Why is Apple Connect, Spotify, Deezer & Tidal seen as the modern day ‘record store’?
They are not a means to earn money for record companies or artists in the same way as a record store was. They simply store music, they are cloud storage with frills.
What everyone should remember is that without the artist there is no industry of reselling music.
Why is the industry relying on their services when music is potentially available within every artist app on a mobile device, and paid for with a monthly subscription to an artist driven app? It’s simply because the industry has forgotten who drives the sales of the artist, and the fact that record labels revenues are generated through back catalogues.
Our view is that the true value is held by the record companies and artists. Somehow we’ve forgotten how fan clubs and direct artist interaction used to be the key driver for music sales. We’ve even forgotten how to accumulate fans without using music streaming services and third party social networks, which either cost money so socialise with or generate little revenue.
If the record label or artist owned the mobile app that streamed music from a particular artist, and offered audio and video back catalogues, as well as live video feeds from the artist on their own Facebook style wall, much more revenue would end up back at record companies and with artists.
That’s what we are doing at GigRev. We started with an app that fans and artists would actually use, then figured out how to monetise it for artists. We think we’ve got it just right.
So, even though mass streaming services and social networks are used to get music to fans, instead think of them of a way to drive fans to artist apps and then truly benefit from the income and interaction they can drive. It’s all about owning your own fans data.