Music is the creator economy catalyst

In his book The Passion Economy Adam Davidson argues that our current century is one where people set up businesses that centre around their passions. This contrasts with the main tenet of the previous century, where the focus was on commoditization, production and scale. This economic change underpins an important marker which Davidson generalizes as follows: “The Passion Economy is about quality and the conversation you have with your clients.” (p.38) Music is perfectly positioned to play into this shift and, indeed, does so already.

Davidson doesn’t specifically write about music and musicians. Similarly, if we look at the top 100 social media as defined by the Knight Institute at Columbia University, we see platforms not designed for music or musicians but used by them nonetheless.

Social platforms sized by popularity. Source: Knight Institute

How creators create the most

The researchers at the Knight Institute call these bubbles ‘logics’ hinting at an underlying logic, or function, that connects what’s inside of the bubble. The biggest bubble is that of the ‘creator logic’ which the researchers define as follows:

“creator logic platforms are for everyone and enable users to share a specific type of media (like video, livestreams, or art), in a one-to-many fashion. They are home to “creators,” people who consistently make content for the platform, often as a source of income. Some examples of creator logic are YouTube, TikTok, Twitch, and Wattpad.”

Other platforms to include here are the subscription platforms such as Patreon, Currents.fm or Ampled. As Cherie Hu has argued last year, music is at the core of the the crowdfunding model underlying these platforms. What they may lack in popularity against platforms like Twitch, they gain in terms of the value they capture. Let’s go a little deeper into how music catalyzes these creator platforms and permeates the broader social media ecosystem.

Adding value

Whereas crowdfunding has strong roots in music, platforms such as Twitch, TikTok, and YouTube are first and foremost video-sharing services aimed at connecting people through experiences and stories. By now, we know how important music has been and still is when it comes to growth on these platforms. Twitch, for example, while still primarily being a platform for gamers, has seen massive growth in music streamers. Looking at Twitchtracker, the growth in channels and viewers between February 2020 and February 2021 is impressive. The number of channels broadcasting music tripled, and the number of viewers grew by almost 7x. Of course, the integration between Amazon Music and Twitch further establishes the role of music on the livestreaming platform. Similarly, music is a driver of growth on TikTok and music remains a key driver of traffic on YouTube with 22% of all views attributed to music videos. The reason, I argue, that music plays such a key part on these creator platforms is its ability to convey quality and trigger conversation.

A great example for this, which will immediately show how music permeates the wider social media ecosystem, is by going back to 2019’s biggest TikTok star: Lil Nas X. Besides having a breakout song that was ripe for conflict, perfect for meme-creation, ideal for dance challenges, etc., the artist also played into the feedback loops necessary to engage an audience. Moreover, he did so using a broad variety of social media, posting short snippets of songs on Twitter for example and asking for feedback. Of course, this requires a certain type of artist and not everyone is willing to engage in, what Jade Gomez recently described in Complex as: “commentary and memes that almost make them separate entities from their music itself.”

Capturing value

When, as an artist, you ask yourself how do I add value and how do I capture that value through my audience, it’s important to stay close to who you are. If you’re not the type of person who is happy to enter an endless feedback loop of commentary and memes, you can still look at how you can take advantage of stepping into a dialogue with your fans. The platforms are there and users are eager to engage with music. More and more, fans are becoming creators themselves, the dialogue between fan and artist becoming one where music-making is a shared passion. The creator tools for this are many and the business around it is worth almost $900million. Artists can draw the most loyal of their fans to places like Patreon, where they can give insights into their production processes and provide access to their own sound files for their fans to work on. A great example of this is Jamie Lidell, who sends out audio packs of all the sounds used during his podcast recordings to the higher-tier fans on his Patreon.

Big Tech and the Creator Economy

Recent developments show how the bigger tech companies are wisening up to the chain of feedback that allows artists, and creators more generally, to find audiences, cultivate them, and then capture their value directly. Amazon is one example of a company trying to create an integrated flow for this, but they miss the platform where people can take a megaphone and shout. A great place to do just that is Twitter. With their development of Spaces and the acquisition of Revue, Twitter seems to position itself as, what Peter Yang calls, “the full-stack platform for expert creators.”

