Music industry. Modern problems of the activities of concert organizations. Other sources of profit

Table No. 9

MAIN CHARACTERISTICS OF THE RUSSIAN MUSIC MARKET

The Russian music business directly depends on the general trends in the development of the domestic economy. An example of this is the crisis of August 1998, when the entire music industry turned out to be practically

mentally paralyzed. As a result, the number of record companies decreased by three times, sales volume decreased by 3-5 times (in some repertoire groups - by 10 times), prices decreased by 2-3 times in terms of currency equivalent.

A huge number of problems that have accumulated in recent years hinder the further development of the music industry. First of all, these are issues: rights, mutual debts and trust between companies. Nowadays, many companies do not yet have a complete set of documents confirming their rights to certain phonograms (we are talking about both copyright and related rights). The agreements were concluded without observing the necessary formalities, so a serious redistribution of ownership of the projects released over the past ten years is currently taking place. Many entrepreneurs realized that they needed to buy rights, not phonograms.

Another problem of the time was the new pricing policy. The largest sellers focus on minimum prices comparable to pirated ones. Such an approach has become the only possible condition for the survival of the domestic music industry and foreign companies doing business in Russia. However, the decision to work at low prices was not taken lightly. Majors, for example, were afraid of the re-export of cheap discs to the West. And re-export really was and is even now. There was no question of mass promotion of cheap discs from Russia, since no self-respecting distributor or owner of a chain of stores would sell discs of “unclear origin” without IFPI codes and other

symbols confirming their legal nature. Parallel imports remain a big problem.

The country's cassette market in 1999 showed that its potential is quite significant, although it is beginning to lose ground, following global trends.

In addition to sales of such traditional media as MS and CD, the CD-R market developed quite actively in 1999. CD-RW and DVD-RAM disks have been added to the already traditional CD-R. In 2000, the first CD-R production line came into operation in Russia at the Ural Electronic Plant.

One of the main problems of business development is the high level of piracy in the country - 65-70%. In some repertoire groups it reaches 90%

Thus, the Russian market as a whole looks like this (divided by type of media):

Table № 10

TOTAL DATA OF LEGAL AND PIRATE SALES IN MILLIONS. $

* Consequences of the crisis on August 17, 1998 As can be seen from the table and figures, the main carrier of musical products remains the compact cassette.

Table No. 11

SALES BY REPERTOIRE IN MILLIONS. EKZ. (MC+CD3).

Table No. 12

MARKET STRUCTURE BY REPERTOIRE (% OF TOTAL LEGAL SALES).

WHAT IS APKA? WHAT IS NAPA?

To better understand the state of the US video market, consider the active work of the Motion Picture Association of America (APCA). This is a professional association of leading film, photo and television companies in the United States. Its members include such companies as Buena Vista Pictures Distribution (Walt Disney Company, Hollywood Pictures Corporation, Sony Pictures Entertainment, Columbia, Trista), Twenty Century Fox Film Corporation ", "Universal City Studios" and "Warner Brothers".

APKA solves many problems: protecting copyrights and interests of film, video and television companies, preventing video piracy by tightening penalties for this type of illegal activity. The Association's lawyers help the prosecutor's office formulate the charges in the best way; collect evidence, ensure the participation of witnesses and experts, conduct legal and legal analysis, calculate the amount of compensation.

There are approximately 100 APCA investigators throughout the United States, assisting police in investigating pirate activities and prosecuting those responsible. In 1998, 2,022 such investigations were carried out. Based on the results of 262 of them, criminal cases were initiated and court decisions were made. 52 perpetrators were sentenced to prison.

Members of the Association facilitate anti-piracy operations in more than 70 countries, including Russia. They rent their

films in Russia through organizations that have appropriate Russian licenses, such as Cascade, East-West, Jammy and Premier.

Since October 1998, 32 films produced by APCA member studios have been legally released in Russian cinemas for screening. Among them: “Shakespeare in Love”, “Armageddon”, “The Mummy”, “The Mask of Zorro”, “The Adventures of Flick” and “Healer Adams”. Additionally, the series of films is presented on video. Films in theatrical release are generally not eligible for simultaneous distribution on videotape. Usually the latter go on sale after the end of film distribution. This is done to protect the interests of film distributors.

APKA supports the Russian anti-piracy organization - RAPO. The administration of RAPO is located in Moscow, and the organization itself operates in large cities throughout Russia. RAPO members include not only US film studios and their licensees in Russia, but also independent Russian film distribution organizations, two Russian television companies, the Russian Union of Cinematographers, the Russian Society of Collectors and the Russian Video Association.

RAPO employees assist law enforcement agencies and tax police in investigating the sources of pirated products and conducting raids to identify their manufacturers and sellers. RAPO represents experts who can identify items of “pirated” products and testify in court.

