Can The Music Industry Save Itself ? – Parts 3 & 4
PART III – 3. BUILD LABEL BRANDS, 4. CHASE THE NICHES
PREVIOUSLY: Introduction, Parts 1 & 2 – 1. Off With Their Heads, 2. Cut The Fat
The music industry is facing many challenges. How can the major labels and the
entrepreneurs that seek to replace them adjust to compete in this new
and evolving environment?
3. BUILD LABEL BRANDS – Instead of suing fans, record labels must work to earn their loyalty.
Labels once promoted their releases on the paper sleeves that covered albums. I poured over them to see what I might be missing. I couldn’t wait for the next Warner Brothers Loss Leaders. Twice a year I mailed in $2 (no S&H charge) and waited expectantly…
until a double album arrived filled with an eclectic mix of live
tracks, outtakes and more. It felt like I was in an exclusive club and
discovery often led to purchase.
Why aren’t there more low cost/no cost themed samplers that mix
stars with unknowns? Why couldn’t acts curate a 3 song sampler of
other label acts offered as a free bonus with their own release? Why
shouldn’t label every debut release is a 4 songs + bonus content EP
priced at $2.99 or less. Sell it direct on the web and you’d even make
money doing it.
4. SERVE THE NICHES
Brand loyalty is difficult to build across broad genres (jazz fans have no interest in teen pop); so don’t even try. Divide your teams by passion or better yet hire for it. Name each team and emulate successful indies with 5 – 20 person staffs who live and breath a genre. Think Fueled By Ramen or Strictly Canadian. Look at Lost Highway in alt-country, Side One Dummy with punk or ATO’s broad focus on younger singer songwriters and Red House as a home for older ones.
They can share back office like human resources and accounting. Perhaps they can share some publishing and national sales staffs. But the core team that signs and markets each release needs to be building a lifestyle brand. Not just a record label; but merchandise, web sites, internet streams, tours and more dedicated to serving the fan. Each is a point of contact with the fan and each provides revenue stream that feeds the whole.
NEXT: Release More Music More Often
ALSO: PART I – Introduction, Part II – 1. Off With Their Heads, 2. Cut The Fat
The day is long gone where fans buy music because of the label. Too many ways to preview and find out other fans thoughts on music. Before, the label was a great filter – not anymore. You can still “brand” a label – it just won’t impact sales.
Serving the niche markets is something that every label is eventually going to have to wrap their heads around. It’s nearly always the case, and not just in the music business: a dedicated, focused group will more effectively reach their relevant audience than a huge widespread presence, trying to to get the attention of everyone. In an industry so heavily driven by the concept of “cool,” people have developed excellent BS detectors and love putting them to use. Several dedicated imprints under a larger umbrella will help insure the kids that a label is 100% dedicated to their music, because after all, that’s the most important music out there, right? RIGHT?
As an employee of a major label, I’ve had this argument a few times about label branding.
My response is: Label branding doesn’t matter to the consumer – until it does. Meaning – if you conduct yourself right, market well, understand your audiences and messaging, attend to the sonic and visual quality of your product, consumers will start to pay attention to your mark. It matters. People do need filters.
Attention label folk: If you can’t market yourselves, how on earth are you able to effectively market your artists? A record label is a promise. It defines an aesthetic standard – a set of assumptions. If you keep your promises your brand builds equity. If you don’t, no one cares about what you have to say – everyone loses (label, artist and consumer).
Majors branding themselves…there is a completely reorganized long road ahead. Independent labels on the other hand, this is a great time for branding.