Source: Peter Yang, creatoreconomy.so

The key element to this that Yang focuses on is the ability to mix content types. Again, this will have to fit the personality of the artist, but the message is clear: flip the value relationship between yourself as artist and fan and there’s a lot of value you can capture by directly adding value to the lives of your fans. This two-way street seems paved with music and while other creators can walk across it, it’s music that often acts as a springboard to growth and success.

Storytelling, a final word

Music drives the creator economy and permeates across all levels of social platforms. From Snapchat Stories to music subreddits, millions of people use social media every day to engage with music and musicians. As the Creator Economy continues to grow it’s the best storytellers that will reach the top. With a broad variety of available tools artists are primed to find, engage and connect with an audience that is just passionate, and sometimes even more passionate, as they are about their music. Let fans share in the story and capture the value they feel you’ve added to their lives.

Only 1% of a musicians’ life happens on stage, the rest is careering

One of the key things I took away from being a part of the Music Business Day at the University of Utrecht last weekend is that there’s ways to balance the weaknesses and opportunities that the pandemic has respectively exposed and opened up. I’ll look into this by focusing on four things to consider that Catherine Moore highlighted in our panel on ‘music futures, near and far’:

  • People
    • How to measure the market?
  • Place
    • How does music enrich the environment in which we live?
  • Public health
    • What is the role of music & musicians to support mental health?
  • Communication
    • Change the vocabulary around how music works within, e.g., a city: music venue is a sound manager not a noise maker. How do we communicate across disciplines?

Do you really want to be a musician?

When Jonathan Irons mentioned that only 1% of a musicians’ life takes place on stage, it presented a hook that allowed everyone else on this day of music business to contextualize. So much of what we feel is ‘the music industry’ focuses on the live experience. Fans mythologize live events and artists need to perform at 100% night after night on stage. Yet, there’s so much happening around those brief moments that musicians experience on stage. It’s there that musicians, or agencies, or labels, etc. can build a brand and a franchise out of the music.

That’s one thing that became clear: musicians need to treat their music as a business. And the second thing is that if the artist cannot do it, there’s an opportunity for another business to step in and help the artist sell their music. Most musicians grapple with all the many things that are expected from them: keep track of your social media, practice, do community management, write new music, practice more, and so on. Being able to do that requires time and money. As Sarah Osborn, of UK-based Incorporated Society of Musicians, mentioned, employment is one of the weaknesses that the pandemic has exposed within the music industry. So much in the business relies on freelancers and the question was raised whether the music industry will go the way of the acting profession. Will it become normal for a professional musician to have another job and just music doesn’t provide a sustainable life in and of itself?

We discussed this part of the music industry with the students to help them step into it with their eyes wide open and that it’s necessary to approach the portfolio career. Professor Emile Wennekes pushed everyone to put their names out there, either by publishing your music, writing about music, or even engaging in policy. Having set this stage, the day took a turn around Anthony Gritten‘s notion that we should look at career as a verb.

Careering through the music industry

People

When we start to think about the music business as a network that involves a lot of performativity this allows us to reshape our roles within it. Moreover, it takes those brief moments of live interaction between musicians and fans and networks them into more stages of reciprocity. When starting any venture, it’s important to know your market, to analyse your potential audience and find out where they are. If you make music, for example, you can use Spotify for Artists, Chartmetric, etc. to understand where your music is popular. A next step is to create something that brings benefits to both you and the fan. This is the staple of the creator economy, something that underlines the 1000-fan and 100-fan theories. There’s plenty to argue against this theory, but the essence sits behind every creator with a Patreon, every newsletter author who monetizes through Substack, and every band with a Shopify website.