NAPA - National Association of Manufacturers

distributors of audio products in Russia. The decision to create the National Association of Audio Manufacturers of Russia was made at the first meeting of the East European Commission IFPI after the August crisis (September 1998). As a result, NAPA was registered in June 1999.

The main goals of NAPA: preparation in Russia on the basis of NAPA of a national IFPI group, which will eventually merge with the staff of the IFPI representative office in Moscow; protecting the rights and legitimate interests of producers of audio products - Russian music companies, combating the reproduction and distribution of illegal audio products and coordinating the activities of holders of rights to audio products in order to comply with existing legislation on the territory of the Russian Federation.

Currently, NAPA includes the largest Russian companies and major companies that have their branches and branches in Russia, such as Universal, BMG, EMI (S.B.A.), Gala Records, Real Records "Art Stars", "Studio Soyuz", Producer Igor Matvienko Center, FeeLee Records Company, “NOX-MUSIC” and others.

Today, NAPA has seven organizations operating as branches in Russia. Negotiations are ongoing with other regions. NAPA is actively expanding into the outback, while at the same time placing its main emphasis in targeting business regions of the country, millionaire cities.

NAPA includes many companies - NAPA members are also members of IFPI. To understand this construct, let us first consider the structure of IFPI in other countries and the world at large.

The International Federation of Phonogram Producers (IFPI) unites record companies, which, in turn, are united on a territorial basis into national groups. That is, the federation consists of national groups of different countries, for example, national groups of Germany, the USA, etc. Until today, there has been no such association in Russia. In risky business areas, IFPI begins its activities by opening representative offices. After some time, depending on the development dynamics of each individual country, a national IFPI group of a given country is created at the place of representation or with its help. The functions of the federation's representation in various countries (and in Russia too) boil down to explaining to local music companies the role of IFPI in the international music business, inviting them to become members of the federation and, ultimately, creating a national group. Unfortunately, in our country this process followed the “special Russian path.”

The completion of the creation of the IFPI national group in Russia is just around the corner. NAPA is fully prepared for this - the Association was created as the core of the national group IFPI. They have common goals and objectives: legalization of the music business, legal and regulatory assistance to IFPI member companies, active fight against piracy in Russia in general, but especially in regions with a population of millions. Of course, work in Moscow and the Moscow region occupies a special place.

NAPA assists government agencies in improving legislation in the field of copyright and related rights, participates as an independent

prominent experts in the development of decisions of government and management bodies in matters of the music business.

We have also created and operate the Russian Phonographic Association. It was created as an organization uniting record companies. The main objectives were to collect fees for public reproduction and distribute the saved funds among the copyright holder companies.

Any domestic company legally operating on the market that recognizes the statutory documents and operates in the field of sound recording and sound reproduction can become a member of NAPA. To join, you must contact NAPA with an application, attaching a set of statutory and registration documents. The procedure is simple and does not impose high responsibility on members.

During the period from July 1999 to July 200 in Russia, NAPA examined 62,076 copies of audio media for counterfeiting. Twenty-two applications for criminal prosecution of persons guilty of illegal use of copyright and related rights were filed, eight statements of claim were filed, five petitions were sent to the courts, five anti-piracy actions were carried out jointly with law enforcement agencies and the IFPI, and fifteen actions were carried out jointly with the Ministry of Internal Affairs.

The association is engaged in research of the audio products market in the Russian Federation, creating a data bank of audio products, audio manufacturers and a trading network of dealers and distributors - right down to information on each trade

point. Consults government agencies, enterprises, public associations and citizens on music business issues, promotes civilized ways of developing the music market, organizes seminars, symposiums, and internships in Russia and abroad. Our immediate plans include organizing national competitions in the music industry.

NAPA represents Russian audio producers in the International Federation of Phonogram Producers (IFPI) and participates in its activities (interacts with other national groups).

NAPA's permanent partners are, firstly, copyright holders, and secondly, various expert organizations, including the system of forensic centers of the Ministry of Internal Affairs of the Russian Federation, the Center for Independent Comprehensive Examination of Systems and Technologies, which conduct the entire possible range of studies and examinations of seized products. Thirdly, enterprises involved in the transportation and safe storage of counterfeit products.

Through a set of examinations, it is possible to prove the fact of production of counterfeit products at a specific enterprise, or, as experts say, to “link” audio cassettes to a specific machine, a specific recording device. In particular, a magnetic tape moving during the process of recording sound information on it has changes in the surface layer characteristic of this sound recording device, which

and is revealed completely unmistakably by investigative examination.

The search for copyright holders is carried out in databases that contain information about domestic albums (and in this NAPA is very helpful in the “Russian Music Yearbook” published by the Inter Media agency) and in foreign publications. Here NAPA relies on databases received from foreign partners. It is important to determine the date of first publication of the work and phonogram for each title. One of the essential components of an examination or research act is to determine the amount of damage caused to copyright holders as a result of the illegal use of works and phonograms. An important point is the recognition of the copyright holder as a civil plaintiff.

