Navigating The Digital Landscape: Understanding The Impact Of Social Media And Digital Distribution On Live Music Industry

The advent of digital distribution, and the virality of Social Media have both affected the music industry in significant ways.

The evolution of digital distribution, and the subsequent downfall of the erstwhile Label era have greatly impacted the potential reach and the potential revenue for artists through music distribution.

The ease of access and the low entry cost for digital distribution have allowed artists to potentially reach any listener, anywhere in the world. But the economics of revenue from digital distribution, and the risk averseness it has brought to the traditional Label-investment model has made consistent revenue generation from music distribution difficult.

The Traditional Music Journey:

The traditional model (which started to lose its sheen at the turn of the millennium), was dominated by major music labels, which would identify musicians through scouts and agents, or through their demos, sign them on board under various types of contracts, invest in recording them, utilise their advertising might and distribution channels to push and promote to achieve sales of physical media (LPs, tapes, MDs, CDs etc etc). This worked when people bought physical media. We see so many artists come to our clubs with CDs and the running joke they have with audiences is usually to first identify who still owns a CD player. Most CD sales we see are a part of merchandising sales or memorabilia rather than a music delivery medium

The transition from physical media to digital is a case study in itself. It was a tumultuous phase, rampant with online piracy as spending a dollar on a single song in 2000 was still a  small fortune. Who can forget the famous protest/case by the supergroup Metallica in 2000 vs Napster, the leading distribution platform at the time. By “who can forget”, we mean who over the age of 30 can forget, for the new generations entering the streaming world of Spotify and Apple Music may never know. Every transition / tech revolution is accompanied by strain, resistance eventually leading to adoption and acceptance. Somewhere we feel we still haven’t really figured out the best way for digital distribution to benefit the average artist (average here is not a qualitative measure, rather a quantitative measure).

Glancing back, it seems logical that as physical media sales reduced, the ability of labels to invest in artists would proportionately reduce, as they were essentially monetising the perceived future earning of the artists they promoted. Also, to add, that this doesn’t mean that the label model has ended, it just means that one of its major sources of revenue has disappeared. Other sources (live performance fees / tickets, merchandise etc are still relevant).

To Summarize the switch from traditional to digital media has caused:

1. Disruption of Revenue Models: Labels used to rely heavily on physical sales, such as CDs and cassettes, for generating revenue. However, with change in consumption patterns, streaming platforms now dominate the market, offering convenient access to a vast catalogue of songs. Consequently, revenue streams for artists and labels have shifted towards digital platforms, where monetization primarily comes from streaming royalties and digital downloads

2. New Business Models for Music Labels: Many labels have started diversifying their offerings by signing partnerships with digital platforms or investing in talent management. They now focus on artist development, brand building, and marketing strategies, capitalizing on their industry expertise and existing networks to provide valuable services to artists in an increasingly competitive landscape

3. Increased Accessibility: Digital distribution platforms democratized the music industry, enabling artists from diverse backgrounds to reach a broader audience. With a plethora of streaming platforms available, Indian musicians now have the opportunity to distribute their music globally. This method is also reduces the time to get music to the market, as the steps of creating physically media and physically shipping it have disappeared

The Social Media Impact:

With the advent of social media, the biggest impact in the industry was how an artist was reaching out to and building their audiences. An artist's dependency on the music labels to get recognition amongst their target audience reduced, and reach was no longer hyperlocal. Gone were the days when the sole focus was on the traditional album promotions like billboards, press-runs and interviews. These have now been supplemented by a host of new ways to interact with and build audiences. The industry entered an era where the likes of Beyoncé, Ed Sheeran and Rihanna are also turning to Instagram and Spotify to announce their latest albums.

As mentioned above, all changes come with a little strife, some good things and some disadvantages. On paper social media is an incredible tool, but in reality, it has been a constant exploration for artists to figure out just how best to use it.

Some of the important benefits about the social media to note would be:

1.Direct Engagement with the Audience: Social Media platforms have definitely revolutionized how artists connect with their fans. Through platforms like Facebook, Instagram, and YouTube, musicians can engage directly with their audience, sharing updates, performances, and behind-the-scenes content. This direct engagement not only fosters a sense of community but also helps artists build a loyal fan base and gather valuable feedback.

2.The “Viral” Potential: Social Media is a powerful mechanism for artists to find audiences. These platforms have facilitated the discovery of new music and talent, in certain situations for artists that may never have had such an opportunity in the pre social media era. A short video featuring a snippet of a song can go viral and catapult an artist into the spotlight.

This increased discoverability has proven to be a game-changer for emerging Indian musicians who may not have had the same opportunities in the pre-digital era, while at the same time, “virality” remains to be an elusive unicorn for most. A

The Live Music Experience:

How could we write about this space and not add a footnote on live concerts!

There is still a lot to be said for the experience of interacting with an artist and being within their creative space. The atmosphere of a live performance is the one thing that cannot be truly captured in a recording.

This also comes with its pros and cons. You cannot control the environment of a live music event, nor the sound system. The artist may or may not play the song that you recall from their last show, but very few things compare to being a part of the creative process, to feel the emotion of a musical moment along with the artist and the people beside you. There are days when that pristine recording streaming on your phone might be perfect, and those when watching an artist doing their thing on stage just can’t be replaced.