Tuesday, April 24, 2012

Music Industry and Changing Technology



Popular progressive jam band, Umphrey’s McGee, is playing a show in front of a select group of fans in Chicago.  Everything seems normal except for the giant projection screen that displays phrases such as; “Mudslide on Mars,” “Climbing a Mountain,” and “Funky Imperial Death March.”  These seemingly random phrases are being text messaged by fans to the Mozes App and selected by the band’s sound board operator to be used as guidelines for how the band will conduct a set of improvised music.  This unique event has been named the band as Stew Art series and is performed in select cities during Umphrey’s tour schedule.  This event is one of many examples of how new and improved communication technology can create unique ways for music artists to interact with their fans.
            The last decade has seen a tidal wave of new communication technology.  From cell phones to smart phones, AOL to Facebook, laptops to iPads, the way people communicate with each other has drastically changed and become more of a constant interaction between friends, family, and even strangers.  This constant interaction between people has also been catalyst in changing the way the music industry operates.  Since most people can find ways to illegally download or listen to copyrighted music on YouTube, artists and the labels that promote these artists need to find innovative ways to maintain a devoted fan base and make a profit off that fan base.  By incorporating new communication technology such as social networks, mobile phone, apps, and music listening services, artists are finding ways that allow more interaction with their fans that in turn create a devoted fan base.  As some members of the music industry worry about the decline of album sales due to illegal downloading, the people who are take advantage of these more interactive mediums are finding success by developing more intimate and loyal fan bases.
            To fully understand how artists are successfully incorporating these technologies, it is important to understand how the industry has changed with the advent of digital music sharing.  In the 90’s, as CD’s completely replaced records and the internet became the main medium of communication and information, it was inevitable that digital music would start to be part of this giant communication network.  (Hunt, 3)  Unfortunately for the major record companies, this made music piracy much easier and from 1999 to 2006 record sales fell 26%.  (Ogden, 5) 
While most record companies were panicking about their albums sales, one company, Apple, used the popularity of the Mp3 based, file sharing phenomenon to their advantage.  By introducing two user-friendly products they managed to find a successful way to profit off of the digital music medium.  The iPod gave users a practical way to listen to and store vast catalogs of music and iTunes gave users a convenient and more personal way to purchase that music.  Instead of purchasing full albums, users can purchase individual songs for usually .99 without leaving their house. (Hunt, 3)  Between 2003 and 2006 digital media sales reached 1 billion downloads. (Ogden, 5)  This shows that by taking advantage and embracing new technology a company or musician can find ways to be successful even in an age when most forms of media can be found for free.  Even though this was an example of a major company finding success, it shows how providing consumers with a more personal and interactive product will gain brand (or in others cases, band) loyalty.
            One area of the music industry that has been changed due to more interactive communication technologies is the way artists are able to distribute their albums.  There are many different routes that artists can choose to take when it comes to releasing their material nowadays.  For instance, the indy rock band Dr. Dog recently released a new album “Be the Void.”  But before this album’s hard copy was released to retailers, the band posted a streaming audio version on TV host, Conan O’Brien’s fan website.  This stream only lasted for a limited amount of time and allowed fans of the band to get a listen to the album before they were able to go to the store, or iTunes, and purchase a copy of their own.  (Bleyaert)
            A much more unique way that artists have approached this by implementing the method of a “pay-what-you-want” pricing scheme.  One of the more notable instances of this scheme is when the band Radiohead used it for the release of their 2007 album “In Rainbows.”  In their implementation of this pricing scheme, they allowed listeners to download their album from their website and pay the price whatever prices they thought the album warranted.  This scheme initially received criticism but as it turned out almost 40% of people who downloaded it paid and the payments averaged six dollars per album. (Ramaprasad, pg. 3)  Besides, the financial implications of using a distributive method such as this, the concept of allowing consumers all over the world to dictate what they’re going to pay for a piece of art is a testament to the seemingly unlimited power of the digital media platform.
            One of the most emerging areas of the digital media market is social networking and the multitude of ways that these networks connect musicians and fans.  At the center of the social networking world is of course Facebook. Facebook employs a system called the Open Graph that represents relationships between 700 million users and the things they care about: movies, books, videos, events and music. (Peoples, pg. 2)   This graph allows companies to integrate their websites into Facebook’s eternal structure which allows more interactive methods of sharing activities and interests. (Peoples, pg. 2)  Many of these companies offer music related websites that provide users with different ways to share what they’re listening to.