The funds received after processing counterfeit products and manufacturing legal products from released component materials are distributed in an agreed amount between copyright holders, enterprises responsible for storing counterfeit products, a system of enterprises for processing counterfeit products and manufacturing legal products, and the budget.

WHAT IS KNOX?

"NOKS" is the National Association of Cultural Communities. The main ideas of "Knox" are:

Preservation and development of national and ethnic cultures;

Promotion of cultural heritage;

Uniting people through cultural exchange, strengthening friendly and fraternal ties between peoples;

Affirmation of every person's pride in his nation;

Assistance in strengthening Russia as a multinational state in which all peoples are equal in their rights.

For many years I have been promoting the idea that all people should live in friendship and peace, communicate in business, and mutually enrich themselves through cultural ties. There should be no wars on our land. After all, mothers give birth to children for a happy life, diligently develop their talents, instill in them the best feelings and, of course, pride in their nation, for in every nation there are unusually talented people.

To solve the problems of our society through culture, I created “NOKS”.

Now it is important to find people who can be completely trusted in implementing these ideas. “NOX” should become a real forge of such personnel. I constantly convey my ideas to managers, educate a new generation of producers, trust them with my projects and help them implement them.

How often music reaches us from everywhere. Music becomes the sound background of our lives. Do you know the feeling when you simply forgot to take your headphones with you? Silence, no, even emptiness. It’s unusual, and your hands try to turn on something. The music stops playing - the inner voice turns on, and somehow you don’t want to listen to it at all. Reminds us of unfinished business, reproaches us for something, and brings serious thoughts. No, the new track would start soon. We’re just used to music, we’re used to not being alone all the time, but with these fun (or not so fun) musical rhythms.

Probably everyone has favorite melodies, the sound of which brings up lines of familiar songs somewhere deep inside. At the same time, it often happens that a person knows the lyrics of a song by heart, but he has never thought about the meaning of the words imprinted in memory and even often spoken. This happens because most people are used to listening to music in the background or relaxation, that is, relaxing and not thinking about anything, enjoying emotions or simply immersed in extraneous thoughts.

As a result of such listening, a person’s worldview is filled with texts and meanings that have not been filtered at the level of consciousness. And since the information is presented accompanied by various rhythms and melodies, it is absorbed very well, and subsequently begins to influence human behavior from the subconscious level. What kind of behavioral programs is conveyed to a mass audience by modern popular music - the kind that is played on TV and radio, and is it possible to treat it unconsciously, that is, without thinking about its influence? Let's watch some video reviews:

After watching these videos, it is appropriate to recall a quote from the ancient Chinese philosopher Confucius: “The destruction of any state begins precisely with the destruction of its music. A people without pure and bright music is doomed to degeneration.”

Please note that in the last review we were talking not only about the content of specific songs, but also about the general focus of the theme of popular music. This is an important nuance that must be taken into account. After all, music should reflect different aspects of our lives, and not elevate one to an inappropriate size and importance.

A person’s creativity, when it comes from the soul, always reflects his inner world, touches on issues of personal development, and the search for answers to pressing questions. If creativity is replaced by business, and making money comes first, then its content is automatically filled with corresponding meanings and forms: primitive, stereotyped, insipid, stupid.

Listening to the content that is played on most radio stations today is a real process of programming people to unconsciously implement in their lives all the behavioral models listed in the videos.

At the same time, in the presented video reviews, only the content of the texts and video clips were analyzed, but the rhythm, tonality, melody, and volume of the music have a huge impact on a person. After all, any music is, in the end, vibrations that can either harmonize with the internal state of a person, or literally act destructively.

The influence of music on society

Dissonance in music, sudden changes in rhythm, loud sound - the body perceives all this as stress, as a polluting factor that affects not only the nervous, but also the cardiovascular and endocrine systems. On the Internet you can find the results of many experiments that show that if classical or folk music improves mental abilities, then modern pop music, built on the same rhythms, or heavy, ragged music, on the contrary, depress the human psyche, worsening memory, abstract thinking, attentiveness.

You can clearly see the influence of music in these pictures:

These photographs were taken by Japanese explorer Masaru Emoto. He exposed water to various melodies and human speech, after which he froze it and photographed the resulting frozen water crystals with high magnification. As can be seen on the slide, under the influence of the sounds of classical music, crystals of distilled water acquire elegant symmetrical shapes; under the influence of heavy music or negative words, emotions, frozen water forms chaotic, fragmented structures.

Considering that we are all mostly made of water, you can imagine how much influence music has on us. For this reason, the choice of those compositions that you often listen to yourself or play for your children should be made consciously, assessing the impact of the music and the effect that you would like to achieve.

