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Rewind: 2012 in Review the REPORT Issue 308 | 19 December 2012 Contents: PAGE 2: Artists versus digital services » PAGE 3: Fans as the fulcrum » PAGE 4: Labels in 2012 » PAGE 5: Tech giants » PAGE 6: New services » PAGES 7 – 9: Rewind: 2012 In Review Startups » PAGE 10: Digital marketing » PAGE 11: Social music » PAGE 12: Measurements » PAGE 13: Piracy battles » PAGES 14 & 15: Country profiles » REWIND: 2012 IN REVIEW the REPORT | 19 December 2012 | Page 2 Artists versus digital services It’s become a cliché in recent be portrayed as a greedy Goliath itself by digital ecosystem. prominent songwriters. High-profile albums years to suggest that the were withheld from There were many negative aspects to these streaming services, connection between artists debates in 2012, with name-calling, willful often to the barely- and fans is the fulcrum of misunderstanding and a concerning lack concealed frustration of transparency making for an unhealthy the music industry, with of their labels. mixture. everyone else a middleman Yet artists were Yet a more positive take on 2012 would be to pushing the who needs to justify their mark the importance of having artists and boundaries too, position in the value chain. songwriters take a more prominent role in the seeking new models. debates around new digital music business Usually it’s labels fielding the most criticism Whether it’s Cazzette models. under that line of argument, but in 2012 the launching their career spotlight turned to the current generation of As FAC co-CEO Crispin Hunt noted in Music on Spotify, DJ Shadow streaming music services, with Spotify and Ally’s end-of-year debate: “As the digital releasing a BitTorrent Pandora taking the brunt of the attacks. environment opens up, it’s got to become bundle, Snoop Dogg more transparent: the way that these new jumping on every Artists can make wonderful musical curators Nobody questions that these services are deals are done […] Artists have to be included new social app to see what works, or the at a time when curation is once again being exposing artists’ music to millions of people; in that, or we won’t be able to make art any umpteen artists figuring out best practice on hailed as the next big step forward for music but they still – rightly or wrongly – weren’t more.” Kickstarter, Bandcamp and other D2C sites. recommendations. They can play a crucial seen as strengthening the bonds between role in leading fans to new digital services in artists and fans. It’s not anti-creator to point out the fact that Meanwhile, that familiar middlemen a time of technological transition. artists and songwriters don’t speak with one argument was given a twist by the many Instead – and we’ve made this point several voice (nor should they), but also that some of examples of innovative and effective digital And while lots of artists will still prefer to times in 2012 – they were viewed as giant those voices may be misinformed. marketing campaigns whose success relied focus on the music (maaan!) rather than online jukeboxes, judged purely on their on the enthusiasm of smart people within the digital hubbub around it, the fact that payouts. That’s often down to that transparency failure labels, and the engagement of artists who we have lots of others who are adding their on the part of the industry, not to mention Spotify, which pays out 70% of its revenues took this part of their job seriously, rather voices to the debates around the new music questionable contracts, and the media’s to rightsholders, was painted as a nefarious than seeing it as a chore. industry should be seen as a positive force, tendency to splash on any creator complaint artist-starving pawn of The Man, while not a negative one. without digging too deep into its context. As 2012 ended, though, it was clear that the Pandora lost control of its traditional “David message had sunk in for the big digital music We hate to turn back towards conference versus Goliath” narrative in fighting for lower Still, 2012 was the year when artists – and services. Spotify has upped its efforts to clichés, but 2012 provided a salutary royalty rates against SoundExchange, to their managers – stepped up as players in the be – and just as importantly, be perceived to reminder of the importance of listening to be – artist-friendly. Deezer is planning its own artists, and listening to their fans. “As the digital environment opens up, it’s got to artist-focused initiative, and Rdio is cracking become more transparent” on with its Artist Program. REWIND: 2012 IN REVIEW the REPORT | 19 December 2012 | Page 3 Fans as the fulcrum It’s fitting that Myspace the ultimate point is that acts who work