominent topic of discussion:
- Most panelists agreed that it's very important to artists (though some preferred Facebook as a more ‘serious' networking path)
- Most also agreed that an artist's OWN website is more (or at least as) important, and should offer more info / incentives for fans, and showcase your own design
- Myspace is like the ‘Yellow pages' of music [as is MusicSA, especially for SA artists!]
- Selling music via Myspace is now possible with snocap
- Panelists warned delegates to beware of wasting too much time on the ‘numbers', and noted classic example of bands on Myspace who have plenty of friends and no sales
- Only 10 people in the audience of 600 had purchased music after being inspired by something they heard on Myspace
SESSION: LOVE IT LIVE
PANEL:
Bill Cullen (One Louder Entertainment - representing Paul Kelly, Sarah Blasko, End of Fashion)
Vivian Lees (Partner Big Day Out)
Millie Millgate (MusicNSW Creative Director, Manager Garage Industries)
Craig New (Out With the New Merchandisers)
Stephen Wade (Owner, Select Music, Concert & Events Promoter & Venue Consultant)
Similar to the Artists & Managers session, this highlighted practical ways for musicians to enhance their industry skills. Many of the ‘dos & don'ts' of approaching promoters & venues for gigs seemed somewhat obvious, but each panelist had at least one example of how acts had mis-managed a crucial part of their networking. A memorable story came from a promoter who had been texted by a band at 6am, asking him to come to a gig. Furious at the intrusion, he called the artist back and irately explained how calls/texts at that hour should only be emergencies, and that one should be careful of using mobile messages as an overly-familiar promotion tactic - many people still consider it an invasion of privacy.
Examples of tragic biographies and poorly worded emails were also mentioned, and the consensus was that ‘gimmicks' may catch the eye but they don't sustain a career. Also, never, NEVER send unsolicited mp3 attachments (or other large files) to industry contacts - inbox space is at a premium, as it their time, and an email that takes 10 minutes to download will not make a good first impression.
Audience development was of course important to promoters, who need to know a band can get a crowd, otherwise they can't ‘sell' them. One unique tip for bands trying to book gigs was to provide references from past pubs as example of your popularity / ability to get an audience. The issue of exhausting your audience (by playing too much) was raised, with the encouragement to ‘have a reason' to do a show to maintain interest.
Merchandise was seen as increasingly important as an income stream, and the panel advised artists to ‘match' their products with their audience. An example was given of a band with a personal penchant for ‘tight' T-shirts, who couldn't sell their merch to their audience of predominantly large, hefty men. Another example was Paul Kelly, whose stubby holders are popular with his north QLD audience, but you won't find them for sale at his Festival sessions in metro areas. An interesting point was also made that people buy merchandise as a badge of honour, not to promote your band. CDs can still function in that way too, and this idea can change a band's perception in how they approach their merchandise sales.
SESSION: MUSIC THE NEXT GENERATION
PANEL:
Kevin Arnold (Founder/CEO Independent Online Distribution Alliance [IODA])
Paul Cashmere (Executive Producer Undercover Media)
Bob Lefsetz (Author of The Lefsetz Letter)
Grace Roberts (roocast, Spidereye Production Partner)
The final session of the conference was largely a ‘summing up' of previous points. Instead repeating the above, this article will conclude with some final ‘broad-spectrum' comments made throughout the AMBC.
GENERAL COMMENTS
o It doesn't matter where you're from, consider yourself a good act, not just an ‘Oz' act
o For many artists, the singles are their least favourite songs on the LP; get outside opinions to choose tracks
o (If you're not giving away music), don't sell your CD until you have value in it (ie. An audience who will buy it)
o Once your craft is solid, it frees you to do all the rest (ie. Self management)
o When making management decisions, ask yourself is it a temptation or an opportunity
o The music industry is unfair in any given year (in terms of who gets the breaks), but give it 5 years and it brings rewards to the hard working and good acts
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