Music influences a person in 3 aspects:

1. The content of the lyrics and video clips
2. Vibrations of music (rhythm, tonality, melody, voice timbre, etc.)
3. Personal qualities of popular performers whose lives are on display

The third point on this slide we highlighted the personal aspect associated with the morality of those performers who receive fame and glory. Since modern show business is built on the fact that it brings to public discussion the entire personal life of the so-called stars, imposing them on the younger generations as idols personifying “success”, when evaluating modern songs one must also take into account the lifestyle that they convey by their example their performers.

Everyone has probably heard about such a popular Western singer as. Let's see what ideology she promotes through her creativity and personal example.

As part of the Teach Good project, similar reviews were made of other most popular Western performers: , - and the same thing everywhere. Their careers develop as if according to a pattern: from relatively simple and modest girls, having entered the show business industry, they gradually turn into those whose photographs and works of creativity are even awkward to demonstrate during a lecture due to obsessive vulgarity and vulgarity.

At the same time, these stars are constantly awarded the main music awards, their videos are played on TV channels and radio stations, even here in Russia their songs are regularly played. That is, the same system is built in the music industry, based on 3 main tools: award institutions, financial flows and control over the central media.

Where to look for good songs?

It is almost impossible for good performers - those who sing truly meaningful songs and try to direct their creativity for the benefit of people - to break through this barrier. The situation is only beginning to change today, when with the advent of the Internet, each person has the opportunity to act as an independent media outlet through their accounts on social networks, through blogging and creating websites.

The emergence of the Teach Good project and many other associations of caring people is a natural process of destruction of the old system, built on strict control of persons admitted to the media. And it is on the Internet that you can find songs by those artists whom you will not hear on TV, but whose music is really pleasant and useful to listen to.

They also tour cities, perform on stages, and sell out houses, but their photographs are not published in glossy magazines, and their songs are not broadcast on popular radio stations or music TV channels. Because for the modern music industry, their work does not fit the “format” determined and imposed on a wide audience through the same media, or rather, the means of forming and managing public consciousness.

As an example of meaningful creativity, we bring to your attention one of the songs that was invented and recorded by readers of the Teach Good project.

Competition in show business has led to the emergence of music industry marketing. When audio art became an entrepreneurial field, he needed tools to promote his products. Marketing in music is based on traditional strategies and methods, but, of course, has many specific features and characteristics.

Marketing concept

The consolidation of production and the production of more and more high-quality goods leads to the fact that special efforts become necessary to stimulate consumer activity. As productivity increases, the first ones arise. Initially, it was aimed at improving goods and production, but modern ideas about promotion are gradually being formed as a special activity aimed at satisfying needs through exchange. Today, marketing refers to special communication between the manufacturer and the buyer, which leads to the satisfaction of needs. It is designed to help the buyer and seller achieve their goals. In this sense, music industry marketing is also a specific interaction between producer and consumer. The producer offers a product on the audio market that will allow the listener to satisfy his needs.

The Emergence of Music Marketing

The emergence of music marketing is associated with the formation of the entertainment and leisure industry. When show business appears, an area in which people earn money by providing entertainment services, there is also a need to satisfy the needs of the market as fully as possible. The more competition grew, the stronger the need for special efforts to sell the product being created was felt. The beginnings of music marketing can be found in ancient times. For example, Mozart’s father essentially performed the function of a musician’s producer: he selected the repertoire and conducted propaganda activities in order to organize concerts. The composer and performer was a means to make a profit and to satisfy the public's needs for entertainment. But in the full sense of the word, music marketing appears only at the stage of high development of the entertainment industry. Only with market oversaturation and great competition does the need for thoughtful promotion of a musical product arise.

Formation of the music industry

Show business includes several industries: cinema, theater and entertainment, music. The audio industry is a branch of the global economy that makes profit through the sale of a music product or service. Man has felt the need to listen to music since ancient times; the phenomenon of its impact on the psyche has not been fully studied. However, it is obvious that it is closely related to emotions, which are a deep human experience. It is with them that the importance of music in human life is associated. Since there is demand, then naturally there is supply. The music industry arises along with the possibilities of mass distribution of audio products, that is, along with technical progress. Show business appears along with public spectacles; researchers determine the date of its birth in different ways: from the 11th to the 19th centuries. But since the first legislative acts regulating the organization of public shows appeared only in the middle of the 19th century, this is where the countdown is traditionally made. The music industry was formed with the advent of the gramophone recording, which began to distribute the musical product to the masses. The next revolutionary stages are associated with the emergence of radio and television. Subsequently, the industry is only gaining momentum, sound carriers are improving, circulation and competition are growing. Every year the music industry market continues to increase by several percent, with especially noticeable growth in the Internet segment. Today, without promotion, it is impossible to realize a single musical project, even with the most talented performers.

