Dave Beasing shares a recent article from Seth Godin. Here is part two (find part one here):
As part of the team that invaded the homes of young people during last year’s Arbitron/Jacobs "Bedroom Project," I can tell you that we met a lot of young people who consider themselves to be huge music fans. Yet, we saw very few CD collections and even fewer radios. A reporter recently asked me if I’m "depressed" about this. Hardly. Why waste time thinking of yourself as a victim of change? Why not use change to your advantage instead?
In essence, that’s author Seth Godin’s first point in Part 2 of his blog about the sagging music business. With his permission, we bring you more of Seth’s "Music Lessons."
Music Lessons – Part 2
6. This is a big one: The best time to change your business model is while you still have momentum.
It’s not so easy for an unknown artist to start from scratch and build a career self-publishing. Not so easy for her to find fans, one at a time, and build an audience. Very, very easy for a record label or a top artist to do so. So, the time to jump was yesterday. Too late. Okay, how about today?
The sooner you do it, the more assets and momentum you have to put to work.
7. Remember the Bob Dylan rule: it’s not just a record, it’s a movement.
Bob and his handlers have a long track record of finding movements. Anti-war movements, sure, but also rock movies, the Grateful Dead, SACDs, Christian rock and Apple fanboys. What Bob has done (and I think he’s done it sincerely, not as a calculated maneuver) is seek out groups that want to be connected and he works to become the connecting the point.
By being open to choices of format, to points of view, to moments in time, Bob Dylan never said, “I make vinyl records that cost money to listen to.” He understands at some level that music is often the soundtrack for something else.
I think the same thing can be true for chefs and churches and charities and politicians and makers of medical devices. People pay a premium for a story, every time.
8. Don’t panic when the new business model isn’t as ‘clean’ as the old one.
It’s not easy to give up the idea of manufacturing CDs with a 90% gross margin and switching to a blended model of concerts and souvenirs, of communities and greeting cards and special events and what feels like gimmicks. I know.
Get over it. It’s the only option if you want to stay in this business. You’re just not going to sell a lot of CDs in five years, are you?
If there’s a business here, first few in will find it, the rest lose everything.
9. Read the writing on the wall.
Hey, guys, I’m not in the music business and even I’ve been writing about this for years. I even started a record label five years ago to make the point. Industries don’t die by surprise. It’s not like you didn’t know it was coming. It’s not like you didn’t know who to call (or hire).
This isn’t about having a great idea (it almost never is). The great ideas are out there, for free, on your neighborhood blog. Nope, this is about taking initiative and making things happen.
The last person to leave the current record business won’t be the smartest and he won’t be the most successful, either. Getting out first and staking out the new territory almost always pays off.
10. Don’t abandon the Long Tail.
Everyone in the hit business thinks they understand the secret: just make hits. After all, if you do the math, it shows that if you just made hits, you’d be in fat city.
Of course, the harder you try to just make hits, the less likely you are to make any hits at all. Movies, records, books… the blockbusters always seem to be surprises. Surprise hit cookbooks, even.
Instead, in an age when it’s cheaper than ever to design something, to make something, to bring something to market, the smart strategy is to have a dumb strategy. Keep your costs low and go with your instincts, even when everyone says you’re wrong. Do a great job, not a perfect one. Bring things to market, the right market, and let them find their audience.
Stick to the knitting has never been more wrong. Instead, find products your customers want. Don’t underestimate them. They’re more catholic in their tastes than you give them credit for.
11. Understand the power of digital.
Try to imagine something like this happening ten years ago: An eleven-year-old kid wakes up on a Saturday morning, gets his allowance, then, standing in his pajamas, buys a Bon Jovi song for a buck.
Compare this to hassling for a ride, driving to the mall, finding the album in question, finding the $14 to pay for it and then driving home.
You may believe that your business doesn’t lend itself to digital transactions. Many do. If you’ve got a business that doesn’t thrive on digital, it might not grow as fast as you like… Maybe you need to find a business that does thrive on digital.
12. Celebrity is underrated.
The music business has always created celebrities. And each celebrity has profited for decades from that fame. Frank Sinatra is dead and he’s still profiting. Elvis is still alive and he’s certainly still profiting.
The music business has done a poor job of leveraging that celebrity and catching the value it creates. Many businesses now have the power to create their own micro-celebrities. These individuals capture attention and generate trust, two critical elements in growing profits.
13. Value is created when you go from many to few, and vice versa.
The music business has thousands of labels and tens of thousands of copyright holders. It’s a mess.
And there’s just one iTunes music store. Consolidation pays.
At the same time, there are other industries where there are just a few major players and the way to profit is to create splinters and niches.
14. Whenever possible, sell subscriptions.
Few businesses can successfully sell subscriptions (magazines being the very best example), but when you can, the whole world changes. HBO, for example, is able to spend its money making shows for its viewers rather than working to find viewers for every show.
The biggest opportunity for the music business is to combine permission with subscription. The possibilities are endless. And I know it’s hard to believe, but the good old days are yet to happen.
Did you miss Part 1 of Seth’s "Music Lessons?" It’s here.
How many blogs can you read each day? We’re humbled that so many make this one a habit, and we highly recommend you find time for Seth’s.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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