Big Finish
Life, fun and music for end timesMySpace Music + Amazon.com vs. Facebook + iLike = win-win (divide by Apple)
It’s the most important time in digital music since Napster peaked in 2001.
In the short term, the equation is clear. Three elements remain:
1. MySpace Music/Amazon - News Corp. will dominate the upper echelon of the new music industry, where multi-platinum records are a thing of the past but a band with 1.7 million MySpace fans can move mountains all the way to the bank. Well, Amazon.com ships mountains, and MySpace’s massive but distracted audience, once exposed to ad-supported free music, will never look back. Yes, I know it’s crazy that a MySpace Music hater like me would herald their second coming, but barring a huge screw-up, it’s on. Print… radio… television… internet. Advertising goes with the flow, and keeps the media stream running.
Conclusion: The new platinum record is brought to you by McDonald’s.
2. Facebook/iLike - Having recently selected iLike as their preferred music service (disclaimer: I work for iLike’s sister site GarageBand.com), Facebook will gain traction as the more sophisticated social music networking site as MySpace caters to fanboys and girls. Its marketing demographic may slant upward in age, but new music consumption is stretching far into adulthood these days.
With iLike (teamed with Rhapsody) fueling Facebook’s fire, look for the service to redefine the art of finding music and tighten the connection between fan bases of modest size and the niche artists that find rock star status among them. These two companies define the idea of ‘agile development’ and will be on the cutting edge of future developments in both social networking and music discovery. Their platform is people, a fact that MySpace critically dilutes with the double-edged sword of ad-supported music.
Conclusion: The next big thing in music will be brought to you by Web 3.0.
3. Apple – The music labels were asking for it with their vast history of corruption, but what did the consumer electronics industry ever do to deserve Apple? Sony still licks its Walkman wounds as the iPod finds its way into millions of pockets the world over. I guarantee you that Apple’s brightest are at a whiteboard right now figuring out a way to make social networking device-dependent, but until that day comes, they will continue to own the way music is played.
iTunes 8.0 introduced the ‘Genius’ feature which serves as a music discovery portal to the iTunes Store. While at first this seems to step on the toes of the iLike Sidebar for iTunes, it is merely an upsell plugin. Apple will cash in for sure, but outside of their credit cards, fans will reside elsewhere.
But yeah — the credit cards. They’re with Apple.
And notice I didn’t say anything about this silly press-hyped MySpace Music vs. Apple battle that’s supposedly going down. For the next few years, it will continue to be a stalemate. No matter which company swipes the credit card, Apple will be playing the product. Music lovers own. Flirters stream. The curious sample. The clueless watch American Idol.
Conclusion: See illustration.
Footnotes of the new digital music movement?
Last.fm & Lala.com – I’m fans of both these sites, but they seem to be orbiting the established music industry’s main goals. Both offer full streaming clips and some interesting social networking features, and I still use Lala.com to trade CD’s through the mail. But they simply lack the juggernaut industry status of the aforementioned entities to have a paradigm-shifting impact on the way music is consumed.
Pandora.com – In dire straits due to the ass-backwards licensing regulations of the recording industry’s old guard. If not the company, then certainly the concept will reemerge as Pandora was arguably the most efficient and elegant way to discover new tunes. You just can’t simplify music discovery more than ‘thumbs up, thumbs down, skip to next track’.
Digital music distributors – Some were okay, some were awful, most are gone now and all of them were stopgap measures to the ultimate solution that the music industry is executing today. Napster bought by Best Buy. Rhapsody teaming with iLike. Even Amazon.com has picked a side. A new era dawns.
Discmakers/CDBaby – I’m hopeful at Discmaker’s ability to take CDBaby further and build their own brand while at it. They have a decent shot and I hesitate to call them a ‘footnote’ just yet. But it’s going to take some serious online savvy on Discmaker’s part, particularly marketing-wise. Their offering is solid, but their brand image as a clearinghouse of fledgling musicians still drives indie artists to seek out cheaper options with smaller merch-making outfits. Still, they are the household name in indie music duplication and their future has just begun.
