Tag: trends

The benefits of being an early adopter

Posted on | by Bas Grasmayer

Exploring the value of being a first mover, connecting with founders and building a profile in a nascent community.

While reading through a Medium post a couple of months ago, I stumbled upon an email subscription form near the bottom of the article. I’m always thinking of how I can better convert readers to my newsletter, so it immediately caught my interest. Why? Because I had never seen an embedded form on Medium.

Up until then, I had been using a service called Rabbut, which embedded an image that looked like a form and when clicked, would open a new page with the actual form. The new service looked much better. I immediately signed up.

It’s called Upscribe and after signing up, I went to see how I could export collected email addresses. This service, like Rabbut, was geared at the bigger email newsletter services, like Mailchimp, but I’m an early adopter of a service called Revue. So I chose ‘Other’. I got an email from the founder:

So I told him about Revue and after a week he wrote me back, telling me he had added the integration. Super awesome.

Being an early adopter makes you a VIP

Early adopters are often services’ most important users. This may mean that you can interact directly with the service’s founders or chief product person.

Revue founder Martijn de Kuijper mentions that all the time they put into talking to their users is essential for feedback and validation of the product. A feature he says came directly out of user feedback is their recently launched Themes. “We got a lot of requests for HTML templates and customization options, so we developed a new feature that lets people add personality to their digests in an easy-to-customize theme.” 

Other examples of how the Revue team connects with their community are a Slack channel, where they ask people for occasional feedback, but also keep the community connected, and an open roadmap on Trello, where users can see what features to expect and can give input on features through comments.

This means that as an active early adopter, you can have a lot of sway in the product direction of a tool and have it tailored to your needs, with a bit of luck.

Wil Benton, who founded Chew, a livestreaming platform for DJs and other personalities in music, feels that the “first 100/500/1000 users are the most important users you’ll ever have.” In part because you can’t think about everything yourself and users help you figure out things you missed.

He adds:

“Early adopters are critical to you going from janky MVP that only you would ever use to a product a completely random person on the opposite side of the world could (and would want to) use.”

Being an early adopter makes it easy to stand out

There are benefits beyond being an important voice for founders. If you’re active in a young community, it’s easy to build a profile for yourself.

Sales can be interchanged with users, or other metrics you’re tracking.

Be active, engage with others, and if what you’re doing on the platform is really good, you’ll build a following. This will get you featured. The power of being featured is that startups usually aim for something named hockeystick growth.

If you’re featured when the growth suddenly starts accelerating, you benefit from the network effect, because new users often end up following existing accounts, since they won’t have any friends on the platform yet.

Sebastien Lintz, who does digital for Hardwell, manages Revealed Recordings and Sorted Management, recently explained on a panel at Play & Produce in Ghent, that he had had a lot of success by simply being the first with quality content and a good strategy for new platforms, mentioning Musical.ly and Live.ly.

I’ve had similar experiences with Revue, where my newsletter was featured, and if I had more time, I’d love to build a profile on DJ / remix apps like Pacemaker and 8Stem.

Check them out.

Your chance to be an early adopter

I really recommend spending about half an hour a week on Product Hunt. It’s a place where people post new products and services, so you’re among the first to hear about them. If you want to be a super early adopter, you could even sign up to Betalist, where you can get early access to beta versions of products when founders need people to test their products.

And a special opportunity:

I’m working with a startup that’s building a tool to easily message large groups of fans on Facebook Messenger. The idea is simple: you onboard your fans, ask them for a few things like location and email address (just in case Facebook changes algorithms again), and then you can push personally relevant updates to fans about new releases or shows.

I’m going to be writing a lot more about this topic once we’ve got everything set up for you to give it a go, but if you’d like to get on the list and be among the first users: use this link.

Why you shouldn’t build an app

Posted on | by Bas Grasmayer

Apps are not the answer.

With all the choices you can make for engaging people through their mobile phones, apps should be considered a last resort. Why?

Asking people to install an app means friction.

  1. They want to do something;
  2. They see the download app page;
  3. Tap and go to the App Store page;
  4. Wait for the app to install;
  5. Have to login again.

At every step along the way you can lose people. Scratch that. At every step along the way you will lose people. Why?

The reason I hear most often is: so that you have your app on their phone and people can return easily. But do they?

Most people are not like you. Many of the people who read this will be tech early adopters, so it’s likely you use many apps and install them easily. But the typical US smartphone owner downloads ZERO apps per month (other estimates put it at 1.5 per month).

us-smartphone-users-number-of-app-downloads-per-month-of-smartphone-users-new_chartbuilder

Most app use is concentrated on 5 apps. Can you be one of those apps and compete with the likes of Google and Facebook, who together controlled the 10 most popular apps in 2016?