Music as a commodity

Songs, performances of audio works, musical groups and soloists are a means of generating profit. The peculiarity of music as an object of promotion is that it simultaneously combines the properties of a product and a service. An audio product must satisfy the listener's needs, have a certain quality and an appropriate price, it must have prestige and consumer value, like any product. In addition, music, like a service, is inseparable from the performer, it is intangible, and the result of its consumption cannot be predicted. At the same time, an audio product is a product because it has a price, quality, can satisfy a need and requires promotion from the manufacturer to the buyer.

Profession: producer

The music producer plays the most important role in the creation and promotion of a musical product. He conceives the product, selects the performer and the material in accordance with the needs of the market. He understands market trends well, can influence the tastes and desires of the public, and is able to anticipate the needs of listeners. The music producer also financially ensures the creation of the product, he finds equipment, buys music, lyrics, pays for the work of performers and accompanying personnel. And another important function of the producer is to ensure product sales, he plans marketing events, organizes tours and concerts. The producer is a central figure in the music industry, he is a marketing and management specialist at the same time.

Marketing goals and objectives

Music industry marketing, like any other, has the most important goal - increasing sales. But in order to increase demand, it is necessary to solve related problems. An important goal of music marketing is to spread awareness about the product and artist. Only high awareness can lead to a purchase. Another goal of marketing is to create a product that satisfies the needs of listeners. Therefore, each performer must have not only a unique quality, but also a unique positioning. Music marketing must maintain constant communication between the listener and the performer, take into account changes in the perception of the product, and form a loyal attitude towards the product on the part of the consumer.

Promotion objects

There are several promotion objects in music marketing. First of all, it is a performer or a group. When a new name appears on the music market, marketing tasks become to create awareness of it among the target audience. Promotion of groups and soloists begins with the development of positioning, and only then communication is planned, demand is formed and stimulated. A performer also needs branding; every musician strives to become a brand, because this leads to constant high sales. An audio product can also be the object of promotion. A record, a concert, a film - all require a thoughtful promotional plan to maximize demand and profits. Music hits are most often the result of clever marketing efforts.

Marketing strategy

A long-term product development plan is called a marketing strategy. In order to develop a strategy, you need to have a good understanding of the state of the market and the specifics of the segment to which the product is being promoted. Music marketing as a specific activity cannot apply all existing marketing strategies. This requires a special approach that takes into account the characteristics of the musical product. The most appropriate intensive growth strategies are those based on increasing marketing efforts in existing markets. It is also possible to apply a deep market penetration strategy, in which case marketing programs stimulate the purchase of more goods, as well as services. Strategies must promote long-term and sustainable demand, therefore, in the music market, the image of the artist is extremely important, which must be carefully planned and maintained.

Music Marketing Target Audience

Marketing of the music industry is based on the concept, that is, on identifying a special target audience for which a given product is being developed. Defining a segment is extremely important for successfully marketing a product. The identification of the target audience in the music market is most often done according to the following parameters: age, gender and lifestyle. There is a product for youth, children and mature people, music for men and women. Lifestyle, interests, tastes are also criteria for identifying the target audience. You can see that today in all markets, including music, demassification is taking place, products are being produced for increasingly narrow audiences. So, there is music for fans of Korean TV series or for goths. This allows you to sell more goods.

Promotion methods

There are four main methods of achieving goals in marketing: demand stimulation, direct sales, PR and advertising. All four elements of the marketing mix are used in promoting a music product, but are used more often than stimulating demand. Promoting a song without advertising and PR is impossible. In order for albums to be bought, it is necessary to create awareness and demand, and for this, methods such as direct media advertising are used - posting information materials in the media, as well as BTL tools - event marketing, communications through social networks, Internet marketing.

Music product promotion plan

Based on the chosen marketing strategy, a promotion plan for the artist or group is developed. At the first stage, it is necessary to determine the goals of promotion, this could be, for example, creating awareness or maintaining fame. Then activities are planned in three areas: promotion (placing the product in television and radio broadcasts), publicity (creating information noise around the product, launching legends and gossip, giving interviews, placing in ratings, creating journalistic materials), performance (organizing live communication between the performer and listener, organization of concert performances, autograph sessions). Musical groups and soloists must be constantly heard, so it is necessary to use a variety of advertising and PR means to ensure the constant presence of the performer in the listener’s information field.

Brands in music

Marketing in the musical arts is initially associated with the creation of stars, that is, brands. In order for the listener to trust the performer and feel sympathy and affection for him, it is necessary to carefully consider the image of the future star. Promotion of groups or soloists begins with the creation of a name, which should contain a certain philosophy, a message, on the basis of which communication with listeners will subsequently be planned. The next step is to create a personal story. Fans want to know everything about their idol, so they will start looking for information about his personal life, past, and the producer must take care of the selling myth in advance. For example, the legend of the mega-popular group “Tender May” was a story about children from an orphanage, this gave the group an additional aura of pity and contributed to their popularity. It is also necessary to consider the appearance of the performer so that it meets the expectations of the target audience. In addition, you should formulate a key message that will need to be reinforced in the minds of listeners. For example, Stas Mikhailov is positioned as a singer for mature, divorced women, and this is his competitive advantage. Once all brand elements have been created, it is necessary to systematically maintain the performer's image.

