Back in April, Billboard ran this cover story: “How Guy Oseary, Scooter Braun and Troy Carter Are Finding the Rock Stars of Tech.” The title really said it all; a glowing tribute to the fact that the most influential figures in the music industry right now are those straddling the worlds of music and tech, and bringing the two together.

As the article pointed out, after a painful decade spent suffering the fallout of the failure to adapt to digital, over the past 4-5 years the music industry has finally seen the light shone on a brighter future by technology. And now, in 2013, few would argue that technology is the holy grail. The saviour of the music industry. That everyone should learn to code. That programming is THE key job skill of the future. And so on and so forth.

But of course, not everyone is cut out for a lifetime of loops and functions. And so, enter the new rock stars, who are bigger than, well, rock stars – all hail the developers and startups changing the music landscape.

Everywhere you look, there are exhilarating examples of this. SoundCloud immediately springs to mind as one of the most consistently innovative startups in the music tech space, and one that is increasingly focused on the benefits that it can bring to artists and labels.  Following the introduction of their Next SoundCloud redesign, traffic to the platform jumped by 26% from March-April 2013; plus their new SoundCloud Pro partnerships offer a raft of benefits for musicians and labels including Moving Sounds, promoted accounts and more.

But then, what else would you expect from the company who helped to found Music Hack Day, and whose ethos is so firmly rooted in digital disruption? As Read Write Web previously pointed out, ”For SoundCloud, this spirit of hacking is something that plays a prominent role in the culture of the company and its growing team of developers. Modeled after Google’s “20% time,” the company encourages employees to use what it calls Hacker Time to experiment and build new things that may or may have any direct bearing on the official product strategy for SoundCloud.”

As if that wasn’t enough, the SoundCloud API (an application programming interface, which lets different programmes talk to each other) has produced some of my favourite recent music digital marketing campaigns, including Angel’s ‘Power To The People’ campaign, where Island Records utilised the SoundCloud API to create a landing page on Angel’s website consisting of artwork widgets that each revealed teaser clips from his forthcoming album, plus voice snippets. Fans were then encouraged to vote via Facebook and Twitter for which widget they wanted to be revealed next. Simple, effective, and a good example of how you don’t need a big budget to create an innovative digital marketing campaign – just a good developer, or a good knowledge of coding.

Speaking of which, another recent innovative pairing of developers and labels saw Atlantic Records team up with We Make Awesome Sh to create Paramore’s #lyricsforlondon campaign: a part-digital, part-physical treasure hunt, where fans were asked to submit their favourite band lyrics using the hashtag in order to win tickets to an intimate London gig. The results? At one point, Paramore was the third biggest trending Twitter topic in the UK, with more than 200 fans turning up to the treasure hunt based on 8k Twitter and Instagram clicks and submissions. Not a bad return on investment…

We’ve also just launched a campaign with the highly talented developers of We Make Awesome Sh, called #mosmoments : check it out here!

Powster are another tech startup who are doing great things with music at the moment, the most recent example being a collaboration with Atlantic Records on an online competition for Rudimental’s new album release, Home, which asks fans to show the band what ‘home’ means to them by tagging #thisishome and @RudimentalUK on Twitter, Vine or Instagram, in order to win a signed copy of the album.

Of course, some labels are also taking pushing developer innovation one step further by participating in Music Hack Days themselves and even, in the case of EMI, creating their own APIs.

And yet, there is still so much more that can be done.

Within the growing trend of integrating products and sales into music listening and discovery — for example, SoundCloud’s brand new integration of Songkick listings into profiles and the reported integration via Topspin of music products, photo and video content, gig tickets, merchandise and more within the forthcoming Daisy streaming service — there is a clear opportunity for labels to work with developers on combining discovery and product to create new revenue streams and monetise music in new ways.

This is particularly true of streaming services, which still hold so much untapped potential.

Speaking of which, no one service has cracked music discovery yet; many of the existing label apps on the likes of Spotify to date are restricted to showcasing new releases, artists and playlists of previous catalogue. In the future, I think we’ll see these apps become so much more; I’d like to see them become interactive fan experiences where labels host competitions, timelines, live performances, exclusive content and previews, showcases, artist Q&As, studio sessions and much more. Plus there are plenty more advantages that labels can take of existing apps within Spotify, for example Soundrop listening rooms.

