From the start, it was clear that Music Matters has a distinctly different feel from most other conferences, more of what I’d call a ‘family affair’. Unlike other conferences that offer a plethora of simultaneous, often lightly attended, Music Matters sets a unified program followed by all delegates. The message is clear: If you want to understand the Asian market, here is the information you will need. And whereas the other conferences make participants available to facilitate scheduling meetings in advance, Music Matters takes a completely opposite approach. “We want a free-flowing networking event where everyone has access to everyone else in a open format,” explained Commercial Director Stan Ruza.

While I was initially skeptical that this would work, it ended up being a nice and productive change, especially for someone looking to build up a broad base of contacts in Asia. I left with as many contacts as I do from other conferences, even though it was much smaller — composed mostly of decision makers from all the major Asian markets: from Tokyo to Mumbai, Sidney to Kuala Lumpur.

Japanese Nirvana

While I learned a lot about the Asian market in those 2 days, the most surprising “revelation” was actually a question: when will the Japanese music market surpass the US for the #1 position? More shocking were the estimates ranging from only 5-10 years.

So what exactly is happening to justify this doomsday scenario (at least from the US perspective)? Simple: the Japanese love music, and are still more than willing to pay for it, whether old or young. Kei Ishizaka, CEO & Chairman of Universal Music LLC Japan and RIAJ (Recording Industry Association of Japan) Chairman presented some facts in his opening keynote “New Strategies & Opportunities in Japan” that might make some in the West red with envy:

* Digital sales in Japan have increased from 7.5% in 2005 to 20% in 2008
* Mobile is the driver, accounting for 89% digital sales in 2008
* Note that this is a slight drop from 94% in 2005, credited to iTunes Japan which, accounts for 50% of online sales
* Japan is the only music market where digital sales have made up for losses in physical sales – that is until 2008, when physical losses appear to be outpacing the growth of digital sales
* Japanese music consumers appear relatively price inelastic, with a willingness to pay the highest prices of any country for music: up to $4/ringtone and $30+/CD album
* The Japanese music industry is still a hit-driven one

Perhaps most importantly, the Japanese music industry has not abandoned its most profitable customers: those over 40. The dirty little secret in the US is that according to Soundscan, CD sales have fallen faster amongst those over 40, largely out of neglect by labels focused on the youth market. The Japanese music companies on the other hand, have consciously developed products for the over 40 demographic, which (i) do not download music and (ii) are willing to pay big bucks ($30+) for a high-quality CD (ie music, packaging…).

This is not to say that Japan is a complete musical nirvana: more music was acquired via illegal means (407 million tracks) than legal (329 million tracks) on mobile platforms. In 2006, the RIAJ sent over 220,000 takedown notices, and have since filed criminal charges against mobile BBS (Bulletin Board System) site operators. But despite these challenges, the Japanese market has been growing non- stop, with the exception of 2008 when it recorded a measly 3% drop in sales, which is not generally viewed as a trend for the coming years.

Get Me A Piece Of That Pie!

By this point, you’re probably trying to devise ways to grab of a piece of the Asian pie. Think again! You’re still more likely to make it in the US or Europe than earning any yens or yuans. Just like the Great Wall of China, the Asian market presents nearly insurmountable challenges for even the most savvy western artists.

First, the Asian market is completely dominated by local repertoire. Japan is actually one of the more accessible markets, with international repertoire accounting for a little over 20%; though, this has been decreasing over recent years. Look outside of Japan and the numbers are downright depressing. Take the fastest growing markets such as Malaysia, Indonesia, India and China; and their local repertoires accounts for nearly 99% of total.

Put simply, Asians want music that they are culturally/linguistically comfortable with and can relate too. Of course there is Hip Hop, Pop, and Rock throughout Asia, but it is all sung in their respective native language, with their cultural nuances. This is in complete contrast with the West where English is, for all intents and purposes, a necessity to become an international star, whether you’re called Shakira, Bjork or The Scorpions.

In addition, Asia has no long-tail effect. It is still a hit-driven market, which tends to play against foreign acts. The general consensus among conference speakers and attendees appears to be that Asian consumers are just too busy working to go hunting for new music, to listen to podcasts, or to endlessly surf social media sites.

As such, Asian consumers are much more ‘captive’ to recommendations and editorial leads than say the US, where we have a proud tradition of bin-diving for that rare LP – wasn’t the old Napster and today’s MySpace simply the digital shape of this art form? The fact that mobile drives music consumption as opposed to the net, has some part to play in this as well. For the same reason, all-you-can-eat subscription services competing with iTunes are not likely to gain a sufficient subscriber base despite the markets’ sizes.