it finalist, Janet Devlin, turn her correctly can get the fans on their side and back on the SyCo machine should choose now to come learn from them. back because everything it and choose to go it alone. For a decade there was lip service paid And, oh the irony, Kate Nash promised (or people promised to “reconnecting with fans” which never (seen as having “broken” on its behalf) is starting to seemed to transpire much beyond that in on Myspace in 2005) went become realised this year. the major label sphere. A few retweets and through the Universal system replies on Twitter do not a revolution make. and finally, properly went DIY This is the (conditional) age of the DIY Palmer was building up to this for years. Her in November with her Pledge artist. Yes, there were acts like Marillion and one-off projects like selling T-shirts merely a campaign. Radiohead blazing a trail, but they built their warm up for the main event. own platforms and operated within their own Naysayers will point out that orbits. The self-serve platforms out there are As Malcolm Gladwell says, outliers need to all of these acts had a profile maturing and coming of age – but only for put in their 10,000 hours. Palmer, tornado that record labels or TV talent certain acts. This is still only a partial panacea of social media, may not have quite clocked shows gave them. That’s, not for those who don’t want to go the traditional up the 10,000 hours, but she sure as hell is for now anyway, the real point. label route (whose response has been to coming close. You have to give and engage Yes, name artists will be the ones that have the fastest crank up the volume for 360 deals), but a big (really engage, not “marketing speak” The one to really watch here will be Detour, ascent as there is a greater narrative there change is underway. engage) with fans online and find them were a side-project from Kickstarter that has for the press, blogs and social media to latch they are. Then and only then can you turn snowballed in the few weeks that it has been Of course, the poster child for all of this is onto (thereby accelerating the rise); but it’s that fan capital into DIY capital. That’s the big open. While helping acts find the means to Amanda Palmer whose Kickstarter campaign what happens next that will be the real litmus lesson here. DIY does not and cannot happen tour, it also starts to push Songkick towards took on a life of its own and she raised $1.2m test. These platforms have proven their in a vacuum. It needs to be nurtured. Those the role of promoter and agent – which could in her campaign period. Those willing her to worth for acts with profiles, so can they do it 10,000 hours will not clock themselves up. be massively disruptive for the incumbents fail crowed when she signed a distribution from scratch with a completely unknown act? deal with Cooking Vinyl (see – she does need Everything else in DIY was overshadowed by of the live industry. Services like Topspin a label!) and also when she made the PR The Palmer Effect but that does not mean it is Just like the DIY acts themselves, Kickstarter have scratched the service but what happens gaffe of not paying guest musicians (none any less significant. What is happening here and Pledge and the others need to put in next with Detour could prove to be the of whom really wanted paying anyway). is not just about one artist and one platform, their 10,000 hours – to figure out what works, biggest digital DIY upheaval yet – not just in True, she did need a label, but that need was but the arrival of Kickstarter in the UK at the what doesn’t, what gets the best results and live but in music overall. defined on her terms. Labels still serve a role. end of 2012 fired the starting pistol for lots of what hurtles you into disaster. When they do What has gone is the ability to monopolise British acts to start doing what they need to that, the potential will be vertiginous. that role. do to keep this top spinning. Palmer, of course, defined it in typically Of course, Pledge Music has been quietly and “Topspin has scratched the service but what theatrical and hyperbolic terms about her confidently building its roster and tucking happens next with Songkick Detour could prove misfit fans rising up as one to carry her to away successes, the biggest being Ginger the next level. So far, so Lady Gaga. But Wildheart. But it also saw its first X Factor to be the biggest digital DIY upheaval yet” REWIND: 2012 IN REVIEW the REPORT | 19 December 2012 | Page 4 Labels in 2012 The (partial) acquisition of EMI Universal has been, let’s say, aggressive bulked up Universal means by Universal is not exclusively in its digital deals.
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