And it’s not just apps; with the obvious exception of the likes of Cazzette (whose debut album was launched on Spotify), to date there haven’t been that many examples of artists and labels building innovative content marketing campaigns around streaming releases. This is something we’ll see changing rapidly, as streaming goes more main… stream, and services open up greater transparency to both labels and artists. Particularly with the advent of Spotify’s new artists profiles containing play counts of individual track streams. As Music Ally reported last week, analysis seems to show new releases’ number of Spotify plays tend to be comparable with YouTube plays, which certainly builds a case for bigger and better label marketing campaigns around new releases on Spotify.

And what of interoperability? I’d love to see more labels working with developers to use tools like Tomahawk (which streams music from practically any source) within artist websites and marketing campaigns, to improve music discovery across the open web, rather than restricting campaigns or releases to a particular platform.

Key to all of this — and one of the most important future trends for labels — will be working with developers and APIs to better harness perhaps the most crucial element of all: data. In the aforementioned Billboard article, Lady Gaga’s manager Troy Carter was keen to stress the importance of owning data. We’ll see a move towards more labels and artists building their own platforms in the vein of Carter’s own company, Backplane, in order to build deeper connections between artists and fans, capture more fan data and dive deeper into it than ever before.

As Carter put it: “We wanted to see which songs (fans are) listening to from start to finish, which songs they’re skipping and which are the best playlists in which those songs could exist,” he says. “That’s helping us realise what sorts of music are going to work at which format, and whether this song should follow the other on a particular release. It’s an ongoing education and we’re learning a lot.”

But even for those who don’t have the budget to build or fund their own Backplane, working with developers, APIs and data will be key to moulding the world’s biggest platforms, working out which ones are of most value to you, and then making them work for you, your artists, your label, and your music business objectives. Not to mention creating customised digital marketing campaigns, so crucial to standing out in this hugely competitive and saturated market.

The future is now. A final word from Carter, widely accepted as one of the most tech-savvy music marketers in the world: “The new generation of music executives and artists, they’re breaking down distribution models, they’re breaking down any sort of barriers or intermediaries when it comes to reaching audiences, and the companies that are sticking to their guns are the companies dying off now. With us, you evolve or die on your business.”

And if it’s good enough for Gaga…

Lucy Blair is digital marketing manager of Ministry of Sound, the UK-based club which also happens to be one of the world’s biggest indie labels. Follow her on Twitter here!

Thanks to The Music Void for letting us publish this useful resumé, originally posted here and created by The Music Bed. The data was sourced from surveying 3,000 music consumers using Nielsen’s ePanel in the US.

Mark Hoppus, bassist and singer with rock band Blink-182, drew a massive crowd for his “Artists speak to artists” session, last January in Cannes. He fielded questions both from moderator Glenn Miler (of CAA) and the audience, notably on his relationship with technology. He admitted to spending a lot of time on social media, on which he has rather impressive followings — 2.5 million on Twitter, 1m on Google+, 800k Facebook fans — and, crucially, to managing all of his social presences himself.

“These tools are a great way to communicate, to let people know what’s going on with the band… but also to make dick jokes and be silly,” he quipped. The majority of Hoppus’ activity happens on Twitter, his favourite social tool “by far. It’s the perfect medium,” he enthused. “It’s like a puzzle, a haiku. How do I tell this funny story in 120 characters? Not even 140, because I’m a dick and I like to leave people room to retweet!”

Twitter is also one of the key ways Hoppus learns about new technology, as “people tweet me and say ‘check this out’, for example Vine (which had launched just before midem 2013). I like to try out new things. I was on Instagram the first month it opened. It’s like trying a new instrument, or a microphone.”

Watch all of the above video for the rest of Hoppus’ answers! And click here to watch 62 equally fascinating midem 2013 conferences

Highlights of this midem-exclusive issue:

- After spending US$100m on The House of Cards, Netflix reportedly wants to raise US$400m and use a significant portion of it to continue investing in original shows.

