CAUTION: When it comes to problem solving, engineers are fearless.
Graphic version: virtualmusic.tv/2010/06/10-engineering-rules/

Device Dependency

Apple continues to create a major dependence on iTunes through their mobile products—the iPod, iPhone, and iPad—and I don’t think that anything is going to “kill” iTunes without a war. iTunes is the 7-Eleven of media—it’s more convenient and expensive, but it’s closer to home. For many, the iTunes experience is ingrained behavior—a household name—and part of their daily commute so to speak.

Generation Gap

The second huge advantage Apple has is the generation gap. Older people are more likely to have money to spend, and are less likely to adopt something new—especially if it’s less convenient. For Spotify to compete stateside, it will start through today’s youth. I love the Spotify concept, its mobility, and its adaptivity. They are smart to develop/test/improve their service in one location (Europe) before attempting to roll it out in another market (U.S.)—that’s business expansion 101. I hope that Spotify becomes a hit in the U.S. mainly for the sake of the music. Who wants an iTunes monopoly?

Apple Affinity

Apple products have strong affinity, and an army of enthusiasts drinking their Slurpees. Anyone looking to compete with them has to have an equal or greater affinity, and/or introduce something totally disruptive (which Spotify has done to a degree). Spotify has game, but so does Apple, who made a calculated move with last year’s Lala acquisition. One big thing to remember is that music has always been about the experience, and it always has been.

Apple Shuttle

Carey is pioneering a new business model for music. She’s cutting deals with the kind of partners musicians have traditionally shunned, pushing herself into new areas such as publishing, tourism and food and drink. … “A lot of big powerful music-industry executives made a giant mistake,” she says. “They gave the music business away on the internet. If they had just sat back and said, ‘Maybe let’s figure this internet thing out, it could be something cool,’ we could have found a way to distribute music online on our own terms, not somebody else’s. … Musicians have long promoted non-music products. The Rolling Stones marketed Windows 95 with Start Me Up. Michael Jackson did endless Pepsi promos. And rappers such as P Diddy and Jay-Z have moved on from name-checking other people’s fashion and luxury-goods brands in their songs to create their own brands, usually in partnership with their record labels, and promote them instead. But Carey is breaking new ground in three areas. Mariah Carey: The gloves are off | Times Online

The internet has leveled the playing field. It has proven that content is king, and that those who work hard at delivering content can build a following. Artists have channels with live streaming video content and direct connection with their fans through mobile applications. The same opportunities exist for everyone, and they’re almost all free. You may think that endorsements and partnerships are only for megastars—but I don’t. I believe that indie musicians with smaller niche fan bases can make the same types of product endorsement deals and partnerships with brands or services that the megastars can. The trick is finding the right brands and companies to match up with. But if you have—for example—a Ustream or YouTube channel that’s getting hundreds of views on a daily basis then I don’t think it would be hard to pitch to a company that relates to your audience. Ideally your audience would be a target market for the endorsed product or service. Think big but also think local.

flickr.com/photos/eyesofrc/ / CC BY-NC-ND 2.0

There is no single exact solution for indie artists, but the best solutions revolve around leveraging social media and video streaming to maximize fan engagement. Visual content is a must. Video content is supreme. YouTube serves well over 1 billion views per day. Live videos are easy to stream with ustream.tv, stickam.com, or justin.tv and a decent webcam. For recording non-live videos I recommend HD pocket cameras like the Zi6 or Zi8, or smartphones that enable mobile uploads like the iPhone. Video is becoming more interactive by the second and mobility is always important. Each musician has their own unique style and identifying that will help you see opportunities. Keep an open mind and be willing to adapt.

It seems that we truly are at the dawn of a new era. Opportunities abound at every corner. Music is more alive than ever, consumers listen to more music in more ways than ever thought possible, artists interact and build connections with fans in new and unique ways, music and other entertainment content can be delivered via multiple platforms for a fraction of the cost of traditional methods, and artists can form business relationships with many different partners—including consumer brands. (Music Branding Gets All Grown Up | Talent Zoo)

A lot of businesses still don’t get the internet, but a lot of them do—these are the ones that you can work with. Realize that a band’s physical merchandise is a product line, and there’s nothing stopping bands from partnering with companies to sell their own non-music products. Smart companies would likely jump at the chance to sponsor bands that have built active communities around the internet and are accessible via mobile phones. They see the meaning in social media—for business.