Place

Music has the ability to enrich the environment in which we live and move. Starting with R. Murray Schafer (check out the World Soundscape Project), there’s a whole scholarship on ‘the soundscape’ and its role in determining how people relate to their surroundings. With Barry Truax this notion developed into something more attuned to design, something to influence. What our discussions during the Music Business Day added to this is that we need to embrace more the idea of music as a utility. Creating music for and bringing music into places to help improve experiences, interactions, and even personal psychology is not ‘selling out’ but a valid way to create and add value.

Public health

On the one hand this topic segues nicely from the previous argument around ‘place’. Creating music, making playlists, performing wellbeing are all great ways to help situate music in the cross-section of adding value for the musician and a fan (or not even necessarily a fan in this case). Moreover, there’s plenty of research to support that music has a positive effect both on health care and its associated costs. On the other hand, there’s the mental health risks for musicians, exacerbated by the current pandemic. With many musicians already having trouble securing a modal income through their music, taking out income related to session work and live performance made that even harder.

Communication

Terminology matters. It matters how we communicate and which vocabulary we use. Just think of how different it is to consider a music venue in a city a sound manager instead of noise maker. One key group working hard to change our vocabulary when it comes to music is Sound Diplomacy. Their objective is to show how music, and culture in general, bring economic, social and cultural growth to cities. One thing the pandemic has done is to shine a light on what music and culture bring to the table and how those industries could even help to kickstart the economy post-pandemic. Rebuilding Europe, research conducted by EY for GESAC, the European collective societies, shows that before Covid-19 hit the music industry grew 4% year-over-year, then, in 2020, it shrunk by 76%. And yet, because of the social cohesion attached to music and the power of communication connected to music it has strong potential to help bring about both a social and economic upturn as and when we start to move through the final stages of the pandemic. To help facilitate that, we’ll need to choose our words carefully.

Overall a day of music business left me with a firm notion that there’s only music industries instead of a singular music industry. At the end of the day, we were all quietly optimistic about the future with exciting changes happening right now to how music is created, performed, and consumed. And yet, there was also a strong sense that music needs to increase social capital and that a political voice is necessary to navigate what will be a rocky recovery from the impact of the pandemic.

Music’s TV opportunity: connected TVs and advertising revenues

TV is having a breakout moment, or perhaps we should call it a revival. For years, traditional TV, delivered via cable or satellite, has mostly seen their subscriber numbers dropping. This is mainly an issue in North America, followed by Europe and Latin America, while Asia and Africa still see growth in this department. However, TV is making a comeback over the internet, mainly through connected, or smart, TVs. When you buy a new TV from Samsung, LG, Philips, etc. you get access to a whole line-up of TV channels for free, but supported by ads. Data shows that viewing via these channels is growing fast and that streaming video now mainly takes place via connected TV devices.

For now, it’s the usual suspects of news, sports, and classic shows that attract people to watch those ads and pay with their eyeballs (and data). Now, music is primed to take a chunk out of this new revenue pie.

It’s Vevo time

Looking at what makes for popular viewing on what’s called FAST (free ad-supported streaming television) services, shows that it’s mostly a lean-back experience. It seems to be the kind of TV people put on in the background as opposed to sitting down and watching their favourite show on Netflix, Disney+, Amazon Prime, etc. Music’s, somewhat problematic, playlist culture, offers a way to tap into that market as it’s very well suited to a leanback experience. As such, there’s been a rush to release music-related channels on FAST services. From jazz to EDM and from karaoke to audio, the most obvious candidate to benefit from the leanback viewing experience is perhaps Vevo. First, they partnered with interactive music video TV channel Xite, and they’ve recently pushed into the world of FASTs launching on various services. Of course, Vevo was founded by major labels, helping it get access to both content and the artists who create it.

Reach and advertising

Since people who tune into a channel on a FAST service watch ads, it’s important to maximize the time they spend on your channel. A leanback listening experience is great for this, because it allows people to tune in do something else and have the TV on in the background. Of course, music will never beat the reach of sports, but it’s got something else. In the words of Bill Durrant, quoted in a recent DigiDay article:

“We are an industry that seeks out consolidation because it makes our lives easier and reaching a large number of people easier. But when we’re not doing that, we need [media companies] that aren’t microscopically small and still reach people around a specific passion point in consumers’ minds. That’s still relevant in driving involvement and consideration for brands.”