- Bruce Springsteen stars in a high profile feature documentary by Ridley Scott Associates in which director Billie Walsh is crowdsourcing film footage, video clips, photographs and audio recordings from Springsteen fans worldwide.

- Gracenote, the music audio and video giant famous for its music-identification technology, is opening up its software systems to music-app developpers.

This and more in the fourth issue of Outside the Box, a midem-exclusive round-up of recent key developments and disruptions in entertainment and media:

• Television
• Film
• Tech
• Ads & Marketing
• Books & Print
• Games
• Copyright

This review also includes a special feature focus on Bertelsmann, who recently announced that the group completed its takeover of music rights group BMG, marking the German media giant’s return to the music business.

Click here to download Outside the Box (email required)

This report is the latest issue of a quarterly entertainment trends review developed by MediaTainment Finance, the business journal that covers investments in international media, entertainment and the impact of related digital technologies.

This interactive video (demo below, but you really must click here to experience it yourself) by Amsterdam-based prog-rock band Light Light for new single Kilo asks viewers to use their mouse cursor to follow particular pathways onscreen, highlighted in green.

Do Not Touch from Moniker on Vimeo.

Once they have the hang of that, the action shifts to a studio where they can use their cursor to play bass, do a bit of boxing and make a mask for various band members. In a brief NSFW section, they’re also asked to keep your cursor off a naked woman. Unsurprisingly, some participants haven’t taken that instruction altogether seriously…

At the end of the experience, your cursor’s journey joins the swarm of cursors that already form part of the video. Viewers are also invited to purchase the single from the group’s Bandcamp page.

Via Studio Moniker in Amsterdam.

Contagious Insight

We’ve seen interactive music videos before: 2012′s Bravest Man In The World by Bobby Womack echoed 2011′s Wilderness Downtown by Arcade Fire: both used Google Chrome to provide a compelling experience. But it’s refreshing to come across a video that isn’t a link-up with Chrome and which uses the cursor key, a largely overlooked part of our daily digital lives, to create a deliciously original and playful film. The look of the video is also a perfect fit for Light Light’s proggy weirdness.

The take-out for brands here is that focusing on the more basic elements of our digital interfaces can often spawn a more memorable experience. Magazine Luiza, a Brazilian retailer, used an Offer Shortener which used the same principle as URL shorteners to promote in-store offers and keep rival stores on their toes, while Swedish human rights organisation Civil Rights Defenders used CAPTCHA tests to promote its work. If a particular tool or mechanism is familiar to consumers, it can potentially become a powerful short, sharp medium. It the case of Light Light, fans have the additional joy (or headache?) of trying to spot their cursor in the video on subsequent viewings…

This is the latest in a series of blog posts from Contagious Feed, a database of the most creative and effective marketing campaigns around. Contagious – a midem content partner – guides and advises brands and their agencies on competitor activity and future opportunities. More information here.

Much discussion has emerged in recent years about the concept of business models, and how companies with the same or similar products can operate very differently, thereby significantly impacting revenues and profits. RyanAir and Southwest Airlines operate on a low-cost model in the airline industry, offering the same product (air travel), but with different cost and pricing structures than major operators. Similarly, iTunes, YouTube, and Spotify all deliver music to consumers online, but in very different offerings. It is these differentiators that impact a product or service’s uptake, as well as financial success.

The core function of business modeling is to describe the set of choices a firm makes that determine its ability to create value and generate profits. Business models can be complex to explain, as they encompass many kinds of choices. Successful business models have a few notable qualities:

- First, all choices are consistent and contribute to a larger story that makes sense.

- Second, successful business models are designed to address concerns of all stakeholders, and effectively create value for all partners. Without creating value, firms cannot generate profit. If clients appreciate the value generated by a business model, their willingness to pay (WTP) increases, which in turn generates revenue.

One way to conceive of a business model is through the RIVE model. The RIVE model explains a business model in four interrelated sections – resources, internal activities, external activities and value proposition. Resources can be considered as anything the firm contributes towards delivering its value proposition, its central offer to consumers and customers (often, the value proposition is different for the consumer and the customer, who are not always the same parties). Internal activities are activities the firm performs within the company, whereas external activities are activities the firm chooses to outsource, a decision that is often made when a job is too costly or inefficient to perform within the organisation. Below is a visual representation of the RIVE model:

Choices on the left side impact the value created by a firm and willingness to pay (from either consumers and/or customers), resulting in revenue. Choices on the right side impact a firm’s costs, and the difference between these two sides result in a firm’s ability to make revenue.