Global experience in music marketing

Today, musical hits are born not only thanks to the talent of composers and performers, but most often thanks to the efforts of producers. Modern industry has put the process of star birth on stream. Of course, you need talented material to get started, but what you need more is a competent producer who is familiar with effective marketing methods for producing music brands. A striking example of such work by producers are, for example, Lady Gaga, Justin Bieber or the Viagra group.

Lecture - Sergei Tyncu

It’s amazing, but many people still don’t know how the music industry works today. Therefore, I will try to explain everything in a nutshell. And, by the way, if you don’t understand what industry is, then abroad this is understood as business. That is, we are talking about how the music business, or music industry, works. Get it into your head once and for all, industry is business.

Like any other, the music industry produces and sells a product. And this product is a concert. Previously, the product was records, but nowadays this is no longer relevant. Now the product is just a concert. Why a concert? Because musicians make money from concerts and listeners pay money for concerts.

Accordingly, the main goal of the industry is to understand the audience demand (in a given territory) for concerts of a particular format, style and price tag. The industry itself doesn’t care what music and what musicians it sells. Just to sell it better. It's like being in a bar. An adequate bar owner does not care what kind of beer he sells, and he bottles the one for which there is more demand and for which he can earn more - buy cheaper and sell more expensive.

For an artist to get into the music industry, stay there and be successful... all you need is one thing - to be in demand. It's like with any product in any market. If there is a demand for your gig, then you will be in the industry. If there is no demand, then you won’t be there. The industry is interested in artists who bring in money that people will come to see.

This law works both for large stadiums in America and for small taverns in the Samara region. The music industry is the same everywhere.

Please note that you don’t have to be good, but you just have to be in demand. But here people often think that if a product (a musician) is good, then it must be in demand. And these are different things. And the concept of “good” is very subjective. But the concept of “in demand” can be felt with your hands and measured in the number of viewers and the money they bring.

The industry consists of three main participants - the concert venue, the artist, and the viewer. And the main thing is the viewer. Because this whole thing exists with the viewer’s money. He pays for everything. Concert venues and artists live on his money. He calls the tune in every sense and pays for the banquet.

The industry doesn’t care how an artist achieves popularity and relevance (this is a personal matter and expense for the artist and his manager). Good music, scandals, good PR, fashion, etc. The industry doesn’t care what product it sells. Her task is to sell what is in demand. If people don't come to your club (or bar), then you're going broke. Therefore, the industry has the task of understanding what the people need - this is perhaps the most important thing in the industry.

Just imagine for a second that you have your own rock club. You spent money to buy it, you spend money to maintain it, you pay staff, and you have a bunch of other expenses. And imagine you need to choose one of the artists for a concert in your club. And pay him a fee. Who would you want to see in your club if you need to earn money and not incur losses?

Making an artist in demand and popular is the task of the artist himself (and his management). The industry doesn't care who to sell. She simply focuses on the current tastes of the viewing audience. Of course, these tastes somehow constantly change. Since the tastes of the audience are heterogeneous, the industry works with artists of different genres and styles.

In accordance with the popularity (demand) of the artist, the industry offers the viewer concerts at venues with a larger or smaller capacity, plus sets different ticket prices. But the industry is always driven by demand. You could say this is a soulless machine, stupidly reflecting the current state of the market and demand. Roughly speaking, the industry is thousands of concert venues, whose number, size and format are determined solely by the market, that is, the demand for certain artists and genres in certain territories.

Remember, at different times in different territories there is also a demand for different things!

It makes no sense for either the artist or the viewer to be dissatisfied with the industry. It simply shows the state of the market, reacting to it rather than shaping it. If something is not available in the industry, or is poorly represented, then this is only because at the moment in a given territory there is such a demand for this product (zero or small).

If an artist doesn’t make it into the industry (or makes it, but not on the scale that he would like), then it’s not the industry’s fault. She only reacts to the tastes of the crowd. And she doesn’t care about the specific names of the artists.

That's how it all works in a nutshell.

Accordingly, the concept of popular music varies. If you make music based on your taste, then don’t be surprised that the music industry doesn’t need it. Your taste does not necessarily coincide with the taste of the audience who pays. And if it does, then it’s not a fact that the quality of your musical product can withstand competition with other artists. Always remember the competition. Nowadays there are many more musicians in the world than the audience needs. Therefore, not everyone gets into the music industry.

