The Evolving Landscape of the Music Industry

Chances are you'll have a manager and an agent before a label. However, the record company is often the first business to invest a serious amount of money in you, your career, and your business as an artist.

Current Industry Trends

Generally, labels are signing artists later than they used to. They are looking for artists who:

• Can play in bigger venues
• Have a larger fan base

In the 90s, a bit of buzz, great songs, and a couple of energetic performances might have been enough to secure investment from a label.

Expectations from Labels Today

Now, labels are looking for more. While the A&R might want to sign you based on your songs and performance, within the record company, especially larger ones, there will be people in business affairs asking key questions, such as:

• How many fans do you have?
• How many records can you sell?
• How many tickets can you shift?

You need to do more of that.

The Financial Climate of Record Labels

This shift is partly due to the fact that labels have less money; recorded music generates less revenue than it did in the past. Record companies predominantly secure their investment by selling records.

Because they sell fewer records, make less money, and have less profit, they are investing more wisely. Consequently, they are looking for artists to do more work themselves.

The Impact of the Internet

However, artists today can do things that were not possible in the 90s. Even before the rise of the World Wide Web, labels faced financial troubles but couldn't expect artists to distribute their content easily.

• Pressing CDs was expensive.
• Getting CDs into record shops was difficult.
• Gigging required local venue knowledge, and promoting gigs outside of your hometown was challenging.

You could only expect artists to manage so much, often relying on basic tools like photocopiers at local libraries.

The Dual Nature of Current Music Industry Expectations

So, this change in expectations is twofold:

1. Cautious Label Investment: Labels are more careful with their money and tend to invest later.

2. Increased Artist Independence: Artists can now do more on their own, which also leads to the expectation that they will.

While this increase in responsibility can feel like more work, creating a downside, the upside is that when artists start to negotiate initial deals, they are often further along in their journey.

Advantages for New Artists

This means you gain a stronger negotiating position.

However, it doesn't necessarily guarantee:

• More money
• Ownership of your copyright

These are the things that managers and seasoned artists often stress artists should focus on.

Building Your Fan Base

Nevertheless, artists will likely have a clearer idea of their fan base and already established social media presence, allowing for more ongoing conversations.

This connection provides artists with:

• Greater control even once a label and other business partners come on board
• An opportunity to have more influence over the business side of their work

If you're an entrepreneurial artist, having greater control can be incredibly exciting.

Conclusion

In conclusion, if you are an entrepreneurial artist, this is arguably the best time to be a new act in the music industry.