In a music industry where disruption has become the norm over the past 15 years, business model structures are more important than ever as musicians, publishers, labels, and others struggle to make money on a product that has been shown, again and again, to be indispensable in consumers’ lives. Using a business model approach, artists, investors, and innovators can assess their resources, value proposition, and costs to determine the best allocation of resources. This further allows better evaluation of the viability of current and proposed business ideas, leading to a healthier, creative, global music environment.

Athena Koumis contributed to this article.

This Friday, Rethink Music, an initiative between Berklee College of Music and midem, presents its first-ever public music business workshop, at Berklee College Valencia, Spain. More information is available at www.rethinkmusicvalencia.com and complimentary passes are available before Tuesday, April 23 by using code “RETHINK26ABRIL” at checkout.

Left to right: Moderator Justin Osofsky, director, platform partnerships and operations, Facebook; Jason Titus, CTO, Shazam; Mette Lykke, founder, Endomondo; and Axel Dauchez, CEO, Deezer at LeWeb

“Facebook has drastically changed the way people listen to music within Deezer,” began Deezer’s Dauchez. “Over the past three years, our only obsession has been to give a seamless experience. Then you’re obsessed about engagement with the product itself. That’s where Facebook comes in. Because the biggest challenge with the digitalisation of music is that people are listening more, but are less engaged with music.”

“The average Deezer user uses service for 60 hours per month,” continued Dauchez. “So it’s crucial that they enjoy that experience. But we’re not using social for social’s sake. We make sure that artists’ every movement is connected with their fans; this builds fan engagement. That’s where we see the importance of social.”

The CTO of music and entertainment content recognition app Shazam’s Jason Titus agreed on the importance of user experience. “We want to make the experience as seamless as possible. So our app has to be easy to use, reponsive, understandable. When it came to social, it had to be seamless too: that’s why Facebook’s Open Graph, which we integrated in May 2012, works well for us.”

Watch this session in full, above!

Dauchez confirmed that the music streaming’s service’s recent global expansion owed a great deal to Facebook’s network, telling Osofsky: “You need to embrace the full complexity of the world, and Facebook has done that. We couldn’t have done our global rollout without you. There are 750 million Facebook users in the countries we’re present in. Thanks to the virality of Facebook, we can go really fast: we’ve seen, for example, that there’s a gap in the market in Australia, so we’ll go there as soon as possible.”

“Is music streaming an overcrowded market?” asked Osofsky.

“I think one day there will be interoperability between the playlists, plus Google’s role remains to be defined,” replied Dacuhez. “But for now, marketing is the key differentiator between streaming services. We don’t realise to what extent what we listen to is influenced by the traditional distribution channels. So we want to open even the smallest music markets in the world, so that an unkown African artist can become a big star, for example. We’ve already started to find African artists coming to us, finding producers, starting to record. So my dream is that people like that will become big, because their music reaches its audience (thanks to Deezer).”

To conclude, Osofsky asked each panelist how they saw the next few years.

For Shazam’s Titus, “the next step for us is not having to pull out your phone to interact with something. So we’re always working on things, trying them out, long before people actually see them. As for social, we want to make it so easy to wrap up a moment – the photo, the sounds, etc. – and share it, without having to type a lot.”

Endomondo’s Mette Lykke‘s point could well apply beyond her own social fitness network: ”We’re only just started on what social can do for fitness — for example encouragement by friends, personalised programmes — so our app becomes a mentoring product. Not just for hand-holding, but also for kicking users’ asses when they don’t do well!”

Last but not least, Dauchez predicted: “I see the production process of music changing drastically. For example, the end of albums, in favour of a shift towards a continuous creation stream — that will be monetised — and permanent conversation both between artists and fans, and between fans together.”

The above session took place at LeWeb Paris, December 5, 2012. For more innovation in the coming months, don’t miss LeWeb London, June 5-6!

