Preparing Artists For The Next Recession

It's been hard to measure the impact of the recession on music since our industry has been in a state of change for the past decade. 

I had the pleasure of meeting Darren Shirlaw last week. Apart from the amazing coaching business he has established, he's a bit of a mathematician with an eye on the economy. He predicted our recent recession, and is quite convincing in his argument that we are heading for a double dip.

This isn't great news for independent artists or labels. If you thought it was difficult to keep afloat in the past 18 months, consider how tough this will be when the shock hits pockets for a second time. Even though consumer spending is unpredictable during a recession, no one can guarantee what would happen in the case of a second subsequent market crash.

Shirlaw recommends three areas of focus for any business to ensure you not only stay strong during the dip, but come out fighting. Here they are framed through a new music industry lens:

Risk Management

Something smart businesses do at any stage of operation, risk management means you understand the potential risks facing you mapped against their likely impact. To many artists - especially those that just focus on the creative output of their career, this process is probably a completely foreign concept.

From personal experience, had Gaymonkey conceived of the possibility our physical distributor was going to go bankrupt 2 years ago it may have stopped us putting all our eggs in one basket, and allowed us to bounce back faster. 

Artists should look at their business and consider the risks ahead for the next 18 months. The threat to revenue, live shows scheduled, partnerships in development. Get them out on paper, and categorise them into low/medium/high risk. Then make strategies to minimise the risk, and as alternate plans, or even appropriate insurance, for when things don't quite work to plan. Write it all down down - you might need them sooner than you think.

Capability

On the surface this sounds like something that only big business would have to deal with. It centres around how capable your business is at output - ie, does the business have the ability, skills and talent to deliver. Those that do can upskill their workforce, or keep the infrastructure working to weather any storm.

An artist might believe that their capability rests in their ability to deliver great music. Thats true - but that is a given - if you cant produce amazing music, you won't be in business. Capability here means do you have the skills to carry you through the challenges of a downturn? Are you able to manage all aspects of your business - even your finances or legal arrangements - if the market turns and you need to cut costs? Do you have the skills to negotiate in tough market conditions?

The great thing about capability is that its up to you to learn and take responsibility. And once you have those skills, they are yours - not matter what the economic conditions are.

Innovation

The best of the bunch, innovation is something that no musician can argue against. All creatives are great at innovation - and within the music industry these days, innovation is what we need more of. Its not just innovation around your music, but across all areas of your business - from how you market, distribute, connect with your community, and perform. 

Critically it is about not wasting resources - finding new methods that cost less but have higher value (and lower impact on the environment, of course). The recession teaches us about attracting loyal customers and then keeping them. Innovative artists will be the ones that do this in the most remarkable ways.

Three areas for all artists to consider. What is clear - and as I have argued time and time again - is that artists need to prepare by thinking like smart businesses. Having a sustainable career in volatile times is possible - it just involves developing your strategy now.

Image by Banksy, of course.

Relics

I had a request this week for some of our music on vinyl.

We pressed only six of the Gaymonkey singles/EPs to vinyl. Each was a labour of love - carefully designed cover sleeve, selecting high quality paper stock and finish. Choosing the tracks to be included that would work best on the format.

Not many remain from the pressing - most that weren't sold initally were lost when our distributor went bankrupt. As I found the requested copies from our archive, it felt great to hold them again - memories of achievement.

It also reinforced the reasons why I have become opposed to the physical format. These relics reminded me of the past, but not so much the music contained on them.

Primarily, they are unsustainable, taking up resources and energy to produce that exceed their value. The investment in vinyl and CDs for an artist/label is massive, and a huge barrier to getting your art to the world. Digital formats have revolutionised this.

Physical formats also take control away from the artist. They dictate the use of distributors who retain stock and mark up the retail cost for the consumer. With this in mind, the format actually becomes a barrier between the creator of art and the listener.

And in the digital age, where our music collections are accessed instantly, these relics simply collect dust. Vinyl may look impressive, but CDs lack any aesthetic charm. Vinyl may be recycled and collected, but unwanted CDs tend to end up in landfill. It is sickening to think of the millions of unwanted records that have become waste.

The industry must take responsibility for this - while vinyl has found a niche, the time has come to move away from the CD format altogether. Not only for sustainability reasons, but as part of a journey to align how we see music in our lives - from commodities and things we consume to art made to enhance our lives.

If you don't want to spend the time reselling your old CDs, its good to know that they can be recycled - this is a good resource for facilities in the UK.

