Andy Lykens

Innovating and operating through growth

music business development

Excited to be part of the NFL Business of Music Boot Camp

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Recently I was asked to participate on a music supervisor panel at the Clive Davis Institute of Recorded Sound’s “NFL Business of Music Boot Camp.” As a music industry professional highly interested in music publishing, music licensing, and branding with music I think this a phenomenal event.

I’ll post more thoughts later, but for now here’s a link to an earlier press release about the event:

NFL Business of Music Boot Camp

If you’re going to be there, drop me a line in the comments and let me know what you’re looking forward to most!

Being a standout music industry candidate.

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The music industry is an interesting landscape to navigate. In the last 8 months I have met with a great many companies in the industry from EMI to Warner, from Amazon to some well-reputed independent shops large and small. I’ve met with ad agency contacts who need music, have done music marketing consulting, and interviewed for jobs. To top it off I have started my own independent music publisher and began producing my first artists this month. There are flaws everywhere in the music industry – some companies are aware of them and some are not. Some actively work to try to right their course, while others live it up in the old ways. The flaws are usually how they approach business development.

Many companies are greatly focused on themselves. How much value they have, what they’re worth, how cool they are. Others are starting to realize that their ways are the old ways. I have been writing for years about how the industry needs to change and needs a different approach. Most of the adjustments have to do with a loss of focus on their clients. Sooner or later, the client gets what they want. Someone supplies that demand. Simple.

Right now, the majors are STILL in a state of flux. Some are hiring more MBAs (which I think is a good first step because MBAs better understand the value of the client relationship) and ousting their old leadership. But knowing how the majors function, there’s a long way to go and it will take a long time to get there. And even when they arrive, will their relationships be salvageable?

Independents are all over the place. While they may definitely have a client focus, some may still be operating in the old music industry. Some are lead by stereo-typical creative personalities who may not understand how effective great business development and client relationship skills can be. Their hiring processes may be less defined and therefore makes it hard to attract top talent or find the right fit for their company.

For all these reasons if you find yourself applying for a job in the music industry it is important to be highly diligent in ANY meeting preparations. Whether it’s an interview, a freelance opportunity, or a gig. Have an idea of what problems the company is looking to solve BEFORE you show up. Prepare material that’s relevant to their needs and request to meet with heads of departments at companies BEFORE there are job openings (digging up a CEO or VP’s email is very easy).

If you really are a cut above the rest, show up with the ammunition to blow them away. There are a TON of problems to solve in the industry and the well-prepared can capitalize on the all of the great opportunities.

The tipping point.

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Check this out. It’s an article about the beginning of the end of an obnoxious, intractable and downright foolish “business” mentality.

This is the first evidence that the labels are no longer going to be able to sue their way to generating income. They have been a huge pain to deal with, they have refused to adapt, and now they’re “Hoping Apple Can Force Amazon and Google Into Cloud Licensing.” Nope.

Apple doesn’t care about licensing or playing fair with the music industry they just have a better relationship with the labels and more clout in negotiations. Apple deals with the majors because it’s easy for them, not because they think they need licenses and to appease them. Why would Apple’s deal force anyone to do anything?

Now we’ll see the majors start to scramble for income. They’ll start sacrificing rights, prices will drop. I mean REALLY scramble.

Mark my words folks, this is the beginning of the end. It took a long time but the labels are officially no longer in control. They’re down to a 49% say in digital licensing. The tipping point has been reached. Big change is coming in music licensing. Big change is coming in copyright valuation. It won’t be too much longer – maybe a few years max.

The snowball is rolling down the hill.

A quick brainstorm on the current music industry vs. Apple.

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Comparing and contrasting these two industries is an interesting exercise. One continues to fail in most all areas, while one continues to grow in most all areas. One focuses mainly on lawsuits and legislature. One focuses on perfectionist design.

Subscription content continues to make meager headway into the mass market. Music publishing (licensing) continues to generate growth. RIAA continues to try using the law to restrict access to copyright. Major labels are still run mostly by lawyers and boards of trustees who have little to no knowledge of music licensing, how it works, and why its successful. Steve Jobs and Apple have ALWAYS put design first and will continue to do so. Apple has just had it’s first $50-billion quarter. Streaming is inconvenient when no wireless connection is available. Apple products go out of their way to make things convenient – not free – but convenient. Apple just passed RIM in their market share. Apple sells copyrighted content and devices that access, and utilize that content seamlessly. The music industry has access to loads of copyrighted content and executes its exploitation poorly. The music industry consecutively sees revenues fall.

What can the music industry learn from a company like Apple? What can Apple learn from companies like WMG and EMI? If you had to rate Pandora as a music provider, what would you give it on a scale of 1 to 10? How would you rate Apple as a music provider? If you had to rate your iPod as a music player and content purchasing device, what would you rate it? How would you rate Pandora as a music retailer? How do you rate a major label as a music retailer? Post your thoughts to the comments!

SXSW 2011

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While it’s definitely been a great summer with a lot of big changes for me I haven’t been able to write as much as I would have liked about current issues in copyright and the music industry.

However, some big news! I’ve got a panel proposed for the 2011 iteration of South by Southwest! I’m very excited to have the opportunity to share with artists some really great details about getting music used in advertising, TV, and film. However, I need people to vote for it first! The following is a link to my panel and it’s description so give it a read and then give it a thumbs up!

Click here to check out my panel for SXSW 2011!

Note: You do have to be registered on the SXSW 2011 Panel Picker, however it’s completely free, and very fast. To find my panel, you can also copy/paste the title into the search box after you’ve registered.

Thanks for your support!