During midem 2013, conversation swirled regarding new business models and revenue streams.  Much of this conversation spawned from Tom Silverman’s industry plan, challenging everyone that a “$100 Billion Dollar Music Business” was obtainable.

I enjoy Tom’s viewpoint so much that I would like to enhance it further – the music industry can increase profits by 30% immediately.  Not only can we increase profits by 30%, we can do it without job cuts, without slashing new artist signings, and without lowering payroll.  To the contrary, we can increase music industry profits by 30% doing exactly the same thing we’re doing now – with one exception.  The music industry needs to wake and embrace international film incentives.

Ten years ago, Canada made a valid attempt to attract movie productions away from LA and NYC by offering tax rebates.  In a continuation of the trend, individual US States began drafting legislation to lure video production business within their borders. In an apparent arms race, states drafted unique legislation, often offering tax incentives, rebates and tourism packages. With increased production options for filmmakers, lower budget projects ($5 million) ventured away from LA, NYC and Canada simply due to economic efficiency.  Currently, film business has exploded on a global scale.  Nearly every country in the world offers incentives (dictated by their laws) to drive movie productions into the area, which in return, boost the local economy and tourism.

What does this have to do with the music industry? Film incentive legislation boils down to three concepts: (1) spend (2) incentive and (3) production.

Spend – Pending on the country or state, local legislation will identify the monetary amount which must be spent on “movie production” (i.e. local spend) in order to qualify for the incentives.  For example, California may have a spend amount of $15 million+, while Finland may have a spend amount of only $50,000+.  Should an applicant spend the minimal monetary amount and meet the local spending requirements, they may qualify for an incentive.

Incentives – Again, pending on the country or state, legislation will address what incentives apply based upon the local spend amount.  Many apply tax breaks, while others apply rebates. What countries and States offer has become so competitive that the incentive programmes continuously grow more attractive.  ’Rebates’ will remain the primary focus of this article, because they often mean a cash payment based upon the amount spent.

Production – Perhaps the most important component of film legislation boils down to the definition of “production.”  Larger movie economies (e.g. in LA) may define production as a motion picture financially supported by a studio release, or a motion picture containing global distribution.  Other areas may be less stringent, defining production as any project containing a film component (i.e. music video, documentary, etc.).

If applied correctly, every dollar spent on recorded music, marketing content and/or music video production within the music industry could qualify for a film incentive.

EXAMPLE – Pending on the location of production, Warner Music Group (WMG) could spend $100 million annually in recorded music, music video production and online marketing content; and the mere inclusion of a video camera (during any project) could qualify as a “production” – therefore triggering an “incentive.” It doesn’t matter if a majority of the expenditures may be allocated towards recorded music, as the recording becomes a production expense (same as the cost of a movie set).  Additionally, think of the added content value of capturing the visuals and the advertising price tag that could be generated.

Many countries around the globe offer upwards of a 30% rebate, pending the local spend amount.  Additionally, several countries loosely define “production”, allowing any captured visual element to fulfill the legal definition.  Therefore it is plausible the music industry could increase profits by 30% by doing nothing except applying for film incentives to their business model.  Even an indie group on tour for eight months could feasibly document the experience and qualify their total tour expenditures as a “production” expense.  The film incentive doesn’t apply to only major, or only indies, it applies to everyone. The scenarios are endless!

While lecturing on this topic at midem during a closed door session for label executives, I was asked the blunt question: “Why hasn’t anyone heard about this?”

My answers:

(1) Industry executives have become fixated on the slow bleed caused by piracy, downloads, and streaming

(2) Industry executives rarely explore “the globe” for solutions, rather they remain fixed on their specific country

(3) Music industry executives don’t understand movie law, film incentives, or movie productions – nor should they be expected to

(4)  Should any applicable law exist to boost music sales, music industry executives naturally rely upon their respective in-house legal counsel to educate them on the options available. However, in-house counsel only focuses on “internal” label issues and administering contracts – therefore exploring film incentives doesn’t fit the job description.

