Digital music: new tools for

new needs

By Virginie Berger, Founder and CEO of DBTH, a strategy, development and management firm,

dedicated to artists and creative industries (France)

Table of Contents

1. New tools for new needs

2. Case study (old generation tool): MySpace

3. Case study (new generation tool): Bandcamp

4. The Key Learnings

1. New tools for new needs

New tools – distributors, e-commerce websites, applications, tools, data analysis, technologies – open

up new possibilities for music and accentuate an already strong trend: the necessity to engage fans in

a tailored dialogue with the artist, the record label and the extended fan community.

These tools have become essential for artists, no matter the level of development. That way, an artist

alone, self-produced or signed with a record label, can use a distributor to broadcast their music on

online stores, video platforms to host their videos or a streaming platform to make their titles available.

There are many platforms for music distribution, because there are so many ways to consume music.

These new way of consuming are relayed by new platforms.

a. Aggregation-type e-commerce platforms

Aggregators manages the marketing of digital music, with one or different kinds of offers to the public.

But available catalogs on these platforms are so broad, that quite often – just as in the case of physical

catalogs – there are specific actors in charge of promoting some titles, such as the web promotion or

web marketing (B2B) agencies. Most aggregators can also offer these services as a complement to

digital distribution. Furthermore, you can find some technological services suppliers that realize tools

adapted to this online or mobile communication and therefore play a particular B2B role in this chain.

A few examples: Zimbalam, Ditto music, Tunecore….

b. Digital distributors

The distributor can also offer services on top of the aggregation work. Its financial remuneration is, like

in the case of physical distribution, a percentage of the income generated by the sales. The distributor

represents a significant catalog in terms of references and especially in terms of turnover on the different

online stores. This position can weight to get the best factory price and ensure a good promotion and

visibility.

A few examples: Believe Digital, Idol…

c. Streaming platforms

With streaming, you can listen to music without needing to download it beforehand. You don't download

music on your hard drive, you listen to it while connected to the Internet.

The most popular websites are Deezer, Spotify or MOG... Some platforms offer prime subscriptions that

include a few advantages (unreleased material, mobile version, ad-free, special offers...). These models

generate revenues essentially through advertisement space sales, the subscriptions don't generate

enough profits yet.

Some also suggest buying titles with link that redirects on a digital music store. Deezer indicated being

the first iTunes affiliated in France.

d. e-commerce platforms

These are websites that allow you to buy music digital files, but some propose also video files (video clip

and others), concert tickets and other by-products. The sale is directly done on the platform and the sales

is materialized by the download of files.

A few examples: iTunes, Amazon, Fnac.com….

e. Direct-to-fan sales platforms

These platforms (software) are directly integrated to the artist website, they help you manage interactions

with fans (newsletters, emails, marketing, sales...). TopSpin is the leader with Nimbit.

f. Community platforms

Facebook and Twitter, generalist social networks, represent the mainstay of online marketing. On

Facebook, everyone can display their music taste on their profile and install music applications.

Twitter is a dialog and broadcasting space for music fans and a loyalty-builder for artists.

Besides, there are music community websites where the public can discover new artistes and keep

updated on their upcoming releases or concert dates. MySpace propose, for a few years now, a free

and personalized web space for its registered members, where artists can display various personal

information and create a blog.

Finally, websites with primary function to broadcast music, such as web radios Deezer, Beezic or

Last.fm, include a social network where members can affiliate by taste and receive recommendations.

g. Websites hosting for artist

These websites, such as MySpace, Bandcamp and Noomiz, host artist's pages. After creating an

account, you can customize your pages, upload your content, and even sell it at the conditions you

want (“pay what you want” for instance).

Nimbit, the American website, now even offers to create an artist's website under Wordpress (most

popular platform for creating websites in the world) for free, with various applications that permit you

to broadcast, distribute and sell your music.

h. Video hosting websites

The websites hosting videos such as Dailymotion or YouTube now play a determinative part in

promoting music online. Thanks to them, not only can record labels and artist upload their music

videos, interviews and any other audiovisual material aiming at attracting new fans, but also can fans

post their own videos. The classification of content with keywords permits to aggregate all video

material. Artists can also create their own music channel and interact with their fans via comments

and forums. The website home page displays the best rated and most viewed videos: the public

controls the buzz.

i. Web radios

Web radios are more or less similar to radio stations but broadcasted on the Internet via continuous

playing. Alike classic radio stations, there are generalist web radios and themed radio stations.

It is even easier for them, considering they are not subjected to quotas such as those laid down by

the FCC or Ofcom for FM radios. There are thousands of wed radios because, technically, anyone

can create their own radio station.