Image on Flickr by swanksalot

REM - Green Again

It's nice to see the penny dropping for other bloggers on the music industry's environmental impact.

Drowned in Sound ran some editorial on the campaign this weekend by REM, who have released their latest material as a giveaway with The Times. This isn't new - the weekend press is usually littered with freebies. Precisely the point - the free CDs and DVDs have a disposability that inevitably see them ending up in the bin.

Labels have been increasing this practice - recall that Prince launched his last album in a high profile deal with the Mail on Sunday two years ago. The idea was panned by many as contributing to the downfall of the industry. The question remains over it's effectiveness - does it attract new listeners to the artist, and in fact is anyone listening to the material at all? If we can't measure the intention of the consumer, do we assume they have purchased the paper for the music, or the news?

REMs campaign is different. Rather than offloading a CD, it involves a code for downloading the new material. It's not rocket science, but here's why it's smart:

Less Waste - and less production!

Lower costs for the label and newspaper - and the unwanted CDs won't be consigned to the landfill. Can you believe this campaign is the "first of its kind" in the UK?

Targeted Marketing

Putting CDs in the paper is the same as loading them into a shotgun - not targeted at all. By asking the listener to download, you are opting them into the campaign. It's permission marketing with the reciprocity of the free music.

Retention

REM - and presumably the newspaper - now have valuable info on the listener. What if instead of just new material, the listener was opting in to a whole new space with merchandise, exclusive info and ways to interact with other fans? Building in a way to continue to engage after the initial download is potential worth investing in.

Affiliate Revenue

Music revenue through album sales are in decline. So let the advertiser pay. Not disruptively (like the Spotify model) but through the paper and via the download portal. This is a win for all parties - the artist/label gets royalties, the paper gets ad sales, and the advertiser gets access to a target demograph.

This is the type of thinking we need to see more of across the media industry. The assets are there - the business just isn't using them wisely. And when a viable opportunity to benefit the industry and the environment are presented, we need to make it happen.

Image by zeusface on Flickr

Music Saying Nothing

No bands have anything to say right now 

- Adam Ficek, Babyshambles

This evenings' London Lite carries a quote from the Babyshambles' drummer. I'm sure he is probably reflecting on what he perceives to be lacking in inspiration in the current indie music scene. But he has a point - artists don't seem to have much to say for themselves. Unless you are Bono - of course.

Which is odd considering the level of interaction and airtime that any artist can have thanks to the Internet. They no longer need to call a press conference or stage a bed-in to get attention. But rather than use this brilliant tool to discuss the merits of their music, most mainstream performers tend to rant about their media profile (see Lilly Allen or Calvin Harris for Twittertips).

When it comes to social issues, the silence is almost deafening. At a time when companies are under increasing pressure to be more transparent on their stance on the environment, and are even using the challenge to improve their offering, artists seem to have nothing to say. In the last issue of the PRS members magazine, the spokesperson for Julies Bicycle (the industry body on climate change) revealed her frustration on finding a UK artist to publicly comment on the issue. Perhaps they are afraid to make a statement because they are realising the impact they have. Or maybe they just don't realise they have a responsibility - or the opportunity - to affect change?

It seems like music with comment is as taboo as an artist with conscience. 

Image by kozumel on Flickr.

Irrational

Yesterday's Independent carried a tiny story on the government's exploration into the possibility of rationing individual's flights as part of its carbon reduction strategy. (I would reference this story properly, however I left my copy of the paper on the floor of the Harcourt Arms following the kick off to this year's Melodifestivalen heats - that is another tale to a completely bizarre experience altogether!).

Enter the latest mixed message. Amidst insistence on a new runway for Heathrow, and after years of encouraging the population to travel with cut price airlines, the strategy to reverse the mass consumption our society has created is apparently through rationing.

We know that aviation is responsible for a sizable chunk of our carbon emissions. But we also know that the biggest area of concern is domestic and business energy consumption. So will enforcing travel restrictions make a difference? 

I now make conscious decisions on when and how to travel. And with family on the other side of the world, it is very difficult to not keep in touch without flying. A decision like rationing will never be supported or enforceable - if people need to fly, they will find a way. If we are to meet our reduction targets it will have to be done by changing people's behaviour to take responsibility for their overall consumption. And the government needs to support this by investing in technology, renewable energy, and encouraging more sustainable behaviour through making better choices - not through force.