Additionally, I was asked, “This sounds like a great theory, but practically speaking it can’t work – right?” Practically speaking, it does work.  We exploit these possibilities for clients (both labels and artists) all around the globe on a daily basis.  Frankly, it’s somewhat disturbing that more industry business/labels/professionals don’t capitalise on existing legislation. Global film incentive is a big business, and only now has the legal profession taken notice.  Many attorneys at our firm (myself included) will be contributing to a new publication for The American Bar Association (ABA) exploring these very topics – additionally, how it applies to music.

Make no delusion; film incentives are no easy handout. Although law(s) exist which provide these incentives, the application process is daunting, requiring experience, local contacts within film offices, detailed filings, paperwork with the relevant Department of Revenue, audits and meticulous production planning – all prior to actually making the project.

However, the payoff for the music industry as a collective unit is obtainable and awesome. Obtainable to the extent of potentially every dollar spent on recorded music, online marketing content and music video production from 2012, could generate a 30% increase (via global film incentives) in music industry profits in 2013.

What a 30% increase could do for the music industry is so transforming that it doesn’t even need to be specifically addressed here.  However, should global film incentives become more highly exploited, new possibilities will be created.  For example, many labels are now hiring “Strategic Legal Counsel” in order to explore money-saving avenues and generate strategic monetising plans. Additionally productions (e.g. recorded music, videos and marketing content) may no longer be produced out of the bigger, higher end markets. Economic efficiency will become the deciding factor based upon the incentives being offered.

Essentially, it’s similar to how recording studios took a hit when new technology became readily available to musicians, giving them a more cost-effective way to record. Big studios lost the business, smaller studios exploded.  Because of rebate incentives, it’s likely the major markets will see a massive decline in business, as small markets located in areas with more favorable legislation will grow substantially.  Remind anyone else of the fragmentation taking place with major genres turning into niche genres? How about major label artists breaking away to explore more favorable indie label or self release options? The possibilities are endless…

Martin F. Frascogna is an entertainment attorney who represents clients both indie and major in 23 countries spanning 6 continents.

At midem 2013, he discussed how to attract anti-360 offers as a band, how to structure mutually beneficial non-traditional deals and more. Watch his session in full here.

Frascogna’s practice, Frascogna Entertainment Law, notably specialises in advising DIY artists. Follow him on Twitter for daily tips.

After a decade of frustration, disruption and false dawns, the future for music currently looks increasingly positive. The industry is fast embracing a range of new services and revenue streams. Recent reports from Norway and Sweden, for instance, where the recorded market is growing for the first time in a decade, suggest there is an incoming new wave of artists, fans and entrepreneurs who do not know life without the internet.

For anyone in their early 20s, accessing music online, using social media or YouTube comes as easily as breathing. It is simply what they’ve grown up with. Whether they interact with music, whether on a laptop, an MP3 player or – increasingly – a smartphone or tablet, is irrelevant. Music in 2013 is everywhere. It is a digital business. Full stop.

For artists and creators, this transition has had huge positives. Certainly, thereare countless innovative and inexpensive tools to help them connect with fans – most of whom are carrying an ‘always-connected’ device in their pocket – and that can enable them to sell music, merchandise and tickets, as well as capture data and help build a valuable mailing list.

However, there are also challenges.

Faced with a fragmented audience, all accessing competing digital platforms on different kinds of devices, it can be difficult for new artists to effectively employ these new tools, while also allowing time for the truly important stuff – i.e. the writing, recording and performing of great music.

For today’s artists, time is a real dilemma.

It’s a hypothetical question, but would The Beatles have been so prodigiously productive (12 studio albums in seven years!) if they’d been hooked on Facebook ‘likes’? Would David Bowie have released four albums in 1977 alone (including two for Iggy Pop) if he’d been obsessed with boosting his Twitter following?

For a handful of acts, fortunate enough to have management or label finances, this might be less of an issue. Many 21^st century superstars, like Rihanna or Lady Gaga, have successfully employed social media as a direct channel to their Navy of fans or legions of Little Monsters.

But for fledgling artists, a balance between marketing and creativity is difficult to strike. Since taking our first steps at midemmab in 2011, it is a challenge that we at Songpier have had to grow up with and comprehend.

