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The Real Reason Record Sales are Down

Record sales are down...at least traditional record sales.  Downloads are up.  It's not hard to go up when you're starting so low though.  Just a few years ago, we didn't even have downloadable music.

Of course, when you add everything up and include the downloads, record sales are still down.

Here's a list of the best-selling music artists.  It's likely we'll never see anybody added to that list.

Why?

It's not because of illegal downloads.  It's not because current music sucks.  It's not because of anything we did wrong.

Strangely enough, we'll never see another act added to that list because of something we've done right.

If your band was on the Tonight Show with Jay Leno, you'd probably be pretty happy about it, right?  You'd be exposed to millions of people and chances are that you'll sell a few albums because of it.

If you'd been on Johnny Carson's version of the show 30 years ago, you would have been exposed to even more people...and sell even more albums.

If you'd been on the Ed Sullivan Show 20 years before that, you'd do more than just sell albums-- you'd be able to tour the country...and assuming you could keep up your level of performance, probably have a long career after that.

What's the difference? 

Choice.

When Ed Sullivan was on the air, we didn't have 400 channels to choose from...and that's how we was so big.  Johnny Carson has a similar situation.

Record labels were once like that.  Acts were able to sell millions of albums because consumers didn't have thousands of choices to pick from.

That's good news for you.  The "old school" system was great for the people who were on top.  If you were Frank Sinatra or Elvis, you got tons of attention.  There was no "middle class" though.  You were either getting the attention of record labels or you weren't.

Today, you can easily release an album.  In fact, it's so easy, you could literally record something today and have it available to the world by tomorrow.

That means more albums are being released...which means consumers have more choice.  Add that to other entertainment choices, such a video games, satellite television, and home video.  These things weren't a factor 30 years ago.

But they're a big factor now... And strangely enough, there is music involved in every one of them.

Because of this, I'd argue that while album sales might be down, music sales are not.  People are simply consuming music in a different way.  No longer do we have one format-- we can get it via our phone, a portable music player, video games, movie rentals, satellite radio, streaming online stations, and any number of ways.

This means that artists and songwriters are being paid in a different way.  They are getting paid though.

We might not have the "superstar" artists of the past and even the "Tonight Show" type of television shows might not mean as much as they once did, but there is still a ton of money to be made in music.

Personally, I'd rather have it this way.  The consumer wins because he has more entertainment options and musicians and songwriters win, since they'll have more options to be creative and be paid.

Thoughts?

Twitter Grade

If you're on Twitter, check this out...

Don't know what it means, and it probably doesn't mean anything, but it might help you get some new fans to your page.

AC/DC Screws Up

AC/DC has a new record called "Black Ice."  Since its release in October, 1,319,914 copies have been sold. 

The album was distributed exclusively through Wal-Mart...which may explain why they sold about 2% of last week's 105,146 sales online.  None of those sales were downloads, by the way...they were all physical CDs via the Wal-Mart website.

Download numbers for last week?  Zero...just like every week.  Unless you count the illegal downloads.

The week before the album was released, it's estimated that about 400,000 people illegally downloaded it.  Who knows how many people have downloaded it since then.

I supposed you could argue, "If somebody really wants an album, they're find a Wal-Mart, get in the car, fight traffic, and make the effort to jump through all the hoops that AC/DC has put up in order to get the new album."

And that would have been a good argument in 2000, when the last AC/DC album was released.

But this is 2008.  Wal-Mart is no longer the biggest music retailer, iTunes is.

What does that mean?  It's a vote by music consumers for how they want to buy music.

AC/DC fans aren't typical music consumers though, right?  They're old school, hard-drinking, Camero-driving, mullet-wearing guys who want something they can hold, right?

Maybe...although the 400,000 people who downloaded Black Ice would suggest otherwise.

How much does it cost to put a record on iTunes?  Almost nothing.

Surely some of those 400,000+ AC/DC fans who downloaded illegal copies of Black Ice would have supported the band by purchasing a legal version...

If you want record sales, you've got to make it easy on people.  That means getting the music you have in the format they want. 

If people want downloads, give them downloads.  If they want cassettes, give it to them.  If they want CDs, give it to them.

Return of the Cassette?

According to Yahoo!, cassette tapes are back.

When I started my company in 1995, cassettes were the format of choice for indie bands.  As far as demos, one of the cool things about getting them on cassettes was that each one was different, and many were handmade.  The demos I get on CD use the same (or similar) templates and almost all have graphics done by computer.

In my opinion, the best thing about 1995, compared to today, was that it took a bit more work to get something released.  Home recording wasn't what it was, you couldn't burn a CD in just a couple of minutes, you couldn't easily do artwork like you can now, etc.

That was also the worst thing...

I've said it before and it's worth saying again, "What's old is new."

People said email would kill postal mail.  It hasn't.  For bands sending out gig info, postal mail works better than ever.

You could argue that cassettes work better than ever, too...assuming people have something to play them on.

Do you use cassettes?  Vinyl?  Why or why not?

Cookin' Wit Big Fella - "The Hustlin' Gourmet"

Your "story" is as important to your success in the music business as your music.

Below is a video about Nashville-based artist, Big Fella.  His involvement in cooking certainly isn't the only thing he is doing, but it most definitely made him more interesting to Interscope Records, which signed him to a record deal.

Is Ronald Jenkees a Fake?

Anybody who thinks that success in music is "all about the music" needs to read this.

In 2006, Ronald Jenkees started a YouTube channel and put up videos of himself playing keyboards.  Pretty soon, people started watching, and telling their friends, and buying his self-released album.

There's nothing really special about the production quality of his videos...  They're pretty basic, just like anything else you can see thousands of times from everybody and his brother, who thinks they have something to say via the computers in their bedrooms.