Apps are expensive to develop and maintain, difficult to make quick adjustments due to submission review processes, and not as engaging as other options.

So what other options do you have?

If you think you can get people to install your app, it means you believe you already have their attention. Great.

So you have two things to worry about:

  1. Can the core functionality be achieved through mobile web?
  2. If yes, then the next question is: how do I keep people coming back?

And if your core functionality is “I want to be able to send push notifications” then there may still be better ways. In music, examples of core functionality that may be hard to work around are:

  • Music listening in background, eg. when the phone is in the pocket and you’re doing other stuff.
  • Functionality that’s available when the user is offline.

But I digress, because often those functions may be ‘nice to haves’ and may not be essential. Imagine if a venue has a site where you can check upcoming gigs and also listen to some music… Now a marketing manager there may say: “we absolutely need people to be able to listen to music in the background.” But you can achieve this more easily by offering a Spotify playlist.

Back to push notifications. Keep your eye on messaging apps, because they’re steadily becoming the new social networks and they’re notification-based.

In order to hold onto people’s attention, you may not need push notifications. You need habit. This requires consistency from your side and design thinking on how to construct a habit forming product that people don’t forget about.

You may also use reminders. You could collect email addresses or even phone numbers.

Artists’ newsletters have a 20–25% open rate. 90% of SMS messages are read within the first 3 minutes of receiving. Since starting MUSIC x TECH x FUTURE, I’ve had a handful of unsubscriptions, but that’s nothing compared to the number of uninstalls I would have had.

Still think building an app is a good idea?

  • Write down who your audience is. How do they use the web. Be realistic and don’t project your own tendencies. Call a bunch of your users if you have to.
  • Write down exactly what you want people to be able to do. Frame it as a user story: “I can find information about my favourite band’s upcoming gigs in my town”.
  • Rank your user stories. Then mark the ones that are essential.
  • Small secret: the ones that you didn’t mark as essential, you’ll probably never build.
  • Think of ways in which you can achieve the same end results, without building an app that users need to install. (I can help you with that)
  • Now look at whether introducing the friction of an app is actually the best way to do it. Carefully count the number of steps required for the user to complete their user story.

Choose whatever has the least friction and still accomplishes your goal.

Monetizing virtual face time with fans

Posted on | by Bas Grasmayer

How the convergence of 2 trends opens up new business model opportunities for artists.

When I landed in Russia to get involved with music streaming service Zvooq, my goal was to look beyond streaming. The streaming layer would be the layer that brings everything together: fans, artists, and data. We started envisioning a layer on top of that, which we never fully got to roll out, in big part due to the challenges of the streaming business.

It was probably too early.

For the last decade, a lot of people have been envisioning ambitious direct-to-fan business models. The problem was that many of these were only viable for niche artists with early adopter audiences, but as technology develops, this is less so the case today.

Let’s have look at a few breakthrough trends in the last year:

  • Messaging apps are rapidly replacing social networks as the primary way for people to socialize online;
  • Better data plans & faster internet speeds have led to an increase in live streams, further enabled by product choices by Facebook & YouTube.

Messaging apps overtaking social networks is a trend that’s been underway for years now. It’s why Facebook acquired WhatsApp in 2014 for a whopping $19 billion. While 2.5 billion people had a messaging app installed earlier this year, that’s expected to rise to 3.6 billion in coming years. In part, this is driven by people coming online and messaging apps being relatively light weight in terms of data use.

In more developed markets, the trend for messaging apps is beyond text. WhatsApp, Facebook Messenger, and Slack have all recently enabled video calling. Other apps, like Instagram, Snapchat, Live.ly, and Tribe are finding new ways to give shape to mobile video experiences, from broadcasting short video stories, to live streaming to friends, to video group chats.

For artists that stay on top of trends, the potential for immediacy and intimacy with their fanbase is expanding.

Messaging apps make it easier to ping fans to get them involved in something, right away. And going live is one of the most engaging ways to do so.

Justin Kan, who founded Justin.tv which later became video game streaming platform Twitch (sold to Amazon for just under $1 billion), launched a new app recently which I think deserves the attention of the music business.

Whale is a Q&A app which lets people pose questions to ‘influencers’. To have your question answered, you have to pay a fee which is supposed to help your question “rise above the noise of social media”. And Whale is not the only app with this proposition.

Yam is another Q&A app which places more emphasis on personalities, who can answer fans’ questions through video, but also self-publish answers to questions they think people may be curious about.