If in a village the demand for music is one accordionist for a New Year's party, then ten accordionists will not fit into the industry of this village.

There are musician managers in the world. They are intermediaries between artists and audiences, artists and the industry. Some people (like everywhere else) can do without intermediaries, but others can’t. Like any intermediaries, managers strive to make money. Therefore, it is important for them to see and understand whether a particular artist can become popular or “not a horse’s fodder.” This vision and understanding distinguishes a good manager from a bad one. This is his income. The industry, again, doesn’t care how an artist tries to become popular - at the expense of managers or without. The word “manager” in this text can mean not only one person, but also an entire promotion office.

Many artists place great hopes on managers who, in their opinion, will solve all their problems. But it's not that simple. If the manager is good and understands the market, then he will only work with an artist who, in his opinion, has potential. And the artist must somehow be able to charm the manager, make him believe in himself. And it turns out that the manager is not a magician who sells a bad product, and the artist first of all needs to provide a product with the appropriate properties (which can be sold).

If the manager is bad, then he can easily take on an artist with unclear prospects. And here it may be that a bad manager will not help in any way, or it may be that an artist who is good from the point of view of market prospects will be successful even with a bad manager. But in any case, if an artist decides to promote himself with the help of a manager, then he needs to make the manager believe in this artist.

And we must remember that a manager is not free. If a manager (office) invests money (or time/effort) in promotion, then it means they see potential in the product (artist) and plan to recoup the costs and earn some more. And if none of the smart managers want to do business with you, it means they don’t see market potential in you. They, like everyone else, can make mistakes - try to prove it to them and the market.

Understand that if your potential is obvious, then a sea of ​​people will immediately form around you who want to make money from you. But if it’s not obvious, then you have to eke out a miserable life. It's like with women. If you are a super chick, then there is a sea of ​​men around you. And if you’re not very good, then the demand for you in the men’s market is much less. Everything is very simple in this world.

The music industry is subject to the same laws as the general market. Imagine a grocery store. There are 10 packets of milk from different brands. So let’s say you decide to make milk. Good milk. You come to the store and say - I have good milk, take it to the shelf. And they answer you, the milk may be good, but no one knows it and will not buy it - people’s demand has already developed for certain brands. Why do we need to buy some potential illiquid goods for our shelves? Then you start advertising your product - you shoot videos for the box, hang advertisements on billboards around the city, hand out free packages to the public at the metro, hire a star for promotion. All! Demand appeared - they took you to the store. First in one, then in another, then all over the country! You're in business, dude!

Of course, in reality the situation with demand and stores may turn out to be more complicated. They can say that they don’t care what they sell - people in the area will buy any milk for this price and therefore they are not going to change anything in the assortment. Then it will be necessary to motivate the store - offer them purchasing prices lower than competitors or stupidly push a bribe. In the case of concert venues, which don’t care who plays in their so-called tavern, everything is solved using the same methods - reducing requests for fees to the artist and, again, the good old bribe. This is the market.

A simple, clear diagram. But one detail is important here. You must produce milk of a quality that people like. And at the prices at which people want to buy it. That is, the package should not cost 200 bucks. And it doesn't have to be dog's milk. At least in Russia. You yourself may like dog (or rat) milk, but if you go to the market, try to crawl into the milk industry, that is, into business, then you need to take into account the demand for products in a certain territory.

That is, if we talk about the dairy industry, then everything is the same here - the product (artist), the store (concert venue), the buyer (spectator). And there are advertising departments and agencies (labels, intermediary managers) that promote products for money.

Of course, many musicians all over the planet don’t want to think about the market, product, buyers and other unromantic things. And many successful artists managed to live in their own exceptionally sublime world, doing nothing but creativity (but at the same time paying managers who are immersed in routine and everyday life).

But if you have not reached such a level of enlightenment, then you need to either deal with the market and your popularity yourself, or try to charm some manager (office) who will believe in you. And of course there are such managers. Because there are successful artists in any country, and someone is involved in the affairs of these artists. But if they don’t believe in you, then, my friend, all the problems are only in you. In no one else. It's hard to admit - to look in the mirror and say to yourself, “I guess I'm not what people need.”

Of course, you can hire a manager (like any advertising company) stupidly for your own money (and not for a share from concerts)... but this is like paid sex. They give it to the right guys for free. And if they don’t give you freebies out of love, then you clearly have some problems with being in demand.

Very often, unclaimed artists blame the industry, intermediary managers, and viewers for their lack of demand. It is so stupid. The industry and managers respond to viewer requests and demand. And viewers are free people who decide for themselves where to spend their money. If they don't want you, that's their right. They don't owe you anything. They didn't force you to study music.

And the most reliable way to join the industry, and all professional musicians and managers of all times know this... is very simple. You have to stupidly compose hits. That's all! Songs that people like. Write hits, dude, and you will definitely have everything! Pay attention - all the performers who failed to fit into the industry - they do not have a single hit.