But let us say, for argument’s sake, that you do develop some recognition in an Asian market. How do you expect to generate money from it? You’ve all heard of the scourge of piracy in Asia, so I don’t want to rehash the topic. Let me just leave you with this fact from Google China’s Bin Lin: of the 7,000+ music services in China, only 0.1% of their offerings are legal downloads.

Licensing isn’t much help either. Unlike North America and Europe, where Performing Rights Organizations (PROs) have a long history, collection agencies are relatively young in Asia and have yet to get a grip on the digital market. As a consequence, there is a lot of mistrust between publishers and PROs, which significantly hampers licensing opportunities. If one takes the Indian market for example, where 70% of music consists of soundtracks (courtesy of Bollywood), music labels have been collecting all relevant rights until recently.

Even the mature Japanese market has its eccentricities, such as songs being available free of sync licensing for commercial purposes up to one year after its release. As a consequence, success in the Japanese market may well depend on a willingness to waive sync rights for commercial use, representing an important way to break a song, explained Kimitaka Kato, Universal International Managing Director.

Are You Depressed Yet?

Frankly, I’m not! My recommendation is too look at the Far East as the Wild West: full of opportunity for those with the patience and guts too tough it out. The first lesson is that you are nobody unless you are here. Thus I made the trip to Music Matters and then to Beijing, where I met a successful music pioneer, Kenny Bloom.

Bloom, who was kindly referred to me by NARIP’s (National Association of Record Industry Professionals) Tess Taylor, came to China over 20 years ago to launch Warner Music. He now runs Mogo (www.mogo.com.cn), one of the coolest video sites in China serving the young, hip (undeserved) Chinese urban youth. So why is he still in China with everything I previously mentioned?

(i) China has the largest internet population (around 300 million, ie, the entire US population)
(ii) Around 80% of Chinese internet users are music consumers (240 million)
(iii) Music was the #2 search term for the last 3 years
(iv) At $50 billion annually, China is now the 2nd largest advertising market (It just recently surpassed Japan for the #2 position)

He also has a different take on the Chinese consumer. According to Bloom, it’s not so much that the Chinese are busier or harder working, but that they are in an underdeveloped media market. Media in China (TV, radio and to some extent the internet) is directly or indirectly controlled by the Communist government.

As The Economist recently noted “the proliferation of channels for media, information and entertainment offers unbounded scope for the [Chinese Communist] party to get its message across, abetted by commercial operators.” One consequence of this is the sanitizing of media in order to appeal to a national audience that includes rural peasants as well as urban dwellers. It’s a process not unlike our over-conglomeratized radio or broadcast TV markets, which is suffering from competition by more original and niche programming on cable, satellite and the internet.

The upside is that this presents unique opportunities to serve the growing chique urban class, which the centralized media market is incapable of satisfying; a segment Bloom estimates to be 40 million and growing. By serving this high-value segment with high-quality, original video programming, Mogo is able to attract big-name brands such as Converse that place a premium on this demographic. To some extent, Mogo is trying to do for China today what MTV did for the U.S. in the 80′s.

Another Beijing-based company to watch is Yobo Music (www.yobo.com), a recommendation and discovery site for music. Its founder Allen Guo was perhaps the most eloquent at Music Matters on the need to offer Chinese consumers a variety of models and services that enhance their music experience. Only by meeting the various needs of different consumer segments — as the Japanese music market has done so successfully — will alternatives to piracy be sustainable. make bath salts

Future revenues will be driven by value-added music services rather than easily pirated downloads or ringtones. And while advertising may seem a panacea to many in the U.S. and China (did I mention they are the 2 largest advertising markets), Allen noted some success by Yobo Music with other revenue models such as micro-payments and music gifting.

The Silver Lining

In the end, the Wild West was tamed and I believe the same will happen with China. America in its first 50 years was home to pirates (ie., privateers) and some of the worst copyright/patent infringers of the time. This is part of what lead to the growth of the young, scrappy republic. But as it matured, and itself became more of a creator/innovator, America began to place increasing value on protecting copyright/patents.

The same will be true for China. As Bloom noted, “How do you expect a people that had no concept of private ownership 10 years ago to understand, let alone value, something like copyright?” In other words, not only has copyright been a foreign concept, it would have been counter-productive to the country’s development. But as it begins to export more cultural goods and develop new patents, that trend will reverse as surely as it did in the US. The only question is whether it can put the genie back in the bottle when the time comes.

I happened to arrive in Beijing on the 20th anniversary of the Tiananmen Square incident. Sure enough, I could not access Twitter or YouTube, and any coverage on foreign TV channels, like BBC were blocked by a blank screen. Once the Communist Party determines that copyright is something worth putting the effort towards protecting, I wouldn’t give those 7,000+ so-called music services much of a chance.

