When is a New Revenue Model Needed?
It happens nearly every time a disruption in an industry occurs; the disrupter not only jars the business model, but the revenue model of its umbrella industry changes.
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Google - and others - had search engine keyword ad buying, which changed how advertisers reached potential customers while offering a different pricing system. Mobile phone companies worked on getting people to disconnect landlines, but they also changed pricing by placing value on data transfer. Uber recalculated the mechanics of selling a ride (absorbing no capital expense in vehicles), and refined the price of that sharing-ratio between driver and company. Its "value added" for consumers was a rate-the-ride. |
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I've written many times on the need for change. Words aimed at radio stations or indie artists, individually and as a group, fell short. That these two groups need each other more than ever is obvious; no station can afford to operate with the new CRB performance royalties, and with fewer radio stations there are fewer places willing to expose artists, in the latter's search for a following.
Regardless of which group you're in, the larger companies have no interest in seeing you survive. You are competition. Nothing more.
Those in the "indie" community need to approach what is offered differently if there's hope of growing. Business trades focus on the larger players. You just won't win trying to play with the larger companies' ball.
Revamp pricing. How? That's a subject also covered many times at Audio Graphics. A trip to our archive will give many ideas. But only people operating as either an artist or radio station can implement the "idea." That's not been the case. Status quo is always an easier path.
Start the process by approaching how you offer your product from another angle.
The internet has opened a competitive gate far wider than anyone imagined, and you're up against a fragmented audience with so much choice it strains the mind.
Do different! Be better. Service supporters.
An artist who wants to build an audience has no luxury. If you're not playing gigs, you'd better be learning the variety of digital distribution platforms.
A radio station owner who believes they'll build an audience of more than a few listeners is fantasizing. Most are lucky to get a few concurrent listeners, regularly. Charging for advertising using industry standard CPM is chump change. So change!
I'm finding less and less to say which hasn't already been said. There's a near exact head-in-the-sand (HITS) approach to the reality of our worlds as has existed for twenty years.
A new revenue model is needed for indie artists and independent radio stations, now. To get that, your mode of operation also must change.
Audio Graphics' new "Music Short" may be your ticket. Artists get exposure. Stations receive songs - no fees at all. The audience has an experience matching today's attention span and audio listening habits.
If all win, you can't lose.
Thursday, March 10, 2016
Today's artist introduction is to Pop from Markos Tegui and Anything But Monday.
Give "Sweat" a listen.
Stations: Add it to your playlist, free.