Watching a reply to a question on Yam costs 5 cents, which is evenly split between the person who asked and the person who answered. It’s a good scheme to get people to come together to create content and for the person answering the questions to prioritize questions they think will lead to the most engagement.

What both of these apps do is that they monetize one of the truly scarce things in the digital age.

Any type of digital media is easily made abundant, but attention can only be spent once.

These trends enable creating an effective system for fans to compete for artists’ attention. I strongly believe this is where the most interesting business opportunities lie in the music business at the level of the artist, but also for those looking to create innovative new tools.

  1. Make great music.
  2. Grow your fan base.
  3. Monetize your most limited resource.

This can take so many shapes or forms:

  • Simply knowing that your idol saw your drawing or letter;
  • Having your demo reviewed by an artist you look up to;
  • Getting a special video greeting;
  • Learning more about an artist through a Q&A;
  • Being able to tell an artist about a local fan community & “come to our city!”;
  • Having the top rank as a fan & receiving a perk for that.

Each of these can be a product on their own and all of these products will likely look like messaging apps, video apps, or a mix.

A lot of fan engagement platforms failed, because they were looking for money in a niche behaviour that was difficult to exploit. People had to be taught new behaviours and new interfaces, which is hard when everyone’s competing for your attention.

Now this is becoming easier, because on mobile it can be as simple as a tap on the screen. Tuning into a live stream can be as simple as opening a push notification. Asking a question to an artist can be as simple as messaging a friend.

So, the question for the platforms early to the party is whether they’ll be able to adjust to the current (social) media landscape, or whether they let sunk cost fallacy entrench them in a vision based on how things used to be.

There’s tremendous value in big platforms figuring out new ways for artists and fans to exchange value. They already have the data and the fan connections. Imagine if streaming services were to build a new engagement layer on top of what already exists.

Until then, artists will have to stay lean and use specific tools that do one thing really well. Keep Product Hunt bookmarked.

The value of fan remixes as part of artists’ content strategy

Posted on | by Bas Grasmayer

Putting fan remixes in the spotlight is a hundred thousand times more valuable than taking them down.

The scarcest good on the internet is attention. Any savvy artist, manager, or label employee knows this and develops strategies to sustain the attention of fans over long periods of time.

This comes in the form of content strategies, where the social media outlets of artists turn into media with frequent updates. It’s a pretty tiring process and can take a lot of focus away from other important activities.

Social media is so exciting…

But it’s necessary.

One way to sustain attention is to connect fans together and have them keep each other’s attention on you. It’s something I wrote about in 2011 and preceding years, and since then, a lot has changed. For the better.

We have powerful connected devices in our pockets at all times. Our web browsers have also grown more powerful, with the Web Audio APIs enabling a lot of new possibilities. And basically everyone is on social media now.

Throughout the last year, I’ve spoken to the founders of apps and platforms like Pacemaker, MetaPop, and 8Stem. All enabling people to take existing music and mix it, or remix it, and then publish it. Legally.

None of these would have been possible 5 years ago, but with current technology and in today’s landscape they make a lot of sense.

Remix culture is going mainstream and ‘listeners’ are increasingly being shifted from passenger to driver’s seat.

Instead of creating all of your own content, why not let fans do some?

As a matter of fact, they’re already doing it. Look at the fanbases of the Monstercat and Lapfox Trax labels. It seems exceptional, but it’s just about the culture you create around yourself as an artist or label.

Instead of taking down unauthorized remixes, give them a spotlight.

So what if there’s no immediate way to get those 5 cents of revenue from the 5,000 streams it’s going to garner? It’s a hundred thousand times more valuable having an inclusive culture in your fanbase, and a following of fans that actually participate in what you’re creating.

And when I say a hundred thousand times, I mean it.

Taking a fan remix down over a tiny bit of revenue can alienate a fan and stop them from spending money on you, but the value of a highly engaged fan that actually helps you seed your content strategy… Could it be $5,000? Sometimes, yes. Sometimes even more.

Gradually, a participative culture will emerge.

It takes time. There are no shortcuts. You are building.

But you’ll create something that ultimately doesn’t just save you time — you’ll create a fan culture with an output that can inspire you.

Dollars on a plate

Are donations becoming a viable part of artists’ business models?

Posted on | by Bas Grasmayer

With the rise of live streaming and new media models, donations deserve another consideration.

 

Napster, the early file sharing service, not only introduced many to piracy. The platform also exposed two competing world views. One believed that information should be free and the other believed in combating such ideas. They were both wrong.