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If you are a newbie to this concept then hold on because you are in for a ride. Once you discover how many music promotion resources there are online, then you will be amazed at where your career goes. You can be the most talented artist out there, but if no one knows who you are then it won’t mean a thing.

Independent music promotion is on the rise. Artists and musicians alike are sick of sitting around waiting to get signed. They are ready to reach the masses on their own. And the awesome thing is, they have all the music promotion resources they need and all within arms reach. These artists are sick of waiting and you should be too. But you have to do something about it.

First things first, get a website to start with online music promotion! Chances are that since you are a musician, you are not an internet savvy tech guy or gal but that’s ok. There is a plethora of help out there, you just have to want it and get it! Do you realize that by acquiring a website, you can sell CDs, build an immense fan base, write and send newsletters, book gigs, post bios and have a specific place of reference for anyone to go to who wants to know more about you or your band?

Another bonus of independent music promotion is that you keep basically all of your profits! Doesn’t get much sweeter than that, does it? You might be thinking, how can I do this on my own? Well, you can and you will with the right guidance. So, now you know your first step in your quest to conquer online music promotion. Now all you have to do is make a plan and accomplish those goals, one by one. My suggestion is to find powerful music promotion resources that will guide you through creating, designing and marketing your website.

Once a band was given a shot to perform live in front of a recording studio representatives, or submit demo CD’s to recording companies, its members must be prepared enough to give their best. In addition, preparing for various promotional materials like a band press kit and demo CD must also be included on the overall preparation.

Having more rehearsals can help an amateur band perform well everywhere, in a rehearsal studio, on stage or even in front of top executives of a recording company. A band can spend more time in practicing and recording their music to analyze flaws and weak points of a certain song. Band members can always do a revision if possible to enhance their music.

Preparing a band press kit is also a necessity for any band. A band press kit or portfolio contains the demo CD, band profile, band photo, list of songs and a business card to create visual identity for the band. Amateur bands can express themselves through die cut business cards, a more personalized form of business card that suits a specific need and purpose. Amateur bands can also seek for reliable printers to create their band photos. This is important because quality photos can show professionalism. Photo printing and business card printing are just some of the many ways that amateur bands can resort to.

With these kinds of preparation, it is possible for an amateur band to get an opportunity to record their songs and be widely known. Band members must consider the saying that applies to all people: “If you fail to prepare, prepare to fail.” With that saying, amateur bands must consider preparation as an important part of their success.

The Digital Music Market Outlook: Evolving business models, key players, new challenges and the future outlook

The increasing adoption of broadband and mobile technologies and the widespread adoption of smart phones and portable music playing devices continue to drive the digital music market. The music industry landscape is undergoing major structural changes as companies from other industries become integrated into music distribution, and business models transform to adapt to changing market demands. Piracy remains a major concern in the industry, with losses from illegal downloads running into billions of dollars. ‘The Digital Music Market Outlook: Evolving business models, key players, new challenges and the future outlook’ is a new report published by Business Insights that analyzes the growth of the digital music market and recent transformations to the industry structure and business models. The report examines the growth drivers and inhibitors of the market, emerging geographies, industry challenges and the future market outlook. It also provides detailed profiles of the leading digital music service providers including an examination of their operations, service offerings, financials and strategic outlook.

Key Chapters :