That’s where music comes is. A company like Vevo is not small and there’s hardly a better passion point than music. Moreover, a lot of brands are already familiar with putting their money against musicians and artists (I know you’re thinking of Travis Scott right now).

The music video format is also suited for advertising breaks with the added bonus for advertisers of utilising their brand partnership to combine their ad-buy with a deeper connection and product placement.

The future is on TV

Even YouTube shows that viewers are migrating from mobile to the TV. With the added bonus that on TV those viewers watch around twice as long as on mobile. Furthermore, eMarketer is expecting ad spending on connected TVs to grow by 52.9% in 2021. So while many of us will focus on TikTok, Snapchat, and other social media there’s a strong argument that a large part of what will happen for music in the near future will happen on the big screen. Various services, from TV makers’ owned and operated platforms to, for example, PlutoTV, are drawing viewers into their TV screens again. Brands will always be attracted to music and the dedicated audiences that come with it. Equally interesting are the laidback listeners who are willing to engage their eyes and ears to advertising while they enjoy a music video.

The future is a robot K-Pop star

A couple of weeks ago Bas wrote about AI music stars. Discussions surrounding virtual stars focus mainly – what’s in a name – on the virtual. But what if they had an actual footing in the real world?

Step in Boston Dynamics. If you hadn’t heard of them yet, you’ll probably have seen this video over the past holiday period:

It’s great, it’s catchy, it’s eerie, it’s a feat of engineering.

Recently, Boston Dynamics switched ownership for the third time in the last 7 years. Hyundai Motor Group, a South Korean company, has acquired an 80% stake in the company from it’s previous owner SoftBankwho will keep the remaining 20% stakeTechcrunch’s Brian Heater summed up the need for the ownership switches succintly:

“Each owner served its function for the company’s bottom line — Google offered resources for exploration, SoftBank compelled it to productize and Hyundai will deliver the sort of engineering and manufacturing know-how required to scale up its products.”

The whole idea, it seems, is to be able to utilise Hyundai’s robotic production lines to step up the commercial path to profitability for these types of robots. Currently, Spot costs around $75,000. Of course, Spot looks cool on YouTube videos but it’s not really much more than a walking camera. With Hyundai, development could move much faster than before. And the question arises: what could robots do that will help propel them into the mainstream?

Back in 2019, a couple of South Korean students landed a little bit of internet fame with a set of robots they developed that mimicked well-known dances by members of BTS.

There isn’t a lot in the world right now that has more pop-cultural clout than BTS and K-Pop in general is in a strong moment. And BTS has been experimenting with creating experiences that allow their fans to experience something virtual in an offline real-life environment. Their pop-up showcase launched in Seoul last November was, according to Big Hit Entertainmenta preview of the online store, which is available in the Weverse app (both the pop-up showcase and the online store are available until 24 January if you’re keen). The South Korean connection makes a collaboration between Hyundai, Boston Dynamics and a K-Pop band like BTS not unimaginable. What would it look like?

  • Avatar-like robots that can act like BTS band members, or perhaps even start their own idol-type group.
  • It could be as simple as making the robots a part of the band, added in first instance as a kind of dance crew.
  • More interesting perhaps than matching the robots to a real-life group such as BTS is to match them to a mixed real-life & virtual idol group such as Aespa. In that case, the robots can truly become an extension of the virtual domain in the real world.

None of this will probably happen soon, but it does suddenly feel a lot closer. Virtual and real-life actors continue to mingle as fans experience music as much online as offline. Adding robots into that mix could be a way to bridge worlds. Of course, it can be a creepy experience. Where BTS can hardly do anything wrong, both offline and online, Aespa is much more divisive. Robots look cute when they’re doing some rock ‘n roll dances, but different responses will be evoked if we interact with them directly and ascribe them more anthropomorphic qualities.