As a teenager, and still today, my personal sympathy went out to those who saw a better world and wanted to accomplish that by facing down large corporations. Their envisioned world was never satisfactory enough for me, though. It seemed oversimplified. One of the most common tropes you’d hear would be:

“Artists should just release their work for free and let people donate. I’d love to be able to donate to my favourite artists.”

Donation request from a band
An example of a common donation request.

At that time, there were only about half a billion connected devices. Most of the world’s population wasn’t online yet. Those that were, and thought this way, were a minority projecting their own behaviour onto others. It’s common: most music startup founders do the same thing — overestimating how much people care about music. Simply put: the donation model could not scale.

The model didn’t take into consideration the complexity of the way music is made. Let’s say artists were able to make a living off of donations — this benefits the most visible artists; the singers, but not the songwriters. How should money from donations then be distributed so that it’s fair? Does the intention behind the donation matter? Questions like these are the reason why there’s so much legislation around creative work.

An elemental overview of merely the royalty distribution part of the music business.
An elemental overview of merely the royalty distribution part of the music business. Via Bemuso.

Time passed and two trends have developed. Firstly, there has been an explosion of artists who do everything by themselves. Households in many countries now no longer have just 1 family PC, and music production software is easy to attain. This has led to a rise of ‘bedroom producers’, many of which are world famous and make a good living off of music.

The second trend is that the internet has become more real-time. Ten years ago you wouldn’t consider sharing memories online that would only be visible for 24 hours. Now, two of the world’s most popular apps, Instagram and Snapchat, not only encourage, but thrive because of that behaviour.

Fast wireless connections and increasingly powerful devices have enabled livestreaming. Anyone who’s ever ‘gone live’ on Facebook or Periscope knows that it changes the creative process of making a video. Live video streams are not just a new way to broadcast, they’re a creative format.

Facebook Live creation tool

Trends mix and influence each other. If you want to understand where things are going, you have to understand how trends converge and diverge. In this case, the two highlighted trends have culminated into a particular reality: donations are becoming a viable part of artists’ business models.

Understanding how donations are becoming viable is easiest by looking outside of music. Donations are already an important part of the economy on Twitch, a platform for broadcasting gameplay, which also encourages creatives to start streaming.

Gamers use donation apps to display tip notes in the live video stream. Some apps actually automatically read out the tip notes on-stream. Tipping is done for various reasons: to actually show appreciation, to encourage the chat to discuss a certain topic (or more likely: to emote-spam), to request a song, to ask for expert feedback, to get their name or joke into a YouTube highlight reel, etc.

Twitch tip scare
And sometimes they use tips to scare streamers shitless.

For popular streamers, it’s hard to interact with the chat, because there’s just too much to read it all — and they also need to focus on their game. Tip notes provide a way for viewers or fans to rise above the noise and get the streamer’s attention.

The takeaway here is that donations do not seem to occur for altruistic reasons in most cases. The exact ratio would make for an interesting study. Much of the donation behaviour happens due to the desire to interact, stand out or to get a request fulfilled. It’s a behaviour enabled by the immediacy brought on by the rise of high quality live streaming.

DJ live streaming on Twitch
Some streamers highlight their top donators by keeping their names visible (in bottom).

Musicians that want to incorporate donations into their business model will need a clear strategy. Firstly, it’s unlikely that donations on their own are viable if the goal is to make a living off of creative work. Although if you do it all yourself, like many artists these days, you get to keep the whole cut.

Secondly, the reason why donations are becoming viable is because of live streaming. This means the artist needs to be able to consistently generate audiences and that takes time to build. One-offs are a recipe for failure, especially if they don’t sit within a broader strategy.

Live streams being a creative format of their own means that there needs to be an intrinsic motivation to work in this way. Else one won’t be able to muster the consistency and grit necessary to succeed. The question for the artist is: “is this medium compelling enough for you to spend a significant amount of your time on it?”

Whatever the answer, the trend is clear. As artists are embracing the live format, with younger ones even coming into maturity with it, we’ll see donations make a comeback. This time, not as charity, but as a well-planned part of artists’ business models.

An example of donations on Chew.tv, a live video streaming platform for music.
An example of donations on Chew.tv, a live video streaming platform for music.

Hidden in plain sight: a global underground dance music scene with millions of fans

Posted on | by Bas Grasmayer

Are gamers the biggest millennial subculture in music? An exploration of ‘online-only’ music.

With the rise of the internet, music has lost more than industry revenues. Music has lost its cultural monopoly for identity building. Music used to be the only fast way in which people could understand that there are other people around the world, with similar ideas and feelings. People who are just like them. Now, social media & internet communities have stripped music from that. A Google search can instantly connect you to people who think the same things you do. Music is simply not important for that anymore.

