I was reminded of a video I watched a while back on YouTube. It was a great documentary about these new artists and their debate about whether to sign a record label (there’s a recent trend to selling music as an independent artist).
I forget all the details, but there are some roughly insane trends that are generally interesting as I recall:
- new record labels are for $500k give or take. This is so the artist can invest a year into their music and get an album out, pay for production, etc.
- many artists at that early stage aren’t financially literate and end up wasting the (they’re musicians, not bankers)
- Some have to pay back the money
- Up to 85% of the streaming royalties are owed to the label (started when streaming became a thing)
- Labels also take a large portion of touring revenues now (something that wasn’t common 10 years ago)
Why is this similar to tech startups? Lots.
Musicians have to find product market fit. They need to find their customers. Their monthly listeners.
They need to keep them coming back.
They need to differentiate.
Those who are customer focused and build a following are those who succeed. (Money in the bank and relying too much on the label can cripple you)
The Musicians in Town
I remember hanging out with some new artists while I was running my startup (we both used the same videographer). I couldn’t help but notice how similar the dynamics were. The founders. The first hires (replacements). The convos about who gets what. It’s all very fascinating.
Not much else to say.
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Bryan lives somewhere at the intersection of faith, fatherhood, and futurism and writes about tech, books, Christianity, gratitude, and whatever’s on his mind. If you liked reading, perhaps you’ll also like subscribing: