Digitalisation has brought about significant change in the music industry. One of the biggest changes is democratisation of supply, but with that has come a shift in what is required for success as a musical artist.
The Traditional Music Supply Chain
- To produce my music I needed access to a studio and it’s expensive equipment.
- Getting into a studio cost money, and then I needed more money and time to get my records manufactured.
- Once I have records I need to get them into stores. To do that I need a distribution network, which likely meant I needed record deal with a label that had access to distributors.
- The label also did marketing, postering campaigns etc. for me, again, money, time, and expertise.
- This is also just the distribution side, we haven’t gotten into publishing and rights management.
The Digital Music Supply Chain
- Today, I can start producing my music from the comfort of my home with little more than a laptop.
- I no longer need to figure out manufacturing, because once I have the digital file, I’m done.
- Distribution is simpler than ever, any one can open an DistroKid or CD Baby and have their music available on Spotify, Apple Music, and Amazon.
- Thanks to Social Media, I can build my own fan base directly.
Previously, if I stood a chance, I needed a label to finance my work, to get me access to distribution channels and store shelves, and to promote my music. Today, I can skip the line and get my music onto Spotify within a few days. But so can everyone else.
Discovery
Where I was competing against thousands of releases in the physical store, I'm competing against billions in the digital store. If labels were the gatekeepers to my success before, now it's playlists curators and algorithms.
This doesn't mean that labels no longer have a role. What they do has become more nuanced, and therefore even more important when they do it well.