The types of products that will work for indie musician endorsements will vary greatly and be determined by each musician’s personal style or brand. A middle-man service that helps musicians match up with consumer brands and vice-versa might be viable—don’t you think? It would probably be pretty easy for Google, Facebook, or MySpace to implement such a service. However I’m a fan of DIY and I usually like to cut out middle-men. I think the best approach would be to directly contact companies that you’d like to partner with. Don’t be afraid to fail. You can’t get anywhere without trying things. Remember to focus on the dopeness—see Part 1: Music Dopeness and Bands as Brands.

Last Friday I got into a discussion with James Marshall (@infinitestylez) about issues facing musicians in the current state of the industry. I had tweeted two links and James replied stating, “The internet is destroyin’ industries we all love.” It sparked a bit of a debate at first—my stance is that the internet is changing the music business for the better—but we found some common ground along the way. We talked about promotion, talent, middle-men, costs, and the viability of alternate revenue sources like subscriptions and endorsements. We decided to post the discussion here where it can benefit the community, and we want to hear your opinions in the comment section. Have a read below of the entire conversation, which went from tweets to DM’s to emails.

About James Marshall: I’m a hip-hop artist local to Detroit, 25 years old, and with 7 years experience in hip-hop. “I don’t care if you don’t love me, I don’t care if you don’t date me. Fear me, whatever, respect me…hate me as long as you pay me.”

About Ryan Van Etten: I’m a 30 y.o. writer/editor on virtualmusic.tv, an engineer, DIY multimedia producer, and the indie eclectic-rock artist from The Spin Arounds and Crimson Road. “I try to reinvent myself each day like the turn of a kaleidoscope.”

Gary Vaynerchuk has animatedly vlogged about how the internet itself just hit puberty. Online music collaboration and virtual jamming are even younger. The arena for virtual music is huge. The best music is live music, and this is what comes next: We’re going hear, feel, and see live music live in the virtual realm—a drummer in Sydney, a bassist in New York, a singer in Tokyo—connecting with their fans live through web-based applications. You’re going to virtually bump n’ grind across the globe in virtual clubs with DJ’s pumping sound to the world. There will be video chat so big, real, live, and interactive that it will be like being there. The experience, and the emotion, will be real.

Where changes to anywhere in the virtual realm, and the technology is breeding as fast as we can imagine it. The clubs and venues of today will have to embrace the technology to survive, and they could be some of the best portals for connecting to the virtual space in a hybrid mix between the techology and the old-school dance floor. By the way, these clubs will recycle their electricity from the music. It’s only a matter of time before video chat goes 3D and beyond. Imagine how people will connect from club to club, venue to venue, and party to party in the virtual space.

The video game industry has already tapped the music vein with massive success, and they will continue to play a major role in this dynamic shift to the virtual realm. Mobility is still vital in the virtual realm, but how might its role evolve? Bringing music to the phone was one giant leap for musickind. Berkleemusic started the #bmusic hashtag for musicbiz conversation. Their 2005 book The Future of Music, published by the Berklee Press, discussed how mobility trumps quality. They were so right. But what trumps mobility? I think virtuality is the answer. Virtuality trumps mobility? Virtuality and mobility will likely breed to create new offspring. Mobility is the ability to move, or the ability to be connected wherever you are. In the virtual realm you can be anywhere with anyone. Virtuality is reality. Music is an experience. The quality of the experience could become greater than ever.

Evolution has proven that the most valuable survival feature that any creature can have is adaptability. Those who adapt the fastest to change always thrive. The controversial survival novelist Ragnar Benson advised that those who fail to embrace the latest technology are at a severe disadvantage. Music and musicians will continue to adapt to new technologies. As for the designers and developers: bring it on. Your imagination has no limit. Every technology that you can bring to life will be used. Musicians will continue the shift away from selling tangible products, and will cash in selling experiences—via licensing, sponsored shows, endorsements, subscriptions, etc. Music will be everywhere.

This post might sound a little far out but I think it’s meaningful for us to think about. Thank you for taking the time to read it, and I’d love to spark conversation below in the comment section and via twitter (I’m @ryanve). What will the future bring? How will the ever-expanding music population contribute to our future, and future generations?