A large aspect of music’s identity building nature used to be subcultures. Music was at the core, and perhaps the fuel for these subcultures. Subcultures still exist though, but not in the massive way they used to and have less appeal for the middle class. Many that remain are porous, intertwined with all the shades of ‘hipster’ you can imagine.

But there is one massive subculture that remains: gamers. It’s an identity and producers are providing it with a soundtrack.

Emblematic of the music culture among gamers is the label No Copyright Sounds. It was created to discover and provide royalty-free music for gaming videos. By now, it has grown out to a YouTube channel with millions of followers, and hundreds of thousands of followers on their other channels, adding up to millions. They’re now part of AEI, a full-stack music company which also runs a handful of other well-known music networks.

No Copyright Sounds is emblematic, because it comes from the subculture itself. It represents the gamer, which is the epitome of the digital native. They expect free access to music, which is why you’ll see most of the music targeted at this audience offered as free downloads. They don’t expect free music, because they’re unwilling to pay. They spend lots of money on their computers and games. They want free music because of the convenience. You might pay for Spotify, but if you want to share music with other gamers, it’s still more effective to drop a YouTube link.

YouTube copy permission

Another aspect of the digital native is that they exist in networks. If you want information to spread in networks, you have to remove the barriers. So to serve them, you have to go free-first. This means producers in genres specifically targeted at gamers are either looking for alternative revenue streams, or are happy to do it for the love of it. Most are gamers themselves: they’re producing for people like them and get fulfilment from that. It can be that simple.

Perhaps the largest online-only genre is something called nightcore (nxc for short). Nightcore is a remix culture. Most commonly, producers take a pop or dance song, raise the BPM and pitch, do some additional editing and that’s a wrap. Here’s an example of Kelly Clarkson’s Since U Been Gone getting the nxc treatment. But sometimes the BPM is not raised, sometimes it’s rock or metal, sometimes it’s an original production. It’s basically the opposite of vaporwave.

To some, nightcore edits can look like blatant rip-offs, but what they’re doing is they’re translating a song and sound to a different audience. Would I listen to Kelly Clarkson? No. Would I listen to nightcore Kelly Clarkson? Well… Yes. 😅

The spectrum of music for gamers has a lot of gradients and you can go deep into niches. For instance, related to the gamer subculture is the phenomenon of furries, basically people that enjoy role-playing in custom-made anthropomorphic animal suits. There’s also an online equivalent, cyber furries, which is probably best represented by the Lapfox Trax label. All the producers on the label are avatars of the same guy.

Numbers mentioned earlier already showed that this is not an underground movement, and services are taking note. Twitch, a platform for streaming games, created a music section. Spotify has a whole section of playlists aimed at gamers.

Spotify gaming playlists

The most exciting or inspiring thing about this subculture is that people can be themselves without compromise, make the music they believe in, and find audiences for it. Music that you’ll never hear at a liveshow, like the Undertale soundtrack, but finds resonance with millions of people online. And then there’s the cross-overs.

Due to the sugary nature of nightcore, it found lots of sympathy from artists inspired by the music of SOPHIE or the PC Music label. Both have been important to pop music in recent years, with the former producing for Madonna, and the latter resisting an offer from Skrillex. Their sounds can be described as a kind of artsy, over-the-top, hyperpop music. Nightcore artists are happy to incorporate that, to provide a more accessible version of the style:

Speaking about accessible… You know what’s not accessible? Hardcore. Gamers enjoy the high energy offered by happy hardcore, an offshoot of 90s hardcore rave. So, that too, finds an audience:

I’m by no means trying to make an exhaustive list. The music is diverse, and I want to focus on the trend and the business aspect.

The most important thing is: most of the people who listen to this music will never see these artists live. Partly because they just might not be interested in going out to a club, but also because there’s just not really a scene for it, despite these artists having online followings of hundreds of thousands or millions.

Outsiders are taking note, but the music scene’s very much defined as ‘by gamers, for gamers’. While now it’s niche in business terms, and hidden from plain sight if you’re not involved with it, it has three trends going for it.

One is the rise of virtual reality and tools that allow for ‘cyber raves’.

Second is the rise of Esports, which has exhibited 50–70% year-on-year growth rates and will continue to grow rapidly.

The other is that it’s getting easier to sample, remix and edit tracks and distribute the music, without the fear that it will be taken down. The former CEO of Beatport now runs Metapop, which focuses on exactly this problem. And there’s Dubset, which has partnerships with major streaming services.

With the trends going for it, this music subculture with all its subgenres, is about to blow up.

Keep close watch.