How artists earn money in the download era: monitising friendships

A frequently heard comment in the download debate is that copyright does not actually benefit creative people, but rather the business entrepreneurs in the entertainment industry. For instance, record companies would receive the bulk of sales revenues from music sales, while bands receive but a marginal share. If this is the case, how can artists earn a living when downloading music for free has become mainstream? Music Marketer Chris Cox answers this question in a video tutorial.

Cox names P2P file sharing and social networking as two factors that have completely changed the music industries world. Nevertheless, artists shouldn’t oppose free music exchange via P2P and social networking. Artists owe a large part of their fame to enthusiastic stories between friends and should therefore embrace the exchanges of music between them, even if they receive no compensation for this. Instead, they should make money by using the internets’ opportunities to reach an audience.

Music sale shouldn’t be considered a primary source of income, but more like icing on the cake, says Cox. Artists should be able to obtain more revenue by creating "soundbite-worthy marketing materials". More specifically, this means that artists should create for themselves a lifestyle that is attractive to fans. Selling unique lifestyle products can be a major source of income for artists. As an example Cox names Britney Spears and her own line of perfumes and bedding.

Would Cox be the marketer of Lady Gaga? She recently explained that she in her early days released her music for free to gain fame (note her first cd’s are called ‘The Fame’ and ‘The Fame Monster’). That reputation is now paying off in two series of sold out concerts. Without a doubt Lady Gaga's spectacular outfits and lifestyle play a part in this. Would Lady Gaga’s next step be her own line of bed linen and perfume? A bag, hat and footwear line would probably better suit Gaga. At this moment though, Gaga seems to have more faith in the merits of product placement and performing.

According to Cox not only large but also small artists can earn money in times of downloading by creating a lifestyle. For these artists it is essential to built a culture and community around their lifestyle in the hope that people will become to like them and support what they do (with money). In short, you need to know how to 'monitise’ your online friendships with fans. Tom Yorke (Radiohead) is already claiming that the music industry is dying and young musicians are better able to promote their own music themselves.

Cox’s creative solution for musicians seem equally applicable to games developers, but what about film and television makers, how can they make profits while their films are downloaded?

Source: ZeroPaid