But the authenticity of the videos, as well as the music, is something you don't see often.  "Video quality" is more than just a sharp picture, you know.

An example...

When I talk about developing a relationship with fans using video, this is what I'm talking about.  Every musician using video should strive to do something like Ronald Jenkees is doing.

But is Ronald Jenkees real?  As his popularity has increased, so has the number of skeptics who say the whole thing is just an act and that "Ronald Jenkees" is actually Ben Feltes, a guy who studied music at Murray State University in Murray, KY.

The music he makes is good.  But, in my opinion, a big part of Ronald Jenkess' appeal is that he's a guy, just like any of us were at one time, in his bedroom with big dreams of making music that the world would hear.  The only difference is that he, while still in his bedroom, because famous, at least on some level, and the world is hearing his music.  And, he's making a living at it.

Underdog comes out on top.

It's his story that put Ronald where he is.  When I say you need a "hook" to market yourself, this is exactly what I'm talking about.  It takes your music and makes it 10,000x more powerful.

Don't lie though...

I have no way to know one way or another if what people are saying is true and that Ronald Jenkees is a fake.  But I do know that what helps you one minute can be the same thing that bites you in the ass the next.

Like I said, Ronald Jenkees is us.  He's the guy with the "big dream" who sits in his bedroom, practicing like crazy, hoping that the right person will discover him, and take him to the next level of music business success...with world tours, big album sales, fame, and respect.

People love this story.  People want to help a guy like this.

And if those people find out they've been lied to, they'll turn on you in an instant...  Much like they do the homeless guy who asks for food money, only to turn around and spend it on booze. 

If Ronald Jenkees turns out to be a fake, good music or not, he'll be slapping a lot of people in the face. It will be 10,000x harder than any lying homeless guy ever could though...because we've all been where Ronald Jenkees is and we want to believe he's who is says he is more than we've ever wanted to believe that a homeless guy would actually buy food with our spare change.

All the kids who believed that you really could teach yourself how to make great music, the wannabe musicians who still believe it's possible to have fame just by sitting in your bedroom and making videos to post online, and the people in the world who don't look or act like everybody else...they're going to be pissed.

Thoughts? Post 'em here.

70,000+ Subscribers on YouTube

When I talk about developing a relationship with fans using video, this is what I'm talking about...

This is Ronald Jenkees. He's based in Kentucky.  In my opinion, his videos are some of the most authentic I've seen from any musician.

And that seems to be working well for him...

As of this post, is has over 70,000 subscribers to his YouTube channel with 69 videos which have been viewed as many as 3,300,000 each.

Not bad for a guy playing music in his bedroom...

But is there more to the story?  More tomorrow...

Developing a "Relationship" with Your Fans Using Online Video

Just because you're involved doesn't mean anybody else will be interested, but there are a lot of things about your day-to-day life as a musician, which I'm sure you take for granted. Getting this stuff on video is a great way to build rapport with your fans.

Here's an example of something we did for Music Business Radio.  Dan Buckley, our engineer, eats habanero peppers daily, so I got him some hot sauce for his birthday.  Thought it would be cool to have him try it on the air, so that's what we did...

It's lo-fi and the cuts of the text are so quick, many people won't be able to read them with ease. Doesn't matter. People want "behind the scenes" more than they do slick production.

If you've shot something like this with your band, feel free to link the video in the comments section.

Why Do People Buy Music?

Why do people buy music?  If you're going to sell music for a living, you better find out.

Before I get too heavy into the topic, I have a couple of questions.  I'll take answers for a few days and have more thoughts on the subject next week.

Please post answers in the comments section below.

1. What was the last album you purchased?

2. Why did you purchase it?

SMART Time Management

You’ve probably heard the acronym, SMART; Specific, Manageable, Attainable, Realistic Timely.  This is an ideal way to create a time management system for your work or personal life.  Or you can use these criteria to evaluate a time management and day planner system that you might purchase.

Specific: Your time management system must be able to record each task and have enough room to add necessary details. That’s why those small, freebie calendars that you get from local businesses doesn’t have enough space to be specific about your tasks and what’s needed to accomplish them.

Manageable:  Some time management systems can be so detailed and complex that using them is a part time job. That’s not helpful and can discourage you from doing any type of scheduling. 

If one system does not work for you, find a different one, but don’t give up. And don’t get a planner book that’s too large to comfortable carry with you when you are out of the office. That leads to the sticky notes scattered around and missing important appointments.

Attainable: Yes, you can get your frantic, over-booked life under control. In fact, you have to do it for your health as well as for your business. Why add needless stress to your workday by trying to remember your schedule instead of planning it on your calendar. You can complete more work in less time if you have a big picture of the tasks and prioritize those tasks each day.

Realistic: No matter how you try to stretch it, there’s still only 24 hours in a day. If you work 8 hours, travel 1 hour, sleep 7 hours, then you have 8 hours remaining to get dressed, eat meals, spend time with your friends and family, exercise and socialize.

You can enjoy more variety in your personal time if you schedule special events on your calendar. Knowing that you have tickets for the Broadway touring company of a stage play on Friday evening, then you’ll avoid over-scheduling tasks so you can leave work on time and be ready when the curtain goes up.

Timely: Time does not stop for any of us. When you take on too many tasks for the allotted time, you know how it feels as if time is moving in hyper-speed. The purpose of time management is so that you can accomplish what you need to do and balance each deadline with other work plus those unexpected interruptions.

If you delay a difficult project by claiming that you “work better under pressure,” you are only fooling yourself. What actually happens when working under pressure is a higher tendency for error.

As you choose the right time management system for your work style, you are preparing to simplify your life. You’ll also gain a sense of mastery over your time so that you know what you can add to the day and when to say no to over-commitment and when you can say yes to enjoyable activities.