But let's say you can't or don't want to write hits? But you can play other people’s roles - this is also in demand (in pubs and at corporate events), and with this they also get into the industry - just perhaps not at the level that someone would like. And if you don’t play hits at all, then there are no guarantees of getting into the industry. Maybe you’ll be able to get a job in the industry, maybe not.

OK it's all over Now. I hope now you understand why some artists have a lot of concerts and money, while for others the cat cried.

The modern music industry is a rather strange phenomenon that does not stand still and is constantly evolving. Those who have worked in the musical “kitchen” for many years know that sometimes it can be very difficult to predict what awaits us in the future musically. However, the profit system is always the same, and anyone who is serious about turning their music into hard cash would do well to have at least a basic understanding of how the music business works.

Therefore, we decided to write a small guide for daredevils who want and intend to promote their music and make good money from it. This is just enough information to give you a basic understanding of what the music business lives and breathes, and to get you thinking about how you could become a part of it.

Record companies

The “traditional” path to success in the music industry is to have your record heard by a well-known label who will then sign you to a contract to promote your work. It’s even better if you’ve already recorded several compositions that can be included in your mini-album, or in a full-length album, or several albums online.

Essentially, the label acts as an investor who invests their money in you and your project. This money goes toward studio rent, mixing and mastering, and your advance, which is paid up front so you can live until you start receiving your share of the sales, known in the industry as royalties.

The label also handles all the paperwork needed to release a track/album, which includes a breakdown of how royalties are divided: what percentage of each coin earned goes to you personally, the collaborators, and what percentage goes to the label to cover its initial investment and receive further profits that the label could invest in your promotion again.

Musical kickbacks

The Copyright Protection Society (MCPS) pays royalties for each copy of your track. This means that the more records you sell, the more you get. In addition, if your song ends up on CDs, or DVDs, or is used in any other way, then you also receive a certain amount for this.
For example: there are 20 compositions in the collection, and one of them is yours. This means that the Copyright Society will pay you 5% of all sales.

The long-awaited release of your music

Releasing your music means using your track in any form, and any revenue generated by the release of your music can come from many and varied sources. In reality, money comes in from every time a song is played on TV, radio or used as a film soundtrack, money comes in even when the track is played in Topshop dressing rooms. The list goes on and on.

Theoretically, it turns out that you get money for any use of your track. This system works thanks to collection agencies such as PRS in the UK or ASCAP (American Society of Composers, Writers and Publishers) in the US. These organizations track all the ways your music is used, then collect and distribute the money accordingly.

TV, movies and more

The main distribution channels and sources of profit in the music industry are TV, film and video games, and specifically, the distribution of the soundtrack of your music through these channels. The advantages of a phonogram are obvious: they will pay you just to use your composition; as a result, you receive new income from the fact that your song is used in film projects or TV shows, for example, as a soundtrack. Using your music in this way allows you to increase the recognition of you and your work, since it will be heard by a potentially huge audience that was not previously familiar with your music.

It's not easy to get tracks into TV and film projects, but there are specialized production companies that will act on your behalf to push your music in one direction or another. So, you can continue to do your own thing while agencies like these promote your tracks to people involved in film and television.

The need to compile a catalog of music that will be in the music library of music companies (more recently referred to as Music Production Companies) is quite understandable. After all, it is such a catalog that is potentially the most profitable of all the things you will do. As a rule, such a company will take a percentage for promoting your music. But you don't have to pay them upfront to represent you. Payment is made upon receipt. What's even better is that they don't get paid until your music hits the market, which means they'll work as hard as they can to get the word out about you.

Think about Rembrandt's "I'll Be There For You" - the Friends soundtrack - and how many people around the world know him...

Other sources of profit

What if you wrote and produced absolutely nothing? Don't worry, you can still make money from music. PPL streaming is not some typical distribution channel for songwriters. This is an additional source of royalties paid by broadcasters to artists for the use of their music. All those involved in the creation of the song (bassists, backing vocalists, etc.) also receive a small amount for their work.

Distribution

The distributor is responsible for getting your music from the warehouse to the store. To do this, if you create physical content, you need to enter into a distribution agreement.
As we know, 'physical' music lags in popularity compared to digital music, which is good news if you're starting your own label, since distribution doesn't have to be as effortful or expensive. Digital distribution means that your records will be available for sale digitally in all the places where your fans want it. For example, Amazon, Beatport, iTunes. In other words, digital distribution saves you from unnecessary fuss in every sense.

And finally

All of the above is quite difficult to accept, but if you want to connect your life with music, then you must understand the basic mechanisms of such a huge musical machine, and you must be ready, if you really want to make a name for yourself and leave a mark on the musical field, take on this is the case and go to the end, no matter what.
And we wish you good luck!