The key idea of the video is that artists in the music industry need to adapt to changing trends and focus on alternative monetization strategies, community engagement, and building strong relationships with fans in order to succeed and thrive in the future.
Shifting Roles and Opportunities for Artists
- 📈 The importance of content creation in the music industry is emphasized, as having a large audience doesn’t guarantee success, and artists should focus on creating engaging content to increase their streaming numbers and sell their catalog.
- 📈 J.R McKee breaks down how he took an artist from zero to one of the biggest hit songs of 2022, providing insights into the data decisions and content adjustments made throughout the campaign.
- 📈 Artists should look beyond music and embrace the influencer role, as it allows them to tap into opportunities outside of the shrinking music industry.
- 💰 “Currently, artists are very scared to sell, but it’s important for artists to understand that their music is a business and they need to interact with customers through transactions.”
- 🎶 The music industry is shifting towards a model where fans are more willing to support artists directly and have direct access to them, while labels are more interested in investing in established small businesses rather than startup artists.
- 🎵 “The more you think of yourself as an artist that monetizes entirely through music, the more trouble you’re going to have.”
The Impact of Streaming and Revenue
- 🎧 Streaming may be saving the music industry and reaching new revenue highs, but it’s important to question the narrative and consider other factors at play.
- 📉 The perception of the music industry reaching new all-time highs is misleading, as it has been stagnant or even declining since the Federal Reserve started printing large amounts of money with zero percent interest rates.
- 📉 Adjusting for inflation, the music industry’s revenue in 1999 was under 10 billion, compared to around 28 billion last year.
- 💰 The music industry is poor at turning attention into dollars, as evidenced by the fact that personal laundry services make more annual revenue than the entire global recorded music industry.
- 🎧 Some artists are currently able to support themselves solely through their Spotify earnings, without tapping into other revenue sources like merchandise or touring.
Challenges and Strategies for Independent Musicians
- 🤔 The industry’s lack of concern for smaller artists highlights the need for independent musicians to take massive action and put in extra effort to make their careers work.
- 🌱 Starting small and focusing on community building and unscalable actions can eventually lead to scalability and success in the music industry.
- 🗣️ “We need to stop saying that’s not scalable, as it can kill a great idea before it even gets started.”
- ⏳ The value of an artist’s effort in the music industry should be carefully considered, as immediate financial gains may be tempting, but long-term investments can lead to greater success.
HPS Magazine 