            Among the different music related websites that have promoted interaction with listeners is the website SoundCloud.  This is a website that allows users to upload audio content which can then be streamed to any interested listener.  Users also have the ability to browse for different artists to listen to.  You can also comment on particular pieces of music at different points during the song, kind of like how you can comment on photos and status updates on Facebook.  Also like Facebook, SoundCloud allows users to become “friends” and start groups.  This helps create networking opportunities for both fans and artists who use this website.
            SoundCloud offers up a good example of how social networking is becoming more and more important to the music industry.  Newer artists who just want people to hear their music can easily start an account and upload their music to the website.  Established bands can use it to stream special releases or sneak peaks into what they are currently using.  In fact, it is the same service used when Dr. Dog streamed their new album through Conan O’Brien’s website, as was mentioned earlier.   By combining the simplicity of YouTube with the communal and networking capabilities of Facebook, SoundCloud offers an interactive medium for both fans and artists to engage in music consumption.
            Another website that has become more and more popular among Facebook users is Spotify.  This website, or App if using a mobile device, connects users to a vast library of music where they can create their own playlists and share what music they’re currently listening to.  By using streaming audio instead of actual MP3 files, Spotify allows for a more practical method of sharing music amongst listeners. (Peoples, pg. 4)  By utilizing the convenience of streaming audio with the networking capabilities of Facebook, Spotify provides listeners with a way to find music they might not otherwise find.  The company’s chief product officer, Gustav Soderstrom, says that the users who connect their Spotify accounts to Facebook listen to a wider variety of tracks, have more than double the number of playlists in their libraries and are more likely to convert to being a paid user than those who haven’t linked up. (Peoples, pg. 5)  This shows how new music listening programs that make use of social networking can create a wider market for the music industry.
            Besides helping artists and fans, social networking has also benefited some of the major companies that help drive the music industry.  Small ticket companies such as TicketFly of Eventbrite have utilized Facebook and Twitter as word-of-mouth marketing agents, as a ticket purchase shared on one of these sites provides excellent adveristing for the event. (Bylin, pg.4)  A more notable player in this area is the concert ticket conglomerate, TicketMaster.  Besides relying on concert goers posting status updates or tweets about when the next big show is, they have also began tapping into Facebook’s Open Graph to add social features. (Bylin, pg. 4)  Last August, they released a new feature that provides fans with an interactive seat map where Facebook friends can see where they are sitting at a particular event.   (Peoples, pg. 2)  Ticketmaster CEO, Nathan Hubbard, says that 80% of buyers who “tag” their seats choose to share their location with everyone, not just their Facebook friends, showing that this program has the potential for people to expand their networks. (Peoples, pg 5)   Even though this is not direct contact between fans and artists, it does create interaction between fellow concert goers and helps the company that provides them with tickets.
            Among all the artists who are currently recording new music and touring, the band Umphrey’s McGee, who was briefly mentioned at the start of this paper, has managed to utilize just about every facet of the emerging world of communication technology.  Besides holding interactive concert experiences like the Stew Art series that was described in the opening paragraph, the band constantly relies on social networking and other mediums for promotions, distribution, and feedback. 
            When it comes to promoting concerts and albums the band has always been able to get peoples attentions.  For every concert they announce, you can RSVP on Facebook and be entered in a drawing to win a pair of free tickets.  This helps get the word out about concerts and helps out their ticket sales.  They also release promo videos through YouTube, Facebook and their own blog entitled “The Floor.”  Some of these videos are just live footage from their concerts, others are behind the scenes looks into the recording process, and others are mini documentaries about different aspects of the band.  These videos give fans a more intimate and personal view of the band which means they will be inclined to purchase music, merchandise, and attend concerts.
            They also have utilized different technology and social media when it comes to distributing their music.  Every show they play is recorded live and available for download at a nominal fee usually within 24 hours of the concert.  This is done through a website entitled Livedownloads.com which specializes in providing this kind of content.  Also, a setlist and a link to this download is always posted on their Facebook account following the concert.  In an example of how social media and fan interaction led to new album, after many requests for a collection of their most prized pieces of improv, the band released “Raw Stewage,” a 7 hour collection of 33 live tracks that was available as a paid download priced like a typical album. (Smith)
            When it comes to feedback, Umphrey’s goes to a new level of fan interaction.  Before certain shows, such as their annual New Year’s Eve concerts, they will usually conduct online polls as to what songs the audience wants them to play.  They will even go so far as to conduct polls on what songs the audience would like to hear in their new albums. 
One event they hold that is completely reliant on feedback and fan interaction is the annual UmBowl.  This event is made of four quarters of music, each with its own unique method of interaction.  One quarter utilizes the method of improvisation from the aforementioned Stew Art series. Another quarter is a set of songs that fans voted on before the show.   Another quarter brings interaction between fans, band and technology even further. The Third Quarter features a "Choose Your Own Adventure" approach. Songs are chosen via preplanned polls of three options, including songs, jams and themes, which are shown on the screen.  Fans text in their votes which are automatically tallied and displayed beside the poll options. The opening song is chosen before the set starts and the rest occur while the band is playing.  (Smith)  Here we see the potential that new communication technology has when it comes to changing the way we view music.  This event is promoted online, tickets are bought from online ticket retailers, the songs that are played are chosen by fans online, and the ideas that band uses in their improvisation are sent to them via mobile phone technology, and after the show is all done the audience will have a digital copy waiting to be loaded into the iPod and enjoyed whenever they want.
Heres a youtube video explaining the concept :  http://www.youtube.com/watch?v=4E1h8_OAfG0
            Although Umphrey’s McGee’s don’t make the top of the Billboard charts and their songs don’t receive much air time, they have still managed to find large success and incorporating these technological have most likely played a role in that.  One way I am able to measure this success is the fact I have been attending their concerts for the past six years and find it increasingly more difficult to get tickets.  When they come to Philadelphia they usually play the Electric Factory which holds around 2500 to 3000 people.  When I first saw them in 2006, I was able to buy a ticket at the door and watch them play to a crowd that only filled about 2/3 of the venue.  At least the last two times I saw them there, the tickets were sold out prior to the show and the venue was as tightly packed as possible.  Now the use of social media and other technologies can’t be held solely responsible for this success but by utilizing these technologies to their full advantage, Umphrey’s has created a loyal fan base that is more than likely to attend their concerts every time they come around.
So whether you are looking to find new music, trying to promote your own music, eager to download new music from your favorite artist, looking to see who else is going to the next Radiohead concert, or hoping to find a new music experience that is completely outside the box of convention, you will be able to accomplish these things by utilizing the latest innovations in communication technology.  Social media, mobile technology, and the digitization of audio files have all played a major role in the growing interaction that fans, artists, and music related companies are capable of having with one another.