The Digital Music Market Outlook

Executive summary 10

Digital music – the new era 10

Key markets 11

The value chain and evolving business models 12

Key challenges 14

Future outlook 15

Key players 17

Chapter 1 Introduction 20

What is this report about? 20

Methodology and definitions 21

Chapter 2 Digital music – a new era 24

Summary 24

Global market overview 25

Market size and growth 25

Segmentation – online and mobile music components 27

Digital music more popular among younger consumers 29

Growth drivers 31

Increasing penetration of broadband and mobile technologies 31

Soaring sales of smartphones and portable players 33

Expanding online catalogues and DRM-free strategy 34

Key trends 34

Innovative marketing drives the market forward 34

Move towards DRM-free tracks 35

Partnerships emerging across the value chain 35

Artists reaching out to fans directly 36

Growing involvement of local governments and ISPs in controlling piracy 36

Chapter 3 Key markets 38

Summary 38

Developed markets 39

US 39

Japan 44

UK 52

France 56

Germany 57

Emerging markets 57

China 57

India 59

Brazil 60

Chapter 4 The value chain and evolving

business models 64

Summary 64

The virtual music value chain 65

Artists 67

Record labels / production companies 67

IP rights protection body 68

Physical retailers 68

Digital music retailers 68

Consumers 70

A-la-carte downloads vs. subscription services 71

Key emerging business models 73

Advertising supported services 73

Artist led distribution channels 75

Linking with brands, merchandise and mobile games 76

Music access services by ISPs and mobile operators 78

Partnerships across the value chain 79

Flexible pricing 81

Chapter 5 Key challenges 84

Summary 84

Introduction 85

Piracy – plague of the digital music industry 85

Depth of the problem 85

Piracy spans across geographies 87

Steps to curtail piracy 88

Role of ISPs and government support 89

Legal action against P2P networks 90

Initiatives by record companies 90

Interoperability issues – finding an effective DRM system 91

Determining the right price for digital music 92

Chapter 6 Future outlook 94

Summary 94

Strong growth to continue 95

Developed and emerging markets 95

The future face of music – music to go 96

Graduating to full-track downloads and music videos 96

Evolution of business models 97

Subscription model is the key to the future 97

Ad-supported services will become more popular 97

Labels reaching out to consumers directly 97

Cashing in on live music 98

Capitalizing on popularity of social networks 98

Emergence of new business models 98

Changes in the pricing mechanisms 99

Technology innovations and advances 99

MP3 player market to grow with innovations 99

Technology enabling music on the go 99

Convergence of multiple formats, devices and channels 100

Audio formats and quality 100

Music piracy 100

Music piracy most rampant among younger consumers 100

Collective efforts required to curtail music piracy 101

Chapter 7 Key players 104

Summary 104

Digital music retailers 105

iTunes Music Store 105

Overview 105

Service offerings 105

Operational and financial performance 107

Strategy 109

eMusic 110

Overview 110

Service offerings 111

Operational and financial performance 112

Strategy 113

Napster 114

Overview 115

Service offerings 115

Operational and financial performance 116

Strategy 117

Rhapsody 118

Overview 118

Service offerings 119

Operational and financial performance 120

Strategy 122

Amazon MP3 123

Overview 123

Service offerings 123

Operational and financial performance 124

Strategy 124

7digital 125

Overview 125

Service offerings 125

Operational and financial performance 126

Strategy 126

Wal-Mart Music Downloads 127

Overview 127

Service offerings 127

Operational and financial performance 128

Strategy 128

Appendix 130

Index 130

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The Music Booking Agent typically has staple clubs that are in his or her core of places and the agent simply tells everyone where to go because they know who does what and which clubs are looking for what type of music. In a perfect world that is great and that is the part where musicians tend to shut off. After all, the band is the one in the club working their tail off to make the 20 percent commission for the agent, right?

What about the countless hours that went into the networking with the clubs and the bands to build up his roster of both? What about the phone calls to find new clubs and the promotional material that had to be done?

What about the band that he had booked that breaks down on Sunday night in Hibbing, Minnesota that was supposed to open up on Tuesday night in Yuma, Arizona? Would you like to be in his shoes trying to route in another band or to call the club and say, “guess what”? I know I would not like to be in that position.

I personally have been on the road and have had both good and bad Music Booking Agents handling the tours. The bad ones we fired quickly and the good ones we would go out of our way for because they were smart. They didn’t route you in Minnesota one week and Arizona the next. They looked at the map and kept the between gig miles to a minimum.

Music site like myMusicCircle give you yet another avenue to locate the professionals that will make you life easier. Music Booking Agents are one of those enigmas that can make or break you when you are out there. So look hard and when you locate a great one, keep them happy and remember they truly earn the money they get.

An artist or band manager will play many roles. One role they fill is handling all the music contacts. These music contacts include club owners, agents, labels, A&R, promoters and many other professionals in the music industry. The manager may also handle marketing, promoting, tours, budgeting and booking shows. A manager may have to wear many hats so it is important to pick someone who is reliable and trustworthy.

When searching for a manager, there are many questions you should ask yourself before settling on one particular person.

1.First, does this manager typically handle your genre or field of music? If you are an Indie artist, then make sure this manager is prepared to deal with the field of independent music. Are they more into hip hop while you have a more alternative rock feel? It is important to pick a manager that specializes in your genre.

2.Trust your instincts and ask yourself how trustworthy they feel after meeting with them. Are they just tooting their own horn or are they the real deal?

3.How are their references? Ask or call around to other music contacts to see what they say. Hearsay is important in the music industry, believe it or not.

4.How experienced are they? If they are just beginning their career then how well connected are they? But then again, they may put more effort into your band if they have something to prove. Make a list of the pros and cons of each.

5.Do you know anyone else that has worked with them? Find out how ethical they are. You don’t want to butt heads with your manager over ethics in the music industry.

6.What style of management are they? Are they go-getters or laid back? Talk to other artists who have worked with them, if possible.

7.Keep in mind that managers usually work for a percentage of what you make. Try to avoid a manager that asks for a salary.

Having a valued and honest relationship with your manager is crucial. You want to be on the same page as your manager whether you do independent music or are signed. Make sure your manager is making the proper music contacts and truly believes in you. After all, you don’t want to work with, for or beside someone who doesn’t have your best interests in mind.