Copyright © 2016 by Bobby Owsinski All rights reserved. No part of this book may be reproduced in any form, without written permission, except by a newspaper or magazine reviewer who wishes to quote brief passages in connection with a review. Published in 2016 by Hal Leonard Books An Imprint of Hal Leonard Corporation 7777 West Bluemound Road Milwaukee, WI 53213 Trade Book Division Editorial Offices 33 Plymouth St., Montclair, NJ 07042 All illustrations by Bobby Owsinski except the following: 5-1 from Shidlas; 9-2 from Square, Inc. Printed in the United States of America Book design by John J. Flannery Library of Congress Cataloging-in-Publication Data Names: Owsinski, Bobby, author. Title: Music 4.1 : a survival guide for making music in the Internet age / Bobby Owsinski. Description: Montclair : Hal Leonard Books, 2016. | Series: Music pro guides | Includes bibliographical references and index. Identifiers: LCCN 2015047632 | ISBN 9781495045219 (pbk.) Subjects: LCSH: Music trade--Technological innovations. | Music and the Internet. | Internet marketing. Classification: LCC ML3790 .O968 2016 | DDC 780.68/8--dc23 LC record available at http://lccn.loc.gov/2015047632 www.halleonardbooks.com Contents INTRODUCTION Bobby Owsinski Bibliography Bobby’s Online Coaching Programs Bobby’s Online Connections Chapter 1. THE LIFE STAGES OF THE MUSIC INDUSTRY Music 0.5: The Precursor Business New Technology Drives the Business Music 1.0: The Original Music Business A Look Inside the Original Music Business Music 1.5: The Suits Take Over The Rise of MTV The Farm Teams Disband Music 2.0: Enter the Digital Age P2P Makes Its Mark Piracy Takes Another Form Music 2.5: Digital Music Is Monetized Enter the 360 Deal Music 3.0: The Dawn of Artist/Fan Communication Music 3.5: YouTube Becomes the New Radio YouTube Exposure Becomes Universal Streaming Catches On Music 4.0: Streaming Becomes Profitable Music 4.1: The Business Model Changes Chapter 2. HOW THE MUSIC WORLD HAS CHANGED Who’s In Control? Where Did the Record Stores Go? Why Traditional Radio Is No Longer the Factor It Once Was College Radio on the Brink Why Television Is No Longer a Factor The Trouble with Labels Where Digital Music Has Failed It’s the Music, Stupid The Death of Artist Development The Piracy Argument Dissipates Chapter 3. THE NEW MUSIC INDUSTRY The Music Industry Is Not Dying The New Radio Internet Radio The Connected Car Satellite Radio What Is Radio’s Future? The New Television The Effect of YouTube YouTube Gets Challenged The Broadcast Alternatives The Connected TV The New Players Management The Promoter The New Record Label The New Audience Enter Music 4.1 Chapter 4. THE NEW MASTERS OF THE DOMAIN Seth Godin’s Tribes Radiohead’s Grand Experiment The Wisdom of Trent Josh Freese’s Multitiered Humor Chris Anderson’s Long Tail Irving Azoff’s Steel Fist Sanctuary’s Blueprint Justin Bieber—The Socially Made Star Amanda Palmer—The Social Celebrity Psy—The Viral Star Macklemore and Ryan Lewis—Turning the Record Label Paradigm Around Jack & Jack Shift the Release Schedule Chapter 5. THE NEW MARKETING—PART 1 Your Music Is Your Marketing The New Release Schedule Ten Music Marketing Ideas Chapter 6. THE NEW MARKETING—PART 2 The New Importance of the Fan The New Artist Online Strategy A Typical Artist Website The Steps to a Successful Online Strategy Your Most Important Tool—Your Email List Mail List Services Six Keys to Building Your Mailing List Designing Your Email Blast Best Email Practices More Is Less Another Useful Online Tool—Your Blog Other Music Blogs Chapter 7. MARKETING WITH SOCIAL MEDIA The Death of MySpace Marketing with Facebook Eight Rules of Facebook Engagement Best Time of Day for Facebook Posts Understanding the “Like” Button Facebook Ads Marketing with YouTube Essential YouTube SEO The Half-Life of a Viral Video Making Money from YouTube Real-Time Streaming Video YouTube Measurement Tools Marketing with Twitter The Secret of the Hashtag The Best Time to Tweet Twitter Tools Google+ Hangouts Chapter 8. SOCIAL MEDIA MANAGEMENT Measuring Your Social Media Exposure Social Media Measurement Tools Advanced Social Media Analytical Tools What Is a Brand? The Three Pillars of a Brand Five Easy Steps to Creating Your Brand A Quick Look at Sponsorship Other Avenues for Social Media Don’t Depend on Your Social Network There’s More to Social Networking than Facebook Ten Low-Cost, High-Tech Promotion Ideas But You Still Must Hit the Streets Ten Low-Cost, Low-Tech Promotion Ideas Chapter 9. MAKING MONEY IN TODAY’S MUSIC WORLD Hit the Road, Jack Merch Is Your Friend Price It Right The Secret to the Merch Table Credit Card Transactions Made Easy The Many Ways to Ask for the Sale Crowdfunding The Four Tiers of a Crowdfunding Campaign The Five Rules for Crowdfunding The Concept of “Fuelers” Chapter 10. THE NEW DISTRIBUTION Digital, Vinyl, or Bright, Shiny Disc? Music Format Pros and Cons from the Artist’s Standpoint Digital Streaming Digital Downloads CD—The Bright and Shiny Disc The Round Piece of Plastic Known as the Vinyl Record Could the Cassette Make a Return? Collectibles Digital Music Distribution Paid Downloads Streaming Is the New Download The Digital Storage Locker (Cloud Music) Music Aggregators License or Distribution? Games—Hip or Hype? The New Brick and Mortar Chapter 11. THE NEW PUBLISHING PARADIGM The Three Basic Types of Publishing Income The Different Sources of Publishing Royalties Publishing Royalty Comparisons Publishing and the Indie Artist Getting Your Songs Placed in Movies and Television Music Supervisors: The New A&R? The Problem with Digital Accounting Why Use a Publisher? Chapter 12. WHEN MUSIC IS YOUR PRODUCT Streaming Royalty Basics The Different Types of Streams Noninteractive Streams Interactive Streams Making Sense of Streaming Income A Million Isn’t What It Used to Be The Sound Recording Royalty The Middleman Factor The Performance Royalty The Streaming Mechanical Royalty How Royalty Rates Are Set Streaming Royalty Examples 1 Million Spotify Streams Example 1 Million Pandora Free-Tier Streams Example The Reality of the Situation Chapter 13. MONETIZING VIDEO VIEWS Monetizing YouTube How YouTube Videos Are Monetized View Variables YouTube and the Labels Content ID A YouTube Success Story Facebook Video Facebook Video Pros and Cons Other Video Platforms Chapter 14. THE MUSIC 4.1 RULES FOR SURVIVAL Developing Your Audience Establishing Your Tribe The Leader Growing Your Tribe Marketing to Your Tribe Sustaining Your Career The “1,000 True Fans” Theory Chapter 15. LIVING IN MUSIC 4.1 Making a Living Is the New Success There’s No Such Thing as a Demo Major Label Deconstruction The Sad Case of EMI WMG Changes Hands The Major Label of the Future When You Need a Label Getting Along in Music 4.1 Appendix 1: Online Tools Appendix 2: Glossary
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