Works Cited
Bleyaert, Aaron. "Fresh Noise: Dr. Dog Full Album Stream." TeamCoco.com. Turner Sports and  Entertainment Digital Network, 31 Jan. 2012. Web. http://teamcoco.com/drdog
Bylin, Kyle, Louis Hau, and Glenn Peoples. "Building Digital Business Around Music and     
Rights." Billboard 3 Dec. 2011: 16-19. Business Source Premier. Web

Hunt, Kenneth A., and Mellicker Andrew. "A Case Study of the Music Industry." Journal of
Business Case Studies 4.3 (2008). Print.

Ogden, James R., Denise T. Ogden, and Karl Long. "Music Marketing: A History and
Landscape." Journal of Retailing and Consumer Services 18.2 (2011): 120-25. Print

 Peoples, Glenn. "The New Connectivity." Billboard 123.35 (2011): 12-17. Business Source
Premier. Web

Ramaprasad, Jui, Remi Desmeules, and Genevieve Bassellier. "A Look at Shared Value and
Shared Social Responsibility." McGill Univeristy (2012). Print

Smith, Clyde. "Umphrey's McGee: Using Technology to Empower Fans to Shape Music and
Business." Hypebot.com. Skyline Music, 11 Apr. 20120. Web.
<http://www.hypebot.com/hypebot/2012/04/umphreys-mcgee-umbowl-playlist-created-

No comments:

Post a Comment