BEST OF 08: Politik

If you measured the year in column inches, surely this was the longest. More than ever, the media spat out a heavy dose of misery and disaster porn. Some of the top stories that rocked the news:

The McCanns Did It

A terrible story of a missing girl and the all-encompassing PR campaign - the mystery continues. Overshadowed now by the equally ridiculous tale of Shannon Matthews.

The Credit Crunch

After years of excess, suddenly it is chic to be cheap. When the tabloids started to create a logo for an economic concept, that’s when I knew we were in trouble.

100 Months

Andrew Simms' report gives us 100 months to save the planet. Despite this the UK government still feels the path to salvation is for us all to unplug our mobile phone chargers and boil less water, while encouraging us to consume as much as possible in order to save the economy.

Amy Winebar/Kate Moss/Pete Doherty

So boring, And for six months, so unavoidable. Thank god for fickle journalism – even Adele gets more press lately.

Celebrity DJs

Sam Ronson. The Geldof Children. The drummer from this month’s one hit wonder indie band. Playing at the hideous dive near you. Enough is enough. It’s no wonder that … 

Turnmills/The End/Astoria/Ghetto/The Cross Shut Down

… no one goes to clubs anymore.

But its not all doom and gloom --

Obamamania

Finally politics got exciting again – but true to form, the fun wasn’t to be found on our side of the Atlantic. As America suddenly came to its senses, perhaps the world didn’t seem so bleak after all. 2009 should be an interesting year …

Image by ally.thomson on Flickr

They Could Be Heroes

"Lyrically though, I'm proud of Falling Down on this album. You mentioned earlier that you thought it was about a comedown from drugs. That song started when I was sitting in my back garden this time last year and there was this beautiful early autumn sunset. I was thinking about all that climate-change bollocks and came to the conclusion that man really is incapable of destroying all this." 

Noel Gallagher, Irish Times

Noel Gallagher was never going to be a poster child for any worthwhile cause.  His small mind seems capable only of the solitary task of spewing forth the same inane drivel - in the form of either his ridiculous opinions, or the regurgitated musical mulch he's been releasing since the mid-nineties.

Certainly if he looked beyond the porch of his country pile, he'd see that man is making quite a dent in his pretty little world.  Then wouldn't it be refreshing if an icon, such as himself, were to stand up and do something about it?  Think of the influence he could have over his legions of fans. 

What if he asked every one of the unwashed masses who attends Oasis' forthcoming worldwide tour to consider taking public transportation to see them - maybe even giving them a discount to do so? Or played some gigs by webcast rather than tour to the far end of the globe by private jet?

Madonna could then take some lessons from old Noel.  I love it when she gets political. Madge likes to talk the talk - just take a peek at her live visuals for "Get Stupid'.  But she suffers from a severe case of cognitive dissonance.  While she wants her fans to seize the moment to save the world, she fails to recognise the damaging effects of her own career - with a massive carbon footprint from not only her travel, but that of her adoring masses.

We need more heroes.  Such a shame that these two continue to fail to grasp the potential of their influence.

Time

This week is feeling a bit overwhelming - too much to do, and too little time to get things done. Thus I feel I have broken the subtle vows of blogging by slacking off the past week and not writing. What would Jerry say?

Just returned from a great trip to Stockholm - to visit with Sara and get a bit of headspace before the release of the album. This has been a bit of a crazy year for us - with not a lot of time to see each other.  So it was fantastic to be back in Sweden and enjoy the autumn.

Revolutions is out now on iTunes as a bit of a pre-release. We aren't shouting about it ... there are quite a few things in store over the next 2 months to promote the album.  Including the limited edition CD version (which can already be preordered at the Gaymonkey Shop).

The limited edition disc comes in a numbered double gatefold vinyl sleeve. Its our way of giving an acknowledgment to the ultimate album format, which sadly we have never been able to release. But also to make CD packaging more sustainable, by making a collectable format rather than a disposable plastic jewel case.

There are only 1000 copies - once they are gone, the CD format will be deleted.

Two Pop Birthdays

Two big birthdays this weekend.  Madonna, and the compact disc.

Both are entering their twilight years ... and while we once marveled at their brilliance, they are starting to lose their lustre.

Wired gives three excellent reasons why the CD is on its way to retirement.  I've ranted on a bit about these reasons before - but they are worth repeating again. 

Dancing to Save the World

Design Week reports the launch of a yet another venture to save the world - this time, we're going to do it by dancing.

New London club Surya opened this week - the city's first "eco-nightclub" - by an organisation called Club4Climate. Alongside serving organic and fairtrade beverages in surroundings furnished from recycled materials, the venue features a dance floor that can generate electricity from people dancing.

