2020 has been a historically difficult year for the live music industry.
According to research by PwC, the industry suffered from the most dramatic decline in global revenue in its history, falling by 63.8%. This number is not expected to return to pre-pandemic levels until at least 2024. It’s truly shocking.
This marks the first time since 2000 - when touring overtook physical music sales as artists’ main revenue source - that the recorded music industry is worth more than the live music industry. The decline in revenue is felt throughout the whole music industry.
1. It is time to reinvent business models
But times like these always bring great opportunities to those who are optimistic and adaptable to change.
The cancellation of shows and festivals worldwide has left a gap between artists and fans. Artists can no longer connect with fans in real life, which has always been the most effective way of marketing their brand to their audience. On the other hand, fans are no longer able to attend shows and spend money on their favorite artists.
But truth is, true fans still want to financially support their favorite artists, live show or not.
So, this gap needs to be bridged by artists in order to make extra revenue in 2021.
It is noteworthy that the pandemic has pulled forward the future of technology, as consumers’ readiness to engage with digital media experiences has accelerated. New technologies have opened the way for artists to reinvent themselves and their business models.
Artists must adapt and use the right marketing channels to achieve success with these new technologies.
Platforms like Twitch, Instagram Live and Fangage are becoming increasingly popular among artists and fans. This is because these platforms are the best available digital alternative to the live show experience.
2. Social media is changing
And it is not for the better.
So far, social media platforms have been good marketing channels for artists, but getting organic traffic is getting harder every day. The well-known social media platforms are increasing advertisement revenues and slowly shift to a pay-to-play environment.
But these platforms are still widely used. And with the introduction of 5G, the global demand for content will only increase over this decade.
This means that there are many opportunities for artists if they focus on content creation on the right platforms, which will only grow in popularity over the last decade.
As a result, these platforms will be oversaturated with creators competing for people’s attention.
Therefore, it is getting more and more important (especially for independent artists) to cultivate a community on these platforms. Artists need a steady stream of engagement on social media. This is because artists are more dependent than ever on this community for revenue.
3. Short form videos and user-generated content are becoming increasingly popular
Short form videos and user-generated content are becoming increasingly popular.
TikTok and Instagram’s Reels were a huge trend in 2020 and we believe they are here to stay.
And artists should be aware of the opportunities these platforms offer.
TikTok has been responsible for the rise of several chart-topping hits over the past years.
That’s a huge trend for artists to be aware of!
Through creative marketing efforts on platforms like TikTok, you may attract a group of new fans as an artist.
Drake famously collaborated with TikToker Toosie for the promotion of his ‘Toosie Slide’ song.
It topped the charts because the ‘Toosie Slide Challenge’ went viral on the platform.
Imagine if he didn’t put in the extra effort to create a partnership like this.
Imagine if he had only put a post on his Instagram announcing the new single.
I truly doubt the song would have topped the charts.
Creative artists are leading the way.
So get creative with your marketing strategy!
Remember, you only need a fanbase of 1000 true fans to make a living as an artist.
And you can only win their attention with engaging and valuable content.
Another way to engage with fans and provide them with a valuable experience is to simply go out and chat with them. This is a great way to grow and maintain your community of true fans. Keep your followers engaged so they will be excited when you are promoting your new music or product.
5. Exclusive content
While it is essential nowadays to upload great content consistently, it does not always pay off in revenue directly.
A way of monetizing your great content is by making it exclusive and selling it to your true fans.
For artists, exclusive content for monetization could be any of these things:
- Radio shows
- Video content
- Tickets to live events
6. Live streaming
Live streaming has skyrocketed in 2020, mainly because of the pandemic.
No other content on Instagram is as engaged as live streaming is.
And some fans truly seek this live experience, especially now that live shows are off the table.
Live streaming is also a great way of creating content. You can save your live stream after you are finished and create content for other platforms with the footage.
The music industry has relied on live performance revenue for far too long.
Because of this, a lot of artists are having trouble reinventing their business models.
The trends named in this blog were long on the way.
The only difference is that artists don’t have a choice but to adapt quickly if they want to ensure a safe stream of revenue.
Focus on your current audience’s behavior and change your digital marketing strategy accordingly.
We believe that the artists who succeed in building a community now, will be the big winners once touring is an option again.
Innovate now! Invest time in your fanbase and find new ways to monetize it.
If you are serious about growing and maintaining an engaged fanbase, you should try out Fangage. Fangage is the perfect marketing channel for creators who want to nurture and monetize their true fanbase.
You can instantly make a fan-platform - completely for free - here!