Back then, Apple was primed to launch the iPhone 4, while the tablet market was still in its infancy. Two years on and the tablet market is exploding, with fresh competition from Google, Samsung, Amazon and others. The internet economy continues to grow by more than 10% each year, while mobile internet access in the G20 regions is predicted to outreach fixed line access four times over by 2015.

Already, we are seeing more than 15% of e-commerce traffic coming from smartphones and tablets. Whether you are a tech giant like Facebook or an emerging start-up, everyone recognises that the future is mobile.

This is a tough environment for an artist to gain attention. Increasingly, what they demand is simplicity. Rather than spending energy covering every digital base, it makes more sense to have their creative assets held in one place – and to be able to upload a track or event listing once, have that information held centrally, and then have it served to all devices and all screens. Using the potential of HTML5, this is certainly where Songpier is heading.

The business of technology should be solutions-focused, making it easier for artists and fans to find each other. Clearly, we are not there yet, but in 2013 this remains our biggest opportunity and our biggest challenge.

Despite the disruption of the past ten years, it is a fantastic time to be an artist and, as always, the winners will be those who write and perform great music. But artists need time and space to perfect their talents. The most successful will also need help to find their way through the current digital maze and to recognise the trees for the wood.

Matthias Glatschke is CEO & founder of Songpier.

Four Artists was established as a platform to promote concerts of German hip-hop act Die Fantastischen Vier in 1998. Today, the concert agency is one of the leading institutions of its kind in Germany, representing a wide range of artists like SEEED, Fritz Kalkbrenner and many more. We sat down with Alex Richter, a founding member of Four Artists and the agency’s managing director, to talk social and digital media’s role when it comes to concerts, live streams, and the music industry’s future.

midemblog: In what ways are digital and social media influencing your business?

Alex Richter: Music is a very emotional business. Social media allows companies to address consumers in a more individual way than conventional media. Advertising, for example, reaches the target audience in a less focused manner.

> Which tools are the most important?

I’d say mainly: monitoring; efficient content management; and Facebook advertising.

> Can artists be successful without Facebook, Twitter and other social platforms?

As other media tend to lose importance, artists can be at least as successful with Facebook and Twitter, if not more so. These platforms allow direct contact between artists and fans, and let the former spread information on new products, tours and so on immediately.

> How do livestreams affect concerts?

There are several aspects attached to streaming. The attention to the concert can be increased by the medium that broadcasts the stream, the stream itself can become an event, without regional limitations, as the show can be seen nation- or world-wide.

> Are livestreams helping you promote your artists?

Live streams will never replace the feeling of being in the middle of an audience in front of a stage. Streams can only give an impression of the event and, hopefully, create a desire to attend in person next time. However, Four Artists is always open to new technology. A few years ago we organised the first ever 3D concert with Die Fantastischen Vier. The show was recorded in a small venue and broadcasted in cinemas all over Germany.

> How will digital and social media be implemented in future concerts?

Digital and social media primarily provide information. Of course, the social aspect of getting together easily or discussing a happening with other fans should also be considered. A direct response to the artists on how the concert was experienced is interesting as well.

> The revenue model of an artist has fundamentally changed over the years. What is your forecast for this development?

I think that artists will reduce recording expenses by taking over more tasks in the recording process. Record companies will not disappear completely, but will only be relevant for artists of a certain size. Newcomers have the opportunity to promote, market and distribute their music at their own expense.

> What will be the main source of income for an artist?

Touring and live shows, as they cannot be copied.

> How does Four Artists use digital and social media?

Without mentioning names, there are many examples of artists who have a very strong relationship to their fans via Facebook or Twitter. They reach thousands of fans and potential fans within minutes. In some music genres, traditional media like radio and TV has lost its influence completely – fans with high digital affinities use digital media almost exclusively.

> What is next for the music industry?

Possibilities of distributing music will become more diversified. It is therefore very important to respond to the artist’s requirements. The music industry will need to find individual strategies to help promote the artist and his music.

> And for digital and social media?

I guess that the importance of digital and social media will grow continuously, the peak of dissemination, especially in social media has not yet been reached.

This interview was provided by midem partner Hot Dot, a Berlin-based PR and social media agency. As was this guest post, from Tape.tv, and this interview with Universal Germany. Danke Schön!