Although the idea sounds intriguing, and I agree that all venues need to examine their energy use and procurement to do their part, my immediate reaction is that Surya will go the way of most of London's expensive concept clubs. People won't give a monkeys about the magic dancefloor or the sustainability of the venue - clubbing in London is all about location, who is playing, and where your mates are going.

My replusion at the whole idea is actually centred around Club4Climate's ten point mission statement, which sounds like it has been ripped out of some early nineties rave manual and is about as effective at saving the planet as Madonna and JT's latest call to arms. The whole cause is being championed by Austin Powers' cast reject Dr Earth - the sustainability movement needs icons, but Dr Earth certainly isn't the posterchild we have been looking for.

Club4Climate are also promising a "eco-friendly holiday destination" island, which further points to the likelihood that the whole venture is one giant, opportunistic, greenwashed turd.

The Death of the Compact Disc

Julie's Bicycle has just released their report on greenhouse gas emissions in the UK music industry.  The organisation was set-up to research the impact of the industry and make recommendations on how to reduce CO2 and the other emissions contributing to climate change.

The report includes a set of short term recommendations for reducing the industry's carbon footprint.  These include standard housekeeping measures - like energy audits, switching to a green electricity tariff, and engaging their suppliers in emission reductions.

From the total of 538,000 tonnes of greenhouse gasses produced by us musos, 26% of the industry's emissions relate to the cradle-to-grave lifecycle of the compact disc.  Julie's Bicycle therefore recommend that the industry "move to low emissions CD packaging".

But is that really the answer?

The industry is in itself in a state of change.  Downloads have shaken things up, and CD sales are in decline.  People may be continuing to purchase CDs, but what would be most interesting would be to see stats on how many people buy albums on disc, convert them digitally, and then file the CDs or sell them on (or throw them away ...) - thus never needing to use them again.

CDs have never had the collectable status as vinyl has.  They are a format that was imposed up on the consumer - indeed there have always been many opponents to discs since they were introduced.

With the industry in a state of flux, this is a good time for labels to shake things up.  For those that want the format to retain, sustainable packaging should be considered - rather than simply resorting to the standard jewel case, do something remarkable.  CD packaging that is collectable, and made from sustainable materials, will be more highly valued by fans.

But perhaps the answer inevitably lies in the format itself.  Is it time to just let the CD die?

Read the full report from Julie's Bicycle here.

Green Plastic Watering Conans

Last year they measured their carbon footprint.  Now Radiohead appear to be trying to cut down on their impact - with a symbolic gesture of not jetting across the pond to promote their new album In Rainbows (which, incidentally, is a brilliant piece of work ...).

Rather than flying to NYC to appear on Late Night With Conan O'Brian, the band played 'House Of Cards' live via satellite from a studio in London. The performance was part of NBC's week of environmentally conscious programming.

It's not necessarily a new idea - and with Prince Charles upping the ante by making appearances via hologram, one would suspect Thom Yorke et al. to do the same.  Perhaps the gesture was only a drop in the proverbial ocean - the band go on a world tour this summer.

Madonna Saves The World

There was a time when the Queen of Pop used sex and religion to cause controversy.

Now Madonna feels it necessary to strike out against public transportation.  Apparently London's roads and Underground system are so horrible that she has to walk everywhere.  Not such a big deal when your fortune is so extensive that you can afford to purchase (yet another) slice of the capital's hyper-priced real estate - just to house a gym for you and the girls.

We know that Madge likes a moan - and with a new album out very soon she needs all the column inches that she can get.  But with the green zeitgeist of the Naughties in full swing, does she really think she can get away with mixed messages?

Now hold on - Vanity Fair has chosen Madonna to grace the cover of their annual "Green Issue".  And her new single "4 Minutes" informs us that we don't have much time left to save the world.  It must be a nightmare for her publicists to deal with her credentials - between building schools in Malawi and her yogalates classes, can she really criticise a public transportation system that surely she has never stepped foot on?

Pop icons are losing their power.  In the early decades they used their influence to inspire - from John & Yoko's bed-ins, to Band Aid's "Do They Know It's Christmas" (the UK's fastest selling single of all time).  2007's Live Earth concert, however, was heavily criticised for being irrelevant when the message of saving the planet was delivered from artists who flew in private jets to and from the event (not to mention the fact that it was sponsored by a car manufacturer).

Can self-indulgent, heavily consuming rock stars really be the ones to continue to inspire the masses?