Example in France: Goom Radio, Zen, Pandora…

j. Data analysis: analytics

These websites or software help you monitoring all statistics concerning your website (who

comes, from where, who listens to what and how). You can also follow what people do with your

content outside your website and analyze your web presence on websites, blogs and social

networks. Thanks to these tools, you can also analyze your newsletter efficiency.

A few applications: Next BigSound, Google Analytics, Reverbnation, FanBridge, Band Metrics…

Let's now analyze your presence online. That is to say your performance and your content's

performance, through different spaces... We will look at two flagship websites, the old and the

new generation.

2. Case Study (Old generation tool): MySpace

What about MySpace now? Only 3 years ago, MySpace was incontrovertible for all artists. They had to be on

MySpace. And now?

• Why keep your MySpace profile?

MySpace can still boast about being the most powerful music social network (MySpace claims hosting about

twenty million profiles dedicated to music).

Nevertheless, figures show a traffic in decline. MySpace, launched in 2003, was the incontestable leader in the

top social networking sites. But since 2008, its traffic is in free fall and the website's overhaul in October 2010

hasn't stopped the fall, it actually accentuated it. In fact, MySpace users, who were waiting for these changes,

where disappointed and have now deserted the platform.

As the Sandbox website shows, the majority of influential artists communicate now principally on Facebook,

Twitter and YouTube. Their MySpace profile is nearly abandoned and rarely updated.

For instance, Lady Gaga, Justin Bieber and Katy Perry updated their Facebook status 26 times over the 28

first days of June 2011, they posted 82 new status on Twitter and only 3 new post on they MySpace blog.

Why does MySpace suffer from this turnaround? First of all, MySpace hasn't been able to adapt to web

evolutions and its usages. The technical environment has barely evolved and the website wasn't made for an

easy handover. Besides, while MySpace is a community website, where users can create a profile and display

their passions, Facebook - created at the same period as MySpace - has positioned itself as a social network,

where users can mainly communicate and easily share between members. MySpace hasn't been able to

follow the evolution of its users and found itself in the impossibility of meeting their needs.

But MySpace remains a really useful tool for artists. Firstly because MySpace remains the leader in SEO

(Search Engine Optimization). That means that someone who types your name in the search engine will find

you easily because you will appear in the first results of the research. MySpace is essential for people to find

you and discover your music.

A MySpace profile should be seen as a business card. A first contact with your music and your creative

universe. Most of professionals still have the reflex, it is therefore important to offer a clean and simple profile.

Secondly because artists are now in a strange position. MySpace is dying but no website, at the moment, can

replace it entirely.

3. Case study (New generation tool): Bandcamp

It's one of the best websites for any independent artist who looks for a simple platform to host and sell

their music. Artists can create a simple profile where people listen to their music under different format.

Artists can choose to offer titles on streaming or to download, to give or sell their music, digitally or

physically. In exchange for any download, Bandcamp suggests to collect email addresses of your

visitors.

Bandcamp can be directly integrated to an artist's website. It could be an interesting alternative to the

creation of an online store. You can also, thanks to different tools, integrate your Bandcamp page to

your social network's profiles.

Lastly, Bandcamp offers various statistics on your profile: who visits your page, who listens to what,

how often, for how long and where?

Bandcamp works with Paypal to secure financial transactions on the website. Since August 2010,

Bandcamp will take a commission of 15% on your sales.

Exsonvaldes, a French folk band, uses Bandcamp for over two year. I suggest you to visit their page

for inspiration. You just need to click on one of the album covers, they actually have created a

Bandcamp profile per album.

• New tools – distributors, e-commerce websites, applications, tools, data analysis, technologies – open

up new possibilities for music.

• These tools have become essential for artists. There are many platforms for music distribution,

because there are so many ways to consume music.

• MySpace hasn't been able to adapt to web evolutions and its usages. But MySpace remains a really

useful tool for artists. A MySpace profile should be seen as a business card

• Bandcamp is one of the best website for any independent artist who looks for a simple platform to host

and sell their music.

• Artists can create a simple profile where people listen to their music under different format. Artists can

choose to offer titles on streaming or to download, to give or sell their music, digitally or physically

• Bandcamp can be directly integrated to an artist's website.

4. The Key Learnings: Here is what you need to remember

Virginie Berger, more than 13 years of experience in the media and music industry, is the

founder and the CEO of DBTH, http://dbth.fr, a strategy and development firm, dedicated to

artists and creative industries. She also wrote the book “Music and digital strategies” (IRMA

publishing).

She is the former marketing and content director of MySpace France, and now also reader for

IMM, Nanterre university, Irma and author.

She is also the publisher of “Don’t believe the Hype”(http://virginieberger.com), a website

dedicated to musicians, artists, bands and people from the music industry. It gives them the

tools, resources, expertise and guidance to help them take their music career to the next

level.

Twitter @virberg Email vberger@dbth.fr

About the author

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