Where does the music stand?

There's a lot of talk about the state of the music industry right now. What happened to the cash cow of the ninties? How do we adapt and become profitable again? Can we stop piracy and illegal file sharing? It seems to me that the biggest problem is that there's a real disconnect between the industry and its audience. Many are running around trying to figure out a profitable delivery method for the same old music - streaming, downloads, ads, subscriptions, clouds, etc. - but the assumption seems to be that the same market is still there. I fear this may not be the case.

The world of music has been split into genre niches. It's true we still have our mainstream acts like Jay-Z and Taylor Swift, but these mainstream artists on major labels aren't bringing in nearly as much profit as they once were. This is often attributed to piracy and file-sharing. While I'll admit that those things have definitely been detrimental to the major label model of the music industry, I don't believe that they are the root cause. Piracy and file-sharing are symptoms of a de-valuation of music in our culture.

Music fans have always been divided into passive and active listeners, but that division is even more striking today. I believe that, in addition to file sharing, another effect of the internet is that it has helped to turn us into a multimedia culture. People have a much greater degree of choice, and it doesn't necessarily mean they're choosing a wider variety of music. In fact, it could be that they're choosing a greater variety of alternatives to musical entertainment. As broadband became commonplace, video became more accessible, and YouTube has turned into a huge hub of online interaction. Video games, especially those played online with other players have become commonplace, and millions of people participate.

As a result of this, the amount of music that is consumed passively has increased exponentially over the last decade. This has a couple of consequences. I think one, and a possible reason music has split into niches, is that the mainstream just doesn't see music as an end unto itself anymore. It's an accompaniment. You're either 1) listening to music, generally on headphones, while you do something else - surf the web, read a book, cook dinner, etc., or 2) music is the soundtrack to your movie, video game, TV show, YouTube clip, etc. Who buys a stereo hi-fi these days? A very small market of audiophiles maybe, but for the mainstream it's all about surround sound which means HD and DVD and Blu-Ray and game consoles. True music fans are few and far between, and because of the mess the major labels have made of their business, the labels have lost credibility with fans, and the fans seek out ever more intimate bands and artists - people they feel they can connect with.

The other consequence is that a lot of really talented musicians don't necessarily see being in a band as the cool thing to do anymore. It's no longer rebellious to rock out when we see 50- and 60-year-olds on stage. I hate to say it, but rock music seems to be gaining "oldies" status. So really good musicians have migrated to soundtrack work - partly because that's where the money is, partly because of the shift toward more electronic and computer based production, and partly because it's way cooler to have your track in a movie or videogame or TV show these days than to have it played on the radio. You have a better chance promoting yourself by being the guy featured on HBO or Call of Duty show than having your record spun on some underground radio show (whetehr terrestrial or satellite) that most people have never heard of.

I just don't think very many people listen to music as an activity anymore. This is especially true of the younger generation, and make no mistake, that's who you need to focus on because the old fogeys, i.e. anyone over 30, are already in the bag having discovered their favorites, bought the albums and collectors sets, etc. MTV started the process - shifting the focus from the auditory to the visual, and video games continued it, pushing music even further into the background. This has led to a situation where musicians aren't the headliner - they're the small print, and therefore, people aren't as inclined to be drawn to a live show to watch their heroes perform amazing feats of musical accomplishment. Right now musicians just aren't megastars. It may cycle back around to that point again, but I'm not sure we're at a place culturally where we, collectively anyway, want to be adoring fans and propel anyone to great heights. The true fans find their niche and want their niche artists to succeed, but the mainstream is on the wane.

Interestingly, as the mainstream has made a psychological shift from active to passive consumption, it's often the reverse for music fans. Sure there are still times where I want to sit and listen to someone else put feelings into words and sounds that I couldn't come up with on my own, but most of the time I want to feel like I'm taking part in something. Have you heard of Dan Deacon? Granted he's got a pretty small niche so probably not, but his shows are interesting because he brings the audience into the inner circle and makes the show about them all doing something together. He paints himself as a facilatator, not a star. You don't worship him, you party with him. That's what the music industry needs to figure out: We don't want to have anything shoved down our throats - we want to be part of the process.

Entertainment needs to become more communal and interactive. Communal doesn't mean a hive where everyone belongs. It's got to be interactive, but still make the consumer feel like an individual, part of an elite group. That's why online gaming and social networking work; the user controls the size of their own network, but yet the technology makes it possible for these small groups to multiply and cross-pollinate. I think the music industry (and the movie, publishing and journalism industries too) need to realize this. And it's not just about using Twitter, Myspace and Facebook to build awareness, though they are useful tools. Those alone barely prop up the old model because internet users are even more savvy regarding advertising than TV viewers have become. The user has control and can ignore you, and it's pretty easy to see through marketing hype online.

If you really want to attract people, it's got to be an entirely new approach. Make the entertainment experience something people in todays world will want to pay for. Maybe the publicity arm moves away from advertising and toward finding ways to create collaborative events. Maybe artist development means more than money for touring and studio time, but helping the entertainer connect with fans. Sadly, I don't have the magic bullet yet - just some thoughts on where we stand, but I think we can come up with the new ideas we need to succeed. It's not about legislating what the fans can and cannot do. It's about bringing them into the fold and giving them a stake in the success of the product.

-TFW