The raidance of a thousand suns
The Bomb Shelter benefit was a huge success! Thanks to everyone who came and especially to Mike of the Kiss Ups, GU3, Kale and EMN, Justin Z., Tom & Tommy and everyone at Keegan Ales. Here is a cool photo my buddy Steve Hopkins took of the new look:
Albums as advertising, concerts as communion?
As the health of the recording industry continues to deteriorate, live shows have taken precedence as the focal point for a new music industry. Fans want unique experiences, and after all, an album is just a copy of a performance — whereas a live show cannot be duplicated. Sure, video or audio of the show can be recorded and distributed, but the experience of being there cannot be copied.
These days, many artists are saying the recording is less like a product and more like an advertisement for their live show. This doesn’t mean that your albums are any less important. In fact, the sound and look of your album matters more now than it ever did. Unlike the brick-and-mortar days of shrinking shelf space, in the Digital Age your album appears everywhere — from blogs to webstores to social networks. It is a single, shining beacon of your uniqueness as a musical act in a vast sea of aspiring artists. You should still be putting maximum effort into the production of your CD.
That said, as an unsigned band you may not see a significant revenue stream from physical CD sales right off the bat. Like any start-up business, bands (like mine) are willing to invest a little money up front in the hopes of making a profit in the future; but many bands are mistakenly viewing their album as their primary ‘product,’ which could lead to a money-losing investment.
Independent bands are small businesses, but in 2008, this business is not about selling CDs. The ‘product’ is actually the band itself. CD sales will follow naturally if you can sell your band.
When hundreds, even thousands of albums are released every week, your needle in a haystack can easily go unnoticed, no matter how ingeniously crafted or well-produced it is. For a fan to pick you out of the crowd, there has to be a personal connection. In this way, fans are truly becoming more like ‘friends.’ And just like friends, they’ll like you more if you like them back.
The relationship between fans and artists is what music (and the music industry) is all about. For independent bands, it’s not about ‘moving units,’ it’s about making connections.
Albums are gateways to establishing these connections. So are band websites and social networks. But as technology changes, one thing remains true: the best way to make a lasting personal connection is in person. Unlike the decidedly one-way experience of listening to a CD, a concert is a shared experience between bands and fans.
There are many reasons why your live show should be at the center of your band’s business strategy, and not the least of which is that concerts offer the best revenue streams (besides ticket sales, fans usually prefer to buy albums and merch from you directly).
The live event is where the money is, and there will be many different ways to get there. For some artists, live shows are where they hone their sound, songs and image — and almost everything that album embodies is a representation of their live act. For others, songwriting talent or studio production skills may be their strongest suit, and internet distribution may help them win live performance opportunities never before available to them.
Ultimately, it’s the fans that will make you popular. If you want to make your money as a musician, your best bet as an independent band is to play every live show you can. Create a legendary concert experience that others will strive to live up to. Your fans will not just follow, they’ll lead.
[This article was published in the late May issue of GarageBand.com's newsletter. Disclaimer: my views do not necessarily reflect the opinions of GarageBand.com or iLike, inc. Also, special thanks to CEO Ali Partovi for his indispensable editorial guidance.]
Keep your band and fans in tune with a steady stream of media
Too often you’ll see people videotaping and taking pictures from the audience, but after the show the footage and photos never see the light of day. Was the person was too busy or lazy to edit the video or download the images? Are they holding it in their private collection? Did they just plain forget they were there?
If you ask yourself these questions, you’re probably not doing enough to rake in all the media that your audience is producing. Even when you’re playing for only a few dozen people, chances are someone there is taking pictures, and possibly even recording the video and/or audio. Grabbing this content and sending it out to your fans is an essential element of any independent music career strategy. In this media-rich Digital Age, it is more important than ever to keep your audience interested.
There are a few simple things you can do to harness the power of user-generated content to keep all ears and eyes glued to your band:
this article was published in the early February GarageBand.com newsletter

The future of music is metadata.
