Innovation, Integration and Inflation, Oh My!
This week's music biz news.
TAKEAWAYS
Salient statements from this week’s music news.
1. The 10 Most Innovative Companies in Music in 2023
Fast Company gives props to AI upstarts and major labels alike.
Takeaway: Companies in the music industry have been trying to distinguish the signal from the noise this year, as a variety of economic indicators point in different directions.
2. Venues Need to Stop Shaking Down Artists for Every Last Dollar
With demand (artists) bigger than supply (venues), the former are fleecing the latter at an alarming rate.
Takeaway: An artist might make 30% profit on a T-shirt sale (not to mention the opportunity cost of people’s time it took to design the merch), but if the venue is taking a 30% cut of merch, then the artist actually is losing money by selling merch.
3. AI… and Why the Music Industry Shouldn’t Panic
“The problem with AI, as I see it right now, is the familiar story of the music industry. We are bolting the stable door when the horse is already long gone.”
Takeaway: I anticipate a raft of acquisitions ahead, with major music companies buying AI companies to control the technology in the way that they took stakes in Spotify. However, I doubt whether the music industry can, in reality, manage to monopolize and therefore control music AI modeling companies.
4. The Time is Now For Artists to Launch their Own APIs
“Official” training data could be a way for artists to leverage their most valuable IP — their person — while retaining a semblance of control.
Takeaway: An artist API can systematically allow artists to capitalize on rapid shifts in technology (i.e AI) and consumer adoption while meeting fan demands more efficiently.
5. Bandcamp Addresses Allegations of Union Busting
The platform is denying accusations of slow-rolling the process for formalizing the employee union formed earlier this year.
Takeaway: Further reservations centered around Bandcamp's decision to hire Foley & Lardner, a law firm synonymous with union busting.
6. BMG “Fully Integrates” Catalogue and Frontline Music
The new approach matches listener trends towards older music.
Takeaway: This new approach reflects music fans’ rejection of “the music industry’s outdated privileging of new music over older music.”